State of Illinois
92nd General Assembly
Legislation

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92_SB0984eng

 
SB984 Engrossed                                LRB9208148SMdv

 1        AN ACT regarding taxation.

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

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

 6        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 7        Sec. 6z-18.  A portion of the money paid into  the  Local
 8    Government  Tax Fund from sales of food for human consumption
 9    which is to be consumed off the premises  where  it  is  sold
10    (other  than  alcoholic beverages, soft drinks and food which
11    has been prepared for immediate consumption) and prescription
12    and nonprescription medicines, drugs, medical appliances  and
13    insulin,  urine  testing materials, syringes and needles used
14    by diabetics, which  occurred  in  municipalities,  shall  be
15    distributed  to  each municipality based upon the sales which
16    occurred  in  that  municipality.   The  remainder  shall  be
17    distributed  to  each  county  based  upon  the  sales  which
18    occurred in the unincorporated area of that county.
19        A portion of the money paid into the Local Government Tax
20    Fund from the 6.25% general use tax rate on the selling price
21    of tangible personal  property  which  is  purchased  outside
22    Illinois  at  retail  from  a retailer and which is titled or
23    registered by any agency of this State's government shall  be
24    distributed  to municipalities as provided in this paragraph.
25    Each municipality shall receive the  amount  attributable  to
26    sales   for   which   Illinois   addresses   for  titling  or
27    registration  purposes   are   given   as   being   in   such
28    municipality.  The remainder of the money paid into the Local
29    Government  Tax  Fund from such sales shall be distributed to
30    counties.  Each county shall receive the amount  attributable
31    to   sales  for  which  Illinois  addresses  for  titling  or
 
SB984 Engrossed             -2-                LRB9208148SMdv
 1    registration purposes are  given  as  being  located  in  the
 2    unincorporated area of such county.
 3        A portion of the money paid into the Local Government Tax
 4    Fund from the 6.25% general rate (and, beginning July 1, 2000
 5    and  through  December 31, 2000, the 1.25% rate on motor fuel
 6    and gasohol  and,  beginning  January  1,  2002  and  through
 7    December  31,  2005,  the  1.25%  rate  on  energy  efficient
 8    appliances) on sales subject to taxation under the Retailers'
 9    Occupation  Tax Act and the Service Occupation Tax Act, which
10    occurred in municipalities,  shall  be  distributed  to  each
11    municipality,  based  upon  the  sales which occurred in that
12    municipality. The remainder  shall  be  distributed  to  each
13    county,   based   upon   the  sales  which  occurred  in  the
14    unincorporated area of such county.
15        For the purpose of determining allocation  to  the  local
16    government unit, a retail sale by a producer of coal or other
17    mineral  mined  in  Illinois is a sale at retail at the place
18    where  the  coal  or  other  mineral  mined  in  Illinois  is
19    extracted from the earth.  This paragraph does not  apply  to
20    coal  or other mineral when it is delivered or shipped by the
21    seller to the purchaser at a point outside Illinois  so  that
22    the  sale is exempt under the United States Constitution as a
23    sale in interstate or foreign commerce.
24        Whenever the Department determines that a refund of money
25    paid into the Local Government Tax Fund should be made  to  a
26    claimant   instead   of  issuing  a  credit  memorandum,  the
27    Department shall notify  the  State  Comptroller,  who  shall
28    cause  the order to be drawn for the amount specified, and to
29    the person named, in such notification from  the  Department.
30    Such  refund  shall be paid by the State Treasurer out of the
31    Local Government Tax Fund.
32        On or before the 25th day of  each  calendar  month,  the
33    Department  shall  prepare and certify to the Comptroller the
34    disbursement of stated sums of money to named  municipalities
 
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 1    and  counties,  the  municipalities  and counties to be those
 2    entitled to distribution of taxes or penalties  paid  to  the
 3    Department  during  the  second preceding calendar month. The
 4    amount to be paid to each municipality or county shall be the
 5    amount (not including credit memoranda) collected during  the
 6    second  preceding  calendar  month by the Department and paid
 7    into the Local  Government  Tax  Fund,  plus  an  amount  the
 8    Department  determines  is  necessary  to  offset any amounts
 9    which were erroneously paid to a different taxing  body,  and
10    not  including  an amount equal to the amount of refunds made
11    during the second preceding calendar month by the Department,
12    and not including any amount which the Department  determines
13    is  necessary  to  offset  any amounts which are payable to a
14    different taxing  body  but  were  erroneously  paid  to  the
15    municipality or county.  Within 10 days after receipt, by the
16    Comptroller,   of   the  disbursement  certification  to  the
17    municipalities and counties,  provided for in this Section to
18    be  given  to  the  Comptroller  by   the   Department,   the
19    Comptroller  shall  cause  the  orders  to  be  drawn for the
20    respective  amounts  in  accordance   with   the   directions
21    contained in such certification.
22        When  certifying  the amount of monthly disbursement to a
23    municipality or county under  this  Section,  the  Department
24    shall increase or decrease that amount by an amount necessary
25    to  offset  any  misallocation of previous disbursements. The
26    offset amount  shall  be  the  amount  erroneously  disbursed
27    within  the  6  months  preceding the time a misallocation is
28    discovered.
29        The  provisions  directing  the  distributions  from  the
30    special fund in the  State  Treasury  provided  for  in  this
31    Section   shall  constitute  an  irrevocable  and  continuing
32    appropriation of all amounts as provided  herein.  The  State
33    Treasurer and State Comptroller are hereby authorized to make
34    distributions as provided in this Section.
 
SB984 Engrossed             -4-                LRB9208148SMdv
 1        In construing any development, redevelopment, annexation,
 2    preannexation  or  other  lawful agreement in effect prior to
 3    September 1, 1990, which describes or refers to receipts from
 4    a county or municipal retailers' occupation tax, use  tax  or
 5    service  occupation  tax  which  now  cannot be imposed, such
 6    description or reference  shall  be  deemed  to  include  the
 7    replacement  revenue  for  such  abolished taxes, distributed
 8    from the Local Government Tax Fund.
 9    (Source: P.A.  90-491,  eff.  1-1-98;  91-51,  eff.  6-30-99;
10    91-872, eff. 7-1-00.)

11        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
12        Sec.  6z-20. Of the money received from the 6.25% general
13    rate (and, beginning July 1, 2000 and  through  December  31,
14    2000, the 1.25% rate on motor fuel and gasohol and, beginning
15    January 1, 2002 and through December 31, 2005, the 1.25% rate
16    on  energy efficient appliances) on sales subject to taxation
17    under  the  Retailers'  Occupation  Tax   Act   and   Service
18    Occupation  Tax Act and paid into the County and Mass Transit
19    District Fund, distribution to  the  Regional  Transportation
20    Authority  tax  fund, created pursuant to Section 4.03 of the
21    Regional Transportation Authority Act,  for  deposit  therein
22    shall  be  made  based  upon  the retail sales occurring in a
23    county having more than 3,000,000 inhabitants. The  remainder
24    shall be distributed to each county having 3,000,000 or fewer
25    inhabitants  based  upon  the  retail sales occurring in each
26    such county.
27        For the purpose of determining allocation  to  the  local
28    government unit, a retail sale by a producer of coal or other
29    mineral  mined  in  Illinois is a sale at retail at the place
30    where  the  coal  or  other  mineral  mined  in  Illinois  is
31    extracted from the earth.  This paragraph does not  apply  to
32    coal  or other mineral when it is delivered or shipped by the
33    seller to the purchaser at a point outside Illinois  so  that
 
SB984 Engrossed             -5-                LRB9208148SMdv
 1    the  sale is exempt under the United States Constitution as a
 2    sale in interstate or foreign commerce.
 3        Of the money received from the 6.25% general use tax rate
 4    on tangible personal  property  which  is  purchased  outside
 5    Illinois  at  retail  from  a retailer and which is titled or
 6    registered by any agency of this State's government and  paid
 7    into  the  County  and Mass Transit District Fund, the amount
 8    for which Illinois  addresses  for  titling  or  registration
 9    purposes  are  given as being in each county having more than
10    3,000,000 inhabitants shall be distributed into the  Regional
11    Transportation   Authority  tax  fund,  created  pursuant  to
12    Section 4.03 of the Regional  Transportation  Authority  Act.
13    The  remainder  of  the  money  paid from such sales shall be
14    distributed to each county based on sales for which  Illinois
15    addresses  for  titling or registration purposes are given as
16    being located  in  the  county.   Any  money  paid  into  the
17    Regional  Transportation  Authority  Occupation  and  Use Tax
18    Replacement Fund from the County and  Mass  Transit  District
19    Fund  prior  to  January 14, 1991, which has not been paid to
20    the Authority prior to that date, shall be transferred to the
21    Regional Transportation Authority tax fund.
22        Whenever the Department determines that a refund of money
23    paid into the County and Mass Transit District Fund should be
24    made to a claimant instead of issuing  a  credit  memorandum,
25    the  Department shall notify the State Comptroller, who shall
26    cause the order to be drawn for the amount specified, and  to
27    the  person  named, in such notification from the Department.
28    Such refund shall be paid by the State Treasurer out  of  the
29    County and Mass Transit District Fund.
30        On  or  before  the  25th day of each calendar month, the
31    Department shall prepare and certify to the  Comptroller  the
32    disbursement   of  stated  sums  of  money  to  the  Regional
33    Transportation Authority and to named counties, the  counties
34    to   be   those  entitled  to  distribution,  as  hereinabove
 
SB984 Engrossed             -6-                LRB9208148SMdv
 1    provided, of taxes or penalties paid to the Department during
 2    the second preceding calendar month.  The amount to  be  paid
 3    to  the  Regional  Transportation  Authority  and each county
 4    having 3,000,000 or fewer inhabitants  shall  be  the  amount
 5    (not  including credit memoranda) collected during the second
 6    preceding calendar month by the Department and paid into  the
 7    County  and  Mass  Transit  District Fund, plus an amount the
 8    Department determines is  necessary  to  offset  any  amounts
 9    which  were  erroneously paid to a different taxing body, and
10    not including an amount equal to the amount of  refunds  made
11    during the second preceding calendar month by the Department,
12    and  not including any amount which the Department determines
13    is necessary to offset any amounts which were  payable  to  a
14    different  taxing  body  but  were  erroneously  paid  to the
15    Regional Transportation Authority or county.  Within 10  days
16    after  receipt,  by  the  Comptroller,  of  the  disbursement
17    certification  to  the  Regional Transportation Authority and
18    counties, provided for in this Section to  be  given  to  the
19    Comptroller  by  the  Department, the Comptroller shall cause
20    the  orders  to  be  drawn  for  the  respective  amounts  in
21    accordance   with   the   directions   contained   in    such
22    certification.
23        When  certifying  the amount of a monthly disbursement to
24    the Regional Transportation Authority or to  a  county  under
25    this  Section, the Department shall increase or decrease that
26    amount by an amount necessary to offset any misallocation  of
27    previous  disbursements.   The  offset  amount  shall  be the
28    amount erroneously disbursed within the  6  months  preceding
29    the time a misallocation is discovered.
30        The  provisions  directing  the  distributions  from  the
31    special  fund  in  the  State  Treasury  provided for in this
32    Section and from the Regional  Transportation  Authority  tax
33    fund  created  by Section 4.03 of the Regional Transportation
34    Authority Act shall constitute an irrevocable and  continuing
 
SB984 Engrossed             -7-                LRB9208148SMdv
 1    appropriation  of  all  amounts as provided herein. The State
 2    Treasurer and State Comptroller are hereby authorized to make
 3    distributions as provided in this Section.
 4        In construing any development, redevelopment, annexation,
 5    preannexation or other lawful agreement in  effect  prior  to
 6    September 1, 1990, which describes or refers to receipts from
 7    a  county  or municipal retailers' occupation tax, use tax or
 8    service occupation tax which  now  cannot  be  imposed,  such
 9    description  or  reference  shall  be  deemed  to include the
10    replacement revenue for  such  abolished  taxes,  distributed
11    from  the  County  and  Mass  Transit  District Fund or Local
12    Government Distributive Fund, as the case may be.
13    (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)

14        Section 10.  The Use  Tax  Act  is  amended  by  changing
15    Sections 3-10 and 9 as follows:

16        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
17        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
18    this Section, the tax imposed by this Act is at the  rate  of
19    6.25%  of  either the selling price or the fair market value,
20    if any, of the tangible  personal  property.   In  all  cases
21    where  property  functionally used or consumed is the same as
22    the property that was purchased at retail, then  the  tax  is
23    imposed  on  the selling price of the property.  In all cases
24    where property functionally used or consumed is a  by-product
25    or  waste  product  that  has  been refined, manufactured, or
26    produced from property purchased at retail, then the  tax  is
27    imposed on the lower of the fair market value, if any, of the
28    specific  property  so  used  in this State or on the selling
29    price of the property purchased at retail.  For  purposes  of
30    this  Section  "fair  market  value" means the price at which
31    property would change hands between a  willing  buyer  and  a
32    willing  seller, neither being under any compulsion to buy or
 
SB984 Engrossed             -8-                LRB9208148SMdv
 1    sell and both having reasonable  knowledge  of  the  relevant
 2    facts. The fair market value shall be established by Illinois
 3    sales   by   the  taxpayer  of  the  same  property  as  that
 4    functionally used or consumed, or if there are no such  sales
 5    by  the  taxpayer,  then  comparable  sales  or  purchases of
 6    property of like kind and character in Illinois.
 7        Beginning on July 1, 2000 and through December 31,  2000,
 8    with  respect to motor fuel, as defined in Section 1.1 of the
 9    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
10    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
11        With  respect  to  gasohol,  the  tax imposed by this Act
12    applies to 70% of the proceeds of  sales  made  on  or  after
13    January  1, 1990, and before July 1, 2003, and to 100% of the
14    proceeds of sales made thereafter.
15        Beginning January 1, 2002 and through December 31,  2005,
16    with  respect  to  energy  efficient  appliances,  the tax is
17    imposed at the rate of 1.25%.  "Energy efficient  appliances"
18    are clothes washers, refrigerators, and dishwashers that meet
19    or  exceed  applicable  energy saving efficiency requirements
20    developed by the United States Department of Energy  for  the
21    Energy   Star   Program.    The  Department  of  Revenue,  in
22    consultation  with  manufacturers,  retailers,   and   public
23    interest groups, must develop public information programs and
24    materials  to  identify  and  encourage the sales of products
25    eligible for this tax reduction.
26        With respect to food for human consumption that is to  be
27    consumed  off  the  premises  where  it  is  sold (other than
28    alcoholic beverages, soft drinks,  and  food  that  has  been
29    prepared  for  immediate  consumption)  and  prescription and
30    nonprescription   medicines,   drugs,   medical   appliances,
31    modifications to a motor vehicle for the purpose of rendering
32    it usable by a disabled person, and  insulin,  urine  testing
33    materials, syringes, and needles used by diabetics, for human
34    use,  the  tax is imposed at the rate of 1%. For the purposes
 
SB984 Engrossed             -9-                LRB9208148SMdv
 1    of this Section, the term "soft drinks" means  any  complete,
 2    finished,    ready-to-use,   non-alcoholic   drink,   whether
 3    carbonated or not, including but not limited to  soda  water,
 4    cola, fruit juice, vegetable juice, carbonated water, and all
 5    other  preparations commonly known as soft drinks of whatever
 6    kind or description that  are  contained  in  any  closed  or
 7    sealed bottle, can, carton, or container, regardless of size.
 8    "Soft  drinks"  does  not include coffee, tea, non-carbonated
 9    water, infant formula, milk or milk products  as  defined  in
10    the Grade A Pasteurized Milk and Milk Products Act, or drinks
11    containing 50% or more natural fruit or vegetable juice.
12        Notwithstanding  any  other provisions of this Act, "food
13    for human consumption that is to be consumed off the premises
14    where it is sold" includes all food sold  through  a  vending
15    machine,  except  soft  drinks  and  food  products  that are
16    dispensed hot from  a  vending  machine,  regardless  of  the
17    location of the vending machine.
18        If  the  property  that  is  purchased  at  retail from a
19    retailer  is  acquired  outside  Illinois  and  used  outside
20    Illinois before being brought to Illinois for use here and is
21    taxable under this Act, the "selling price" on which the  tax
22    is  computed  shall be reduced by an amount that represents a
23    reasonable allowance for depreciation for the period of prior
24    out-of-state use.
25    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
26    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

27        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
28        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
29    aircraft, and trailers that are  required  to  be  registered
30    with  an  agency  of  this  State,  each retailer required or
31    authorized to collect the tax imposed by this Act  shall  pay
32    to the Department the amount of such tax (except as otherwise
33    provided)  at the time when he is required to file his return
 
SB984 Engrossed             -10-               LRB9208148SMdv
 1    for the period during which such tax was  collected,  less  a
 2    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
 3    after January 1, 1990, or $5 per calendar year, whichever  is
 4    greater,  which  is  allowed  to  reimburse  the retailer for
 5    expenses incurred in collecting  the  tax,  keeping  records,
 6    preparing and filing returns, remitting the tax and supplying
 7    data  to the Department on request.  In the case of retailers
 8    who report and pay the tax on a  transaction  by  transaction
 9    basis,  as  provided  in this Section, such discount shall be
10    taken with each such tax  remittance  instead  of  when  such
11    retailer  files  his  periodic  return.   A retailer need not
12    remit that part of any tax collected by  him  to  the  extent
13    that  he  is required to remit and does remit the tax imposed
14    by the Retailers' Occupation Tax Act,  with  respect  to  the
15    sale of the same property.
16        Where  such  tangible  personal  property is sold under a
17    conditional sales contract, or under any other form  of  sale
18    wherein  the payment of the principal sum, or a part thereof,
19    is extended beyond the close of  the  period  for  which  the
20    return  is filed, the retailer, in collecting the tax (except
21    as to motor vehicles, watercraft, aircraft, and trailers that
22    are required to be registered with an agency of this  State),
23    may  collect  for  each  tax  return  period,  only  the  tax
24    applicable  to  that  part  of  the  selling  price  actually
25    received during such tax return period.
26        Except  as  provided  in  this  Section, on or before the
27    twentieth day of each calendar  month,  such  retailer  shall
28    file  a return for the preceding calendar month.  Such return
29    shall be filed on forms  prescribed  by  the  Department  and
30    shall   furnish   such  information  as  the  Department  may
31    reasonably require.
32        The Department may require  returns  to  be  filed  on  a
33    quarterly  basis.  If so required, a return for each calendar
34    quarter shall be filed on or before the twentieth day of  the
 
