State of Illinois
92nd General Assembly
Legislation

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92_HB2529

 
                                               LRB9205191SMsb

 1        AN ACT in relation to taxation.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Retailers' Occupation Tax Act is  amended
 5    by changing Section 2a as follows:

 6        (35 ILCS 120/2a) (from Ch. 120, par. 441a)
 7        Sec.  2a.  It is unlawful for any person to engage in the
 8    business of selling tangible personal property at  retail  in
 9    this  State  without  a  certificate of registration from the
10    Department. Application for  a  certificate  of  registration
11    shall  be  made to the Department upon forms furnished by it.
12    Each such application shall be signed and verified and  shall
13    state:  (1)  the  name  and  social  security  number  of the
14    applicant;  (2)  the  address  of  his  principal  place   of
15    business;  (3) the address of the principal place of business
16    from which he engages in the  business  of  selling  tangible
17    personal  property  at retail in this State and the addresses
18    of all other places of business,  if  any  (enumerating  such
19    addresses,  if any, in a separate list attached to and made a
20    part of the  application),  from  which  he  engages  in  the
21    business  of  selling tangible personal property at retail in
22    this State; (4) the name and address of the person or persons
23    who will be responsible for filing  returns  and  payment  of
24    taxes  due  under this Act; (5) in the case of a corporation,
25    the name, title, and social security number of each corporate
26    officer; (6) in the case of a limited liability company,  the
27    name, social security number, and FEIN number of each manager
28    and  member; and (7) such other information as the Department
29    may reasonably require.  The  application  shall  contain  an
30    acceptance  of responsibility signed by the person or persons
31    who will be responsible for filing returns and payment of the
 
                            -2-                LRB9205191SMsb
 1    taxes due  under  this  Act.   If  the  applicant  will  sell
 2    tangible   personal   property   at  retail  through  vending
 3    machines, his application  to  register  shall  indicate  the
 4    number of vending machines to be so operated; and thereafter,
 5    he shall notify the Department by January 31 of the number of
 6    vending  machines which such person was using in his business
 7    of selling  tangible  personal  property  at  retail  on  the
 8    preceding December 31.
 9        The  Department may deny a certificate of registration to
10    any applicant if the  owner,  any  partner,  any  manager  or
11    member of a limited liability company, or a corporate officer
12    of  the  applicant,  is  or  has been the owner, a partner, a
13    manager or member  of  a  limited  liability  company,  or  a
14    corporate officer, of another retailer that is in default for
15    moneys due under this Act.
16        Every   applicant   for  a  certificate  of  registration
17    hereunder shall, at the  time  of  filing  such  application,
18    furnish  a  bond  from  a  surety  company  authorized  to do
19    business in the State of Illinois,  or  an  irrevocable  bank
20    letter  of credit or a bond signed by 2 personal sureties who
21    have filed, with the Department, sworn statements  disclosing
22    net  assets  equal to at least 3 times the amount of the bond
23    to be required of such applicant, or a  bond  secured  by  an
24    assignment  of  a  bank  account  or  certificate of deposit,
25    stocks or bonds, conditioned upon the applicant paying to the
26    State of Illinois all moneys becoming due under this Act  and
27    under  any  other  State  tax  law or municipal or county tax
28    ordinance  or  resolution  under  which  the  certificate  of
29    registration that is issued to the applicant under  this  Act
30    will  permit  the  applicant  to  engage  in business without
31    registering separately under such  other  law,  ordinance  or
32    resolution.  The  Department  shall  fix  the  amount of such
33    security in each case, taking into consideration  the  amount
34    of money expected to become due from the applicant under this
 
                            -3-                LRB9205191SMsb
 1    Act  and under any other State tax law or municipal or county
 2    tax ordinance or resolution under which  the  certificate  of
 3    registration  that  is issued to the applicant under this Act
 4    will permit the  applicant  to  engage  in  business  without
 5    registering  separately  under  such  other law, ordinance or
 6    resolution. The amount of security required by the Department
 7    shall be such as, in its opinion, will protect the  State  of
 8    Illinois  against  failure to pay the amount which may become
 9    due from the applicant under this Act  and  under  any  other
10    State  tax  law  or  municipal  or  county  tax  ordinance or
11    resolution under which the certificate of  registration  that
12    is  issued  to  the  applicant under this Act will permit the
13    applicant  to  engage   in   business   without   registering
14    separately under such other law, ordinance or resolution, but
15    the  amount  of the security required by the Department shall
16    not exceed three times the amount of the applicant's  average
17    monthly  tax  liability,  or  $50,000.00, whichever amount is
18    lower.
19        No certificate of registration under this  Act  shall  be
20    issued  by  the  Department  until the applicant provides the
21    Department with satisfactory security as herein provided for.
22        Upon  receipt  of  the  application  for  certificate  of
23    registration  in  proper  form,  and  upon  approval  by  the
24    Department of the security furnished by  the  applicant,  the
25    Department  shall  issue  to  such applicant a certificate of
26    registration which shall permit the  person  to  whom  it  is
27    issued to engage in the business of selling tangible personal
28    property   at  retail  in  this  State.  The  certificate  of
29    registration shall be conspicuously displayed at the place of
30    business  which  the  person  so  registered  states  in  his
31    application to be the principal place of business from  which
32    he  engages  in  the  business  of  selling tangible personal
33    property at retail in this State.
34        No certificate of registration issued to a  taxpayer  who
 
