Public Act 094-1074
 		





SB3088 Enrolled
LRB094 19077 EFG 54584 b






    AN ACT in relation to revenue.

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


 
    Section 1. Findings; purpose; validation.  
    (a) The General Assembly finds and declares that:
        (1) Public Act 88-669, effective November 29, 1994, 
    amended provisions relating to revenue in  the following 
    Acts: the Illinois Income Tax Act, the Use Tax Act, the 
    Service Use Tax Act, the Service Occupation Tax Act, the 
    Retailers' Occupation Tax Act, the Cigarette Tax Act, the 
    Cigarette Use Tax Act, the Longtime Owner-Occupant 
    Property Tax Relief Act, the Motor Fuel Tax Law, the 
    Messages Tax Act, the Gas Revenue Tax Act, the Public 
    Utilities Revenue Tax Act, the Telecommunications Excise 
    Tax Act, the Liquor Control Act of 1934, and the Illinois 
    Vehicle Code. Public Act 88-669 also contained other 
    provisions, including an amendment to the Property Tax 
    Code.
        (2) The Illinois Supreme Court declared Public Act 
    88-669 to be unconstitutional as a violation of the single 
    subject clause of the Illinois Constitution in People v. 
    Olender, Docket No. 98932, opinion filed December 15, 2005.
    (b) The purpose of this Act is to re-enact most of the 
provisions relating to revenue that were affected by Public Act 
88-669 and to minimize or prevent any problems concerning those 
provisions that may arise from the unconstitutionality of 
Public Act 88-669. This re-enactment is intended to remove any 
question as to the validity and content of those provisions; it 
is not intended to supersede any other Public Act that amends 
the provisions re-enacted  in this Act. The re-enacted material 
is shown in this Act as existing text (i.e., without 
underscoring) and may include changes made by subsequent 
amendments.  The re-enacted material may also include revisory 
changes; the revisory changes are shown by striking and 
underscoring.
    (c) The re-enactment of provisions by this Act is not 
intended, and shall not be construed, to impair any legal 
argument concerning whether those provisions were 
substantially re-enacted  by any other Public Act. 
    (d) All otherwise lawful actions taken before the effective 
date of this  Act in reliance on or pursuant to the provisions 
re-enacted by this  Act, as those provisions were set forth in 
Public Act 88-669 or as subsequently amended, by any officer, 
employee, or agency of State government or by any other person 
or entity, are hereby validated, except to the extent 
prohibited under the Illinois or United States Constitution.
    (e) This Act applies, without limitation, to actions 
pending on or after the effective date of this Act, except to 
the extent prohibited under the Illinois or United States 
Constitution.
 
    Section 5. The Illinois Income Tax Act is amended  by 
re-enacting Sections 203, 502, 506.5, and 1301 and re-enacting 
and changing Section 917 as follows:
 



    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)



    Sec. 203. Base income defined. 

    (a) Individuals.


        (1) In general.  In the case of an individual, base 
    income means an
amount equal to the taxpayer's adjusted 
    gross income for the taxable
year as modified by paragraph 
    (2).


        (2) Modifications.  The adjusted gross income referred 
    to in
paragraph (1) shall be modified by adding thereto the 
    sum of the
following amounts:


            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer
as interest or dividends during the 
        taxable year to the extent excluded
from gross income 
        in the computation of adjusted gross income, except 
        stock
dividends of qualified public utilities 
        described in Section 305(e) of the
Internal Revenue 
        Code;


            (B) An amount equal to the amount of tax imposed by 
        this Act to the
extent deducted from gross income in 
        the computation of adjusted gross
income for the 
        taxable year;


            (C) An amount equal to the amount received during 
        the taxable year
as a recovery or refund of real 
        property taxes paid with respect to the
taxpayer's 
        principal residence under the Revenue Act of
1939 and 
        for which a deduction was previously taken under 
        subparagraph (L) of
this paragraph (2) prior to July 1, 
        1991, the retrospective application date of
Article 4 
        of Public Act 87-17.  In the case of multi-unit or 
        multi-use
structures and farm dwellings, the taxes on 
        the taxpayer's principal residence
shall be that 
        portion of the total taxes for the entire property 
        which is
attributable to such principal residence;


            (D) An amount equal to the amount of the capital 
        gain deduction
allowable under the Internal Revenue 
        Code, to the extent deducted from gross
income in the 
        computation of adjusted gross income;


            (D-5) An amount, to the extent not included in 
        adjusted gross income,
equal to the amount of money 
        withdrawn by the taxpayer in the taxable year from
a 
        medical care savings account and the interest earned on 
        the account in the
taxable year of a withdrawal 
        pursuant to subsection (b) of Section 20 of the
Medical 
        Care Savings Account Act or subsection (b) of Section 
        20 of the
Medical Care Savings Account Act of 2000;


            (D-10) For taxable years ending after December 31, 
        1997, an
amount equal to any eligible remediation costs 
        that the individual
deducted in computing adjusted 
        gross income and for which the
individual claims a 
        credit under subsection (l) of Section 201;


            (D-15) For taxable years 2001 and thereafter, an 
        amount equal to the
bonus depreciation deduction (30% 
        of the adjusted basis of the qualified
property) taken 
        on the taxpayer's federal income tax return for the 
        taxable
year under subsection (k) of Section 168 of the 
        Internal Revenue Code;


            (D-16) If the taxpayer reports a capital gain or 
        loss on the
taxpayer's federal income tax return for 
        the taxable year based on a sale or
transfer of 
        property for which the taxpayer was required in any 
        taxable year to
make an addition modification under 
        subparagraph (D-15), then an amount equal
to the 
        aggregate amount of the deductions taken in all taxable

        years under subparagraph (Z) with respect to that 
        property.


            The taxpayer is required to make the addition 
        modification under this
subparagraph
only once with 
        respect to any one piece of property;

            (D-17) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount 
        otherwise allowed as a deduction in computing base 
        income for interest paid, accrued, or incurred, 
        directly or indirectly, to a foreign person who would 
        be a member of the same unitary business group but for 
        the fact that foreign person's business activity 
        outside the United States is 80% or more of the foreign 
        person's total business activity. The addition 
        modification required by this subparagraph shall be 
        reduced to the extent that dividends were included in 
        base income of the unitary group for the same taxable 
        year and received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income under Sections 951 through 964 
        of the Internal Revenue Code and amounts included in 
        gross income under Section 78 of the Internal Revenue 
        Code) with respect to the stock of the same person to 
        whom the interest was paid, accrued, or incurred.
            This paragraph shall not apply to the following:

                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the foreign person, during the same 
                taxable year, paid, accrued, or incurred, the 
                interest to a person that is not a related 
                member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                foreign person did not have as a principal 
                purpose the avoidance of Illinois income tax, 
                and is paid pursuant to a contract or agreement 
                that reflects an arm's-length interest rate 
                and terms; or

                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract or 
            agreement entered into at arm's-length rates and 
            terms and the principal purpose for the payment is 
            not federal or Illinois tax avoidance; or

                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f).

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;

            (D-18) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount of 
        intangible expenses and costs otherwise allowed as a 
        deduction in computing base income, and that were paid, 
        accrued, or incurred, directly or indirectly, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income under Sections 951 through 964 of the Internal 
        Revenue Code and amounts included in gross income under 
        Section 78 of the Internal Revenue Code) with respect 
        to the stock of the same person to whom the intangible 
        expenses and costs were directly or indirectly paid, 
        incurred, or accrued. The preceding sentence does not 
        apply to the extent that the same dividends caused a 
        reduction to the addition modification required under 
        Section 203(a)(2)(D-17) of this Act. As used in this 
        subparagraph, the term "intangible expenses and costs" 
        includes (1) expenses, losses, and costs for, or 
        related to, the direct or indirect acquisition, use, 
        maintenance or management, ownership, sale, exchange, 
        or any other disposition of intangible property; (2) 
        losses incurred, directly or indirectly, from 
        factoring transactions or discounting transactions; 
        (3) royalty, patent, technical, and copyright fees; 
        (4) licensing fees; and (5) other similar expenses and 
        costs.
For purposes of this subparagraph, "intangible 
        property" includes patents, patent applications, trade 
        names, trademarks, service marks, copyrights, mask 
        works, trade secrets, and similar types of intangible 
        assets.
            This paragraph shall not apply to the following:
                (i)         any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such item; or
                (ii)        any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the foreign person during the same 
                taxable year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the foreign person did not have as 
                a principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii)       any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence, that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f);

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;


            (D-20) For taxable years beginning on or after 
        January 1,
2002, in
the
case of a distribution from a 
        qualified tuition program under Section 529 of
the 
        Internal Revenue Code, other than (i) a distribution 
        from a College Savings
Pool created under Section 16.5 
        of the State Treasurer Act or (ii) a
distribution from 
        the Illinois Prepaid Tuition Trust Fund, an amount 
        equal to
the amount excluded from gross income under 
        Section 529(c)(3)(B);


    and by deducting from the total so obtained the
sum of the 
    following amounts:


            (E) For taxable years ending before December 31, 
        2001,
any amount included in such total in respect of 
        any compensation
(including but not limited to any 
        compensation paid or accrued to a
serviceman while a 
        prisoner of war or missing in action) paid to a 
        resident
by reason of being on active duty in the Armed 
        Forces of the United States
and in respect of any 
        compensation paid or accrued to a resident who as a

        governmental employee was a prisoner of war or missing 
        in action, and in
respect of any compensation paid to a 
        resident in 1971 or thereafter for
annual training 
        performed pursuant to Sections 502 and 503, Title 32,

        United States Code as a member of the Illinois National 
        Guard.
For taxable years ending on or after December 
        31, 2001, any amount included in
such total in respect 
        of any compensation (including but not limited to any

        compensation paid or accrued to a serviceman while a 
        prisoner of war or missing
in action) paid to a 
        resident by reason of being a member of any component 
        of
the Armed Forces of the United States and in respect 
        of any compensation paid
or accrued to a resident who 
        as a governmental employee was a prisoner of war
or 
        missing in action, and in respect of any compensation 
        paid to a resident in
2001 or thereafter by reason of 
        being a member of the Illinois National Guard.
The 
        provisions of this amendatory Act of the 92nd General 
        Assembly are exempt
from the provisions of Section 250;


            (F) An amount equal to all amounts included in such 
        total pursuant
to the provisions of Sections 402(a), 
        402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the 
        Internal Revenue Code, or included in such total as

        distributions under the provisions of any retirement 
        or disability plan for
employees of any governmental 
        agency or unit, or retirement payments to
retired 
        partners, which payments are excluded in computing net 
        earnings
from self employment by Section 1402 of the 
        Internal Revenue Code and
regulations adopted pursuant 
        thereto;