SB984 Engrossed             -11-               LRB9208148SMdv
 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 the business of selling tangible
 9        personal property at retail in this State;
10             3.  The total amount of taxable receipts received by
11        him  during  the  preceding  calendar month from sales of
12        tangible personal property by him during  such  preceding
13        calendar  month,  including receipts from charge and time
14        sales, but less all deductions allowed by law;
15             4.  The amount of credit provided in Section  2d  of
16        this Act;
17             5.  The amount of tax due;
18             5-5.  The signature of the taxpayer; and
19             6.  Such   other   reasonable   information  as  the
20        Department may require.
21        If a taxpayer fails to sign a return within 30 days after
22    the proper notice and demand for signature by the Department,
23    the return shall be considered valid and any amount shown  to
24    be due on the return shall be deemed assessed.
25        Beginning  October 1, 1993, a taxpayer who has an average
26    monthly tax liability of $150,000  or  more  shall  make  all
27    payments  required  by  rules of the Department by electronic
28    funds transfer. Beginning October 1, 1994, a taxpayer who has
29    an average monthly tax liability of $100,000  or  more  shall
30    make  all  payments  required  by  rules of the Department by
31    electronic funds  transfer.  Beginning  October  1,  1995,  a
32    taxpayer  who has an average monthly tax liability of $50,000
33    or more shall make all payments  required  by  rules  of  the
34    Department by electronic funds transfer. Beginning October 1,
 
SB984 Engrossed             -12-               LRB9208148SMdv
 1    2000,  a taxpayer who has an annual tax liability of $200,000
 2    or more shall make all payments  required  by  rules  of  the
 3    Department  by  electronic  funds transfer.  The term "annual
 4    tax liability" shall be the sum of the taxpayer's liabilities
 5    under  this  Act,  and  under  all  other  State  and   local
 6    occupation  and  use tax laws administered by the Department,
 7    for  the  immediately  preceding  calendar  year.  The   term
 8    "average   monthly  tax  liability"  means  the  sum  of  the
 9    taxpayer's liabilities under this Act, and  under  all  other
10    State  and  local occupation and use tax laws administered by
11    the Department, for the immediately preceding  calendar  year
12    divided by 12.
13        Before  August  1  of  each  year  beginning in 1993, the
14    Department  shall  notify  all  taxpayers  required  to  make
15    payments by electronic funds transfer. All taxpayers required
16    to make payments by  electronic  funds  transfer  shall  make
17    those payments for a minimum of one year beginning on October
18    1.
19        Any  taxpayer not required to make payments by electronic
20    funds transfer may make payments by electronic funds transfer
21    with the permission of the Department.
22        All taxpayers required  to  make  payment  by  electronic
23    funds  transfer  and  any taxpayers authorized to voluntarily
24    make payments by electronic funds transfer shall  make  those
25    payments in the manner authorized by the Department.
26        The Department shall adopt such rules as are necessary to
27    effectuate  a  program  of  electronic funds transfer and the
28    requirements of this Section.
29        Before October 1, 2000, if the taxpayer's average monthly
30    tax  liability  to  the  Department  under  this   Act,   the
31    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
32    Act, the Service Use Tax Act was $10,000 or more  during  the
33    preceding  4  complete  calendar  quarters,  he  shall file a
34    return with the Department each month by the 20th day of  the
 
SB984 Engrossed             -13-               LRB9208148SMdv
 1    month   next  following  the  month  during  which  such  tax
 2    liability  is  incurred  and  shall  make  payments  to   the
 3    Department  on  or before the 7th, 15th, 22nd and last day of
 4    the month during which such liability  is  incurred.  On  and
 5    after  October 1, 2000, if the taxpayer's average monthly tax
 6    liability to the Department under this  Act,  the  Retailers'
 7    Occupation  Tax  Act, the Service Occupation Tax Act, and the
 8    Service Use Tax Act was $20,000 or more during the  preceding
 9    4 complete calendar quarters, he shall file a return with the
10    Department  each  month  by  the  20th  day of the month next
11    following the  month  during  which  such  tax  liability  is
12    incurred  and  shall  make  payment  to  the Department on or
13    before the 7th, 15th, 22nd and last day of the  month  during
14    which  such  liability is incurred. If the month during which
15    such tax liability is incurred  began  prior  to  January  1,
16    1985,  each payment shall be in an amount equal to 1/4 of the
17    taxpayer's actual liability for the month or an amount set by
18    the Department not to  exceed  1/4  of  the  average  monthly
19    liability of the taxpayer to the Department for the preceding
20    4  complete calendar quarters (excluding the month of highest
21    liability and the month of lowest liability in such 4 quarter
22    period).  If the month during which  such  tax  liability  is
23    incurred  begins  on  or  after January 1, 1985, and prior to
24    January 1, 1987, each payment shall be in an amount equal  to
25    22.5%  of  the  taxpayer's  actual liability for the month or
26    27.5% of the taxpayer's liability for the same calendar month
27    of the preceding year.  If the month during  which  such  tax
28    liability is incurred begins on or after January 1, 1987, and
29    prior  to January 1, 1988, each payment shall be in an amount
30    equal to 22.5% of the taxpayer's  actual  liability  for  the
31    month  or  26.25%  of  the  taxpayer's liability for the same
32    calendar month of the preceding year.  If  the  month  during
33    which  such  tax  liability  is  incurred  begins on or after
34    January 1, 1988, and prior to January 1, 1989, or  begins  on
 
SB984 Engrossed             -14-               LRB9208148SMdv
 1    or  after January 1, 1996, each payment shall be in an amount
 2    equal to 22.5% of the taxpayer's  actual  liability  for  the
 3    month  or  25%  of  the  taxpayer's  liability  for  the same
 4    calendar month of the preceding year.  If  the  month  during
 5    which  such  tax  liability  is  incurred  begins on or after
 6    January 1, 1989, and prior to January 1, 1996,  each  payment
 7    shall be in an amount equal to 22.5% of the taxpayer's actual
 8    liability  for  the  month or 25% of the taxpayer's liability
 9    for the same calendar month of the preceding year or 100%  of
10    the  taxpayer's  actual  liability  for  the  quarter monthly
11    reporting  period.   The  amount  of  such  quarter   monthly
12    payments shall be credited against the final tax liability of
13    the  taxpayer's  return  for  that  month.  Before October 1,
14    2000, once applicable,  the  requirement  of  the  making  of
15    quarter  monthly  payments  to  the Department shall continue
16    until  such  taxpayer's  average  monthly  liability  to  the
17    Department during the preceding 4 complete calendar  quarters
18    (excluding  the  month  of highest liability and the month of
19    lowest  liability)  is  less  than  $9,000,  or  until   such
20    taxpayer's  average  monthly  liability  to the Department as
21    computed  for  each  calendar  quarter  of  the  4  preceding
22    complete  calendar  quarter  period  is  less  than  $10,000.
23    However, if  a  taxpayer  can  show  the  Department  that  a
24    substantial  change  in  the taxpayer's business has occurred
25    which causes the taxpayer  to  anticipate  that  his  average
26    monthly  tax  liability for the reasonably foreseeable future
27    will fall below the $10,000 threshold stated above, then such
28    taxpayer may petition  the  Department  for  change  in  such
29    taxpayer's  reporting  status.  On and after October 1, 2000,
30    once applicable, the requirement of  the  making  of  quarter
31    monthly  payments to the Department shall continue until such
32    taxpayer's average monthly liability to the Department during
33    the preceding 4 complete  calendar  quarters  (excluding  the
34    month of highest liability and the month of lowest liability)
 
SB984 Engrossed             -15-               LRB9208148SMdv
 1    is less than $19,000 or until such taxpayer's average monthly
 2    liability  to  the  Department  as computed for each calendar
 3    quarter of the 4 preceding complete calendar  quarter  period
 4    is  less  than  $20,000.  However, if a taxpayer can show the
 5    Department  that  a  substantial  change  in  the  taxpayer's
 6    business has occurred which causes the taxpayer to anticipate
 7    that his average monthly tax  liability  for  the  reasonably
 8    foreseeable  future  will  fall  below  the $20,000 threshold
 9    stated above, then such taxpayer may petition the  Department
10    for  a  change  in  such  taxpayer's  reporting  status.  The
11    Department shall  change  such  taxpayer's  reporting  status
12    unless  it  finds  that such change is seasonal in nature and
13    not likely to be long  term.  If  any  such  quarter  monthly
14    payment  is not paid at the time or in the amount required by
15    this Section, then the taxpayer shall be liable for penalties
16    and interest on the difference between the minimum amount due
17    and the amount of such quarter monthly payment  actually  and
18    timely  paid,  except  insofar as the taxpayer has previously
19    made payments for that month to the Department in  excess  of
20    the  minimum  payments  previously  due  as  provided in this
21    Section.  The Department  shall  make  reasonable  rules  and
22    regulations  to govern the quarter monthly payment amount and
23    quarter monthly payment dates for taxpayers who file on other
24    than a calendar monthly basis.
25        If any such payment provided for in this Section  exceeds
26    the  taxpayer's  liabilities  under  this Act, the Retailers'
27    Occupation Tax Act, the Service Occupation Tax  Act  and  the
28    Service  Use Tax Act, as shown by an original monthly return,
29    the  Department  shall  issue  to  the  taxpayer   a   credit
30    memorandum  no  later than 30 days after the date of payment,
31    which memorandum may be submitted  by  the  taxpayer  to  the
32    Department  in  payment  of  tax liability subsequently to be
33    remitted by the taxpayer to the Department or be assigned  by
34    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
 
SB984 Engrossed             -16-               LRB9208148SMdv
 1    Retailers' Occupation Tax Act, the Service Occupation Tax Act
 2    or the Service Use Tax Act,  in  accordance  with  reasonable
 3    rules  and  regulations  to  be prescribed by the Department,
 4    except that if such excess payment is shown  on  an  original
 5    monthly return and is made after December 31, 1986, no credit
 6    memorandum shall be issued, unless requested by the taxpayer.
 7    If  no  such  request  is  made, the taxpayer may credit such
 8    excess payment  against  tax  liability  subsequently  to  be
 9    remitted  by  the  taxpayer to the Department under this Act,
10    the Retailers' Occupation Tax Act, the Service Occupation Tax
11    Act or the Service Use Tax Act, in accordance with reasonable
12    rules and regulations prescribed by the Department.   If  the
13    Department  subsequently  determines  that all or any part of
14    the credit taken was not actually due to  the  taxpayer,  the
15    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
16    by 2.1% or 1.75% of the difference between the  credit  taken
17    and  that  actually due, and the taxpayer shall be liable for
18    penalties and interest on such difference.
19        If the retailer is otherwise required to file  a  monthly
20    return and if the retailer's average monthly tax liability to
21    the  Department  does  not  exceed  $200,  the Department may
22    authorize his returns to be filed on a quarter annual  basis,
23    with  the  return for January, February, and March of a given
24    year being due by April 20 of such year; with the return  for
25    April,  May  and June of a given year being due by July 20 of
26    such year; with the return for July, August and September  of
27    a  given  year being due by October 20 of such year, and with
28    the return for October, November and December of a given year
29    being due by January 20 of the following year.
30        If the retailer is otherwise required to file  a  monthly
31    or quarterly return and if the retailer's average monthly tax
32    liability   to  the  Department  does  not  exceed  $50,  the
33    Department may authorize his returns to be filed on an annual
34    basis, with the return for a given year being due by  January
 
SB984 Engrossed             -17-               LRB9208148SMdv
 1    20 of the following year.
 2        Such  quarter  annual  and annual returns, as to form and
 3    substance, shall be  subject  to  the  same  requirements  as
 4    monthly returns.
 5        Notwithstanding   any   other   provision   in  this  Act
 6    concerning the time within which  a  retailer  may  file  his
 7    return, in the case of any retailer who ceases to engage in a
 8    kind  of  business  which  makes  him  responsible for filing
 9    returns under this Act, such  retailer  shall  file  a  final
10    return  under  this Act with the Department not more than one
11    month after discontinuing such business.
12        In addition, with respect to motor vehicles,  watercraft,
13    aircraft,  and  trailers  that  are required to be registered
14    with an agency of this State,  every  retailer  selling  this
15    kind  of  tangible  personal  property  shall  file, with the
16    Department, upon a form to be prescribed and supplied by  the
17    Department,  a separate return for each such item of tangible
18    personal property which the retailer sells, except  that  if,
19    in   the  same  transaction,  (i)  a  retailer  of  aircraft,
20    watercraft, motor vehicles or trailers  transfers  more  than
21    one aircraft, watercraft, motor vehicle or trailer to another
22    aircraft,  watercraft,  motor vehicle or trailer retailer for
23    the purpose  of  resale  or  (ii)  a  retailer  of  aircraft,
24    watercraft,  motor  vehicles, or trailers transfers more than
25    one aircraft, watercraft, motor  vehicle,  or  trailer  to  a
26    purchaser  for  use as a qualifying rolling stock as provided
27    in Section 3-55 of this Act, then that seller may report  the
28    transfer  of  all the aircraft, watercraft, motor vehicles or
29    trailers involved in that transaction to  the  Department  on
30    the  same  uniform invoice-transaction reporting return form.
31    For purposes of this Section, "watercraft" means a  Class  2,
32    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
33    the Boat Registration and Safety Act, a personal  watercraft,
34    or any boat equipped with an inboard motor.
 
SB984 Engrossed             -18-               LRB9208148SMdv
 1        The  transaction  reporting  return  in the case of motor
 2    vehicles or trailers that are required to be registered  with
 3    an  agency  of  this State, shall be the same document as the
 4    Uniform Invoice referred to in Section 5-402 of the  Illinois
 5    Vehicle  Code  and  must  show  the  name  and address of the
 6    seller; the name and address of the purchaser; the amount  of
 7    the  selling  price  including  the  amount  allowed  by  the
 8    retailer  for  traded-in property, if any; the amount allowed
 9    by the retailer for the traded-in tangible personal property,
10    if any, to the extent to which Section 2 of this  Act  allows
11    an exemption for the value of traded-in property; the balance
12    payable  after  deducting  such  trade-in  allowance from the
13    total selling price; the amount of tax due from the  retailer
14    with respect to such transaction; the amount of tax collected
15    from  the  purchaser  by the retailer on such transaction (or
16    satisfactory evidence that  such  tax  is  not  due  in  that
17    particular  instance, if that is claimed to be the fact); the
18    place and date of the sale; a  sufficient  identification  of
19    the  property  sold; such other information as is required in
20    Section 5-402 of the Illinois Vehicle Code,  and  such  other
21    information as the Department may reasonably require.
22        The   transaction   reporting   return  in  the  case  of
23    watercraft and aircraft must show the name and address of the
24    seller; the name and address of the purchaser; the amount  of
25    the  selling  price  including  the  amount  allowed  by  the
26    retailer  for  traded-in property, if any; the amount allowed
27    by the retailer for the traded-in tangible personal property,
28    if any, to the extent to which Section 2 of this  Act  allows
29    an exemption for the value of traded-in property; the balance
30    payable  after  deducting  such  trade-in  allowance from the
31    total selling price; the amount of tax due from the  retailer
32    with respect to such transaction; the amount of tax collected
33    from  the  purchaser  by the retailer on such transaction (or
34    satisfactory evidence that  such  tax  is  not  due  in  that
 
SB984 Engrossed             -19-               LRB9208148SMdv
 1    particular  instance, if that is claimed to be the fact); the
 2    place and date of the sale, a  sufficient  identification  of
 3    the   property  sold,  and  such  other  information  as  the
 4    Department may reasonably require.
 5        Such transaction reporting  return  shall  be  filed  not
 6    later  than  20  days  after the date of delivery of the item
 7    that is being sold, but may be filed by the retailer  at  any
 8    time   sooner  than  that  if  he  chooses  to  do  so.   The
 9    transaction reporting return and tax remittance or  proof  of
10    exemption  from  the  tax  that is imposed by this Act may be
11    transmitted to the Department by way of the State agency with
12    which, or State officer  with  whom,  the  tangible  personal
13    property   must  be  titled  or  registered  (if  titling  or
14    registration is required) if the Department and  such  agency
15    or  State officer determine that this procedure will expedite
16    the processing of applications for title or registration.
17        With each such transaction reporting return, the retailer
18    shall remit the proper amount of tax  due  (or  shall  submit
19    satisfactory evidence that the sale is not taxable if that is
20    the  case),  to  the  Department or its agents, whereupon the
21    Department shall  issue,  in  the  purchaser's  name,  a  tax
22    receipt  (or  a certificate of exemption if the Department is
23    satisfied that the particular sale is tax exempt) which  such
24    purchaser  may  submit  to  the  agency  with which, or State
25    officer with whom, he must title  or  register  the  tangible
26    personal   property   that   is   involved   (if  titling  or
27    registration is required)  in  support  of  such  purchaser's
28    application  for an Illinois certificate or other evidence of
29    title or registration to such tangible personal property.
30        No retailer's failure or refusal to remit tax under  this
31    Act  precludes  a  user,  who  has paid the proper tax to the
32    retailer, from obtaining his certificate of  title  or  other
33    evidence of title or registration (if titling or registration
34    is  required)  upon  satisfying the Department that such user
 