                            -4-                LRB9205191SMsb
 1    files  returns  required by this Act on a monthly basis shall
 2    be valid after the expiration of 5 years from the date of its
 3    issuance  or  last  renewal.   The  expiration  date   of   a
 4    sub-certificate   of   registration  shall  be  that  of  the
 5    certificate of  registration  to  which  the  sub-certificate
 6    relates.   A  certificate of registration shall automatically
 7    be renewed, subject to revocation as provided  by  this  Act,
 8    for  an  additional  5  years from the date of its expiration
 9    unless otherwise notified by the Department  as  provided  by
10    this  paragraph.   Where  a taxpayer to whom a certificate of
11    registration is issued under this Act is in  default  to  the
12    State  of  Illinois  for delinquent returns or for moneys due
13    under this Act or any other State tax  law  or  municipal  or
14    county  ordinance administered or enforced by the Department,
15    the Department shall, not  less  than  120  days  before  the
16    expiration  date  of  such  certificate of registration, give
17    notice to the taxpayer to whom the certificate was issued  of
18    the  account  period of the delinquent returns, the amount of
19    tax, penalty and interest due and owing  from  the  taxpayer,
20    and  that  the  certificate  of  registration  shall  not  be
21    automatically  renewed  upon  its  expiration date unless the
22    taxpayer, on or before the date of expiration, has filed  and
23    paid  the  delinquent returns or paid the defaulted amount in
24    full.  A taxpayer to whom such a notice is  issued  shall  be
25    deemed  an  applicant  for  renewal.   The  Department  shall
26    promulgate  regulations establishing procedures for taxpayers
27    who file returns on a monthly basis but desire and qualify to
28    change to a quarterly or yearly  filing  basis  and  will  no
29    longer  be  subject  to  renewal  under this Section, and for
30    taxpayers who file returns on a yearly or quarterly basis but
31    who desire or are required to  change  to  a  monthly  filing
32    basis and will be subject to renewal under this Section.
33        The  Department  may in its discretion approve renewal by
34    an applicant who is in default if, at the time of application
 
                            -5-                LRB9205191SMsb
 1    for renewal,  the  applicant  files  all  of  the  delinquent
 2    returns  or  pays  to  the  Department such percentage of the
 3    defaulted amount as may be determined by the  Department  and
 4    agrees   in   writing  to  waive  all  limitations  upon  the
 5    Department for collection of the remaining  defaulted  amount
 6    to  the  Department  over a period not to exceed 5 years from
 7    the date of renewal of the certificate; however,  no  renewal
 8    application submitted by an applicant who is in default shall
 9    be  approved  if  the  immediately  preceding  renewal by the
10    applicant  was  conditioned  upon  the  installment   payment
11    agreement  described  in this Section.  The payment agreement
12    herein provided for shall be in addition to and not  in  lieu
13    of the security required by this Section of a taxpayer who is
14    no  longer considered a prior continuous compliance taxpayer.
15    The execution of the payment agreement as  provided  in  this
16    Act  shall  not toll the accrual of interest at the statutory
17    rate.
18        A certificate of registration issued under this Act  more
19    than 5 years before the effective date of this amendatory Act
20    of 1989 shall expire and be subject to the renewal provisions
21    of  this  Section  on  the  next  anniversary  of the date of
22    issuance of such certificate which occurs more than 6  months
23    after  the  effective date of this amendatory Act of 1989.  A
24    certificate of registration issued less than 5  years  before
25    the  effective  date  of  this  amendatory  Act of 1989 shall
26    expire and be subject  to  the  renewal  provisions  of  this
27    Section  on  the  5th  anniversary  of  the  issuance  of the
28    certificate.
29        If the person so registered states that he operates other
30    places of business from which he engages in the  business  of
31    selling  tangible  personal property at retail in this State,
32    the Department shall furnish him with  a  sub-certificate  of
33    registration  for  each  such  place  of  business,  and  the
34    applicant  shall  display  the appropriate sub-certificate of
 