            (G) The valuation limitation amount;


            (H) An amount equal to the amount of any tax 
        imposed by this Act
which was refunded to the taxpayer 
        and included in such total for the
taxable year;


            (I) An amount equal to all amounts included in such 
        total pursuant
to the provisions of Section 111 of the 
        Internal Revenue Code as a
recovery of items previously 
        deducted from adjusted gross income in the
computation 
        of taxable income;


            (J) An amount equal to those dividends included in 
        such total which were
paid by a corporation which 
        conducts business operations in an Enterprise
Zone or 
        zones created under the Illinois Enterprise Zone Act, 
        and conducts
substantially all of its operations in an 
        Enterprise Zone or zones;


            (K) An amount equal to those dividends included in 
        such total that
were paid by a corporation that 
        conducts business operations in a federally
designated 
        Foreign Trade Zone or Sub-Zone and that is designated a 
        High Impact
Business located in Illinois; provided 
        that dividends eligible for the
deduction provided in 
        subparagraph (J) of paragraph (2) of this subsection

        shall not be eligible for the deduction provided under 
        this subparagraph
(K);


            (L) For taxable years ending after December 31, 
        1983, an amount equal to
all social security benefits 
        and railroad retirement benefits included in
such 
        total pursuant to Sections 72(r) and 86 of the Internal 
        Revenue Code;


            (M) With the exception of any amounts subtracted 
        under subparagraph
(N), an amount equal to the sum of 
        all amounts disallowed as
deductions by (i) Sections 
        171(a) (2), and 265(2) of the Internal Revenue Code
of 
        1954, as now or hereafter amended, and all amounts of 
        expenses allocable
to interest and  disallowed as 
        deductions by Section 265(1) of the Internal
Revenue 
        Code of 1954, as now or hereafter amended;
and (ii) for 
        taxable years
ending on or after August 13, 1999, 
        Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of 
        the Internal Revenue Code; the provisions of this

        subparagraph are exempt from the provisions of Section 
        250;


            (N) An amount equal to all amounts included in such 
        total which are
exempt from taxation by this State 
        either by reason of its statutes or
Constitution
or by 
        reason of the Constitution, treaties or statutes of the 
        United States;
provided that, in the case of any 
        statute of this State that exempts income
derived from 
        bonds or other obligations from the tax imposed under 
        this Act,
the amount exempted shall be the interest net 
        of bond premium amortization;


            (O) An amount equal to any contribution made to a 
        job training
project established pursuant to the Tax 
        Increment Allocation Redevelopment Act;


            (P) An amount equal to the amount of the deduction 
        used to compute the
federal income tax credit for 
        restoration of substantial amounts held under
claim of 
        right for the taxable year pursuant to Section 1341 of 
        the
Internal Revenue Code of 1986;


            (Q) An amount equal to any amounts included in such 
        total, received by
the taxpayer as an acceleration in 
        the payment of life, endowment or annuity
benefits in 
        advance of the time they would otherwise be payable as 
        an indemnity
for a terminal illness;


            (R) An amount equal to the amount of any federal or 
        State bonus paid
to veterans of the Persian Gulf War;


            (S) An amount, to the extent included in adjusted 
        gross income, equal
to the amount of a contribution 
        made in the taxable year on behalf of the
taxpayer to a 
        medical care savings account established under the 
        Medical Care
Savings Account Act or the Medical Care 
        Savings Account Act of 2000 to the
extent the 
        contribution is accepted by the account
administrator 
        as provided in that Act;


            (T) An amount, to the extent included in adjusted 
        gross income, equal to
the amount of interest earned in 
        the taxable year on a medical care savings
account 
        established under the Medical Care Savings Account Act 
        or the Medical
Care Savings Account Act of 2000 on 
        behalf of the
taxpayer, other than interest added 
        pursuant to item (D-5) of this paragraph
(2);


            (U) For one taxable year beginning on or after 
        January 1,
1994, an
amount equal to the total amount of 
        tax imposed and paid under subsections (a)
and (b) of 
        Section 201 of this Act on grant amounts received by 
        the taxpayer
under the Nursing Home Grant Assistance 
        Act during the taxpayer's taxable years
1992 and 1993;


            (V) Beginning with tax years ending on or after 
        December 31, 1995 and
ending with tax years ending on 
        or before December 31, 2004, an amount equal to
the 
        amount paid by a taxpayer who is a
self-employed 
        taxpayer, a partner of a partnership, or a
shareholder 
        in a Subchapter S corporation for health insurance or 
        long-term
care insurance for that taxpayer or that 
        taxpayer's spouse or dependents, to
the extent that the 
        amount paid for that health insurance or long-term care

        insurance may be deducted under Section 213 of the 
        Internal Revenue Code of
1986, has not been deducted on 
        the federal income tax return of the taxpayer,
and does 
        not exceed the taxable income attributable to that 
        taxpayer's income,
self-employment income, or 
        Subchapter S corporation income; except that no

        deduction shall be allowed under this item (V) if the 
        taxpayer is eligible to
participate in any health 
        insurance or long-term care insurance plan of an

        employer of the taxpayer or the taxpayer's
spouse.  The 
        amount of the health insurance and long-term care 
        insurance
subtracted under this item (V) shall be 
        determined by multiplying total
health insurance and 
        long-term care insurance premiums paid by the taxpayer

        times a number that represents the fractional 
        percentage of eligible medical
expenses under Section 
        213 of the Internal Revenue Code of 1986 not actually

        deducted on the taxpayer's federal income tax return;


            (W) For taxable years beginning on or after January 
        1, 1998,
all amounts included in the taxpayer's federal 
        gross income
in the taxable year from amounts converted 
        from a regular IRA to a Roth IRA.
This paragraph is 
        exempt from the provisions of Section
250;


            (X) For taxable year 1999 and thereafter, an amount 
        equal to the
amount of any (i) distributions, to the 
        extent includible in gross income for
federal income 
        tax purposes, made to the taxpayer because of his or 
        her status
as a victim of persecution for racial or 
        religious reasons by Nazi Germany or
any other Axis 
        regime or as an heir of the victim and (ii) items
of 
        income, to the extent
includible in gross income for 
        federal income tax purposes, attributable to,
derived 
        from or in any way related to assets stolen from, 
        hidden from, or
otherwise lost to a victim of

        persecution for racial or religious reasons by Nazi 
        Germany or any other Axis
regime immediately prior to, 
        during, and immediately after World War II,
including, 
        but
not limited to, interest on the proceeds receivable 
        as insurance
under policies issued to a victim of 
        persecution for racial or religious
reasons
by Nazi 
        Germany or any other Axis regime by European insurance 
        companies
immediately prior to and during World War II;

        provided, however, this subtraction from federal 
        adjusted gross income does not
apply to assets acquired 
        with such assets or with the proceeds from the sale of

        such assets; provided, further, this paragraph shall 
        only apply to a taxpayer
who was the first recipient of 
        such assets after their recovery and who is a
victim of 
        persecution for racial or religious reasons
by Nazi 
        Germany or any other Axis regime or as an heir of the 
        victim.  The
amount of and the eligibility for any 
        public assistance, benefit, or
similar entitlement is 
        not affected by the inclusion of items (i) and (ii) of

        this paragraph in gross income for federal income tax 
        purposes.
This paragraph is exempt from the provisions 
        of Section 250;


            (Y) For taxable years beginning on or after January 
        1, 2002
and ending
on or before December 31, 2004, 
        moneys contributed in the taxable year to a College 
        Savings Pool account under
Section 16.5 of the State 
        Treasurer Act, except that amounts excluded from
gross 
        income under Section 529(c)(3)(C)(i) of the Internal 
        Revenue Code
shall not be considered moneys 
        contributed under this subparagraph (Y).  For taxable 
        years beginning on or after January 1, 2005, a maximum 
        of $10,000
contributed
in the
taxable year to (i) a 
        College Savings Pool account under Section 16.5 of the

        State
Treasurer Act or (ii) the Illinois Prepaid 
        Tuition Trust Fund,
except that
amounts excluded from 
        gross income under Section 529(c)(3)(C)(i) of the

        Internal
Revenue Code shall not be considered moneys 
        contributed under this subparagraph
(Y). This

        subparagraph (Y) is exempt from the provisions of 
        Section 250;


            (Z) For taxable years 2001 and thereafter, for the 
        taxable year in
which the bonus depreciation deduction 
        (30% of the adjusted basis of the
qualified property) 
        is taken on the taxpayer's federal income tax return 
        under
subsection (k) of Section 168 of the Internal 
        Revenue Code and for each
applicable taxable year 
        thereafter, an amount equal to "x", where:


                (1) "y" equals the amount of the depreciation 
            deduction taken for the
taxable year
on the 
            taxpayer's federal income tax return on property 
            for which the bonus
depreciation deduction (30% of 
            the adjusted basis of the qualified property)
was 
            taken in any year under subsection (k) of Section 
            168 of the Internal
Revenue Code, but not including 
            the bonus depreciation deduction; and


                (2) "x" equals "y" multiplied by 30 and then 
            divided by 70 (or "y"
multiplied by 0.429).


            The aggregate amount deducted under this 
        subparagraph in all taxable
years for any one piece of 
        property may not exceed the amount of the bonus

        depreciation deduction (30% of the adjusted basis of 
        the qualified property)
taken on that property on the 
        taxpayer's federal income tax return under
subsection 
        (k) of Section 168 of the Internal Revenue Code;


            (AA) If the taxpayer reports a capital gain or loss 
        on the taxpayer's
federal income tax return for the 
        taxable year based on a sale or transfer of
property 
        for which the taxpayer was required in any taxable year 
        to make an
addition modification under subparagraph 
        (D-15), then an amount equal to that
addition 
        modification.


            The taxpayer is allowed to take the deduction under 
        this subparagraph
only once with respect to any one 
        piece of property;


            (BB) Any amount included in adjusted gross income, 
        other
than
salary,
received by a driver in a 
        ridesharing arrangement using a motor vehicle;

            (CC) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction with 
        a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-13), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of that addition modification, and

(ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer that 
        is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of that 
        addition modification;
            (DD) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(a)(2)(D-17) for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to the same foreign person; and
            (EE) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(a)(2)(D-18) for 
        intangible expenses and costs paid, accrued, or 
        incurred, directly or indirectly, to the same foreign 
        person.

 

    (b) Corporations.


        (1) In general.  In the case of a corporation, base 
    income means an
amount equal to the taxpayer's taxable 
    income for the taxable year as
modified by paragraph (2).