SB984 Engrossed             -20-               LRB9208148SMdv
 1    has paid the proper tax (if tax is due) to the retailer.  The
 2    Department shall adopt appropriate rules  to  carry  out  the
 3    mandate of this paragraph.
 4        If  the  user who would otherwise pay tax to the retailer
 5    wants the transaction reporting return filed and the  payment
 6    of  tax  or  proof of exemption made to the Department before
 7    the retailer is willing to take these actions and  such  user
 8    has  not  paid the tax to the retailer, such user may certify
 9    to the fact of such delay by the retailer, and may (upon  the
10    Department   being   satisfied   of   the   truth   of   such
11    certification)  transmit  the  information  required  by  the
12    transaction  reporting  return  and the remittance for tax or
13    proof of exemption directly to the Department and obtain  his
14    tax  receipt  or  exemption determination, in which event the
15    transaction reporting return and tax  remittance  (if  a  tax
16    payment  was required) shall be credited by the Department to
17    the  proper  retailer's  account  with  the  Department,  but
18    without the 2.1% or  1.75%  discount  provided  for  in  this
19    Section  being  allowed.  When the user pays the tax directly
20    to the Department, he shall pay the tax in  the  same  amount
21    and in the same form in which it would be remitted if the tax
22    had been remitted to the Department by the retailer.
23        Where  a  retailer  collects  the tax with respect to the
24    selling price of tangible personal property  which  he  sells
25    and  the  purchaser thereafter returns such tangible personal
26    property and the retailer refunds the selling  price  thereof
27    to  the  purchaser,  such  retailer shall also refund, to the
28    purchaser, the tax so  collected  from  the  purchaser.  When
29    filing his return for the period in which he refunds such tax
30    to  the  purchaser, the retailer may deduct the amount of the
31    tax so refunded by him to the purchaser from  any  other  use
32    tax  which  such  retailer may be required to pay or remit to
33    the Department, as shown by such return, if the amount of the
34    tax to be deducted was previously remitted to the  Department
 
SB984 Engrossed             -21-               LRB9208148SMdv
 1    by  such  retailer.   If  the  retailer  has  not  previously
 2    remitted  the  amount  of  such  tax to the Department, he is
 3    entitled to no deduction under this Act upon  refunding  such
 4    tax to the purchaser.
 5        Any  retailer  filing  a  return under this Section shall
 6    also include (for the purpose  of  paying  tax  thereon)  the
 7    total  tax  covered  by such return upon the selling price of
 8    tangible personal property purchased by him at retail from  a
 9    retailer, but as to which the tax imposed by this Act was not
10    collected  from  the  retailer  filing  such return, and such
11    retailer shall remit the amount of such tax to the Department
12    when filing such return.
13        If experience indicates such action  to  be  practicable,
14    the  Department  may  prescribe  and furnish a combination or
15    joint return which will enable retailers, who are required to
16    file  returns  hereunder  and  also  under   the   Retailers'
17    Occupation  Tax  Act,  to  furnish all the return information
18    required by both Acts on the one form.
19        Where the retailer has more than one business  registered
20    with  the  Department  under separate registration under this
21    Act, such retailer may not file each return that is due as  a
22    single  return  covering  all such registered businesses, but
23    shall  file  separate  returns  for  each   such   registered
24    business.
25        Beginning  January  1,  1990,  each  month the Department
26    shall pay into the State and Local Sales Tax Reform  Fund,  a
27    special  fund  in the State Treasury which is hereby created,
28    the net revenue realized for the preceding month from the  1%
29    tax  on  sales  of  food for human consumption which is to be
30    consumed off the  premises  where  it  is  sold  (other  than
31    alcoholic  beverages,  soft  drinks  and  food which has been
32    prepared for  immediate  consumption)  and  prescription  and
33    nonprescription  medicines,  drugs,  medical  appliances  and
34    insulin,  urine  testing materials, syringes and needles used
 
SB984 Engrossed             -22-               LRB9208148SMdv
 1    by diabetics.
 2        Beginning January 1,  1990,  each  month  the  Department
 3    shall  pay  into the County and Mass Transit District Fund 4%
 4    of the net revenue realized for the preceding month from  the
 5    6.25%  general rate on the selling price of tangible personal
 6    property which is purchased outside Illinois at retail from a
 7    retailer and which is titled or registered by  an  agency  of
 8    this State's government.
 9        Beginning  January  1,  1990,  each  month the Department
10    shall pay into the State and Local Sales Tax Reform  Fund,  a
11    special  fund  in  the State Treasury, 20% of the net revenue
12    realized for the preceding month from the 6.25% general  rate
13    on  the  selling  price  of tangible personal property, other
14    than tangible personal property which  is  purchased  outside
15    Illinois  at  retail  from  a retailer and which is titled or
16    registered by an agency of this State's government.
17        Beginning August 1, 2000, each month the Department shall
18    pay into the State and Local Sales Tax Reform  Fund  100%  of
19    the  net  revenue  realized  for the preceding month from the
20    1.25% rate on the selling price of motor fuel and gasohol.
21        Beginning February 1, 2002,  each  month  the  Department
22    shall pay into the State and Local Sales Tax Reform Fund 100%
23    of  the net revenue realized for the preceding month from the
24    1.25%  rate  on  the  selling  price  of   energy   efficient
25    appliances.
26        Beginning  January  1,  1990,  each  month the Department
27    shall pay into the Local Government Tax Fund 16% 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 which is purchased outside Illinois at retail from a
31    retailer  and  which  is titled or registered by an agency of
32    this State's government.
33        Of the remainder of the moneys received by the Department
34    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
 
SB984 Engrossed             -23-               LRB9208148SMdv
 1    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
 2    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
 3    into  the  Build Illinois Fund; provided, however, that if in
 4    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 5    as the case may be, of the moneys received by the  Department
 6    and required to be paid into the Build Illinois Fund pursuant
 7    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 8    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 9    Section 9 of the Service Occupation Tax Act, such Acts  being
10    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
11    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
12    called  the  "Tax Act Amount", and (2) the amount transferred
13    to the Build Illinois Fund from the State and Local Sales Tax
14    Reform Fund shall be less than the  Annual  Specified  Amount
15    (as  defined  in  Section  3 of the Retailers' Occupation Tax
16    Act), an amount equal to the difference shall be  immediately
17    paid  into the Build Illinois Fund from other moneys received
18    by the Department pursuant  to  the  Tax  Acts;  and  further
19    provided,  that  if on the last business day of any month the
20    sum of (1) the Tax Act Amount required to be  deposited  into
21    the  Build  Illinois  Bond Account in the Build Illinois Fund
22    during such month and (2) the amount transferred during  such
23    month  to  the  Build  Illinois Fund from the State and Local
24    Sales Tax Reform Fund shall have been less than 1/12  of  the
25    Annual  Specified  Amount,  an amount equal to the difference
26    shall be immediately paid into the Build Illinois  Fund  from
27    other  moneys  received by the Department pursuant to the Tax
28    Acts; and, further provided,  that  in  no  event  shall  the
29    payments  required  under  the  preceding  proviso  result in
30    aggregate payments into the Build Illinois Fund  pursuant  to
31    this  clause (b) for any fiscal year in excess of the greater
32    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
33    for such fiscal year; and, further provided, that the amounts
34    payable into the Build Illinois Fund under  this  clause  (b)
 
SB984 Engrossed             -24-               LRB9208148SMdv
 1    shall be payable only until such time as the aggregate amount
 2    on  deposit  under each trust indenture securing Bonds issued
 3    and outstanding pursuant to the Build Illinois  Bond  Act  is
 4    sufficient, taking into account any future investment income,
 5    to  fully provide, in accordance with such indenture, for the
 6    defeasance of or the payment of the principal of, premium, if
 7    any, and interest on the Bonds secured by such indenture  and
 8    on  any  Bonds  expected to be issued thereafter and all fees
 9    and costs payable with respect thereto, all as  certified  by
10    the  Director  of  the  Bureau of the Budget.  If on the last
11    business day of any month  in  which  Bonds  are  outstanding
12    pursuant to the Build Illinois Bond Act, the aggregate of the
13    moneys  deposited  in  the Build Illinois Bond Account in the
14    Build Illinois Fund in such month  shall  be  less  than  the
15    amount  required  to  be  transferred  in such month from the
16    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
17    Retirement  and  Interest  Fund pursuant to Section 13 of the
18    Build Illinois Bond Act, an amount equal to  such  deficiency
19    shall  be  immediately paid from other moneys received by the
20    Department pursuant to the Tax Acts  to  the  Build  Illinois
21    Fund;  provided,  however, that any amounts paid to the Build
22    Illinois Fund in any fiscal year pursuant  to  this  sentence
23    shall be deemed to constitute payments pursuant to clause (b)
24    of  the  preceding  sentence  and  shall  reduce  the  amount
25    otherwise payable for such fiscal year pursuant to clause (b)
26    of  the  preceding  sentence.   The  moneys  received  by the
27    Department pursuant to this Act and required to be  deposited
28    into the Build Illinois Fund are subject to the pledge, claim
29    and charge set forth in Section 12 of the Build Illinois Bond
30    Act.
31        Subject  to  payment  of  amounts into the Build Illinois
32    Fund as  provided  in  the  preceding  paragraph  or  in  any
33    amendment  thereto hereafter enacted, the following specified
34    monthly  installment  of  the   amount   requested   in   the
 
SB984 Engrossed             -25-               LRB9208148SMdv
 1    certificate  of  the  Chairman  of  the Metropolitan Pier and
 2    Exposition Authority provided  under  Section  8.25f  of  the
 3    State  Finance  Act, but not in excess of the sums designated
 4    as "Total Deposit", shall be deposited in the aggregate  from
 5    collections  under Section 9 of the Use Tax Act, Section 9 of
 6    the Service Use Tax Act, Section 9 of the Service  Occupation
 7    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 8    into the  McCormick  Place  Expansion  Project  Fund  in  the
 9    specified fiscal years.
10             Fiscal Year                   Total Deposit
11                 1993                            $0
12                 1994                        53,000,000
13                 1995                        58,000,000
14                 1996                        61,000,000
15                 1997                        64,000,000
16                 1998                        68,000,000
17                 1999                        71,000,000
18                 2000                        75,000,000
19                 2001                        80,000,000
20                 2002                        84,000,000
21                 2003                        89,000,000
22                 2004                        93,000,000
23                 2005                        97,000,000
24                 2006                       102,000,000
25                 2007                       108,000,000
26                 2008                       115,000,000
27                 2009                       120,000,000
28                 2010                       126,000,000
29                 2011                       132,000,000
30                 2012                       138,000,000
31                 2013 and                   145,000,000
32        each fiscal year
33        thereafter that bonds
34        are outstanding under
 
SB984 Engrossed             -26-               LRB9208148SMdv
 1        Section 13.2 of the
 2        Metropolitan Pier and
 3        Exposition Authority
 4        Act, but not after fiscal year 2029.
 5        Beginning  July 20, 1993 and in each month of each fiscal
 6    year thereafter, one-eighth of the amount  requested  in  the
 7    certificate  of  the  Chairman  of  the Metropolitan Pier and
 8    Exposition Authority for that fiscal year,  less  the  amount
 9    deposited  into the McCormick Place Expansion Project Fund by
10    the State Treasurer in the respective month under  subsection
11    (g)  of  Section  13  of the Metropolitan Pier and Exposition
12    Authority Act, plus cumulative deficiencies in  the  deposits
13    required  under  this  Section for previous months and years,
14    shall be deposited into the McCormick Place Expansion Project
15    Fund, until the full amount requested for  the  fiscal  year,
16    but  not  in  excess  of the amount specified above as "Total
17    Deposit", has been deposited.
18        Subject to payment of amounts  into  the  Build  Illinois
19    Fund  and the McCormick Place Expansion Project Fund pursuant
20    to the preceding  paragraphs  or  in  any  amendment  thereto
21    hereafter  enacted,  each month the Department shall pay into
22    the Local Government Distributive Fund .4% of the net revenue
23    realized for the preceding month from the 5% general rate, or
24    .4% of 80% of the net  revenue  realized  for  the  preceding
25    month from the 6.25% general rate, as the case may be, on the
26    selling  price  of  tangible  personal  property which amount
27    shall, subject to appropriation, be distributed  as  provided
28    in Section 2 of the State Revenue Sharing Act. No payments or
29    distributions pursuant to this paragraph shall be made if the
30    tax  imposed  by  this  Act  on  photoprocessing  products is
31    declared unconstitutional, or if the proceeds from  such  tax
32    are unavailable for distribution because of litigation.
33        Subject  to  payment  of  amounts into the Build Illinois
34    Fund, the McCormick Place Expansion  Project  Fund,  and  the
 
SB984 Engrossed             -27-               LRB9208148SMdv
 1    Local  Government Distributive Fund pursuant to the preceding
 2    paragraphs or in any amendments  thereto  hereafter  enacted,
 3    beginning  July  1, 1993, the Department shall each month pay
 4    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 5    revenue  realized  for  the  preceding  month  from the 6.25%
 6    general rate  on  the  selling  price  of  tangible  personal
 7    property.
 8        Of the remainder of the moneys received by the Department
 9    pursuant  to  this  Act,  75%  thereof shall be paid into the
10    State Treasury and 25% shall be reserved in a special account
11    and used only for the transfer to the Common School  Fund  as
12    part of the monthly transfer from the General Revenue Fund in
13    accordance with Section 8a of the State Finance Act.
14        As  soon  as  possible after the first day of each month,
15    upon  certification  of  the  Department  of   Revenue,   the
16    Comptroller  shall  order transferred and the Treasurer shall
17    transfer from the General Revenue Fund to the Motor Fuel  Tax
18    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
19    realized under this  Act  for  the  second  preceding  month.
20    Beginning  April 1, 2000, this transfer is no longer required
21    and shall not be made.
22        Net revenue realized for a month  shall  be  the  revenue
23    collected  by the State pursuant to this Act, less the amount
24    paid out during  that  month  as  refunds  to  taxpayers  for
25    overpayment of liability.
26        For  greater simplicity of administration, manufacturers,
27    importers and wholesalers whose products are sold  at  retail
28    in Illinois by numerous retailers, and who wish to do so, may
29    assume  the  responsibility  for accounting and paying to the
30    Department all tax accruing under this Act  with  respect  to
31    such  sales,  if  the  retailers who are affected do not make
32    written objection to the Department to this arrangement.
33    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
34    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
 
SB984 Engrossed             -28-               LRB9208148SMdv
 1    7-12-99;  91-541,  eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
 2    eff. 1-1-01; revised 8-30-00.)

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

 5        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
 6        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
 7    this Section, the tax imposed by this Act is at the  rate  of
 8    6.25%  of  the  selling  price  of tangible personal property
 9    transferred as an incident to the sale of service,  but,  for
10    the  purpose  of  computing  this  tax, in no event shall the
11    selling price be less than the cost price of the property  to
12    the serviceman.
13        Beginning  on July 1, 2000 and through December 31, 2000,
14    with respect to motor fuel, as defined in Section 1.1 of  the
15    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
16    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
17        With respect to gasohol, as defined in the Use  Tax  Act,
18    the  tax  imposed  by  this Act applies to 70% of the selling
19    price of property transferred as an incident to the  sale  of
20    service on or after January 1, 1990, and before July 1, 2003,
21    and to 100% of the selling price thereafter.
22        Beginning  January 1, 2002 and through December 31, 2005,
23    with respect to  energy  efficient  appliances,  the  tax  is
24    imposed  at the rate of 1.25%.  "Energy efficient appliances"
25    are clothes washers, refrigerators, and dishwashers that meet
26    or exceed applicable energy  saving  efficiency  requirements
27    developed  by  the United States Department of Energy for the
28    Energy  Star  Program.   The  Department   of   Revenue,   in
29    consultation   with   manufacturers,  retailers,  and  public
30    interest groups, must develop public information programs and
31    materials to identify and encourage  the  sales  of  products
32    eligible for this tax reduction.
 
SB984 Engrossed             -29-               LRB9208148SMdv
 1        At  the  election  of  any registered serviceman made for
 2    each fiscal year, sales of service  in  which  the  aggregate
 3    annual  cost  price of tangible personal property transferred
 4    as an incident to the sales of service is less than  35%,  or
 5    75% in the case of servicemen transferring prescription drugs
 6    or  servicemen  engaged  in  graphic  arts production, of the
 7    aggregate annual total  gross  receipts  from  all  sales  of
 8    service,  the  tax  imposed by this Act shall be based on the
 9    serviceman's cost price of  the  tangible  personal  property
10    transferred as an incident to the sale of those services.
11        The  tax  shall  be  imposed  at  the  rate of 1% on food
12    prepared for immediate consumption and  transferred  incident
13    to  a  sale  of  service  subject  to this Act or the Service
14    Occupation Tax Act by an entity licensed under  the  Hospital
15    Licensing  Act,  the Nursing Home Care Act, or the Child Care
16    Act of 1969.  The tax shall also be imposed at the rate of 1%
17    on food for human consumption that is to be consumed off  the
18    premises  where  it  is sold (other than alcoholic beverages,
19    soft drinks, and food that has been  prepared  for  immediate
20    consumption  and is not otherwise included in this paragraph)
21    and  prescription  and  nonprescription   medicines,   drugs,
22    medical  appliances, modifications to a motor vehicle for the
23    purpose of rendering it usable  by  a  disabled  person,  and
24    insulin,  urine testing materials, syringes, and needles used
25    by diabetics,  for  human  use.  For  the  purposes  of  this
26    Section, the term "soft drinks" means any complete, finished,
27    ready-to-use, non-alcoholic drink, whether carbonated or not,
28    including  but  not limited to soda water, cola, fruit juice,
29    vegetable juice, carbonated water, and all other preparations
30    commonly known as soft drinks of whatever kind or description
31    that are contained in  any  closed  or  sealed  bottle,  can,
32    carton, or container, regardless of size.  "Soft drinks" does
33    not   include   coffee,  tea,  non-carbonated  water,  infant
34    formula, milk or milk products as  defined  in  the  Grade  A
 
SB984 Engrossed             -30-               LRB9208148SMdv
 1    Pasteurized  Milk and Milk Products Act, or drinks containing
 2    50% or more natural fruit or vegetable juice.
 3        Notwithstanding any other provisions of this  Act,  "food
 4    for human consumption that is to be consumed off the premises
 5    where  it  is  sold" includes all food sold through a vending
 6    machine, except  soft  drinks  and  food  products  that  are
 7    dispensed  hot  from  a  vending  machine,  regardless of the
 8    location of the vending machine.
 9        If the property that is acquired  from  a  serviceman  is
10    acquired  outside  Illinois  and used outside Illinois before
11    being brought to Illinois for use here and is  taxable  under
12    this  Act,  the  "selling price" on which the tax is computed
13    shall be reduced by an amount that  represents  a  reasonable
14    allowance   for   depreciation   for   the  period  of  prior
15    out-of-state use.
16    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
17    91-51,  eff.  6-30-99;  91-541,  eff.  8-13-99;  91-872, eff.
18    7-1-00.)