                            -6-                LRB9205191SMsb
 1    registration  at   each   such   place   of   business.   All
 2    sub-certificates   of   registration   shall  bear  the  same
 3    registration number as that appearing upon the certificate of
 4    registration to which such sub-certificates relate.
 5        If the applicant will sell tangible personal property  at
 6    retail through vending machines, the Department shall furnish
 7    him  with  a  sub-certificate  of  registration for each such
 8    vending  machine,  and  the  applicant  shall   display   the
 9    appropriate  sub-certificate  of  registration  on  each such
10    vending  machine  by   attaching   the   sub-certificate   of
11    registration  to  a conspicuous part of such vending machine.
12    The sub-certificate  of  registration  for  vending  machines
13    selling  only  prepaid  telephone  calling  arrangements,  as
14    defined in Section 2-27, shall contain only an identification
15    number  and  a  telephone  number  for  the  Department.  The
16    Department shall establish a central  information  bureau  to
17    receive   telephone   calls  from  persons  with  complaints,
18    questions, or any other issues  concerning  vending  machines
19    selling  only  prepaid  telephone  calling arrangements.  The
20    Department shall promptly transmit the  information  received
21    in  these  telephone  calls  to  the  proper  retailer.  That
22    retailer shall then,  at  his  or  her  discretion,  directly
23    contact  the  person  who called with a response or provide a
24    response  to  the  caller  by  means  of   the   Department's
25    information bureau.
26        Where  the same person engages in 2 or more businesses of
27    selling tangible personal property at retail in  this  State,
28    which  businesses are substantially different in character or
29    engaged in under different trade names or  engaged  in  under
30    other  substantially  dissimilar circumstances (so that it is
31    more practicable, from an accounting, auditing or bookkeeping
32    standpoint, for such businesses to be separately registered),
33    the Department may require or permit such person (subject  to
34    the  same  requirements concerning the furnishing of security
 
                            -7-                LRB9205191SMsb
 1    as those that are provided for hereinbefore in  this  Section
 2    as  to each application for a certificate of registration) to
 3    apply for and obtain a separate certificate  of  registration
 4    for each such business or for any of such businesses, under a
 5    single  certificate  of  registration supplemented by related
 6    sub-certificates of registration.
 7        Any  person  who  is  registered  under  the  "Retailers'
 8    Occupation Tax Act" as of March 8, 1963, and who, during  the
 9    3-year period immediately prior to March 8, 1963, or during a
10    continuous  3-year  period  part  of which passed immediately
11    before and the remainder of which  passes  immediately  after
12    March 8, 1963, has been so registered continuously and who is
13    determined   by  the  Department  not  to  have  been  either
14    delinquent or deficient  in  the  payment  of  tax  liability
15    during  that  period  under this Act or under any other State
16    tax law or municipal or county tax  ordinance  or  resolution
17    under which the certificate of registration that is issued to
18    the  registrant  under this Act will permit the registrant to
19    engage in business without registering separately under  such
20    other law, ordinance or resolution, shall be considered to be
21    a Prior Continuous Compliance taxpayer. Also any taxpayer who
22    has,   as   verified   by   the  Department,  faithfully  and
23    continuously complied with the condition of his bond or other
24    security under the provisions of this Act for a period  of  3
25    consecutive   years   shall  be  considered  to  be  a  Prior
26    Continuous Compliance taxpayer.
27        Every  Prior  Continuous  Compliance  taxpayer  shall  be
28    exempt from all requirements under this  Act  concerning  the
29    furnishing  of security as a condition precedent to his being
30    authorized to engage in  the  business  of  selling  tangible
31    personal  property  at  retail  in this State. This exemption
32    shall continue for each such taxpayer until such time  as  he
33    may  be  determined by the Department to be delinquent in the
34    filing of any returns, or is  determined  by  the  Department
 