        (2) Modifications.  The taxable income referred to in 
    paragraph (1)
shall be modified by adding thereto the sum 
    of the following amounts:


            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer
as interest and all distributions 
        received from regulated investment
companies during 
        the taxable year to the extent excluded from gross

        income in the computation of taxable income;


            (B) An amount equal to the amount of tax imposed by 
        this Act to the
extent deducted from gross income in 
        the computation of taxable income
for the taxable year;


            (C) In the case of a regulated investment company, 
        an amount equal to
the excess of (i) the net long-term 
        capital gain for the taxable year, over
(ii) the amount 
        of the capital gain dividends designated as such in 
        accordance
with Section 852(b)(3)(C) of the Internal 
        Revenue Code and any amount
designated under Section 
        852(b)(3)(D) of the Internal Revenue Code,

        attributable to the taxable year (this amendatory Act 
        of 1995
(Public Act 89-89) is declarative of existing 
        law and is not a new
enactment);


            (D) The amount of any net operating loss deduction 
        taken in arriving
at taxable income, other than a net 
        operating loss carried forward from a
taxable year 
        ending prior to December 31, 1986;


            (E) For taxable years in which a net operating loss 
        carryback or
carryforward from a taxable year ending 
        prior to December 31, 1986 is an
element of taxable 
        income under paragraph (1) of subsection (e) or

        subparagraph (E) of paragraph (2) of subsection (e), 
        the amount by which
addition modifications other than 
        those provided by this subparagraph (E)
exceeded 
        subtraction modifications in such earlier taxable 
        year, with the
following limitations applied in the 
        order that they are listed:


                (i) the addition modification relating to the 
            net operating loss
carried back or forward to the 
            taxable year from any taxable year ending
prior to 
            December 31, 1986 shall be reduced by the amount of 
            addition
modification under this subparagraph (E) 
            which related to that net operating
loss and which 
            was taken into account in calculating the base 
            income of an
earlier taxable year, and


                (ii) the addition modification relating to the 
            net operating loss
carried back or forward to the 
            taxable year from any taxable year ending
prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or
carryforward;


            For taxable years in which there is a net operating 
        loss carryback or
carryforward from more than one other 
        taxable year ending prior to December
31, 1986, the 
        addition modification provided in this subparagraph 
        (E) shall
be the sum of the amounts computed 
        independently under the preceding
provisions of this 
        subparagraph (E) for each such taxable year;


            (E-5) For taxable years ending after December 31, 
        1997, an
amount equal to any eligible remediation costs 
        that the corporation
deducted in computing adjusted 
        gross income and for which the
corporation claims a 
        credit under subsection (l) of Section 201;


            (E-10) For taxable years 2001 and thereafter, an 
        amount equal to the
bonus depreciation deduction (30% 
        of the adjusted basis of the qualified
property) taken 
        on the taxpayer's federal income tax return for the 
        taxable
year under subsection (k) of Section 168 of the 
        Internal Revenue Code; and


            (E-11) If the taxpayer reports a capital gain or 
        loss on the
taxpayer's federal income tax return for 
        the taxable year based on a sale or
transfer of 
        property for which the taxpayer was required in any 
        taxable year to
make an addition modification under 
        subparagraph (E-10), then an amount equal
to the 
        aggregate amount of the deductions taken in all taxable

        years under subparagraph (T) with respect to that 
        property.


            The taxpayer is required to make the addition 
        modification under this
subparagraph
only once with 
        respect to any one piece of property;

            (E-12) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount 
        otherwise allowed as a deduction in computing base 
        income for interest paid, accrued, or incurred, 
        directly or indirectly, to a foreign person who would 
        be a member of the same unitary business group but for 
        the fact the foreign person's business activity 
        outside the United States is 80% or more of the foreign 
        person's total business activity. The addition 
        modification required by this subparagraph shall be 
        reduced to the extent that dividends were included in 
        base income of the unitary group for the same taxable 
        year and received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of the 
        same person to whom the interest was paid, accrued, or 
        incurred.

            This paragraph shall not apply to the following:

                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the foreign person, during the same 
                taxable year, paid, accrued, or incurred, the 
                interest to a person that is not a related 
                member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                foreign person did not have as a principal 
                purpose the avoidance of Illinois income tax, 
                and is paid pursuant to a contract or agreement 
                that reflects an arm's-length interest rate 
                and terms; or

                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract or 
            agreement entered into at arm's-length rates and 
            terms and the principal purpose for the payment is 
            not federal or Illinois tax avoidance; or

                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f).

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;

            (E-13) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount of 
        intangible expenses and costs otherwise allowed as a 
        deduction in computing base income, and that were paid, 
        accrued, or incurred, directly or indirectly, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(b)(2)(E-12) of 
        this Act.
As used in this subparagraph, the term 
        "intangible expenses and costs" includes (1) expenses, 
        losses, and costs for, or related to, the direct or 
        indirect acquisition, use, maintenance or management, 
        ownership, sale, exchange, or any other disposition of 
        intangible property; (2) losses incurred, directly or 
        indirectly, from factoring transactions or discounting 
        transactions; (3) royalty, patent, technical, and 
        copyright fees; (4) licensing fees; and (5) other 
        similar expenses and costs.
For purposes of this 
        subparagraph, "intangible property" includes patents, 
        patent applications, trade names, trademarks, service 
        marks, copyrights, mask works, trade secrets, and 
        similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i)         any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such item; or
                (ii)        any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the foreign person during the same 
                taxable year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the foreign person did not have as 
                a principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii)       any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence, that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f);

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;


    and by deducting from the total so obtained the sum of the 
    following
amounts:


            (F) An amount equal to the amount of any tax 
        imposed by this Act
which was refunded to the taxpayer 
        and included in such total for the
taxable year;


            (G) An amount equal to any amount included in such 
        total under
Section 78 of the Internal Revenue Code;


            (H) In the case of a regulated investment company, 
        an amount equal
to the amount of exempt interest 
        dividends as defined in subsection (b)
(5) of Section 
        852 of the Internal Revenue Code, paid to shareholders

        for the taxable year;


            (I) With the exception of any amounts subtracted 
        under subparagraph
(J),
an amount equal to the sum of 
        all amounts disallowed as
deductions by (i) Sections 
        171(a) (2), and 265(a)(2) and amounts disallowed as

        interest expense by Section 291(a)(3) of the Internal 
        Revenue Code, as now
or hereafter amended, and all 
        amounts of expenses allocable to interest and

        disallowed as deductions by Section 265(a)(1) of the 
        Internal Revenue Code,
as now or hereafter amended;
and 
        (ii) for taxable years
ending on or after August 13, 
        1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and 
        832(b)(5)(B)(i) of the Internal Revenue Code; the

        provisions of this
subparagraph are exempt from the 
        provisions of Section 250;


            (J) An amount equal to all amounts included in such 
        total which are
exempt from taxation by this State 
        either by reason of its statutes or
Constitution
or by 
        reason of the Constitution, treaties or statutes of the 
        United States;
provided that, in the case of any 
        statute of this State that exempts income
derived from 
        bonds or other obligations from the tax imposed under 
        this Act,
the amount exempted shall be the interest net 
        of bond premium amortization;


            (K) An amount equal to those dividends included in 
        such total
which were paid by a corporation which 
        conducts
business operations in an Enterprise Zone or 
        zones created under
the Illinois Enterprise Zone Act 
        and conducts substantially all of its
operations in an 
        Enterprise Zone or zones;


            (L) An amount equal to those dividends included in 
        such total that
were paid by a corporation that 
        conducts business operations in a federally
designated 
        Foreign Trade Zone or Sub-Zone and that is designated a 
        High Impact
Business located in Illinois; provided 
        that dividends eligible for the
deduction provided in 
        subparagraph (K) of paragraph 2 of this subsection

        shall not be eligible for the deduction provided under 
        this subparagraph
(L);


            (M) For any taxpayer that is a financial 
        organization within the meaning
of Section 304(c) of 
        this Act, an amount included in such total as interest

        income from a loan or loans made by such taxpayer to a 
        borrower, to the extent
that such a loan is secured by 
        property which is eligible for the Enterprise
Zone 
        Investment Credit.  To determine the portion of a loan 
        or loans that is
secured by property eligible for a 
        Section 201(f) investment
credit to the borrower, the 
        entire principal amount of the loan or loans
between 
        the taxpayer and the borrower should be divided into 
        the basis of the
Section 201(f) investment credit 
        property which secures the
loan or loans, using for 
        this purpose the original basis of such property on
the 
        date that it was placed in service in the
Enterprise 
        Zone.  The subtraction modification available to 
        taxpayer in any
year under this subsection shall be 
        that portion of the total interest paid
by the borrower 
        with respect to such loan attributable to the eligible

        property as calculated under the previous sentence;


            (M-1) For any taxpayer that is a financial 
        organization within the
meaning of Section 304(c) of 
        this Act, an amount included in such total as
interest 
        income from a loan or loans made by such taxpayer to a 
        borrower,
to the extent that such a loan is secured by 
        property which is eligible for
the High Impact Business 
        Investment Credit.  To determine the portion of a
loan 
        or loans that is secured by property eligible for a 
        Section 201(h) investment credit to the borrower, the 
        entire principal amount of
the loan or loans between 
        the taxpayer and the borrower should be divided into

        the basis of the Section 201(h) investment credit 
        property which
secures the loan or loans, using for 
        this purpose the original basis of such
property on the 
        date that it was placed in service in a federally 
        designated
Foreign Trade Zone or Sub-Zone located in 
        Illinois.  No taxpayer that is
eligible for the 
        deduction provided in subparagraph (M) of paragraph 
        (2) of
this subsection shall be eligible for the 
        deduction provided under this
subparagraph (M-1).  The 
        subtraction modification available to taxpayers in
any 
        year under this subsection shall be that portion of the 
        total interest
paid by the borrower with respect to 
        such loan attributable to the eligible
property as 
        calculated under the previous sentence;


            (N) Two times any contribution made during the 
        taxable year to a
designated zone organization to the 
        extent that the contribution (i)
qualifies as a 
        charitable contribution under subsection (c) of 
        Section 170
of the Internal Revenue Code and (ii) must, 
        by its terms, be used for a
project approved by the 
        Department of Commerce and Economic Opportunity under 
        Section 11 of the Illinois Enterprise Zone Act;