19        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
20        Sec.  9.  Each  serviceman  required  or  authorized   to
21    collect  the  tax  herein imposed shall pay to the Department
22    the amount of such tax (except as otherwise provided) at  the
23    time  when  he  is required to file his return for the period
24    during which such tax was collected, less a discount of  2.1%
25    prior  to  January  1, 1990 and 1.75% on and after January 1,
26    1990, or $5 per calendar year, whichever is greater, which is
27    allowed to reimburse the serviceman for expenses incurred  in
28    collecting  the  tax,  keeping  records, preparing and filing
29    returns,  remitting  the  tax  and  supplying  data  to   the
30    Department  on request. A serviceman need not remit that part
31    of any tax collected by him to the extent that he is required
32    to pay and does pay the tax imposed by the Service Occupation
33    Tax Act with respect to his sale  of  service  involving  the
 
SB984 Engrossed             -31-               LRB9208148SMdv
 1    incidental transfer by him of the same property.
 2        Except  as  provided  hereinafter  in this Section, on or
 3    before  the  twentieth  day  of  each  calendar  month,  such
 4    serviceman shall file a return  for  the  preceding  calendar
 5    month  in accordance with reasonable Rules and Regulations to
 6    be promulgated by the Department. Such return shall be  filed
 7    on a form prescribed by the Department and shall contain such
 8    information as the Department may reasonably require.
 9        The  Department  may  require  returns  to  be filed on a
10    quarterly basis.  If so required, a return for each  calendar
11    quarter  shall be filed on or before the twentieth day of the
12    calendar month following the end of  such  calendar  quarter.
13    The taxpayer shall also file a return with the Department for
14    each  of the first two months of each calendar quarter, on or
15    before the twentieth day of  the  following  calendar  month,
16    stating:
17             1.  The name of the seller;
18             2.  The  address  of the principal place of business
19        from which he engages in business as a serviceman in this
20        State;
21             3.  The total amount of taxable receipts received by
22        him  during  the  preceding  calendar  month,   including
23        receipts  from  charge  and  time  sales,  but  less  all
24        deductions allowed by law;
25             4.  The  amount  of credit provided in Section 2d of
26        this Act;
27             5.  The amount of tax due;
28             5-5.  The signature of the taxpayer; and
29             6.  Such  other  reasonable   information   as   the
30        Department may require.
31        If a taxpayer fails to sign a return within 30 days after
32    the proper notice and demand for signature by the Department,
33    the  return shall be considered valid and any amount shown to
34    be due on the return shall be deemed assessed.
 
SB984 Engrossed             -32-               LRB9208148SMdv
 1        Beginning October 1, 1993, a taxpayer who has an  average
 2    monthly  tax  liability  of  $150,000  or more shall make all
 3    payments required by rules of the  Department  by  electronic
 4    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 5    has an average monthly tax  liability  of  $100,000  or  more
 6    shall  make  all payments required by rules of the Department
 7    by electronic funds transfer.  Beginning October 1,  1995,  a
 8    taxpayer  who has an average monthly tax liability of $50,000
 9    or more shall make all payments  required  by  rules  of  the
10    Department by electronic funds transfer. Beginning October 1,
11    2000,  a taxpayer who has an annual tax liability of $200,000
12    or more shall make all payments  required  by  rules  of  the
13    Department  by  electronic  funds transfer.  The term "annual
14    tax liability" shall be the sum of the taxpayer's liabilities
15    under  this  Act,  and  under  all  other  State  and   local
16    occupation  and  use tax laws administered by the Department,
17    for the  immediately  preceding  calendar  year.    The  term
18    "average   monthly  tax  liability"  means  the  sum  of  the
19    taxpayer's liabilities under this Act, and  under  all  other
20    State  and  local occupation and use tax laws administered by
21    the Department, for the immediately preceding  calendar  year
22    divided by 12.
23        Before  August  1  of  each  year  beginning in 1993, the
24    Department  shall  notify  all  taxpayers  required  to  make
25    payments by electronic funds transfer. All taxpayers required
26    to make payments by  electronic  funds  transfer  shall  make
27    those payments for a minimum of one year beginning on October
28    1.
29        Any  taxpayer not required to make payments by electronic
30    funds transfer may make payments by electronic funds transfer
31    with the permission of the Department.
32        All taxpayers required  to  make  payment  by  electronic
33    funds  transfer  and  any taxpayers authorized to voluntarily
34    make payments by electronic funds transfer shall  make  those
 
SB984 Engrossed             -33-               LRB9208148SMdv
 1    payments in the manner authorized by the Department.
 2        The Department shall adopt such rules as are necessary to
 3    effectuate  a  program  of  electronic funds transfer and the
 4    requirements of this Section.
 5        If the serviceman is otherwise required to file a monthly
 6    return and if the serviceman's average monthly tax  liability
 7    to  the  Department  does not exceed $200, the Department may
 8    authorize his returns to be filed on a quarter annual  basis,
 9    with  the  return  for January, February and March of a given
10    year being due by April 20 of such year; with the return  for
11    April,  May  and June of a given year being due by July 20 of
12    such year; with the return for July, August and September  of
13    a  given  year being due by October 20 of such year, and with
14    the return for October, November and December of a given year
15    being due by January 20 of the following year.
16        If the serviceman is otherwise required to file a monthly
17    or quarterly return and if the serviceman's  average  monthly
18    tax  liability  to  the  Department  does not exceed $50, the
19    Department may authorize his returns to be filed on an annual
20    basis, with the return for a given year being due by  January
21    20 of the following year.
22        Such  quarter  annual  and annual returns, as to form and
23    substance, shall be  subject  to  the  same  requirements  as
24    monthly returns.
25        Notwithstanding   any   other   provision   in  this  Act
26    concerning the time within which a serviceman  may  file  his
27    return, in the case of any serviceman who ceases to engage in
28    a  kind  of  business  which makes him responsible for filing
29    returns under this Act, such serviceman shall  file  a  final
30    return  under  this  Act  with the Department not more than 1
31    month after discontinuing such business.
32        Where a serviceman collects the tax with respect  to  the
33    selling  price  of  property which he sells and the purchaser
34    thereafter returns such property and the  serviceman  refunds
 
SB984 Engrossed             -34-               LRB9208148SMdv
 1    the  selling  price thereof to the purchaser, such serviceman
 2    shall also refund, to the purchaser,  the  tax  so  collected
 3    from  the purchaser. When filing his return for the period in
 4    which he refunds such tax to the  purchaser,  the  serviceman
 5    may  deduct  the  amount of the tax so refunded by him to the
 6    purchaser from any other Service Use Tax, Service  Occupation
 7    Tax,   retailers'  occupation  tax  or  use  tax  which  such
 8    serviceman may be required to pay or remit to the Department,
 9    as shown by such return, provided that the amount of the  tax
10    to  be  deducted  shall  previously have been remitted to the
11    Department by such serviceman. If the  serviceman  shall  not
12    previously  have  remitted  the  amount  of  such  tax to the
13    Department, he shall be entitled to  no  deduction  hereunder
14    upon refunding such tax to the purchaser.
15        Any  serviceman  filing  a  return  hereunder  shall also
16    include the total tax upon  the  selling  price  of  tangible
17    personal  property purchased for use by him as an incident to
18    a sale of service, and such serviceman shall remit the amount
19    of such tax to the Department when filing such return.
20        If experience indicates such action  to  be  practicable,
21    the  Department  may  prescribe  and furnish a combination or
22    joint return which will enable servicemen, who  are  required
23    to   file  returns  hereunder  and  also  under  the  Service
24    Occupation Tax Act, to furnish  all  the  return  information
25    required by both Acts on the one form.
26        Where   the   serviceman   has  more  than  one  business
27    registered with the Department  under  separate  registration
28    hereunder, such serviceman shall not file each return that is
29    due   as   a  single  return  covering  all  such  registered
30    businesses, but shall file separate  returns  for  each  such
31    registered business.
32        Beginning  January  1,  1990,  each  month the Department
33    shall pay into the State and Local Tax Reform Fund, a special
34    fund in the State Treasury, the net revenue realized for  the
 
SB984 Engrossed             -35-               LRB9208148SMdv
 1    preceding  month  from  the 1% tax on sales of food for human
 2    consumption which is to be consumed off the premises where it
 3    is sold (other than alcoholic beverages, soft drinks and food
 4    which  has  been  prepared  for  immediate  consumption)  and
 5    prescription and nonprescription  medicines,  drugs,  medical
 6    appliances and insulin, urine testing materials, syringes and
 7    needles used by diabetics.
 8        Beginning  January  1,  1990,  each  month the Department
 9    shall pay into the State and Local Sales Tax Reform Fund  20%
10    of  the net revenue realized for the preceding month from the
11    6.25%  general  rate  on  transfers  of   tangible   personal
12    property,  other  than  tangible  personal  property which is
13    purchased outside Illinois at  retail  from  a  retailer  and
14    which  is  titled  or registered by an agency of this State's
15    government.
16        Beginning August 1, 2000, each month the Department shall
17    pay into the State and Local Sales Tax Reform  Fund  100%  of
18    the  net  revenue  realized  for the preceding month from the
19    1.25% rate on the selling price of motor fuel and gasohol.
20        Beginning February 1, 2002,  each  month  the  Department
21    shall pay into the State and Local Sales Tax Reform Fund 100%
22    of  the net revenue realized for the preceding month from the
23    1.25%  rate  on  the  selling  price  of   energy   efficient
24    appliances.
25        Of the remainder of the moneys received by the Department
26    pursuant  to  this Act, (a)  1.75% thereof shall be paid into
27    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
28    and  on  and  after July 1, 1989, 3.8% thereof shall be  paid
29    into the Build Illinois Fund; provided, however, that  if  in
30    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31    as  the case may be, of the moneys received by the Department
32    and required to be paid into the Build Illinois Fund pursuant
33    to Section 3 of the Retailers' Occupation Tax Act, Section  9
34    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 
SB984 Engrossed             -36-               LRB9208148SMdv
 1    Section  9 of the Service Occupation Tax Act, such Acts being
 2    hereinafter called the "Tax Acts" and such aggregate of  2.2%
 3    or  3.8%,  as  the  case  may be, of moneys being hereinafter
 4    called the "Tax Act Amount", and (2) the  amount  transferred
 5    to the Build Illinois Fund from the State and Local Sales Tax
 6    Reform  Fund  shall be less than the Annual Specified  Amount
 7    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
 8    Act),  an amount equal to the difference shall be immediately
 9    paid into the Build Illinois Fund from other moneys  received
10    by  the  Department  pursuant  to  the  Tax Acts; and further
11    provided, that if on the last business day of any  month  the
12    sum  of  (1) the Tax Act Amount required to be deposited into
13    the Build Illinois Bond Account in the  Build  Illinois  Fund
14    during  such month and (2) the amount transferred during such
15    month to the Build Illinois Fund from  the  State  and  Local
16    Sales  Tax  Reform Fund shall have been less than 1/12 of the
17    Annual Specified Amount, an amount equal  to  the  difference
18    shall  be  immediately paid into the Build Illinois Fund from
19    other moneys received by the Department pursuant to  the  Tax
20    Acts;  and,  further  provided,  that  in  no event shall the
21    payments required  under  the  preceding  proviso  result  in
22    aggregate  payments  into the Build Illinois Fund pursuant to
23    this clause (b) for any fiscal year in excess of the  greater
24    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
25    for such fiscal year; and, further provided, that the amounts
26    payable  into  the  Build Illinois Fund under this clause (b)
27    shall be payable only until such time as the aggregate amount
28    on deposit under each trust indenture securing  Bonds  issued
29    and  outstanding  pursuant  to the Build Illinois Bond Act is
30    sufficient, taking into account any future investment income,
31    to fully provide, in accordance with such indenture, for  the
32    defeasance of or the payment of the principal of, premium, if
33    any,  and interest on the Bonds secured by such indenture and
34    on any Bonds expected to be issued thereafter  and  all  fees
 
SB984 Engrossed             -37-               LRB9208148SMdv
 1    and  costs  payable with respect thereto, all as certified by
 2    the Director of the Bureau of the Budget.   If  on  the  last
 3    business  day  of  any  month  in which Bonds are outstanding
 4    pursuant to the Build Illinois Bond Act, the aggregate of the
 5    moneys deposited in the Build Illinois Bond  Account  in  the
 6    Build  Illinois  Fund  in  such  month shall be less than the
 7    amount required to be transferred  in  such  month  from  the
 8    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
 9    Retirement and Interest Fund pursuant to Section  13  of  the
10    Build  Illinois  Bond Act, an amount equal to such deficiency
11    shall be immediately paid from other moneys received  by  the
12    Department  pursuant  to  the  Tax Acts to the Build Illinois
13    Fund; provided, however, that any amounts paid to  the  Build
14    Illinois  Fund  in  any fiscal year pursuant to this sentence
15    shall be deemed to constitute payments pursuant to clause (b)
16    of  the  preceding  sentence  and  shall  reduce  the  amount
17    otherwise payable for such fiscal year pursuant to clause (b)
18    of the  preceding  sentence.   The  moneys  received  by  the
19    Department  pursuant to this Act and required to be deposited
20    into the Build Illinois Fund are subject to the pledge, claim
21    and charge set forth in Section 12 of the Build Illinois Bond
22    Act.
23        Subject to payment of amounts  into  the  Build  Illinois
24    Fund  as  provided  in  the  preceding  paragraph  or  in any
25    amendment thereto hereafter enacted, the following  specified
26    monthly   installment   of   the   amount  requested  in  the
27    certificate of the Chairman  of  the  Metropolitan  Pier  and
28    Exposition  Authority  provided  under  Section  8.25f of the
29    State Finance Act, but not in excess of the  sums  designated
30    as  "Total Deposit", shall be deposited in the aggregate from
31    collections under Section 9 of the Use Tax Act, Section 9  of
32    the  Service Use Tax Act, Section 9 of the Service Occupation
33    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
34    into  the  McCormick  Place  Expansion  Project  Fund  in the
 
SB984 Engrossed             -38-               LRB9208148SMdv
 1    specified fiscal years.
 2          Fiscal Year                     Total Deposit
 3             1993                                   $0
 4             1994                           53,000,000
 5             1995                           58,000,000
 6             1996                           61,000,000
 7             1997                           64,000,000
 8             1998                           68,000,000
 9             1999                           71,000,000
10             2000                           75,000,000
11             2001                           80,000,000
12             2002                           84,000,000
13             2003                           89,000,000
14             2004                           93,000,000
15             2005                           97,000,000
16             2006                           102,000,000
17             2007                           108,000,000
18             2008                           115,000,000
19             2009                           120,000,000
20             2010                           126,000,000
21             2011                           132,000,000
22             2012                           138,000,000
23             2013 and                       145,000,000
24        each fiscal year
25        thereafter that bonds
26        are outstanding under
27        Section 13.2 of the
28        Metropolitan Pier and
29        Exposition Authority Act,
30        but not after fiscal year 2029.
31        Beginning July 20, 1993 and in each month of each  fiscal
32    year  thereafter,  one-eighth  of the amount requested in the
33    certificate of the Chairman  of  the  Metropolitan  Pier  and
34    Exposition  Authority  for  that fiscal year, less the amount
 
SB984 Engrossed             -39-               LRB9208148SMdv
 1    deposited into the McCormick Place Expansion Project Fund  by
 2    the  State Treasurer in the respective month under subsection
 3    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 4    Authority  Act,  plus cumulative deficiencies in the deposits
 5    required under this Section for previous  months  and  years,
 6    shall be deposited into the McCormick Place Expansion Project
 7    Fund,  until  the  full amount requested for the fiscal year,
 8    but not in excess of the amount  specified  above  as  "Total
 9    Deposit", has been deposited.
10        Subject  to  payment  of  amounts into the Build Illinois
11    Fund and the McCormick Place Expansion Project Fund  pursuant
12    to  the  preceding  paragraphs  or  in  any amendment thereto
13    hereafter enacted, each month the Department shall  pay  into
14    the  Local  Government  Distributive  Fund  0.4%  of  the net
15    revenue realized for the preceding month from the 5%  general
16    rate  or  0.4%  of  80%  of  the net revenue realized for the
17    preceding month from the 6.25% general rate, as the case  may
18    be,  on the selling price of tangible personal property which
19    amount shall, subject to  appropriation,  be  distributed  as
20    provided  in  Section  2 of the State Revenue Sharing Act. No
21    payments or distributions pursuant to this paragraph shall be
22    made if the tax imposed  by  this  Act  on  photo  processing
23    products  is  declared  unconstitutional,  or if the proceeds
24    from such tax are unavailable  for  distribution  because  of
25    litigation.
26        Subject  to  payment  of  amounts into the Build Illinois
27    Fund, the McCormick Place Expansion  Project  Fund,  and  the
28    Local  Government Distributive Fund pursuant to the preceding
29    paragraphs or in any amendments  thereto  hereafter  enacted,
30    beginning  July  1, 1993, the Department shall each month pay
31    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
32    revenue  realized  for  the  preceding  month  from the 6.25%
33    general rate  on  the  selling  price  of  tangible  personal
34    property.
 