                            -8-                LRB9205191SMsb
 1    (either   through   the  Department's  issuance  of  a  final
 2    assessment which has become final under the Act,  or  by  the
 3    taxpayer's  filing  of  a return which admits tax that is not
 4    paid to be due) to be delinquent or deficient in  the  paying
 5    of any tax under this Act or under any other State tax law or
 6    municipal  or  county tax ordinance or resolution under which
 7    the  certificate  of  registration  that  is  issued  to  the
 8    registrant under this  Act  will  permit  the  registrant  to
 9    engage  in business without registering separately under such
10    other law,  ordinance  or  resolution,  at  which  time  that
11    taxpayer   shall   become   subject   to  all  the  financial
12    responsibility requirements of this Act and, as  a  condition
13    of  being  allowed  to  continue to engage in the business of
14    selling  tangible  personal  property  at  retail,  shall  be
15    required to post bond or other acceptable security  with  the
16    Department   covering   liability  which  such  taxpayer  may
17    thereafter incur. Any taxpayer who fails to pay  an  admitted
18    or  established liability under this Act may also be required
19    to  post  bond  or  other  acceptable  security   with   this
20    Department  guaranteeing  the  payment  of  such  admitted or
21    established liability.
22        No certificate of registration shall  be  issued  to  any
23    person  who is in default to the State of Illinois for moneys
24    due under this Act or  under  any  other  State  tax  law  or
25    municipal  or  county tax ordinance or resolution under which
26    the  certificate  of  registration  that  is  issued  to  the
27    applicant under this Act will permit the applicant to  engage
28    in  business  without registering separately under such other
29    law, ordinance or resolution.
30        Any person aggrieved by any decision  of  the  Department
31    under  this  Section may, within 20 days after notice of such
32    decision,  protest  and  request  a  hearing,  whereupon  the
33    Department shall give notice to such person of the  time  and
34    place  fixed  for  such  hearing  and shall hold a hearing in
 
                            -9-                LRB9205191SMsb
 1    conformity with the provisions of this Act and then issue its
 2    final administrative decision in the matter to  such  person.
 3    In  the  absence  of  such  a  protest  within  20  days, the
 4    Department's decision shall become final without any  further
 5    determination being made or notice given.
 6        With respect to security other than bonds (upon which the
 7    Department  may  sue  in  the  event of a forfeiture), if the
 8    taxpayer fails to pay, when due,  any  amount  whose  payment
 9    such  security  guarantees,  the Department shall, after such
10    liability is admitted by the taxpayer or established  by  the
11    Department  through  the  issuance of a final assessment that
12    has become final under the law, convert  the  security  which
13    that  taxpayer  has furnished into money for the State, after
14    first giving the taxpayer at least 10 days'  written  notice,
15    by  registered  or  certified  mail,  to pay the liability or
16    forfeit such security to  the  Department.  If  the  security
17    consists  of  stocks  or  bonds or other securities which are
18    listed on a public exchange, the Department shall  sell  such
19    securities  through  such  public  exchange.  If the security
20    consists  of  an  irrevocable  bank  letter  of  credit,  the
21    Department shall convert the security in the manner  provided
22    for  in the Uniform Commercial Code. If the security consists
23    of a  bank  certificate  of  deposit,  the  Department  shall
24    convert  the  security into money by demanding and collecting
25    the amount of such bank certificate of deposit from the  bank
26    which  issued such certificate. If the security consists of a
27    type of stocks or other securities which are not listed on  a
28    public  exchange,  the Department shall sell such security to
29    the highest and best bidder after giving at  least  10  days'
30    notice  of  the  date, time and place of the intended sale by
31    publication  in  the  "State  Official  Newspaper".  If   the
32    Department  realizes  more  than the amount of such liability
33    from  the  security,  plus  the  expenses  incurred  by   the
34    Department   in  converting  the  security  into  money,  the
 
                            -10-               LRB9205191SMsb
 1    Department  shall  pay  such  excess  to  the  taxpayer   who
 2    furnished  such  security, and the balance shall be paid into
 3    the State Treasury.
 4        The Department  shall  discharge  any  surety  and  shall
 5    release  and return any security deposited, assigned, pledged
 6    or otherwise provided to it by a taxpayer under this  Section
 7    within 30 days after:
 8             (1)  such   taxpayer   becomes  a  Prior  Continuous
 9        Compliance taxpayer; or
10             (2)  such taxpayer has ceased to collect receipts on
11        which he is required to remit tax to the Department,  has
12        filed  a final tax return, and has paid to the Department
13        an amount  sufficient  to  discharge  his  remaining  tax
14        liability,  as  determined by the Department,  under this
15        Act and under every other State tax law or  municipal  or
16        county  tax  ordinance  or  resolution  under  which  the
17        certificate of registration issued under this Act permits
18        the  registrant to engage in business without registering
19        separately under such other law, ordinance or resolution.
20        The Department shall make a final  determination  of  the
21        taxpayer's  outstanding tax liability as expeditiously as
22        possible after his final tax return has  been  filed;  if
23        the  Department  cannot  make  such  final  determination
24        within  45  days  after  receiving  the final tax return,
25        within such period  it  shall  so  notify  the  taxpayer,
26        stating its reasons therefor.
27    (Source: P.A. 90-491, eff. 1-1-98; 91-357, eff. 7-29-99.)

28        Section  99.   Effective  date.  This Act takes effect on
29    July 1, 2001.

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