            (O) An amount equal to: (i) 85% for taxable years 
        ending on or before
December 31, 1992, or, a percentage 
        equal to the percentage allowable under
Section 
        243(a)(1) of the Internal Revenue Code of 1986 for 
        taxable years ending
after December 31, 1992, of the 
        amount by which dividends included in taxable
income 
        and received from a corporation that is not created or 
        organized under
the laws of the United States or any 
        state or political subdivision thereof,
including, for 
        taxable years ending on or after December 31, 1988, 
        dividends
received or deemed received or paid or deemed 
        paid under Sections 951 through
964 of the Internal 
        Revenue Code, exceed the amount of the modification

        provided under subparagraph (G) of paragraph (2) of 
        this subsection (b) which
is related to such dividends; 
        plus (ii) 100% of the amount by which dividends,

        included in taxable income and received, including, 
        for taxable years ending on
or after December 31, 1988, 
        dividends received or deemed received or paid or
deemed 
        paid under Sections 951 through 964 of the Internal 
        Revenue Code, from
any such corporation specified in 
        clause (i) that would but for the provisions
of Section 
        1504 (b) (3) of the Internal Revenue Code be treated as 
        a member of
the affiliated group which includes the 
        dividend recipient, exceed the amount
of the 
        modification provided under subparagraph (G) of 
        paragraph (2) of this
subsection (b) which is related 
        to such dividends;


            (P) An amount equal to any contribution made to a 
        job training project
established pursuant to the Tax 
        Increment Allocation Redevelopment Act;


            (Q) An amount equal to the amount of the deduction 
        used to compute the
federal income tax credit for 
        restoration of substantial amounts held under
claim of 
        right for the taxable year pursuant to Section 1341 of 
        the
Internal Revenue Code of 1986;


            (R) In the case of an attorney-in-fact with respect 
        to whom an
interinsurer or a reciprocal insurer has 
        made the election under Section 835 of
the Internal 
        Revenue Code, 26 U.S.C. 835, an amount equal to the 
        excess, if
any, of the amounts paid or incurred by that 
        interinsurer or reciprocal insurer
in the taxable year 
        to the attorney-in-fact over the deduction allowed to 
        that
interinsurer or reciprocal insurer with respect 
        to the attorney-in-fact under
Section 835(b) of the 
        Internal Revenue Code for the taxable year;


            (S) For taxable years ending on or after December 
        31, 1997, in the
case of a Subchapter
S corporation, an 
        amount equal to all amounts of income allocable to a

        shareholder subject to the Personal Property Tax 
        Replacement Income Tax imposed
by subsections (c) and 
        (d) of Section 201 of this Act, including amounts

        allocable to organizations exempt from federal income 
        tax by reason of Section
501(a) of the Internal Revenue 
        Code.  This subparagraph (S) is exempt from
the 
        provisions of Section 250;


            (T) For taxable years 2001 and thereafter, for the 
        taxable year in
which the bonus depreciation deduction 
        (30% of the adjusted basis of the
qualified property) 
        is taken on the taxpayer's federal income tax return 
        under
subsection (k) of Section 168 of the Internal 
        Revenue Code and for each
applicable taxable year 
        thereafter, an amount equal to "x", where:


                (1) "y" equals the amount of the depreciation 
            deduction taken for the
taxable year
on the 
            taxpayer's federal income tax return on property 
            for which the bonus
depreciation deduction (30% of 
            the adjusted basis of the qualified property)
was 
            taken in any year under subsection (k) of Section 
            168 of the Internal
Revenue Code, but not including 
            the bonus depreciation deduction; and


                (2) "x" equals "y" multiplied by 30 and then 
            divided by 70 (or "y"
multiplied by 0.429).


            The aggregate amount deducted under this 
        subparagraph in all taxable
years for any one piece of 
        property may not exceed the amount of the bonus

        depreciation deduction (30% of the adjusted basis of 
        the qualified property)
taken on that property on the 
        taxpayer's federal income tax return under
subsection 
        (k) of Section 168 of the Internal Revenue Code;


            (U) If the taxpayer reports a capital gain or loss 
        on the taxpayer's
federal income tax return for the 
        taxable year based on a sale or transfer of
property 
        for which the taxpayer was required in any taxable year 
        to make an
addition modification under subparagraph 
        (E-10), then an amount equal to that
addition 
        modification.


            The taxpayer is allowed to take the deduction under 
        this subparagraph
only once with respect to any one 
        piece of property;

            (V) The amount of: (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction with 
        a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and

(ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer that 
        is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification;

            (W) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(b)(2)(E-12) for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to the same foreign person; and

            (X) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(b)(2)(E-13) for 
        intangible expenses and costs paid, accrued, or 
        incurred, directly or indirectly, to the same foreign 
        person.


        (3) Special rule.  For purposes of paragraph (2) (A), 
    "gross income"
in the case of a life insurance company, for 
    tax years ending on and after
December 31, 1994,
shall mean 
    the gross investment income for the taxable year.

 

    (c) Trusts and estates.


        (1) In general.  In the case of a trust or estate, base 
    income means
an amount equal to the taxpayer's taxable 
    income for the taxable year as
modified by paragraph (2).


        (2) Modifications.  Subject to the provisions of 
    paragraph (3), the
taxable income referred to in paragraph 
    (1) shall be modified by adding
thereto the sum of the 
    following amounts:


            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer
as interest or dividends during the 
        taxable year to the extent excluded
from gross income 
        in the computation of taxable income;


            (B) In the case of (i) an estate, $600; (ii) a 
        trust which, under
its governing instrument, is 
        required to distribute all of its income
currently, 
        $300; and (iii) any other trust, $100, but in each such 
        case,
only to the extent such amount was deducted in 
        the computation of
taxable income;


            (C) An amount equal to the amount of tax imposed by 
        this Act to the
extent deducted from gross income in 
        the computation of taxable income
for the taxable year;


            (D) The amount of any net operating loss deduction 
        taken in arriving at
taxable income, other than a net 
        operating loss carried forward from a
taxable year 
        ending prior to December 31, 1986;


            (E) For taxable years in which a net operating loss 
        carryback or
carryforward from a taxable year ending 
        prior to December 31, 1986 is an
element of taxable 
        income under paragraph (1) of subsection (e) or 
        subparagraph
(E) of paragraph (2) of subsection (e), 
        the amount by which addition
modifications other than 
        those provided by this subparagraph (E) exceeded

        subtraction modifications in such taxable year, with 
        the following limitations
applied in the order that 
        they are listed:


                (i) the addition modification relating to the 
            net operating loss
carried back or forward to the 
            taxable year from any taxable year ending
prior to 
            December 31, 1986 shall be reduced by the amount of 
            addition
modification under this subparagraph (E) 
            which related to that net
operating loss and which 
            was taken into account in calculating the base

            income of an earlier taxable year, and


                (ii) the addition modification relating to the 
            net operating loss
carried back or forward to the 
            taxable year from any taxable year ending
prior to 
            December 31, 1986 shall not exceed the amount of 
            such carryback or
carryforward;


            For taxable years in which there is a net operating 
        loss carryback or
carryforward from more than one other 
        taxable year ending prior to December
31, 1986, the 
        addition modification provided in this subparagraph 
        (E) shall
be the sum of the amounts computed 
        independently under the preceding
provisions of this 
        subparagraph (E) for each such taxable year;


            (F) For taxable years ending on or after January 1, 
        1989, an amount
equal to the tax deducted pursuant to 
        Section 164 of the Internal Revenue
Code if the trust 
        or estate is claiming the same tax for purposes of the

        Illinois foreign tax credit under Section 601 of this 
        Act;


            (G) An amount equal to the amount of the capital 
        gain deduction
allowable under the Internal Revenue 
        Code, to the extent deducted from
gross income in the 
        computation of taxable income;


            (G-5) For taxable years ending after December 31, 
        1997, an
amount equal to any eligible remediation costs 
        that the trust or estate
deducted in computing adjusted 
        gross income and for which the trust
or estate claims a 
        credit under subsection (l) of Section 201;


            (G-10) For taxable years 2001 and thereafter, an 
        amount equal to the
bonus depreciation deduction (30% 
        of the adjusted basis of the qualified
property) taken 
        on the taxpayer's federal income tax return for the 
        taxable
year under subsection (k) of Section 168 of the 
        Internal Revenue Code; and


            (G-11) If the taxpayer reports a capital gain or 
        loss on the
taxpayer's federal income tax return for 
        the taxable year based on a sale or
transfer of 
        property for which the taxpayer was required in any 
        taxable year to
make an addition modification under 
        subparagraph (G-10), then an amount equal
to the 
        aggregate amount of the deductions taken in all taxable

        years under subparagraph (R) with respect to that 
        property.


            The taxpayer is required to make the addition 
        modification under this
subparagraph
only once with 
        respect to any one piece of property;

            (G-12) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount 
        otherwise allowed as a deduction in computing base 
        income for interest paid, accrued, or incurred, 
        directly or indirectly, to a foreign person who would 
        be a member of the same unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of the foreign 
        person's total business activity. The addition 
        modification required by this subparagraph shall be 
        reduced to the extent that dividends were included in 
        base income of the unitary group for the same taxable 
        year and received by the taxpayer or by a member of the 
        taxpayer's unitary business group (including amounts 
        included in gross income pursuant to Sections 951 
        through 964 of the Internal Revenue Code and amounts 
        included in gross income under Section 78 of the 
        Internal Revenue Code) with respect to the stock of the 
        same person to whom the interest was paid, accrued, or 
        incurred.

            This paragraph shall not apply to the following:

                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the foreign person, during the same 
                taxable year, paid, accrued, or incurred, the 
                interest to a person that is not a related 
                member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                foreign person did not have as a principal 
                purpose the avoidance of Illinois income tax, 
                and is paid pursuant to a contract or agreement 
                that reflects an arm's-length interest rate 
                and terms; or

                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract or 
            agreement entered into at arm's-length rates and 
            terms and the principal purpose for the payment is 
            not federal or Illinois tax avoidance; or

                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f).