SB984 Engrossed             -40-               LRB9208148SMdv
 1        All  remaining moneys received by the Department pursuant
 2    to this Act shall be paid into the General  Revenue  Fund  of
 3    the State Treasury.
 4        As  soon  as  possible after the first day of each month,
 5    upon  certification  of  the  Department  of   Revenue,   the
 6    Comptroller  shall  order transferred and the Treasurer shall
 7    transfer from the General Revenue Fund to the Motor Fuel  Tax
 8    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 9    realized under this  Act  for  the  second  preceding  month.
10    Beginning  April 1, 2000, this transfer is no longer required
11    and shall not be made.
12        Net revenue realized for a month  shall  be  the  revenue
13    collected  by the State pursuant to this Act, less the amount
14    paid out during  that  month  as  refunds  to  taxpayers  for
15    overpayment of liability.
16    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
17    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
18    91-872, eff. 7-1-00.)

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

21        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
22        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
23    this  Section,  the tax imposed by this Act is at the rate of
24    6.25% of the "selling price", as defined in Section 2 of  the
25    Service  Use Tax Act, of the tangible personal property.  For
26    the purpose of computing this tax,  in  no  event  shall  the
27    "selling price" be less than the cost price to the serviceman
28    of  the  tangible personal property transferred.  The selling
29    price of each item of tangible personal property  transferred
30    as  an  incident  of  a  sale  of  service  may be shown as a
31    distinct and separate item on the serviceman's billing to the
32    service customer. If the selling price is not so  shown,  the
 
SB984 Engrossed             -41-               LRB9208148SMdv
 1    selling  price of the tangible personal property is deemed to
 2    be 50% of the serviceman's  entire  billing  to  the  service
 3    customer.   When,  however, a serviceman contracts to design,
 4    develop, and produce special order  machinery  or  equipment,
 5    the   tax   imposed  by  this  Act  shall  be  based  on  the
 6    serviceman's cost price of  the  tangible  personal  property
 7    transferred incident to the completion of the contract.
 8        Beginning  on July 1, 2000 and through December 31, 2000,
 9    with respect to motor fuel, as defined in Section 1.1 of  the
10    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
11    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
12        With respect to gasohol, as defined in the Use  Tax  Act,
13    the  tax  imposed  by this Act shall apply to 70% of the cost
14    price of property transferred as an incident to the  sale  of
15    service on or after January 1, 1990, and before July 1, 2003,
16    and to 100% of the cost price thereafter.
17        Beginning  January 1, 2002 and through December 31, 2005,
18    with respect to  energy  efficient  appliances,  the  tax  is
19    imposed  at the rate of 1.25%.  "Energy efficient appliances"
20    are clothes washers, refrigerators, and dishwashers that meet
21    or exceed applicable energy  saving  efficiency  requirements
22    developed  by  the United States Department of Energy for the
23    Energy  Star  Program.   The  Department   of   Revenue,   in
24    consultation   with   manufacturers,  retailers,  and  public
25    interest groups, must develop public information programs and
26    materials to identify and encourage  the  sales  of  products
27    eligible for this tax reduction.
28        At  the  election  of  any registered serviceman made for
29    each fiscal year, sales of service  in  which  the  aggregate
30    annual  cost  price of tangible personal property transferred
31    as an incident to the sales of service is less than  35%,  or
32    75% in the case of servicemen transferring prescription drugs
33    or  servicemen  engaged  in  graphic  arts production, of the
34    aggregate annual total  gross  receipts  from  all  sales  of
 
SB984 Engrossed             -42-               LRB9208148SMdv
 1    service,  the  tax  imposed by this Act shall be based on the
 2    serviceman's cost price of  the  tangible  personal  property
 3    transferred incident to the sale of those services.
 4        The  tax  shall  be  imposed  at  the  rate of 1% on food
 5    prepared for immediate consumption and  transferred  incident
 6    to  a  sale  of  service  subject  to this Act or the Service
 7    Occupation Tax Act by an entity licensed under  the  Hospital
 8    Licensing  Act,  the Nursing Home Care Act, or the Child Care
 9    Act of 1969.  The tax shall also be imposed at the rate of 1%
10    on food for human consumption that is to be consumed off  the
11    premises  where  it  is sold (other than alcoholic beverages,
12    soft drinks, and food that has been  prepared  for  immediate
13    consumption  and is not otherwise included in this paragraph)
14    and  prescription  and  nonprescription   medicines,   drugs,
15    medical  appliances, modifications to a motor vehicle for the
16    purpose of rendering it usable  by  a  disabled  person,  and
17    insulin,  urine testing materials, syringes, and needles used
18    by diabetics, for  human  use.   For  the  purposes  of  this
19    Section, the term "soft drinks" means any complete, finished,
20    ready-to-use, non-alcoholic drink, whether carbonated or not,
21    including  but  not limited to soda water, cola, fruit juice,
22    vegetable juice, carbonated water, and all other preparations
23    commonly known as soft drinks of whatever kind or description
24    that are contained in any closed or sealed  can,  carton,  or
25    container,  regardless  of  size.   "Soft  drinks"  does  not
26    include  coffee,  tea,  non-carbonated water, infant formula,
27    milk or milk products as defined in the Grade  A  Pasteurized
28    Milk  and Milk Products Act, or drinks containing 50% or more
29    natural fruit or vegetable juice.
30        Notwithstanding any other provisions of this  Act,  "food
31    for human consumption that is to be consumed off the premises
32    where  it  is  sold" includes all food sold through a vending
33    machine, except  soft  drinks  and  food  products  that  are
34    dispensed  hot  from  a  vending  machine,  regardless of the
 
SB984 Engrossed             -43-               LRB9208148SMdv
 1    location of the vending machine.
 2    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 3    91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)

 4        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
 5        Sec.  9.   Each  serviceman  required  or  authorized  to
 6    collect  the  tax  herein imposed shall pay to the Department
 7    the amount of such tax at the time when  he  is  required  to
 8    file  his  return  for  the  period during which such tax was
 9    collectible, less a discount of  2.1%  prior  to  January  1,
10    1990,  and  1.75%  on  and  after  January 1, 1990, or $5 per
11    calendar year, whichever is  greater,  which  is  allowed  to
12    reimburse  the serviceman for expenses incurred in collecting
13    the tax,  keeping  records,  preparing  and  filing  returns,
14    remitting  the  tax  and  supplying data to the Department on
15    request.
16        Where such tangible personal property  is  sold  under  a
17    conditional  sales  contract, or under any other form of sale
18    wherein the payment of the principal sum, or a part  thereof,
19    is  extended  beyond  the  close  of the period for which the
20    return is filed, the serviceman, in collecting  the  tax  may
21    collect,  for each tax return period, only the tax applicable
22    to the part of the selling  price  actually  received  during
23    such tax return period.
24        Except  as  provided  hereinafter  in this Section, on or
25    before  the  twentieth  day  of  each  calendar  month,  such
26    serviceman shall file a return  for  the  preceding  calendar
27    month  in accordance with reasonable rules and regulations to
28    be promulgated by the Department of  Revenue.    Such  return
29    shall  be  filed  on  a form prescribed by the Department and
30    shall  contain  such  information  as  the   Department   may
31    reasonably require.
32        The  Department  may  require  returns  to  be filed on a
33    quarterly basis.  If so required, a return for each  calendar
 
SB984 Engrossed             -44-               LRB9208148SMdv
 1    quarter  shall be filed on or before the twentieth day of the
 2    calendar month following the end of  such  calendar  quarter.
 3    The taxpayer shall also file a return with the Department for
 4    each  of the first two months of each calendar quarter, on or
 5    before the twentieth day of  the  following  calendar  month,
 6    stating:
 7             1.  The name of the seller;
 8             2.  The  address  of the principal place of business
 9        from which he engages in business as a serviceman in this
10        State;
11             3.  The total amount of taxable receipts received by
12        him  during  the  preceding  calendar  month,   including
13        receipts  from  charge  and  time  sales,  but  less  all
14        deductions allowed by law;
15             4.  The  amount  of credit provided in Section 2d of
16        this Act;
17             5.  The amount of tax due;
18             5-5.  The signature of the taxpayer; and
19             6.  Such  other  reasonable   information   as   the
20        Department may require.
21        If a taxpayer fails to sign a return within 30 days after
22    the proper notice and demand for signature by the Department,
23    the  return shall be considered valid and any amount shown to
24    be due on the return shall be deemed assessed.
25        A serviceman may accept a Manufacturer's Purchase  Credit
26    certification from a purchaser in satisfaction of Service Use
27    Tax as provided in Section 3-70 of the Service Use Tax Act if
28    the  purchaser  provides  the  appropriate  documentation  as
29    required  by  Section  3-70  of  the  Service Use Tax Act.  A
30    Manufacturer's Purchase Credit certification, accepted  by  a
31    serviceman as provided in Section 3-70 of the Service Use Tax
32    Act,  may  be  used  by  that  serviceman  to satisfy Service
33    Occupation  Tax  liability  in  the  amount  claimed  in  the
34    certification, not to exceed 6.25% of the receipts subject to
 
SB984 Engrossed             -45-               LRB9208148SMdv
 1    tax from a qualifying purchase.
 2        If the serviceman's average monthly tax liability to  the
 3    Department does not exceed $200, the Department may authorize
 4    his  returns  to be filed on a quarter annual basis, with the
 5    return for January, February and March of a given year  being
 6    due  by April 20 of such year; with the return for April, May
 7    and June of a given year being due by July 20 of  such  year;
 8    with  the  return  for  July, August and September of a given
 9    year being due by October 20  of  such  year,  and  with  the
10    return  for  October,  November  and December of a given year
11    being due by January 20 of the following year.
12        If the serviceman's average monthly tax liability to  the
13    Department  does not exceed $50, the Department may authorize
14    his returns to be filed on an annual basis, with  the  return
15    for  a  given  year  being due by January 20 of the following
16    year.
17        Such quarter annual and annual returns, as  to  form  and
18    substance,  shall  be  subject  to  the  same requirements as
19    monthly returns.
20        Notwithstanding  any  other   provision   in   this   Act
21    concerning  the  time  within which a serviceman may file his
22    return, in the case of any serviceman who ceases to engage in
23    a kind of business which makes  him  responsible  for  filing
24    returns  under  this  Act, such serviceman shall file a final
25    return under this Act with the Department  not  more  than  1
26    month after discontinuing such business.
27        Beginning  October 1, 1993, a taxpayer who has an average
28    monthly tax liability of $150,000  or  more  shall  make  all
29    payments  required  by  rules of the Department by electronic
30    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
31    has  an  average  monthly  tax  liability of $100,000 or more
32    shall make all payments required by rules of  the  Department
33    by  electronic  funds transfer.  Beginning October 1, 1995, a
34    taxpayer who has an average monthly tax liability of  $50,000
 
SB984 Engrossed             -46-               LRB9208148SMdv
 1    or  more  shall  make  all  payments required by rules of the
 2    Department by electronic funds transfer.   Beginning  October
 3    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
 4    $200,000 or more shall make all payments required by rules of
 5    the  Department  by  electronic  funds  transfer.   The  term
 6    "annual tax liability" shall be the  sum  of  the  taxpayer's
 7    liabilities  under  this  Act,  and under all other State and
 8    local  occupation  and  use  tax  laws  administered  by  the
 9    Department, for the immediately preceding calendar year.  The
10    term  "average  monthly  tax  liability" means the sum of the
11    taxpayer's liabilities under this Act, and  under  all  other
12    State  and  local occupation and use tax laws administered by
13    the Department, for the immediately preceding  calendar  year
14    divided by 12.
15        Before  August  1  of  each  year  beginning in 1993, the
16    Department  shall  notify  all  taxpayers  required  to  make
17    payments  by  electronic  funds  transfer.    All   taxpayers
18    required  to make payments by electronic funds transfer shall
19    make those payments for a minimum of one  year  beginning  on
20    October 1.
21        Any  taxpayer not required to make payments by electronic
22    funds transfer may make payments by electronic funds transfer
23    with the permission of the Department.
24        All taxpayers required  to  make  payment  by  electronic
25    funds  transfer  and  any taxpayers authorized to voluntarily
26    make payments by electronic funds transfer shall  make  those
27    payments in the manner authorized by the Department.
28        The Department shall adopt such rules as are necessary to
29    effectuate  a  program  of  electronic funds transfer and the
30    requirements of this Section.
31        Where a serviceman collects the tax with respect  to  the
32    selling  price  of  tangible personal property which he sells
33    and the purchaser thereafter returns such  tangible  personal
34    property and the serviceman refunds the selling price thereof
 
SB984 Engrossed             -47-               LRB9208148SMdv
 1    to  the  purchaser, such serviceman shall also refund, to the
 2    purchaser, the tax so collected  from  the  purchaser.   When
 3    filing his return for the period in which he refunds such tax
 4    to the purchaser, the serviceman may deduct the amount of the
 5    tax  so  refunded  by  him  to  the  purchaser from any other
 6    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
 7    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
 8    required to pay or remit to the Department, as shown by  such
 9    return,  provided  that  the amount of the tax to be deducted
10    shall previously have been remitted to the Department by such
11    serviceman.  If the  serviceman  shall  not  previously  have
12    remitted  the  amount of such tax to the Department, he shall
13    be entitled to no deduction hereunder upon refunding such tax
14    to the purchaser.
15        If experience indicates such action  to  be  practicable,
16    the  Department  may  prescribe  and furnish a combination or
17    joint return which will enable servicemen, who  are  required
18    to  file  returns  hereunder  and  also  under the Retailers'
19    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
20    Act,  to  furnish  all the return information required by all
21    said Acts on the one form.
22        Where  the  serviceman  has  more   than   one   business
23    registered  with  the Department under separate registrations
24    hereunder, such serviceman shall file  separate  returns  for
25    each registered business.
26        Beginning  January  1,  1990,  each  month the Department
27    shall pay into the Local  Government  Tax  Fund  the  revenue
28    realized  for the preceding month from the 1% tax on sales of
29    food for human consumption which is to be  consumed  off  the
30    premises  where  it  is sold (other than alcoholic beverages,
31    soft drinks and food which has been  prepared  for  immediate
32    consumption)  and prescription and nonprescription medicines,
33    drugs,  medical  appliances  and   insulin,   urine   testing
34    materials, syringes and needles used by diabetics.
 
SB984 Engrossed             -48-               LRB9208148SMdv
 1        Beginning  January  1,  1990,  each  month the Department
 2    shall pay into the County and Mass Transit District  Fund  4%
 3    of  the  revenue  realized  for  the preceding month from the
 4    6.25% general rate.
 5        Beginning August 1, 2000, each month the Department shall
 6    pay into the County and Mass Transit District Fund 20% of the
 7    net revenue realized for the preceding month from  the  1.25%
 8    rate on the selling price of motor fuel and gasohol.
 9        Beginning  February  1,  2002,  each month the Department
10    shall pay into the County and Mass Transit District Fund  20%
11    of  the net revenue realized for the preceding month from the
12    1.25%  rate  on  the  selling  price  of   energy   efficient
13    appliances.
14        Beginning  January  1,  1990,  each  month the Department
15    shall pay into the Local  Government  Tax  Fund  16%  of  the
16    revenue  realized  for  the  preceding  month  from the 6.25%
17    general rate on transfers of tangible personal property.
18        Beginning August 1, 2000, each month the Department shall
19    pay into the Local Government Tax Fund 80% of the net revenue
20    realized for the preceding month from the 1.25% rate  on  the
21    selling price of motor fuel and gasohol.
22        Beginning  February  1,  2002,  each month the Department
23    shall pay into the Local Government Tax Fund 80% of  the  net
24    revenue  realized for the preceding month from the 1.25% rate
25    on the selling price of energy efficient appliances.
26        Of the remainder of the moneys received by the Department
27    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
28    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
29    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
30    into  the  Build Illinois Fund; provided, however, that if in
31    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
32    as the case may be, of the moneys received by the  Department
33    and required to be paid into the Build Illinois Fund pursuant
34    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 
SB984 Engrossed             -49-               LRB9208148SMdv
 1    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 2    Section 9 of the Service Occupation Tax Act, such Acts  being
 3    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 4    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
 5    called  the  "Tax Act Amount", and (2) the amount transferred
 6    to the Build Illinois Fund from the State and Local Sales Tax
 7    Reform Fund shall be less than the  Annual  Specified  Amount
 8    (as  defined  in  Section  3 of the Retailers' Occupation Tax
 9    Act), an amount equal to the difference shall be  immediately
10    paid  into the Build Illinois Fund from other moneys received
11    by the Department pursuant  to  the  Tax  Acts;  and  further
12    provided,  that  if on the last business day of any month the
13    sum of (1) the Tax Act Amount required to be  deposited  into
14    the  Build Illinois Account in the Build Illinois Fund during
15    such month and (2) the amount transferred during  such  month
16    to the Build Illinois Fund from the State and Local Sales Tax
17    Reform  Fund  shall  have  been  less than 1/12 of the Annual
18    Specified Amount, an amount equal to the difference shall  be
19    immediately  paid  into  the  Build  Illinois Fund from other
20    moneys received by the Department pursuant to the  Tax  Acts;
21    and,  further  provided,  that in no event shall the payments
22    required under the  preceding  proviso  result  in  aggregate
23    payments into the Build Illinois Fund pursuant to this clause
24    (b)  for  any fiscal year in excess of the greater of (i) the
25    Tax Act Amount or (ii) the Annual Specified Amount  for  such
26    fiscal  year; and, further provided, that the amounts payable
27    into the Build Illinois Fund under this clause (b)  shall  be
28    payable  only  until  such  time  as  the aggregate amount on
29    deposit under each trust indenture securing Bonds issued  and
30    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
31    sufficient, taking into account any future investment income,
32    to fully provide, in accordance with such indenture, for  the
33    defeasance of or the payment of the principal of, premium, if
34    any,  and interest on the Bonds secured by such indenture and
 