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;

            (G-13) For taxable years ending on or after 
        December 31, 2004, an amount equal to the amount of 
        intangible expenses and costs otherwise allowed as a 
        deduction in computing base income, and that were paid, 
        accrued, or incurred, directly or indirectly, to a 
        foreign person who would be a member of the same 
        unitary business group but for the fact that the 
        foreign person's business activity outside the United 
        States is 80% or more of that person's total business 
        activity. The addition modification required by this 
        subparagraph shall be reduced to the extent that 
        dividends were included in base income of the unitary 
        group for the same taxable year and received by the 
        taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the intangible expenses and costs were directly or 
        indirectly paid, incurred, or accrued. The preceding 
        sentence shall not apply to the extent that the same 
        dividends caused a reduction to the addition 
        modification required under Section 203(c)(2)(G-12) of 
        this Act. As used in this subparagraph, the term 
        "intangible expenses and costs" includes: (1) 
        expenses, losses, and costs for or related to the 
        direct or indirect acquisition, use, maintenance or 
        management, ownership, sale, exchange, or any other 
        disposition of intangible property; (2) losses 
        incurred, directly or indirectly, from factoring 
        transactions or discounting transactions; (3) royalty, 
        patent, technical, and copyright fees; (4) licensing 
        fees; and (5) other similar expenses and costs. For 
        purposes of this subparagraph, "intangible property" 
        includes patents, patent applications, trade names, 
        trademarks, service marks, copyrights, mask works, 
        trade secrets, and similar types of intangible assets.
            This paragraph shall not apply to the following:
                (i)         any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such item; or
                (ii)        any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the foreign person during the same 
                taxable year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the foreign person did not have as 
                a principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii)       any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence, that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f);

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;


    and by deducting from the total so obtained the sum of the 
    following
amounts:


            (H) An amount equal to all amounts included in such 
        total pursuant
to the provisions of Sections 402(a), 
        402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the 
        Internal Revenue Code or included in such total as

        distributions under the provisions of any retirement 
        or disability plan for
employees of any governmental 
        agency or unit, or retirement payments to
retired 
        partners, which payments are excluded in computing net 
        earnings
from self employment by Section 1402 of the 
        Internal Revenue Code and
regulations adopted pursuant 
        thereto;


            (I) The valuation limitation amount;


            (J) An amount equal to the amount of any tax 
        imposed by this Act
which was refunded to the taxpayer 
        and included in such total for the
taxable year;


            (K) An amount equal to all amounts included in 
        taxable income as
modified by subparagraphs (A), (B), 
        (C), (D), (E), (F) and (G) which
are exempt from 
        taxation by this State either by reason of its statutes 
        or
Constitution
or by reason of the Constitution, 
        treaties or statutes of the United States;
provided 
        that, in the case of any statute of this State that 
        exempts income
derived from bonds or other obligations 
        from the tax imposed under this Act,
the amount 
        exempted shall be the interest net of bond premium 
        amortization;


            (L) With the exception of any amounts subtracted 
        under subparagraph
(K),
an amount equal to the sum of 
        all amounts disallowed as
deductions by (i) Sections 
        171(a) (2) and 265(a)(2) of the Internal Revenue
Code, 
        as now or hereafter amended, and all amounts of 
        expenses allocable
to interest and disallowed as 
        deductions by Section 265(1) of the Internal
Revenue 
        Code of 1954, as now or hereafter amended;
and (ii) for 
        taxable years
ending on or after August 13, 1999, 
        Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of 
        the Internal Revenue Code; the provisions of this

        subparagraph are exempt from the provisions of Section 
        250;


            (M) An amount equal to those dividends included in 
        such total
which were paid by a corporation which 
        conducts business operations in an
Enterprise Zone or 
        zones created under the Illinois Enterprise Zone Act 
        and
conducts substantially all of its operations in an 
        Enterprise Zone or Zones;


            (N) An amount equal to any contribution made to a 
        job training
project established pursuant to the Tax 
        Increment Allocation
Redevelopment Act;


            (O) An amount equal to those dividends included in 
        such total
that were paid by a corporation that 
        conducts business operations in a
federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated
a 
        High Impact Business located in Illinois; provided 
        that dividends eligible
for the deduction provided in 
        subparagraph (M) of paragraph (2) of this
subsection 
        shall not be eligible for the deduction provided under 
        this
subparagraph (O);


            (P) An amount equal to the amount of the deduction 
        used to compute the
federal income tax credit for 
        restoration of substantial amounts held under
claim of 
        right for the taxable year pursuant to Section 1341 of 
        the
Internal Revenue Code of 1986;


            (Q) For taxable year 1999 and thereafter, an amount 
        equal to the
amount of any
(i) distributions, to the 
        extent includible in gross income for
federal income 
        tax purposes, made to the taxpayer because of
his or 
        her status as a victim of
persecution for racial or 
        religious reasons by Nazi Germany or any other Axis

        regime or as an heir of the victim and (ii) items
of 
        income, to the extent
includible in gross income for 
        federal income tax purposes, attributable to,
derived 
        from or in any way related to assets stolen from, 
        hidden from, or
otherwise lost to a victim of

        persecution for racial or religious reasons by Nazi

        Germany or any other Axis regime
immediately prior to, 
        during, and immediately after World War II, including,

        but
not limited to, interest on the proceeds receivable 
        as insurance
under policies issued to a victim of 
        persecution for racial or religious
reasons by Nazi 
        Germany or any other Axis regime by European insurance

        companies
immediately prior to and during World War II;

        provided, however, this subtraction from federal 
        adjusted gross income does not
apply to assets acquired 
        with such assets or with the proceeds from the sale of

        such assets; provided, further, this paragraph shall 
        only apply to a taxpayer
who was the first recipient of 
        such assets after their recovery and who is a
victim of

        persecution for racial or religious reasons
by Nazi 
        Germany or any other Axis regime or as an heir of the 
        victim.  The
amount of and the eligibility for any 
        public assistance, benefit, or
similar entitlement is 
        not affected by the inclusion of items (i) and (ii) of

        this paragraph in gross income for federal income tax 
        purposes.
This paragraph is exempt from the provisions 
        of Section 250;


            (R) For taxable years 2001 and thereafter, for the 
        taxable year in
which the bonus depreciation deduction 
        (30% of the adjusted basis of the
qualified property) 
        is taken on the taxpayer's federal income tax return 
        under
subsection (k) of Section 168 of the Internal 
        Revenue Code and for each
applicable taxable year 
        thereafter, an amount equal to "x", where:


                (1) "y" equals the amount of the depreciation 
            deduction taken for the
taxable year
on the 
            taxpayer's federal income tax return on property 
            for which the bonus
depreciation deduction (30% of 
            the adjusted basis of the qualified property)
was 
            taken in any year under subsection (k) of Section 
            168 of the Internal
Revenue Code, but not including 
            the bonus depreciation deduction; and


                (2) "x" equals "y" multiplied by 30 and then 
            divided by 70 (or "y"
multiplied by 0.429).


            The aggregate amount deducted under this 
        subparagraph in all taxable
years for any one piece of 
        property may not exceed the amount of the bonus

        depreciation deduction (30% of the adjusted basis of 
        the qualified property)
taken on that property on the 
        taxpayer's federal income tax return under
subsection 
        (k) of Section 168 of the Internal Revenue Code;


            (S) If the taxpayer reports a capital gain or loss 
        on the taxpayer's
federal income tax return for the 
        taxable year based on a sale or transfer of
property 
        for which the taxpayer was required in any taxable year 
        to make an
addition modification under subparagraph 
        (G-10), then an amount equal to that
addition 
        modification.


            The taxpayer is allowed to take the deduction under 
        this subparagraph
only once with respect to any one 
        piece of property;

            (T) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction with 
        a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and

(ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer that 
        is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification;

            (U) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(c)(2)(G-12) for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to the same foreign person; and

            (V) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(c)(2)(G-13) for 
        intangible expenses and costs paid, accrued, or 
        incurred, directly or indirectly, to the same foreign 
        person.


        (3) Limitation.  The amount of any modification 
    otherwise required
under this subsection shall, under 
    regulations prescribed by the
Department, be adjusted by 
    any amounts included therein which were
properly paid, 
    credited, or required to be distributed, or permanently set

    aside for charitable purposes pursuant  to Internal Revenue 
    Code Section
642(c) during the taxable year.

 

    (d) Partnerships.


        (1) In general. In the case of a partnership, base 
    income means an
amount equal to the taxpayer's taxable 
    income for the taxable year as
modified by paragraph (2).


        (2) Modifications. The taxable income referred to in 
    paragraph (1)
shall be modified by adding thereto the sum 
    of the following amounts:


            (A) An amount equal to all amounts paid or accrued 
        to the taxpayer as
interest or dividends during the 
        taxable year to the extent excluded from
gross income 
        in the computation of taxable income;


            (B) An amount equal to the amount of tax imposed by 
        this Act to the
extent deducted from gross income for 
        the taxable year;


            (C) The amount of deductions allowed to the 
        partnership pursuant to
Section 707 (c) of the Internal 
        Revenue Code in calculating its taxable income;


            (D) An amount equal to the amount of the capital 
        gain deduction
allowable under the Internal Revenue 
        Code, to the extent deducted from
gross income in the 
        computation of taxable income;


            (D-5) For taxable years 2001 and thereafter, an 
        amount equal to the
bonus depreciation deduction (30% 
        of the adjusted basis of the qualified
property) taken 
        on the taxpayer's federal income tax return for the 
        taxable
year under subsection (k) of Section 168 of the 
        Internal Revenue Code;


            (D-6) If the taxpayer reports a capital gain or 
        loss on the taxpayer's
federal income tax return for 
        the taxable year based on a sale or transfer of

        property for which the taxpayer was required in any 
        taxable year to make an
addition modification under 
        subparagraph (D-5), then an amount equal to the

        aggregate amount of the deductions taken in all taxable 
        years
under subparagraph (O) with respect to that 
        property.


            The taxpayer is required to make the addition 
        modification under this
subparagraph
only once with 
        respect to any one piece of property;

            (D-7) For taxable years ending on or after December 
        31, 2004, an amount equal to the amount otherwise 
        allowed as a deduction in computing base income for 
        interest paid, accrued, or incurred, directly or 
        indirectly, to a foreign person who would be a member 
        of the same unitary business group but for the fact the 
        foreign person's business activity outside the United 
        States is 80% or more of the foreign person's total 
        business activity. The addition modification required 
        by this subparagraph shall be reduced to the extent 
        that dividends were included in base income of the 
        unitary group for the same taxable year and received by 
        the taxpayer or by a member of the taxpayer's unitary 
        business group (including amounts included in gross 
        income pursuant to Sections 951 through 964 of the 
        Internal Revenue Code and amounts included in gross 
        income under Section 78 of the Internal Revenue Code) 
        with respect to the stock of the same person to whom 
        the interest was paid, accrued, or incurred.

            This paragraph shall not apply to the following:

                (i) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such interest; or
                (ii) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer can establish, based on a 
            preponderance of the evidence, both of the 
            following:
                    (a) the foreign person, during the same 
                taxable year, paid, accrued, or incurred, the 
                interest to a person that is not a related 
                member, and
                    (b) the transaction giving rise to the 
                interest expense between the taxpayer and the 
                foreign person did not have as a principal 
                purpose the avoidance of Illinois income tax, 
                and is paid pursuant to a contract or agreement 
                that reflects an arm's-length interest rate 
                and terms; or

                (iii) the taxpayer can establish, based on 
            clear and convincing evidence, that the interest 
            paid, accrued, or incurred relates to a contract or 
            agreement entered into at arm's-length rates and 
            terms and the principal purpose for the payment is 
            not federal or Illinois tax avoidance; or

                (iv) an item of interest paid, accrued, or 
            incurred, directly or indirectly, to a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f).