SB984 Engrossed             -50-               LRB9208148SMdv
 1    on any Bonds expected to be issued thereafter  and  all  fees
 2    and  costs  payable with respect thereto, all as certified by
 3    the Director of the Bureau of the Budget.   If  on  the  last
 4    business  day  of  any  month  in which Bonds are outstanding
 5    pursuant to the Build Illinois Bond Act, the aggregate of the
 6    moneys deposited in the Build Illinois Bond  Account  in  the
 7    Build  Illinois  Fund  in  such  month shall be less than the
 8    amount required to be transferred  in  such  month  from  the
 9    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
10    Retirement and Interest Fund pursuant to Section  13  of  the
11    Build  Illinois  Bond Act, an amount equal to such deficiency
12    shall be immediately paid from other moneys received  by  the
13    Department  pursuant  to  the  Tax Acts to the Build Illinois
14    Fund; provided, however, that any amounts paid to  the  Build
15    Illinois  Fund  in  any fiscal year pursuant to this sentence
16    shall be deemed to constitute payments pursuant to clause (b)
17    of  the  preceding  sentence  and  shall  reduce  the  amount
18    otherwise payable for such fiscal year pursuant to clause (b)
19    of the  preceding  sentence.   The  moneys  received  by  the
20    Department  pursuant to this Act and required to be deposited
21    into the Build Illinois Fund are subject to the pledge, claim
22    and charge set forth in Section 12 of the Build Illinois Bond
23    Act.
24        Subject to payment of amounts  into  the  Build  Illinois
25    Fund  as  provided  in  the  preceding  paragraph  or  in any
26    amendment thereto hereafter enacted, the following  specified
27    monthly   installment   of   the   amount  requested  in  the
28    certificate of the Chairman  of  the  Metropolitan  Pier  and
29    Exposition  Authority  provided  under  Section  8.25f of the
30    State Finance Act, but not in excess of the  sums  designated
31    as  "Total Deposit", shall be deposited in the aggregate from
32    collections under Section 9 of the Use Tax Act, Section 9  of
33    the  Service Use Tax Act, Section 9 of the Service Occupation
34    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 
SB984 Engrossed             -51-               LRB9208148SMdv
 1    into  the  McCormick  Place  Expansion  Project  Fund  in the
 2    specified fiscal years.
 3             Fiscal Year                   Total Deposit
 4                 1993                            $0
 5                 1994                        53,000,000
 6                 1995                        58,000,000
 7                 1996                        61,000,000
 8                 1997                        64,000,000
 9                 1998                        68,000,000
10                 1999                        71,000,000
11                 2000                        75,000,000
12                 2001                        80,000,000
13                 2002                        84,000,000
14                 2003                        89,000,000
15                 2004                        93,000,000
16                 2005                        97,000,000
17                 2006                       102,000,000
18                 2007                       108,000,000
19                 2008                       115,000,000
20                 2009                       120,000,000
21                 2010                       126,000,000
22                 2011                       132,000,000
23                 2012                       138,000,000
24                 2013 and                   145,000,000
25             each fiscal year
26          thereafter that bonds
27          are outstanding under
28           Section 13.2 of the
29          Metropolitan Pier and
30           Exposition Authority
31        Act, but not after fiscal year 2029.
32        Beginning July 20, 1993 and in each month of each  fiscal
33    year  thereafter,  one-eighth  of the amount requested in the
34    certificate of the Chairman  of  the  Metropolitan  Pier  and
 
SB984 Engrossed             -52-               LRB9208148SMdv
 1    Exposition  Authority  for  that fiscal year, less the amount
 2    deposited into the McCormick Place Expansion Project Fund  by
 3    the  State Treasurer in the respective month under subsection
 4    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
 5    Authority  Act,  plus cumulative deficiencies in the deposits
 6    required under this Section for previous  months  and  years,
 7    shall be deposited into the McCormick Place Expansion Project
 8    Fund,  until  the  full amount requested for the fiscal year,
 9    but not in excess of the amount  specified  above  as  "Total
10    Deposit", has been deposited.
11        Subject  to  payment  of  amounts into the Build Illinois
12    Fund and the McCormick Place Expansion Project Fund  pursuant
13    to  the  preceding  paragraphs  or  in  any amendment thereto
14    hereafter enacted, each month the Department shall  pay  into
15    the  Local  Government  Distributive  Fund  0.4%  of  the net
16    revenue realized for the preceding month from the 5%  general
17    rate  or  0.4%  of  80%  of  the net revenue realized for the
18    preceding month from the 6.25% general rate, as the case  may
19    be,  on the selling price of tangible personal property which
20    amount shall, subject to  appropriation,  be  distributed  as
21    provided  in  Section 2 of the State Revenue Sharing Act.  No
22    payments or distributions pursuant to this paragraph shall be
23    made if the  tax  imposed  by  this  Act  on  photoprocessing
24    products  is  declared  unconstitutional,  or if the proceeds
25    from such tax are unavailable  for  distribution  because  of
26    litigation.
27        Subject  to  payment  of  amounts into the Build Illinois
28    Fund, the McCormick Place Expansion  Project  Fund,  and  the
29    Local  Government Distributive Fund pursuant to the preceding
30    paragraphs or in any amendments  thereto  hereafter  enacted,
31    beginning  July  1, 1993, the Department shall each month pay
32    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
33    revenue  realized  for  the  preceding  month  from the 6.25%
34    general rate  on  the  selling  price  of  tangible  personal
 
SB984 Engrossed             -53-               LRB9208148SMdv
 1    property.
 2        Remaining  moneys  received by the Department pursuant to
 3    this Act shall be paid into the General Revenue Fund  of  the
 4    State Treasury.
 5        The  Department  may,  upon  separate written notice to a
 6    taxpayer, require the taxpayer to prepare and file  with  the
 7    Department  on a form prescribed by the Department within not
 8    less than 60 days after  receipt  of  the  notice  an  annual
 9    information  return for the tax year specified in the notice.
10    Such  annual  return  to  the  Department  shall  include   a
11    statement  of  gross receipts as shown by the taxpayer's last
12    Federal income tax return.  If  the  total  receipts  of  the
13    business  as reported in the Federal income tax return do not
14    agree with the gross receipts reported to the  Department  of
15    Revenue for the same period, the taxpayer shall attach to his
16    annual  return  a  schedule showing a reconciliation of the 2
17    amounts and the reasons for the difference.   The  taxpayer's
18    annual  return to the Department shall also disclose the cost
19    of goods sold by the taxpayer during the year covered by such
20    return, opening and closing inventories  of  such  goods  for
21    such  year, cost of goods used from stock or taken from stock
22    and given away by the taxpayer during  such  year,  pay  roll
23    information  of  the taxpayer's business during such year and
24    any additional reasonable information  which  the  Department
25    deems  would  be  helpful  in determining the accuracy of the
26    monthly, quarterly or annual returns filed by  such  taxpayer
27    as hereinbefore provided for in this Section.
28        If the annual information return required by this Section
29    is  not  filed  when  and  as required, the taxpayer shall be
30    liable as follows:
31             (i)  Until January 1, 1994, the  taxpayer  shall  be
32        liable  for  a  penalty equal to 1/6 of 1% of the tax due
33        from such taxpayer under this Act during the period to be
34        covered by the annual return for each month  or  fraction
 
SB984 Engrossed             -54-               LRB9208148SMdv
 1        of  a  month  until such return is filed as required, the
 2        penalty to be assessed and collected in the  same  manner
 3        as any other penalty provided for in this Act.
 4             (ii)  On  and  after  January  1, 1994, the taxpayer
 5        shall be liable for a penalty as described in Section 3-4
 6        of the Uniform Penalty and Interest Act.
 7        The chief executive officer, proprietor, owner or highest
 8    ranking manager shall sign the annual return to  certify  the
 9    accuracy  of  the  information contained therein.  Any person
10    who willfully signs the annual  return  containing  false  or
11    inaccurate   information  shall  be  guilty  of  perjury  and
12    punished accordingly.  The annual return form  prescribed  by
13    the  Department  shall  include  a  warning  that  the person
14    signing the return may be liable for perjury.
15        The foregoing portion  of  this  Section  concerning  the
16    filing  of  an annual information return shall not apply to a
17    serviceman who is not required to file an income  tax  return
18    with the United States Government.
19        As  soon  as  possible after the first day of each month,
20    upon  certification  of  the  Department  of   Revenue,   the
21    Comptroller  shall  order transferred and the Treasurer shall
22    transfer from the General Revenue Fund to the Motor Fuel  Tax
23    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
24    realized under this  Act  for  the  second  preceding  month.
25    Beginning  April 1, 2000, this transfer is no longer required
26    and shall not be made.
27        Net revenue realized for a month  shall  be  the  revenue
28    collected  by the State pursuant to this Act, less the amount
29    paid out during  that  month  as  refunds  to  taxpayers  for
30    overpayment of liability.
31        For  greater  simplicity  of  administration, it shall be
32    permissible  for  manufacturers,  importers  and  wholesalers
33    whose products are sold by numerous servicemen  in  Illinois,
34    and  who  wish  to  do  so,  to assume the responsibility for
 
SB984 Engrossed             -55-               LRB9208148SMdv
 1    accounting and paying to  the  Department  all  tax  accruing
 2    under  this Act with respect to such sales, if the servicemen
 3    who are  affected  do  not  make  written  objection  to  the
 4    Department to this arrangement.
 5    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
 6    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
 7    91-872, eff. 7-1-00.)

 8        Section 25.  The Retailers' Occupation Tax Act is amended
 9    by changing Sections 2-10 and 3 as follows:

10        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
11        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
12    this  Section,  the tax imposed by this Act is at the rate of
13    6.25% of gross  receipts  from  sales  of  tangible  personal
14    property made in the course of business.
15        Beginning  on July 1, 2000 and through December 31, 2000,
16    with respect to motor fuel, as defined in Section 1.1 of  the
17    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
18    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
19        Within  14  days  after  the  effective  date   of   this
20    amendatory Act of the 91st General Assembly, each retailer of
21    motor fuel and gasohol shall cause the following notice to be
22    posted   in  a  prominently  visible  place  on  each  retail
23    dispensing device that is used  to  dispense  motor  fuel  or
24    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
25    State of Illinois has eliminated the State's share  of  sales
26    tax  on motor fuel and gasohol through December 31, 2000. The
27    price on this pump should  reflect  the  elimination  of  the
28    tax."   The  notice  shall be printed in bold print on a sign
29    that is no smaller than 4 inches by 8 inches.  The sign shall
30    be clearly visible to customers.  Any retailer who  fails  to
31    post or maintain a required sign through December 31, 2000 is
32    guilty  of  a  petty offense for which the fine shall be $500
 
SB984 Engrossed             -56-               LRB9208148SMdv
 1    per day per each retail premises where a violation occurs.
 2        With respect to gasohol, as defined in the Use  Tax  Act,
 3    the tax imposed by this Act applies to 70% of the proceeds of
 4    sales  made  on  or after January 1, 1990, and before July 1,
 5    2003, and to 100% of the proceeds of sales made thereafter.
 6        Beginning January 1, 2002 and through December 31,  2005,
 7    with  respect  to  energy  efficient  appliances,  the tax is
 8    imposed at the rate of 1.25%.  "Energy efficient  appliances"
 9    are clothes washers, refrigerators, and dishwashers that meet
10    or  exceed  applicable  energy saving efficiency requirements
11    developed by the United States Department of Energy  for  the
12    Energy   Star   Program.    The  Department  of  Revenue,  in
13    consultation  with  manufacturers,  retailers,   and   public
14    interest groups, must develop public information programs and
15    materials  to  identify  and  encourage the sales of products
16    eligible for this tax reduction.
17        With respect to food for human consumption that is to  be
18    consumed  off  the  premises  where  it  is  sold (other than
19    alcoholic beverages, soft drinks,  and  food  that  has  been
20    prepared  for  immediate  consumption)  and  prescription and
21    nonprescription   medicines,   drugs,   medical   appliances,
22    modifications to a motor vehicle for the purpose of rendering
23    it usable by a disabled person, and  insulin,  urine  testing
24    materials, syringes, and needles used by diabetics, for human
25    use,  the  tax is imposed at the rate of 1%. For the purposes
26    of this Section, the term "soft drinks" means  any  complete,
27    finished,    ready-to-use,   non-alcoholic   drink,   whether
28    carbonated or not, including but not limited to  soda  water,
29    cola, fruit juice, vegetable juice, carbonated water, and all
30    other  preparations commonly known as soft drinks of whatever
31    kind or description that  are  contained  in  any  closed  or
32    sealed bottle, can, carton, or container, regardless of size.
33    "Soft  drinks"  does  not include coffee, tea, non-carbonated
34    water, infant formula, milk or milk products  as  defined  in
 
SB984 Engrossed             -57-               LRB9208148SMdv
 1    the Grade A Pasteurized Milk and Milk Products Act, or drinks
 2    containing 50% or more natural fruit or vegetable juice.
 3        Notwithstanding  any  other provisions of this Act, "food
 4    for human consumption that is to be consumed off the premises
 5    where it is sold" includes all food sold  through  a  vending
 6    machine,  except  soft  drinks  and  food  products  that are
 7    dispensed hot from  a  vending  machine,  regardless  of  the
 8    location of the vending machine.
 9    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
10    91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)

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;
33             5.  Deductions allowed by law;
 
SB984 Engrossed             -58-               LRB9208148SMdv
 1             6.  Gross receipts which were received by him during
 2        the  preceding  calendar  month  or  quarter and upon the
 3        basis of which the tax is imposed;
 4             7.  The amount of credit provided in Section  2d  of
 5        this Act;
 6             8.  The amount of tax due;
 7             9.  The signature of the taxpayer; and
 8             10.  Such   other   reasonable  information  as  the
 9        Department may require.
10        If a taxpayer fails to sign a return within 30 days after
11    the proper notice and demand for signature by the Department,
12    the return shall be considered valid and any amount shown  to
13    be due on the return shall be deemed assessed.
14        Each  return  shall  be  accompanied  by the statement of
15    prepaid tax issued pursuant to Section 2e for which credit is
16    claimed.
17        A retailer may accept a  Manufacturer's  Purchase  Credit
18    certification  from a purchaser in satisfaction of Use Tax as
19    provided in Section 3-85 of the Use Tax Act if the  purchaser
20    provides the appropriate documentation as required by Section
21    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
22    certification, accepted by a retailer as provided in  Section
23    3-85  of  the  Use  Tax  Act, may be used by that retailer to
24    satisfy Retailers' Occupation Tax  liability  in  the  amount
25    claimed  in  the  certification,  not  to exceed 6.25% of the
26    receipts subject to tax from a qualifying purchase.
27        The Department may require  returns  to  be  filed  on  a
28    quarterly  basis.  If so required, a return for each calendar
29    quarter shall be filed on or before the twentieth day of  the
30    calendar  month  following  the end of such calendar quarter.
31    The taxpayer shall also file a return with the Department for
32    each of the first two months of each calendar quarter, on  or
33    before  the  twentieth  day  of the following calendar month,
34    stating:
 
SB984 Engrossed             -59-               LRB9208148SMdv
 1             1.  The name of the seller;
 2             2.  The address of the principal place  of  business
 3        from which he engages in the business of selling tangible
 4        personal property at retail in this State;
 5             3.  The total amount of taxable receipts received by
 6        him  during  the  preceding  calendar month from sales of
 7        tangible personal property by him during  such  preceding
 8        calendar  month,  including receipts from charge and time
 9        sales, but less all deductions allowed by law;
10             4.  The amount of credit provided in Section  2d  of
11        this Act;
12             5.  The amount of tax due; and
13             6.  Such   other   reasonable   information  as  the
14        Department may require.
15        If a total amount of less than $1 is payable,  refundable
16    or creditable, such amount shall be disregarded if it is less
17    than  50 cents and shall be increased to $1 if it is 50 cents
18    or more.
19        Beginning October 1, 1993, a taxpayer who has an  average
20    monthly  tax  liability  of  $150,000  or more shall make all
21    payments required by rules of the  Department  by  electronic
22    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
23    has an average monthly tax  liability  of  $100,000  or  more
24    shall  make  all payments required by rules of the Department
25    by electronic funds transfer.  Beginning October 1,  1995,  a
26    taxpayer  who has an average monthly tax liability of $50,000
27    or more shall make all payments  required  by  rules  of  the
28    Department  by  electronic funds transfer.  Beginning October
29    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
30    $200,000 or more shall make all payments required by rules of
31    the  Department  by  electronic  funds  transfer.   The  term
32    "annual  tax  liability"  shall  be the sum of the taxpayer's
33    liabilities under this Act, and under  all  other  State  and
34    local  occupation  and  use  tax  laws  administered  by  the
 
SB984 Engrossed             -60-               LRB9208148SMdv
 1    Department,  for the immediately preceding calendar year. The
 2    term "average monthly tax liability" shall be the sum of  the
 3    taxpayer's  liabilities  under  this Act, and under all other
 4    State and local occupation and use tax laws  administered  by
 5    the  Department,  for the immediately preceding calendar year
 6    divided by 12.
 7        Before August 1 of  each  year  beginning  in  1993,  the
 8    Department  shall  notify  all  taxpayers  required  to  make
 9    payments   by   electronic  funds  transfer.   All  taxpayers
10    required to make payments by electronic funds transfer  shall
11    make  those  payments  for a minimum of one year beginning on
12    October 1.
13        Any taxpayer not required to make payments by  electronic
14    funds transfer may make payments by electronic funds transfer
15    with the permission of the Department.
16        All  taxpayers  required  to  make  payment by electronic
17    funds transfer and any taxpayers  authorized  to  voluntarily
18    make  payments  by electronic funds transfer shall make those
19    payments in the manner authorized by the Department.
20        The Department shall adopt such rules as are necessary to
21    effectuate a program of electronic  funds  transfer  and  the
22    requirements of this Section.
23        Any  amount  which is required to be shown or reported on
24    any return or other document under this Act  shall,  if  such
25    amount  is  not  a  whole-dollar  amount, be increased to the
26    nearest whole-dollar amount in any case where the  fractional
27    part  of  a  dollar is 50 cents or more, and decreased to the
28    nearest whole-dollar amount where the fractional  part  of  a
29    dollar is less than 50 cents.
30        If  the  retailer is otherwise required to file a monthly
31    return and if the retailer's average monthly tax liability to
32    the Department does  not  exceed  $200,  the  Department  may
33    authorize  his returns to be filed on a quarter annual basis,
34    with the return for January, February and March  of  a  given
 
SB984 Engrossed             -61-               LRB9208148SMdv
 1    year  being due by April 20 of such year; with the return for
 2    April, May and June of a given year being due by July  20  of
 3    such  year; with the return for July, August and September of
 4    a given year being due by October 20 of such year,  and  with
 5    the return for October, November and December of a given year
 6    being due by January 20 of the following year.
 7        If  the  retailer is otherwise required to file a monthly
 8    or quarterly return and if the retailer's average monthly tax
 9    liability with  the  Department  does  not  exceed  $50,  the
10    Department may authorize his returns to be filed on an annual
11    basis,  with the return for a given year being due by January
12    20 of the following year.
13        Such quarter annual and annual returns, as  to  form  and
14    substance,  shall  be  subject  to  the  same requirements as
15    monthly returns.
16        Notwithstanding  any  other   provision   in   this   Act
17    concerning  the  time  within  which  a retailer may file his
18    return, in the case of any retailer who ceases to engage in a
19    kind of business  which  makes  him  responsible  for  filing
20    returns  under  this  Act,  such  retailer shall file a final
21    return under this Act with the Department not more  than  one
22    month after discontinuing such business.
23        Where   the  same  person  has  more  than  one  business
24    registered with the Department under  separate  registrations
25    under  this Act, such person may not file each return that is
26    due  as  a  single  return  covering  all   such   registered
27    businesses,  but  shall  file  separate returns for each such
28    registered 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
 
SB984 Engrossed             -62-               LRB9208148SMdv
 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  retailer  or  trailer
 6    retailer  for  the  purpose  of  resale or (ii) a retailer of
 7    aircraft, watercraft, motor vehicles, or  trailers  transfers
 8    more than one aircraft, watercraft, motor vehicle, or trailer
 9    to  a  purchaser  for  use  as  a qualifying rolling stock as
10    provided in Section 2-5 of this Act,  then  that  seller  may
11    report  the  transfer  of  all  aircraft,  watercraft,  motor
12    vehicles  or  trailers  involved  in  that transaction to the
13    Department on the same uniform invoice-transaction  reporting
14    return  form.   For  purposes  of  this Section, "watercraft"
15    means a Class 2, Class 3, or Class 4 watercraft as defined in
16    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
17    personal  watercraft,  or  any  boat equipped with an inboard
18    motor.
19        Any retailer who sells only motor  vehicles,  watercraft,
20    aircraft, or trailers that are required to be registered with
21    an  agency  of  this State, so that all retailers' occupation
22    tax liability is required to be reported, and is reported, on
23    such transaction reporting returns and who is  not  otherwise
24    required  to file monthly or quarterly returns, need not file
25    monthly or quarterly returns.  However, those retailers shall
26    be required to file returns on an annual basis.
27        The transaction reporting return, in the  case  of  motor
28    vehicles  or trailers that are required to be registered with
29    an agency of this State, shall be the same  document  as  the
30    Uniform  Invoice referred to in Section 5-402 of The Illinois
31    Vehicle Code and must  show  the  name  and  address  of  the
32    seller;  the name and address of the purchaser; the amount of
33    the  selling  price  including  the  amount  allowed  by  the
34    retailer for traded-in property, if any; the  amount  allowed
 
SB984 Engrossed             -63-               LRB9208148SMdv
 1    by the retailer for the traded-in tangible personal property,
 2    if  any,  to the extent to which Section 1 of this Act allows
 3    an exemption for the value of traded-in property; the balance
 4    payable after deducting  such  trade-in  allowance  from  the
 5    total  selling price; the amount of tax due from the retailer
 6    with respect to such transaction; the amount of tax collected
 7    from the purchaser by the retailer on  such  transaction  (or
 8    satisfactory  evidence  that  such  tax  is  not  due in that
 9    particular instance, if that is claimed to be the fact);  the
10    place  and  date  of the sale; a sufficient identification of
11    the property sold; such other information as is  required  in
12    Section  5-402  of  The Illinois Vehicle Code, and such other
13    information as the Department may reasonably require.
14        The  transaction  reporting  return  in   the   case   of
15    watercraft  or aircraft must show the name and address of the
16    seller; the name and address of the purchaser; the amount  of
17    the  selling  price  including  the  amount  allowed  by  the
18    retailer  for  traded-in property, if any; the amount allowed
19    by the retailer for the traded-in tangible personal property,
20    if any, to the extent to which Section 1 of this  Act  allows
21    an exemption for the value of traded-in property; the balance
22    payable  after  deducting  such  trade-in  allowance from the
23    total selling price; the amount of tax due from the  retailer
24    with respect to such transaction; the amount of tax collected
25    from  the  purchaser  by the retailer on such transaction (or
26    satisfactory evidence that  such  tax  is  not  due  in  that
27    particular  instance, if that is claimed to be the fact); the
28    place and date of the sale, a  sufficient  identification  of
29    the   property  sold,  and  such  other  information  as  the
30    Department may reasonably require.
31        Such transaction reporting  return  shall  be  filed  not
32    later than 20 days after the day of delivery of the item that
33    is  being  sold, but may be filed by the retailer at any time
34    sooner than that if he chooses to  do  so.   The  transaction
 
SB984 Engrossed             -64-               LRB9208148SMdv
 1    reporting  return  and  tax  remittance or proof of exemption
 2    from  the  Illinois  use  tax  may  be  transmitted  to   the
 3    Department  by  way  of the State agency with which, or State
 4    officer with whom the  tangible  personal  property  must  be
 5    titled or registered (if titling or registration is required)
 6    if  the Department and such agency or State officer determine
 7    that  this  procedure  will  expedite   the   processing   of
 8    applications for title or registration.
 9        With each such transaction reporting return, the retailer
10    shall  remit  the  proper  amount of tax due (or shall submit
11    satisfactory evidence that the sale is not taxable if that is
12    the case), to the Department or  its  agents,  whereupon  the
13    Department  shall  issue,  in the purchaser's name, a use tax
14    receipt (or a certificate of exemption if the  Department  is
15    satisfied  that the particular sale is tax exempt) which such
16    purchaser may submit to  the  agency  with  which,  or  State
17    officer  with  whom,  he  must title or register the tangible
18    personal  property  that   is   involved   (if   titling   or
19    registration  is  required)  in  support  of such purchaser's
20    application for an Illinois certificate or other evidence  of
21    title or registration to such tangible personal property.
22        No  retailer's failure or refusal to remit tax under this
23    Act precludes a user, who has paid  the  proper  tax  to  the
24    retailer,  from  obtaining  his certificate of title or other
25    evidence of title or registration (if titling or registration
26    is required) upon satisfying the Department  that  such  user
27    has paid the proper tax (if tax is due) to the retailer.  The
28    Department  shall  adopt  appropriate  rules to carry out the
29    mandate of this paragraph.
30        If the user who would otherwise pay tax to  the  retailer
31    wants  the transaction reporting return filed and the payment
32    of the tax or proof  of  exemption  made  to  the  Department
33    before the retailer is willing to take these actions and such
34    user  has  not  paid  the  tax to the retailer, such user may
 
SB984 Engrossed             -65-               LRB9208148SMdv
 1    certify to the fact of such delay by  the  retailer  and  may
 2    (upon  the  Department  being  satisfied of the truth of such
 3    certification)  transmit  the  information  required  by  the
 4    transaction reporting return and the remittance  for  tax  or
 5    proof  of exemption directly to the Department and obtain his
 6    tax receipt or exemption determination, in  which  event  the
 7    transaction  reporting  return  and  tax remittance (if a tax
 8    payment was required) shall be credited by the Department  to
 9    the  proper  retailer's  account  with  the  Department,  but
10    without  the  2.1%  or  1.75%  discount  provided for in this
11    Section being allowed.  When the user pays the  tax  directly
12    to  the  Department,  he shall pay the tax in the same amount
13    and in the same form in which it would be remitted if the tax
14    had been remitted to the Department by the retailer.
15        Refunds made by the seller during  the  preceding  return
16    period   to  purchasers,  on  account  of  tangible  personal
17    property returned to  the  seller,  shall  be  allowed  as  a
18    deduction  under  subdivision  5  of his monthly or quarterly
19    return,  as  the  case  may  be,  in  case  the  seller   had
20    theretofore  included  the  receipts  from  the  sale of such
21    tangible personal property in a return filed by him  and  had
22    paid  the  tax  imposed  by  this  Act  with  respect to such
23    receipts.
24        Where the seller is a corporation, the  return  filed  on
25    behalf  of such corporation shall be signed by the president,
26    vice-president, secretary or treasurer  or  by  the  properly
27    accredited agent of such corporation.
28        Where  the  seller  is  a  limited liability company, the
29    return filed on behalf of the limited liability company shall
30    be signed by a manager, member, or properly accredited  agent
31    of the limited liability company.
32        Except  as  provided in this Section, the retailer filing
33    the return under this Section shall, at the  time  of  filing
34    such  return, pay to the Department the amount of tax imposed
 
SB984 Engrossed             -66-               LRB9208148SMdv
 1    by this Act less a discount of 2.1% prior to January 1,  1990
 2    and  1.75%  on  and after January 1, 1990, or $5 per calendar
 3    year, whichever is greater, which is allowed to reimburse the
 4    retailer  for  the  expenses  incurred  in  keeping  records,
 5    preparing and filing returns, remitting the tax and supplying
 6    data to the  Department  on  request.   Any  prepayment  made
 7    pursuant  to  Section 2d of this Act shall be included in the
 8    amount on which such 2.1% or 1.75% discount is computed.   In
 9    the  case  of  retailers  who  report  and  pay  the tax on a
10    transaction  by  transaction  basis,  as  provided  in   this
11    Section,  such  discount  shall  be  taken with each such tax
12    remittance instead of when such retailer files  his  periodic
13    return.
14        Before October 1, 2000, if the taxpayer's average monthly
15    tax  liability  to the Department under this Act, the Use Tax
16    Act, the Service Occupation Tax Act, and the Service Use  Tax
17    Act,  excluding  any  liability  for  prepaid sales tax to be
18    remitted in accordance with  Section  2d  of  this  Act,  was
19    $10,000  or  more  during  the  preceding 4 complete calendar
20    quarters, he shall file a return  with  the  Department  each
21    month  by  the 20th day of the month next following the month
22    during which such tax liability is incurred  and  shall  make
23    payments  to  the Department on or before the 7th, 15th, 22nd
24    and last day of the month  during  which  such  liability  is
25    incurred.  On  and  after  October 1, 2000, if the taxpayer's
26    average monthly tax liability to the  Department  under  this
27    Act, the Use Tax Act, the Service Occupation Tax Act, and the
28    Service  Use  Tax  Act,  excluding  any liability for prepaid
29    sales tax to be remitted in accordance  with  Section  2d  of
30    this Act, was $20,000 or more during the preceding 4 complete
31    calendar quarters, he shall file a return with the Department
32    each  month  by  the 20th day of the month next following the
33    month during which such tax liability is incurred  and  shall
34    make  payment  to  the Department on or before the 7th, 15th,
 
SB984 Engrossed             -67-               LRB9208148SMdv
 1    22nd and last day of the month during which such liability is
 2    incurred.  If the month during which such  tax  liability  is
 3    incurred  began  prior to January 1, 1985, each payment shall
 4    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
 5    liability  for  the  month or an amount set by the Department
 6    not to exceed 1/4 of the average  monthly  liability  of  the
 7    taxpayer  to  the  Department  for  the  preceding 4 complete
 8    calendar quarters (excluding the month of  highest  liability
 9    and  the month of lowest liability in such 4 quarter period).
10    If the month during which  such  tax  liability  is  incurred
11    begins  on  or  after January 1, 1985 and prior to January 1,
12    1987, each payment shall be in an amount equal  to  22.5%  of
13    the taxpayer's actual liability for the month or 27.5% of the
14    taxpayer's  liability  for  the  same  calendar  month of the
15    preceding year.  If the month during which such tax liability
16    is incurred begins on or after January 1, 1987 and  prior  to
17    January  1, 1988, each payment shall be in an amount equal to
18    22.5% of the taxpayer's actual liability  for  the  month  or
19    26.25%  of  the  taxpayer's  liability  for the same calendar
20    month of the preceding year.  If the month during which  such
21    tax liability is incurred begins on or after January 1, 1988,
22    and  prior  to January 1, 1989, or begins on or after January
23    1, 1996, each payment shall be in an amount equal to 22.5% of
24    the taxpayer's actual liability for the month or 25%  of  the
25    taxpayer's  liability  for  the  same  calendar  month of the
26    preceding year. If the month during which such tax  liability
27    is  incurred begins on or after January 1, 1989, and prior to
28    January 1, 1996, each payment shall be in an amount equal  to
29    22.5% of the taxpayer's actual liability for the month or 25%
30    of  the  taxpayer's  liability for the same calendar month of
31    the preceding year or 100% of the taxpayer's actual liability
32    for the quarter monthly reporting period.  The amount of such
33    quarter monthly payments shall be credited against the  final
34    tax  liability  of  the  taxpayer's  return  for  that month.
 
SB984 Engrossed             -68-               LRB9208148SMdv
 1    Before October 1, 2000, once applicable, the  requirement  of
 2    the  making  of quarter monthly payments to the Department by
 3    taxpayers having an average monthly tax liability of  $10,000
 4    or  more  as  determined  in  the manner provided above shall
 5    continue until such taxpayer's average monthly  liability  to
 6    the  Department  during  the  preceding  4  complete calendar
 7    quarters (excluding the month of highest  liability  and  the
 8    month of lowest liability) is less than $9,000, or until such
 9    taxpayer's  average  monthly  liability  to the Department as
10    computed  for  each  calendar  quarter  of  the  4  preceding
11    complete  calendar  quarter  period  is  less  than  $10,000.
12    However, if  a  taxpayer  can  show  the  Department  that  a
13    substantial  change  in  the taxpayer's business has occurred
14    which causes the taxpayer  to  anticipate  that  his  average
15    monthly  tax  liability for the reasonably foreseeable future
16    will fall below the $10,000 threshold stated above, then such
17    taxpayer may petition the Department for  a  change  in  such
18    taxpayer's  reporting  status.  On and after October 1, 2000,
19    once applicable, the requirement of  the  making  of  quarter
20    monthly  payments  to  the  Department by taxpayers having an
21    average  monthly  tax  liability  of  $20,000  or   more   as
22    determined  in the manner provided above shall continue until
23    such taxpayer's average monthly liability to  the  Department
24    during  the preceding 4 complete calendar quarters (excluding
25    the month of  highest  liability  and  the  month  of  lowest
26    liability)  is  less  than  $19,000  or until such taxpayer's
27    average monthly liability to the Department as  computed  for
28    each  calendar  quarter  of the 4 preceding complete calendar
29    quarter period is less than $20,000.  However, if a  taxpayer
30    can  show  the  Department  that  a substantial change in the
31    taxpayer's business has occurred which causes the taxpayer to
32    anticipate that his average monthly  tax  liability  for  the
33    reasonably  foreseeable  future  will  fall below the $20,000
34    threshold stated above, then such taxpayer may  petition  the
 
SB984 Engrossed             -69-               LRB9208148SMdv
 1    Department  for a change in such taxpayer's reporting status.
 2    The Department shall change such taxpayer's reporting  status
 3    unless  it  finds  that such change is seasonal in nature and
 4    not likely to be long term.   If  any  such  quarter  monthly
 5    payment  is not paid at the time or in the amount required by
 6    this Section, then the taxpayer shall be liable for penalties
 7    and interest on the difference between the minimum amount due
 8    as a payment and the amount of such quarter  monthly  payment
 9    actually  and timely paid, except insofar as the taxpayer has
10    previously made payments for that month to the Department  in
11    excess  of the minimum payments previously due as provided in
12    this Section. The Department shall make reasonable rules  and
13    regulations  to govern the quarter monthly payment amount and
14    quarter monthly payment dates for taxpayers who file on other
15    than a calendar monthly basis.
16        Without regard to whether a taxpayer is required to  make
17    quarter monthly payments as specified above, any taxpayer who
18    is  required  by  Section 2d of this Act to collect and remit
19    prepaid taxes and has collected prepaid taxes  which  average
20    in  excess  of  $25,000  per  month  during  the  preceding 2
21    complete calendar quarters, shall  file  a  return  with  the
22    Department  as required by Section 2f and shall make payments
23    to the Department on or before the 7th, 15th, 22nd  and  last
24    day of the month during which such liability is incurred.  If
25    the  month  during which such tax liability is incurred began
26    prior to the effective date of this amendatory Act  of  1985,
27    each payment shall be in an amount not less than 22.5% of the
28    taxpayer's  actual  liability under Section 2d.  If the month
29    during which such tax liability  is  incurred  begins  on  or
30    after  January  1,  1986,  each payment shall be in an amount
31    equal to 22.5% of the taxpayer's  actual  liability  for  the
32    month  or  27.5%  of  the  taxpayer's  liability for the same
33    calendar month of the preceding calendar year.  If the  month
34    during  which  such  tax  liability  is incurred begins on or
 
SB984 Engrossed             -70-               LRB9208148SMdv
 1    after January 1, 1987, each payment shall  be  in  an  amount
 2    equal  to  22.5%  of  the taxpayer's actual liability for the
 3    month or 26.25% of the  taxpayer's  liability  for  the  same
 4    calendar  month  of  the  preceding year.  The amount of such
 5    quarter monthly payments shall be credited against the  final
 6    tax  liability  of the taxpayer's return for that month filed
 7    under this Section or Section 2f, as the case may  be.   Once
 8    applicable,  the requirement of the making of quarter monthly
 9    payments to the Department pursuant to this  paragraph  shall
10    continue  until  such  taxpayer's average monthly prepaid tax
11    collections during the preceding 2 complete calendar quarters
12    is $25,000 or less.  If any such quarter monthly  payment  is
13    not  paid at the time or in the amount required, the taxpayer
14    shall  be  liable  for  penalties  and   interest   on   such
15    difference,  except  insofar  as  the taxpayer has previously
16    made payments  for  that  month  in  excess  of  the  minimum
17    payments previously due.
18        If  any  payment provided for in this Section exceeds the
19    taxpayer's liabilities under this Act, the Use Tax  Act,  the
20    Service  Occupation  Tax  Act and the Service Use Tax Act, as
21    shown on an original monthly return, the Department shall, if
22    requested by the taxpayer, issue to  the  taxpayer  a  credit
23    memorandum  no  later than 30 days after the date of payment.
24    The  credit  evidenced  by  such  credit  memorandum  may  be
25    assigned by the taxpayer to a  similar  taxpayer  under  this
26    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
27    Service Use Tax Act, in accordance with reasonable rules  and
28    regulations  to  be prescribed by the Department.  If no such
29    request is made, the taxpayer may credit such excess  payment
30    against  tax  liability  subsequently  to  be remitted to the
31    Department under this Act,  the  Use  Tax  Act,  the  Service
32    Occupation  Tax Act or the Service Use Tax Act, in accordance
33    with reasonable  rules  and  regulations  prescribed  by  the
34    Department.   If  the Department subsequently determined that
 