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act; and

            (D-8) For taxable years ending on or after December 
        31, 2004, an amount equal to the amount of intangible 
        expenses and costs otherwise allowed as a deduction in 
        computing base income, and that were paid, accrued, or 
        incurred, directly or indirectly, to a foreign person 
        who would be a member of the same unitary business 
        group but for the fact that the foreign person's 
        business activity outside the United States is 80% or 
        more of that person's total business activity. The 
        addition modification required by this subparagraph 
        shall be reduced to the extent that dividends were 
        included in base income of the unitary group for the 
        same taxable year and received by the taxpayer or by a 
        member of the taxpayer's unitary business group 
        (including amounts included in gross income pursuant 
        to Sections 951 through 964 of the Internal Revenue 
        Code and amounts included in gross income under Section 
        78 of the Internal Revenue Code) with respect to the 
        stock of the same person to whom the intangible 
        expenses and costs were directly or indirectly paid, 
        incurred or accrued. The preceding sentence shall not 
        apply to the extent that the same dividends caused a 
        reduction to the addition modification required under 
        Section 203(d)(2)(D-7) of this Act. As used in this 
        subparagraph, the term "intangible expenses and costs" 
        includes (1) expenses, losses, and costs for, or 
        related to, the direct or indirect acquisition, use, 
        maintenance or management, ownership, sale, exchange, 
        or any other disposition of intangible property; (2) 
        losses incurred, directly or indirectly, from 
        factoring transactions or discounting transactions; 
        (3) royalty, patent, technical, and copyright fees; 
        (4) licensing fees; and (5) other similar expenses and 
        costs. For purposes of this subparagraph, "intangible 
        property" includes patents, patent applications, trade 
        names, trademarks, service marks, copyrights, mask 
        works, trade secrets, and similar types of intangible 
        assets;
            This paragraph shall not apply to the following:
                (i)         any item of intangible expenses or costs 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person who is subject in a foreign country or 
            state, other than a state which requires mandatory 
            unitary reporting, to a tax on or measured by net 
            income with respect to such item; or
                (ii)        any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, if the taxpayer can establish, based 
            on a preponderance of the evidence, both of the 
            following:
                    (a) the foreign person during the same 
                taxable year paid, accrued, or incurred, the 
                intangible expense or cost to a person that is 
                not a related member, and
                    (b) the transaction giving rise to the 
                intangible expense or cost between the 
                taxpayer and the foreign person did not have as 
                a principal purpose the avoidance of Illinois 
                income tax, and is paid pursuant to a contract 
                or agreement that reflects arm's-length terms; 
                or
                (iii)       any item of intangible expense or cost 
            paid, accrued, or incurred, directly or 
            indirectly, from a transaction with a foreign 
            person if the taxpayer establishes by clear and 
            convincing evidence, that the adjustments are 
            unreasonable; or if the taxpayer and the Director 
            agree in writing to the application or use of an 
            alternative method of apportionment under Section 
            304(f);

                Nothing in this subsection shall preclude the 
            Director from making any other adjustment 
            otherwise allowed under Section 404 of this Act for 
            any tax year beginning after the effective date of 
            this amendment provided such adjustment is made 
            pursuant to regulation adopted by the Department 
            and such regulations provide methods and standards 
            by which the Department will utilize its authority 
            under Section 404 of this Act;


    and by deducting from the total so obtained the following 
    amounts:


            (E) The valuation limitation amount;


            (F) An amount equal to the amount of any tax 
        imposed by this Act which
was refunded to the taxpayer 
        and included in such total for the taxable year;


            (G) An amount equal to all amounts included in 
        taxable income as
modified by subparagraphs (A), (B), 
        (C) and (D) which are exempt from
taxation by this 
        State either by reason of its statutes or Constitution 
        or
by reason of
the Constitution, treaties or statutes 
        of the United States;
provided that, in the case of any 
        statute of this State that exempts income
derived from 
        bonds or other obligations from the tax imposed under 
        this Act,
the amount exempted shall be the interest net 
        of bond premium amortization;


            (H) Any income of the partnership which 
        constitutes personal service
income as defined in 
        Section 1348 (b) (1) of the Internal Revenue Code (as

        in effect December 31, 1981) or a reasonable allowance 
        for compensation
paid or accrued for services rendered 
        by partners to the partnership,
whichever is greater;


            (I) An amount equal to all amounts of income 
        distributable to an entity
subject to the Personal 
        Property Tax Replacement Income Tax imposed by

        subsections (c) and (d) of Section 201 of this Act 
        including amounts
distributable to organizations 
        exempt from federal income tax by reason of
Section 
        501(a) of the Internal Revenue Code;


            (J) With the exception of any amounts subtracted 
        under subparagraph
(G),
an amount equal to the sum of 
        all amounts disallowed as deductions
by (i) Sections 
        171(a) (2), and 265(2) of the Internal Revenue Code of 
        1954,
as now or hereafter amended, and all amounts of 
        expenses allocable to
interest and disallowed as 
        deductions by Section 265(1) of the Internal
Revenue 
        Code, as now or hereafter amended;
and (ii) for taxable 
        years
ending on or after August 13, 1999, Sections

        171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the 
        Internal Revenue Code; the provisions of this

        subparagraph are exempt from the provisions of Section 
        250;


            (K) An amount equal to those dividends included in 
        such total which were
paid by a corporation which 
        conducts business operations in an Enterprise
Zone or 
        zones created under the Illinois Enterprise Zone Act, 
        enacted by
the 82nd General Assembly, and
conducts 
        substantially all of its operations
in an Enterprise 
        Zone or Zones;


            (L) An amount equal to any contribution made to a 
        job training project
established pursuant to the Real 
        Property Tax Increment Allocation
Redevelopment Act;


            (M) An amount equal to those dividends included in 
        such total
that were paid by a corporation that 
        conducts business operations in a
federally designated 
        Foreign Trade Zone or Sub-Zone and that is designated a

        High Impact Business located in Illinois; provided 
        that dividends eligible
for the deduction provided in 
        subparagraph (K) of paragraph (2) of this
subsection 
        shall not be eligible for the deduction provided under 
        this
subparagraph (M);


            (N) An amount equal to the amount of the deduction 
        used to compute the
federal income tax credit for 
        restoration of substantial amounts held under
claim of 
        right for the taxable year pursuant to Section 1341 of 
        the
Internal Revenue Code of 1986;


            (O) For taxable years 2001 and thereafter, for the 
        taxable year in
which the bonus depreciation deduction 
        (30% of the adjusted basis of the
qualified property) 
        is taken on the taxpayer's federal income tax return 
        under
subsection (k) of Section 168 of the Internal 
        Revenue Code and for each
applicable taxable year 
        thereafter, an amount equal to "x", where:


                (1) "y" equals the amount of the depreciation 
            deduction taken for the
taxable year
on the 
            taxpayer's federal income tax return on property 
            for which the bonus
depreciation deduction (30% of 
            the adjusted basis of the qualified property)
was 
            taken in any year under subsection (k) of Section 
            168 of the Internal
Revenue Code, but not including 
            the bonus depreciation deduction; and


                (2) "x" equals "y" multiplied by 30 and then 
            divided by 70 (or "y"
multiplied by 0.429).


            The aggregate amount deducted under this 
        subparagraph in all taxable
years for any one piece of 
        property may not exceed the amount of the bonus

        depreciation deduction (30% of the adjusted basis of 
        the qualified property)
taken on that property on the 
        taxpayer's federal income tax return under
subsection 
        (k) of Section 168 of the Internal Revenue Code;


            (P) If the taxpayer reports a capital gain or loss 
        on the taxpayer's
federal income tax return for the 
        taxable year based on a sale or transfer of
property 
        for which the taxpayer was required in any taxable year 
        to make an
addition modification under subparagraph 
        (D-5), then an amount equal to that
addition 
        modification.


            The taxpayer is allowed to take the deduction under 
        this subparagraph
only once with respect to any one 
        piece of property;

            (Q) The amount of (i) any interest income (net of 
        the deductions allocable thereto) taken into account 
        for the taxable year with respect to a transaction with 
        a taxpayer that is required to make an addition 
        modification with respect to such transaction under 
        Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
        the amount of such addition modification and

(ii) any 
        income from intangible property (net of the deductions 
        allocable thereto) taken into account for the taxable 
        year with respect to a transaction with a taxpayer that 
        is required to make an addition modification with 
        respect to such transaction under Section 
        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
        203(d)(2)(D-8), but not to exceed the amount of such 
        addition modification;

            (R) An amount equal to the interest income taken 
        into account for the taxable year (net of the 
        deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(d)(2)(D-7) for interest 
        paid, accrued, or incurred, directly or indirectly, to 
        the same foreign person; and

            (S) An amount equal to the income from intangible 
        property taken into account for the taxable year (net 
        of the deductions allocable thereto) with respect to 
        transactions with a foreign person who would be a 
        member of the taxpayer's unitary business group but for 
        the fact that the foreign person's business activity 
        outside the United States is 80% or more of that 
        person's total business activity, but not to exceed the 
        addition modification required to be made for the same 
        taxable year under Section 203(d)(2)(D-8) for 
        intangible expenses and costs paid, accrued, or 
        incurred, directly or indirectly, to the same foreign 
        person.

 

    (e) Gross income; adjusted gross income; taxable income.


        (1) In general.  Subject to the provisions of paragraph 
    (2) and
subsection (b) (3), for purposes of this Section 
    and Section 803(e), a
taxpayer's gross income, adjusted 
    gross income, or taxable income for
the taxable year shall 
    mean the amount of gross income, adjusted gross
income or 
    taxable income properly reportable for federal income tax

    purposes for the taxable year under the provisions of the 
    Internal
Revenue Code. Taxable income may be less than 
    zero. However, for taxable
years ending on or after 
    December 31, 1986, net operating loss
carryforwards from 
    taxable years ending prior to December 31, 1986, may not

    exceed the sum of federal taxable income for the taxable 
    year before net
operating loss deduction, plus the excess 
    of addition modifications over
subtraction modifications 
    for the taxable year.  For taxable years ending
prior to 
    December 31, 1986, taxable income may never be an amount in 
    excess
of the net operating loss for the taxable year as 
    defined in subsections
(c) and (d) of Section 172 of the 
    Internal Revenue Code, provided that when
taxable income of 
    a corporation (other than a Subchapter S corporation),

    trust, or estate is less than zero and addition 
    modifications, other than
those provided by subparagraph 
    (E) of paragraph (2) of subsection (b) for
corporations or 
    subparagraph (E) of paragraph (2) of subsection (c) for

    trusts and estates, exceed subtraction modifications, an 
    addition
modification must be made under those 
    subparagraphs for any other taxable
year to which the 
    taxable income less than zero (net operating loss) is

    applied under Section 172 of the Internal Revenue Code or 
    under
subparagraph (E) of paragraph (2) of this subsection 
    (e) applied in
conjunction with Section 172 of the Internal 
    Revenue Code.