SB984 Engrossed             -71-               LRB9208148SMdv
 1    all or any part of the credit taken was not actually  due  to
 2    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
 3    shall  be  reduced by 2.1% or 1.75% of the difference between
 4    the credit taken and that actually  due,  and  that  taxpayer
 5    shall   be   liable   for  penalties  and  interest  on  such
 6    difference.
 7        If a retailer of motor fuel is entitled to a credit under
 8    Section 2d of this Act which exceeds the taxpayer's liability
 9    to the Department under this Act  for  the  month  which  the
10    taxpayer  is  filing a return, the Department shall issue the
11    taxpayer a credit memorandum for the excess.
12        Beginning January 1,  1990,  each  month  the  Department
13    shall  pay into the Local Government Tax Fund, a special fund
14    in the State  treasury  which  is  hereby  created,  the  net
15    revenue  realized  for the preceding month from the 1% tax on
16    sales of food for human consumption which is to  be  consumed
17    off  the  premises  where  it  is  sold (other than alcoholic
18    beverages, soft drinks and food which has been  prepared  for
19    immediate  consumption)  and prescription and nonprescription
20    medicines,  drugs,  medical  appliances  and  insulin,  urine
21    testing materials, syringes and needles used by diabetics.
22        Beginning January 1,  1990,  each  month  the  Department
23    shall  pay  into the County and Mass Transit District Fund, a
24    special fund in the State treasury which is  hereby  created,
25    4%  of  the net revenue realized for the preceding month from
26    the 6.25% general rate.
27        Beginning August 1, 2000, each month the Department shall
28    pay into the County and Mass Transit District Fund 20% of the
29    net revenue realized for the preceding month from  the  1.25%
30    rate on the selling price of motor fuel and gasohol.
31        Beginning  February  1,  2002,  each month the Department
32    shall pay into the County and Mass Transit District Fund  20%
33    of  the net revenue realized for the preceding month from the
34    1.25%  rate  on  the  selling  price  of   energy   efficient
 
SB984 Engrossed             -72-               LRB9208148SMdv
 1    appliances.
 2        Beginning  January  1,  1990,  each  month the Department
 3    shall pay into the Local Government Tax Fund 16% 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        Beginning August 1, 2000, each month the Department shall
 8    pay into the Local Government Tax Fund 80% of the net revenue
 9    realized  for  the preceding month from the 1.25% rate on the
10    selling price of motor fuel and gasohol.
11        Beginning February 1, 2002,  each  month  the  Department
12    shall  pay  into the Local Government Tax Fund 80% of the net
13    revenue realized for the preceding month from the 1.25%  rate
14    on the selling price of energy efficient appliances.
15        Of the remainder of the moneys received by the Department
16    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
17    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
18    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
19    into the Build Illinois Fund; provided, however, that  if  in
20    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
21    as  the case may be, of the moneys received by the Department
22    and required to be paid into the Build Illinois Fund pursuant
23    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
24    Service  Use Tax Act, and Section 9 of the Service Occupation
25    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
26    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
27    moneys being hereinafter called the "Tax Act Amount", and (2)
28    the amount transferred to the Build Illinois  Fund  from  the
29    State  and Local Sales Tax Reform Fund shall be less than the
30    Annual Specified Amount (as hereinafter defined),  an  amount
31    equal  to  the  difference shall be immediately paid into the
32    Build  Illinois  Fund  from  other  moneys  received  by  the
33    Department pursuant to the Tax Acts;  the  "Annual  Specified
34    Amount"  means  the  amounts specified below for fiscal years
 
SB984 Engrossed             -73-               LRB9208148SMdv
 1    1986 through 1993:
 2             Fiscal Year              Annual Specified Amount
 3                 1986                       $54,800,000
 4                 1987                       $76,650,000
 5                 1988                       $80,480,000
 6                 1989                       $88,510,000
 7                 1990                       $115,330,000
 8                 1991                       $145,470,000
 9                 1992                       $182,730,000
10                 1993                      $206,520,000;
11    and means the Certified Annual Debt Service  Requirement  (as
12    defined  in Section 13 of the Build Illinois Bond Act) or the
13    Tax Act Amount, whichever is greater, for  fiscal  year  1994
14    and  each  fiscal year thereafter; and further provided, that
15    if on the last business day of any month the sum of  (1)  the
16    Tax  Act  Amount  required  to  be  deposited  into the Build
17    Illinois Bond Account in the Build Illinois Fund during  such
18    month  and  (2)  the amount transferred to the Build Illinois
19    Fund from the State and Local Sales  Tax  Reform  Fund  shall
20    have  been  less than 1/12 of the Annual Specified Amount, an
21    amount equal to the difference shall be immediately paid into
22    the Build Illinois Fund from other  moneys  received  by  the
23    Department  pursuant  to the Tax Acts; and, further provided,
24    that in no  event  shall  the  payments  required  under  the
25    preceding proviso result in aggregate payments into the Build
26    Illinois Fund pursuant to this clause (b) for any fiscal year
27    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
28    the Annual  Specified  Amount  for  such  fiscal  year.   The
29    amounts payable into the Build Illinois Fund under clause (b)
30    of the first sentence in this paragraph shall be payable only
31    until such time as the aggregate amount on deposit under each
32    trust   indenture   securing  Bonds  issued  and  outstanding
33    pursuant to the Build Illinois Bond Act is sufficient, taking
34    into account any future investment income, to fully  provide,
 
SB984 Engrossed             -74-               LRB9208148SMdv
 1    in  accordance  with such indenture, for the defeasance of or
 2    the payment  of  the  principal  of,  premium,  if  any,  and
 3    interest  on  the  Bonds secured by such indenture and on any
 4    Bonds expected to be issued thereafter and all fees and costs
 5    payable  with  respect  thereto,  all  as  certified  by  the
 6    Director of the  Bureau  of  the  Budget.   If  on  the  last
 7    business  day  of  any  month  in which Bonds are outstanding
 8    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
 9    moneys  deposited  in  the Build Illinois Bond Account in the
10    Build Illinois Fund in such month  shall  be  less  than  the
11    amount  required  to  be  transferred  in such month from the
12    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
13    Retirement  and  Interest  Fund pursuant to Section 13 of the
14    Build Illinois Bond Act, an amount equal to  such  deficiency
15    shall  be  immediately paid from other moneys received by the
16    Department pursuant to the Tax Acts  to  the  Build  Illinois
17    Fund;  provided,  however, that any amounts paid to the Build
18    Illinois Fund in any fiscal year pursuant  to  this  sentence
19    shall be deemed to constitute payments pursuant to clause (b)
20    of  the first sentence of this paragraph and shall reduce the
21    amount otherwise payable for such  fiscal  year  pursuant  to
22    that  clause  (b).   The  moneys  received  by the Department
23    pursuant to this Act and required to be  deposited  into  the
24    Build  Illinois  Fund  are  subject  to the pledge, claim and
25    charge set forth in Section 12 of  the  Build  Illinois  Bond
26    Act.
27        Subject  to  payment  of  amounts into the Build Illinois
28    Fund as  provided  in  the  preceding  paragraph  or  in  any
29    amendment  thereto hereafter enacted, the following specified
30    monthly  installment  of  the   amount   requested   in   the
31    certificate  of  the  Chairman  of  the Metropolitan Pier and
32    Exposition Authority provided  under  Section  8.25f  of  the
33    State  Finance  Act,  but not in excess of sums designated as
34    "Total Deposit", shall be deposited  in  the  aggregate  from
 
SB984 Engrossed             -75-               LRB9208148SMdv
 1    collections  under Section 9 of the Use Tax Act, Section 9 of
 2    the Service Use Tax Act, Section 9 of the Service  Occupation
 3    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 4    into the  McCormick  Place  Expansion  Project  Fund  in  the
 5    specified fiscal years.
 6             Fiscal Year                   Total Deposit
 7                 1993                            $0
 8                 1994                        53,000,000
 9                 1995                        58,000,000
10                 1996                        61,000,000
11                 1997                        64,000,000
12                 1998                        68,000,000
13                 1999                        71,000,000
14                 2000                        75,000,000
15                 2001                        80,000,000
16                 2002                        84,000,000
17                 2003                        89,000,000
18                 2004                        93,000,000
19                 2005                        97,000,000
20                 2006                       102,000,000
21                 2007                       108,000,000
22                 2008                       115,000,000
23                 2009                       120,000,000
24                 2010                       126,000,000
25                 2011                       132,000,000
26                 2012                       138,000,000
27                 2013 and                   145,000,000
28        each fiscal year
29        thereafter that bonds
30        are outstanding under
31        Section 13.2 of the
32        Metropolitan Pier and
33        Exposition Authority
34        Act, but not after fiscal year 2029.
 
SB984 Engrossed             -76-               LRB9208148SMdv
 1        Beginning  July 20, 1993 and in each month of each fiscal
 2    year thereafter, one-eighth of the amount  requested  in  the
 3    certificate  of  the  Chairman  of  the Metropolitan Pier and
 4    Exposition Authority for that fiscal year,  less  the  amount
 5    deposited  into the McCormick Place Expansion Project Fund by
 6    the State Treasurer in the respective month under  subsection
 7    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 8    Authority Act, plus cumulative deficiencies in  the  deposits
 9    required  under  this  Section for previous months and years,
10    shall be deposited into the McCormick Place Expansion Project
11    Fund, until the full amount requested for  the  fiscal  year,
12    but  not  in  excess  of the amount specified above as "Total
13    Deposit", has been deposited.
14        Subject to payment of amounts  into  the  Build  Illinois
15    Fund  and the McCormick Place Expansion Project Fund pursuant
16    to the preceding  paragraphs  or  in  any  amendment  thereto
17    hereafter  enacted,  each month the Department shall pay into
18    the Local  Government  Distributive  Fund  0.4%  of  the  net
19    revenue  realized for the preceding month from the 5% general
20    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
21    preceding  month from the 6.25% general rate, as the case may
22    be, on the selling price of tangible personal property  which
23    amount  shall,  subject  to  appropriation, be distributed as
24    provided in Section 2 of the State Revenue Sharing  Act.   No
25    payments or distributions pursuant to this paragraph shall be
26    made  if  the  tax  imposed  by  this  Act on photoprocessing
27    products is declared unconstitutional,  or  if  the  proceeds
28    from  such  tax  are  unavailable for distribution because of
29    litigation.
30        Subject to payment of amounts  into  the  Build  Illinois
31    Fund,  the  McCormick  Place  Expansion Project Fund, and the
32    Local Government Distributive Fund pursuant to the  preceding
33    paragraphs  or  in  any amendments thereto hereafter enacted,
34    beginning July 1, 1993, the Department shall each  month  pay
 
SB984 Engrossed             -77-               LRB9208148SMdv
 1    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
 2    revenue realized for  the  preceding  month  from  the  6.25%
 3    general  rate  on  the  selling  price  of  tangible personal
 4    property.
 5        Of the remainder of the moneys received by the Department
 6    pursuant to this Act, 75% thereof  shall  be  paid  into  the
 7    State Treasury and 25% shall be reserved in a special account
 8    and  used  only for the transfer to the Common School Fund as
 9    part of the monthly transfer from the General Revenue Fund in
10    accordance with Section 8a of the State Finance Act.
11        The Department may, upon separate  written  notice  to  a
12    taxpayer,  require  the taxpayer to prepare and file with the
13    Department on a form prescribed by the Department within  not
14    less  than  60  days  after  receipt  of the notice an annual
15    information return for the tax year specified in the  notice.
16    Such   annual  return  to  the  Department  shall  include  a
17    statement of gross receipts as shown by the  retailer's  last
18    Federal  income  tax  return.   If  the total receipts of the
19    business as reported in the Federal income tax return do  not
20    agree  with  the gross receipts reported to the Department of
21    Revenue for the same period, the retailer shall attach to his
22    annual return a schedule showing a reconciliation  of  the  2
23    amounts  and  the reasons for the difference.  The retailer's
24    annual return to the Department shall also disclose the  cost
25    of goods sold by the retailer during the year covered by such
26    return,  opening  and  closing  inventories of such goods for
27    such year, costs of goods used from stock or taken from stock
28    and given away by the  retailer  during  such  year,  payroll
29    information  of  the retailer's business during such year and
30    any additional reasonable information  which  the  Department
31    deems  would  be  helpful  in determining the accuracy of the
32    monthly, quarterly or annual returns filed by  such  retailer
33    as provided for in this Section.
34        If the annual information return required by this Section
 
SB984 Engrossed             -78-               LRB9208148SMdv
 1    is  not  filed  when  and  as required, the taxpayer shall be
 2    liable as follows:
 3             (i)  Until January 1, 1994, the  taxpayer  shall  be
 4        liable  for  a  penalty equal to 1/6 of 1% of the tax due
 5        from such taxpayer under this Act during the period to be
 6        covered by the annual return for each month  or  fraction
 7        of  a  month  until such return is filed as required, the
 8        penalty to be assessed and collected in the  same  manner
 9        as any other penalty provided for in this Act.
10             (ii)  On  and  after  January  1, 1994, the taxpayer
11        shall be liable for a penalty as described in Section 3-4
12        of the Uniform Penalty and Interest Act.
13        The chief executive officer, proprietor, owner or highest
14    ranking manager shall sign the annual return to  certify  the
15    accuracy  of  the information contained therein.   Any person
16    who willfully signs the annual  return  containing  false  or
17    inaccurate   information  shall  be  guilty  of  perjury  and
18    punished accordingly.  The annual return form  prescribed  by
19    the  Department  shall  include  a  warning  that  the person
20    signing the return may be liable for perjury.
21        The provisions of this Section concerning the  filing  of
22    an  annual  information return do not apply to a retailer who
23    is not required to file an income tax return with the  United
24    States Government.
25        As  soon  as  possible after the first day of each month,
26    upon  certification  of  the  Department  of   Revenue,   the
27    Comptroller  shall  order transferred and the Treasurer shall
28    transfer from the General Revenue Fund to the Motor Fuel  Tax
29    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
30    realized under this  Act  for  the  second  preceding  month.
31    Beginning  April 1, 2000, this transfer is no longer required
32    and shall not be made.
33        Net revenue realized for a month  shall  be  the  revenue
34    collected  by the State pursuant to this Act, less the amount
 
SB984 Engrossed             -79-               LRB9208148SMdv
 1    paid out during  that  month  as  refunds  to  taxpayers  for
 2    overpayment of liability.
 3        For  greater simplicity of administration, manufacturers,
 4    importers and wholesalers whose products are sold  at  retail
 5    in Illinois by numerous retailers, and who wish to do so, may
 6    assume  the  responsibility  for accounting and paying to the
 7    Department all tax accruing under this Act  with  respect  to
 8    such  sales,  if  the  retailers who are affected do not make
 9    written objection to the Department to this arrangement.
10        Any  person  who  promotes,  organizes,  provides  retail
11    selling space for concessionaires or other types  of  sellers
12    at the Illinois State Fair, DuQuoin State Fair, county fairs,
13    local  fairs, art shows, flea markets and similar exhibitions
14    or events, including any transient  merchant  as  defined  by
15    Section  2 of the Transient Merchant Act of 1987, is required
16    to file a report with the Department providing  the  name  of
17    the  merchant's  business,  the name of the person or persons
18    engaged in merchant's business,  the  permanent  address  and
19    Illinois  Retailers Occupation Tax Registration Number of the
20    merchant, the dates and  location  of  the  event  and  other
21    reasonable  information that the Department may require.  The
22    report must be filed not later than the 20th day of the month
23    next following the month during which the event  with  retail
24    sales  was  held.   Any  person  who  fails  to file a report
25    required by this Section commits a business  offense  and  is
26    subject to a fine not to exceed $250.
27        Any  person  engaged  in the business of selling tangible
28    personal property at retail as a concessionaire or other type
29    of seller at the  Illinois  State  Fair,  county  fairs,  art
30    shows, flea markets and similar exhibitions or events, or any
31    transient merchants, as defined by Section 2 of the Transient
32    Merchant  Act of 1987, may be required to make a daily report
33    of the amount of such sales to the Department and to  make  a
34    daily  payment of the full amount of tax due.  The Department
 
SB984 Engrossed             -80-               LRB9208148SMdv
 1    shall impose this requirement when it finds that there  is  a
 2    significant  risk  of loss of revenue to the State at such an
 3    exhibition or event.   Such  a  finding  shall  be  based  on
 4    evidence  that  a  substantial  number  of concessionaires or
 5    other sellers who are  not  residents  of  Illinois  will  be
 6    engaging   in  the  business  of  selling  tangible  personal
 7    property at retail at  the  exhibition  or  event,  or  other
 8    evidence  of  a  significant  risk  of loss of revenue to the
 9    State.  The Department shall notify concessionaires and other
10    sellers affected by the imposition of this  requirement.   In
11    the   absence   of   notification   by  the  Department,  the
12    concessionaires and other sellers shall file their returns as
13    otherwise required in this Section.
14    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
15    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
16    7-12-99;  91-541,  eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
17    eff. 1-1-01; revised 1-15-01.)

18        Section 99.  Effective date.  This Act  takes  effect  on
19    January 1, 2002.

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