        (2) Special rule.  For purposes of paragraph (1) of this 
    subsection,
the taxable income properly reportable for 
    federal income tax purposes
shall mean:


            (A) Certain life insurance companies.  In the case 
        of a life
insurance company subject to the tax imposed 
        by Section 801 of the
Internal Revenue Code, life 
        insurance company taxable income, plus the
amount of 
        distribution from pre-1984 policyholder surplus 
        accounts as
calculated under Section 815a of the 
        Internal Revenue Code;


            (B) Certain other insurance companies.  In the case 
        of mutual
insurance companies subject to the tax 
        imposed by Section 831 of the
Internal Revenue Code, 
        insurance company taxable income;


            (C) Regulated investment companies.  In the case of 
        a regulated
investment company subject to the tax 
        imposed by Section 852 of the
Internal Revenue Code, 
        investment company taxable income;


            (D) Real estate investment trusts.  In the case of a 
        real estate
investment trust subject to the tax imposed 
        by Section 857 of the
Internal Revenue Code, real 
        estate investment trust taxable income;


            (E) Consolidated corporations.  In the case of a 
        corporation which
is a member of an affiliated group of 
        corporations filing a consolidated
income tax return 
        for the taxable year for federal income tax purposes,

        taxable income determined as if such corporation had 
        filed a separate
return for federal income tax purposes 
        for the taxable year and each
preceding taxable year 
        for which it was a member of an affiliated group.
For 
        purposes of this subparagraph, the taxpayer's separate 
        taxable
income shall be determined as if the election 
        provided by Section
243(b) (2) of the Internal Revenue 
        Code had been in effect for all such years;


            (F) Cooperatives.  In the case of a cooperative 
        corporation or
association, the taxable income of such 
        organization determined in
accordance with the 
        provisions of Section 1381 through 1388 of the
Internal 
        Revenue Code;


            (G) Subchapter S corporations.  In the case of: (i) 
        a Subchapter S
corporation for which there is in effect 
        an election for the taxable year
under Section 1362 of 
        the Internal Revenue Code, the taxable income of such

        corporation determined in accordance with Section 
        1363(b) of the Internal
Revenue Code, except that 
        taxable income shall take into
account those items 
        which are required by Section 1363(b)(1) of the

        Internal Revenue Code to be separately stated; and (ii) 
        a Subchapter
S corporation for which there is in effect 
        a federal election to opt out of
the provisions of the 
        Subchapter S Revision Act of 1982 and have applied

        instead the prior federal Subchapter S rules as in 
        effect on July 1, 1982,
the taxable income of such 
        corporation determined in accordance with the
federal 
        Subchapter S rules as in effect on July 1, 1982; and


            (H) Partnerships.  In the case of a partnership, 
        taxable income
determined in accordance with Section 
        703 of the Internal Revenue Code,
except that taxable 
        income shall take into account those items which are

        required by Section 703(a)(1) to be separately stated 
        but which would be
taken into account by an individual 
        in calculating his taxable income.

        (3) Recapture of business expenses on disposition of 
    asset or business. Notwithstanding any other law to the 
    contrary, if in prior years income from an asset or 
    business has been classified as business income and in a 
    later year is demonstrated to be non-business income, then 
    all expenses, without limitation, deducted in such later 
    year and in the 2 immediately preceding taxable years 
    related to that asset or business that generated the 
    non-business income shall be added back and recaptured as 
    business income in the year of the disposition of the asset 
    or business. Such amount shall be apportioned to Illinois 
    using the greater of the apportionment fraction computed 
    for the business under Section 304 of this Act for the 
    taxable year or the average of the apportionment fractions 
    computed for the business under Section 304 of this Act for 
    the taxable year and for the 2 immediately preceding 
    taxable years.


    (f) Valuation limitation amount.


        (1) In general.  The valuation limitation amount 
    referred to in
subsections (a) (2) (G), (c) (2) (I) and 
    (d)(2) (E) is an amount equal to:


            (A) The sum of the pre-August 1, 1969 appreciation 
        amounts (to the
extent consisting of gain reportable 
        under the provisions of Section
1245 or 1250 of the 
        Internal Revenue Code) for all property in respect
of 
        which such gain was reported for the taxable year; plus


            (B) The lesser of (i) the sum of the pre-August 1, 
        1969 appreciation
amounts (to the extent consisting of 
        capital gain) for all property in
respect of which such 
        gain was reported for federal income tax purposes
for 
        the taxable year, or (ii) the net capital gain for the 
        taxable year,
reduced in either case by any amount of 
        such gain included in the amount
determined under 
        subsection (a) (2) (F) or (c) (2) (H).


        (2) Pre-August 1, 1969 appreciation amount.


            (A) If the fair market value of property referred 
        to in paragraph
(1) was readily ascertainable on August 
        1, 1969, the pre-August 1, 1969
appreciation amount for 
        such property is the lesser of (i) the excess of
such 
        fair market value over the taxpayer's basis (for 
        determining gain)
for such property on that date 
        (determined under the Internal Revenue
Code as in 
        effect on that date), or (ii) the total gain realized 
        and
reportable for federal income tax purposes in 
        respect of the sale,
exchange or other disposition of 
        such property.


            (B) If the fair market value of property referred 
        to in paragraph
(1) was not readily ascertainable on 
        August 1, 1969, the pre-August 1,
1969 appreciation 
        amount for such property is that amount which bears
the 
        same ratio to the total gain reported in respect of the 
        property for
federal income tax purposes for the 
        taxable year, as the number of full
calendar months in 
        that part of the taxpayer's holding period for the

        property ending July 31, 1969 bears to the number of 
        full calendar
months in the taxpayer's entire holding 
        period for the
property.


            (C) The Department shall prescribe such 
        regulations as may be
necessary to carry out the 
        purposes of this paragraph.

 

    (g) Double deductions.  Unless specifically provided 
otherwise, nothing
in this Section shall permit the same item 
to be deducted more than once.

 

    (h) Legislative intention.  Except as expressly provided by 
this
Section there shall be no modifications or limitations on 
the amounts
of income, gain, loss or deduction taken into 
account in determining
gross income, adjusted gross income or 
taxable income for federal income
tax purposes for the taxable 
year, or in the amount of such items
entering into the 
computation of base income and net income under this
Act for 
such taxable year, whether in respect of property values as of

August 1, 1969 or otherwise.

(Source: P.A. 92-16, eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, 
eff. 8-17-01; 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 
92-651, eff. 7-11-02; 92-846, eff. 8-23-02; 93-812, eff. 
7-26-04; 93-840, eff. 7-30-04; revised 10-12-04.)

 



    (35 ILCS 5/502)  (from Ch. 120, par. 5-502)



    Sec. 502. Returns and notices. 

    (a) In general. A return with respect to the taxes imposed 
by this
Act shall be made by every person for any taxable year:


        (1) for which such person is liable for a tax imposed 
    by this Act,
or


        (2) in the case of a resident or in the case of a 
    corporation which
is qualified to do business in this 
    State, for which such person is
required to make a federal 
    income tax return, regardless of whether such
person is 
    liable for a tax imposed by this Act.  However, this 
    paragraph
shall not require a resident to make a return if 
    such person has
an
Illinois base income of the basic amount 
    in Section 204(b) or
less and is either claimed as a 
    dependent on
another person's tax return under the Internal 
    Revenue Code of 1986, or is
claimed as a dependent on 
    another person's tax return under this Act.

    (b) Fiduciaries and receivers.


        (1) Decedents. If an individual is deceased, any return 
    or notice
required of such individual under this Act shall 
    be made by his
executor, administrator, or other person 
    charged with the property of
such decedent.


        (2) Individuals under a disability. If an individual is 
    unable
to make a return or notice required under this Act, 
    the return or notice
required of such individual shall be 
    made by his duly authorized agent,
guardian, fiduciary or 
    other person charged with the care
of the person or 
    property of such individual.


        (3) Estates and trusts. Returns or notices required of 
    an estate
or a trust shall be made by the fiduciary 
    thereof.


        (4) Receivers, trustees and assignees for 
    corporations. In a
case where a receiver, trustee in 
    bankruptcy, or assignee, by order of a
court of competent 
    jurisdiction, by operation of law, or otherwise, has

    possession of or holds title to all or substantially all 
    the property or
business of a corporation, whether or not 
    such property or business is
being operated, such receiver, 
    trustee, or assignee shall make the
returns and notices 
    required of such corporation in the same manner and
form as 
    corporations are required to make such returns and notices.

    (c) Joint returns by husband and wife.


        (1) Except as provided in paragraph (3), if a husband 
    and wife file a
joint federal income tax return for a 
    taxable year they shall file a joint
return under this Act 
    for such taxable year and their liabilities shall be
joint 
    and several, but if the federal income tax liability of 
    either spouse is
determined on a separate federal income 
    tax return, they shall file separate
returns under this 
    Act.


        (2) If neither spouse is required to file a federal 
    income tax
return and either or both are required to file a 
    return under this Act,
they may elect to file separate or 
    joint returns and pursuant to such
election their 
    liabilities shall be separate or joint and several.


        (3) If either husband or wife is a resident and the 
    other is a
nonresident, they shall file separate returns in 
    this State on such
forms as may be required by the 
    Department in which event their tax
liabilities shall be 
    separate; but they may elect to determine their
joint net 
    income and file a joint return as if both were residents 
    and
in such case, their liabilities shall be joint and 
    several.


        (4) Innocent spouses.


            (A) However, for tax liabilities arising and paid 
        prior to August 13,
1999, an innocent spouse shall be 
        relieved of
liability for tax
(including interest and 
        penalties) for any taxable year for which a joint

        return has been made, upon submission of proof that the 
        Internal Revenue
Service has made a determination 
        under Section 6013(e) of the Internal
Revenue Code, for 
        the same taxable year, which determination relieved 
        the
spouse from liability for federal income taxes.
If 
        there is no federal income tax liability at issue for 
        the
same taxable year, the Department shall rely on the 
        provisions of Section
6013(e) to determine whether the 
        person requesting innocent spouse abatement of
tax, 
        penalty, and interest is entitled to that relief.


            (B) For tax liabilities arising on and after August 
        13, 1999 or which arose prior to that date, but remain 
        unpaid as of that date, if
an individual
who filed a 
        joint return for any taxable year has made an election 
        under this
paragraph, the individual's liability for 
        any tax shown on the joint return
shall not exceed the 
        individual's separate return amount and the 
        individual's
liability for any deficiency assessed for 
        that taxable year shall not exceed
the portion of the 
        deficiency properly allocable to the individual.  For

        purposes of this paragraph:


                (i) An election properly made pursuant to 
            Section 6015 of the Internal
Revenue Code shall 
            constitute an election under this paragraph, 
            provided that
the election shall not be effective 
            until the individual has notified the
Department 
            of the election in the form and manner prescribed 
            by the Department.


                (ii) If no election has been made under Section 
            6015, the individual
may make an election under 
            this paragraph in the form and manner prescribed by

            the Department, provided that no election may be 
            made if the Department finds
that assets were 
            transferred
between individuals filing a joint 
            return as part of a scheme by such
individuals to 
            avoid payment of Illinois income tax and the 
            election shall not
eliminate the individual's 
            liability for any portion of a deficiency

            attributable to an error on the return of which the 
            individual had actual
knowledge as of the date of 
            filing.


                (iii) In determining the separate return 
            amount or portion of any
deficiency attributable 
            to an individual, the Department shall follow the

            provisions in subsections (c) and (d) of Section 
            6015 of the Internal Revenue Code.


                (iv) In determining the validity of an 
            individual's election under
subparagraph (ii) and 
            in determining an electing individual's separate 
            return
amount or portion of any deficiency under 
            subparagraph (iii), any determination
made by the 
            Secretary of the Treasury, by the United States Tax 
            Court on
petition for review of a determination by 
            the Secretary of the Treasury, or on
appeal from 
            the United States Tax Court under Section 6015 of

            the Internal
Revenue Code regarding criteria for 
            eligibility or under subsection (d) of
Section 
            6015
of the Internal Revenue Code regarding the 
            allocation of any item of income,
deduction, 
            payment, or credit between an individual making 
            the federal election
and that individual's spouse 
            shall be conclusively presumed to be correct.
With 
            respect to any item that is not the subject of a 
            determination by the
Secretary of the Treasury or 
            the federal courts, in any proceeding
involving 
            this subsection, the
individual making the 
            election shall have the burden of proof with 
            respect to
any item except that the Department 
            shall have the burden of proof with respect
to 
            items in subdivision (ii).


                (v) Any election made by an individual under 
            this subsection shall
apply to all years for which 
            that individual and the spouse named in the

            election have filed a joint return.


                (vi) After receiving a notice that the federal 
            election has been made
or after receiving an 
            election under subdivision (ii), the Department 
            shall
take no collection action against the 
            electing individual for any liability
arising from 
            a joint return covered by the election until the 
            Department has
notified the electing individual in 
            writing that the election is invalid or of
the 
            portion of the liability the Department has 
            allocated to the electing
individual.  Within 60 
            days (150 days if the individual is outside the 
            United
States) after the issuance of such 
            notification, the individual may file a
written 
            protest of the denial of the election or of the 
            Department's
determination of the liability 
            allocated to him or her and shall be granted a

            hearing within the Department under the provisions 
            of Section 908.  If a
protest is filed, the 
            Department shall take no collection action against 
            the
electing individual until the decision 
            regarding the protest has become final
under 
            subsection (d) of Section 908 or, if 
            administrative review of the
Department's decision

            is requested under Section 1201, until the 
            decision of the court becomes
final.

    (d) Partnerships. Every partnership having any base income

allocable to this State in accordance with section 305(c) shall 
retain
information concerning all items of income, gain, loss 
and
deduction; the names and addresses of all of the partners, 
or names and
addresses of members of a limited liability 
company, or other
persons who would be entitled to share in the 
base income of the
partnership if distributed; the amount of 
the distributive share of
each; and such other pertinent 
information as the Department may by
forms or regulations 
prescribe. The partnership shall make that information

available to the Department when requested by the Department.

    (e) For taxable years ending on or after December 31, 1985, 
and before
December 31, 1993, taxpayers
that are corporations 
(other than Subchapter S corporations) having the
same taxable 
year and that are members of the same unitary business group

may elect to be treated as one taxpayer for purposes of any 
original return,
amended return which includes the same 
taxpayers of the unitary group which
joined in the election to 
file the original return, extension, claim for
refund, 
assessment, collection and payment and determination of the

group's tax liability under this Act. This subsection (e) does 
not permit the
election to be made for some, but not all, of 
the purposes enumerated above.
For taxable years ending on or 
after December 31, 1987, corporate members
(other than 
Subchapter S corporations) of the same unitary business group

making this subsection (e) election are not required to have 
the same taxable
year.

    For taxable years ending on or after December 31, 1993, 
taxpayers that are
corporations (other than Subchapter S 
corporations) and that are members  of
the same unitary business 
group shall be treated as one taxpayer for purposes
of any 
original return, amended return which includes the same 
taxpayers of the
unitary group which joined in filing the 
original return, extension, claim for
refund, assessment, 
collection and payment and determination of the group's tax

liability under this Act.

    (f) The Department may promulgate regulations to permit 
nonresident
individual partners of the same partnership, 
nonresident Subchapter S
corporation shareholders of the same 
Subchapter S corporation, and
nonresident individuals 
transacting an insurance business in Illinois under
a Lloyds 
plan of operation, and nonresident individual members of the 
same
limited liability company that is treated as a partnership 
under Section 1501
(a)(16) of this Act, to file composite 
individual income tax returns
reflecting the composite income 
of such individuals allocable to Illinois
and to make composite 
individual income tax payments.  The Department may
by 
regulation also permit such composite returns to include the 
income tax
owed by Illinois residents attributable to their 
income from partnerships,
Subchapter S corporations, insurance 
businesses organized under a Lloyds
plan of operation, or 
limited liability companies that are treated as
partnership 
under Section 1501(a)(16) of this Act, in which case such

Illinois residents will be permitted to claim credits on their 
individual
returns for their shares of the composite tax 
payments.  This paragraph of
subsection (f) applies to taxable 
years ending on or after December 31, 1987.

    For taxable years ending on or after December 31, 1999, the 
Department may,
by regulation, also permit any persons 
transacting an insurance business
organized under a Lloyds plan 
of operation to file composite returns reflecting
the income of 
such persons allocable to Illinois and the tax rates applicable

to such persons under Section 201 and to make composite tax 
payments and shall,
by regulation, also provide that the income 
and apportionment factors
attributable to the transaction of an 
insurance business organized under a
Lloyds plan of operation 
by any person joining in the filing of a composite
return 
shall, for purposes of allocating and apportioning income under 
Article
3 of this Act and computing net income under Section 
202 of this Act, be
excluded from any other income and 
apportionment factors of that person or of
any unitary business 
group, as defined in subdivision (a)(27) of Section 1501,
to 
which that person may belong.

    (g) The Department may adopt rules to authorize the 
electronic filing of
any return required to be filed under this 
Section.

(Source: P.A. 91-541, eff. 8-13-99; 91-913, eff. 1-1-01; 
92-846, eff.
8-23-02.)

 



    (35 ILCS 5/506.5)



    Sec. 506.5. Returns based on substitute W-2 forms. For a 
taxpayer who has
received wages from an employer in Illinois, 
loses or was not provided a W-2
form, is unable to obtain a 
duplicate W-2 form from the employer, and
subsequently obtains 
a substitute W-2 form from the Internal Revenue Service,
it 
shall be presumed that tax was withheld under Article 7 of this 
Act in an
appropriate amount based on the number of withholding 
exemptions used to
determine the federal income tax withholding 
for the taxpayer if (i) the
substitute W-2 form indicates the 
appropriate amount of federal taxes withheld,
(ii) the taxpayer 
files a copy of the substitute W-2 form with his or her

Illinois income tax return, and (iii) the taxpayer provides a 
mailing address
to which any correspondence or refund, if any, 
may be sent.

(Source: P.A. 88-669, eff. 11-29-94.)

 



    (35 ILCS 5/917)  (from Ch. 120, par. 9-917)



    Sec. 917. Confidentiality and information sharing. 

    (a) Confidentiality.
Except as provided in this Section, 
all information received by the Department
from returns filed 
under this Act, or from any investigation conducted under
the 
provisions of this Act, shall be confidential, except for 
official purposes
within the Department or pursuant to official 
procedures for collection
of any State tax or pursuant to an 
investigation or audit by the Illinois
State Scholarship 
Commission of a delinquent student loan or monetary award
or 
enforcement of any civil or criminal penalty or sanction

imposed by this Act or by another statute imposing a State tax, 
and any
person who divulges any such information in any manner, 
except for such
purposes and pursuant to order of the Director 
or in accordance with a proper
judicial order, shall be guilty 
of a Class A misdemeanor.   However, the
provisions of this 
paragraph are not applicable to   information furnished
to (i) 
the Department of Healthcare and Family Services (formerly

Department of Public Aid), State's Attorneys, and the Attorney 
General for child support enforcement purposes and (ii) a 
licensed attorney representing the taxpayer where an appeal or 
a protest
has been filed on behalf of the taxpayer. If it is 
necessary to file information obtained pursuant to this Act in 
a child support enforcement proceeding, the information shall 
be filed under seal.


    (b) Public information. Nothing contained in this Act shall 
prevent
the Director from publishing or making available to the 
public the names
and addresses of persons filing returns under 
this Act, or from publishing
or making available reasonable 
statistics concerning the operation of the
tax wherein the 
contents of returns are grouped into aggregates in such a
way 
that the information contained in any individual return shall 
not be
disclosed.

    (c) Governmental agencies. The Director may make available 
to the
Secretary of the Treasury of the United States or his 
delegate, or the
proper officer or his delegate of any other 
state imposing a tax upon or
measured by income, for 
exclusively official purposes, information received
by the 
Department in the administration of this Act, but such 
permission
shall be granted only if the United States or such 
other state, as the case
may be, grants the Department 
substantially similar privileges.  The Director
may exchange 
information with the Illinois Department of Healthcare and 
Family Services
Public Aid and the
Department of Human Services 
(acting as successor to the Department of Public
Aid under the 
Department of Human Services Act) for
the purpose of verifying 
sources and amounts of income and for other purposes
directly 
connected with the administration of this Act and the Illinois

Public Aid Code. The Director may exchange information with the 
Director of
the Department of Employment Security for the 
purpose of verifying sources
and amounts of income and for 
other purposes directly connected with the
administration of 
this Act and Acts administered by the Department of
Employment

Security.
The Director may make available to the Illinois 
Workers' Compensation Commission
information regarding 
employers for the purpose of verifying the insurance
coverage 
required under the Workers' Compensation Act and Workers'

Occupational Diseases Act. The Director may exchange 
information with the Illinois Department on Aging for the 
purpose of verifying sources and amounts of income for purposes 
directly related to confirming eligibility for participation 
in the programs of benefits authorized by the Senior Citizens 
and Disabled Persons Property Tax Relief and Pharmaceutical 
Assistance Act.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.
The Director may make available to any State agency, 
including the Illinois
Supreme
Court, information regarding 
whether a bidder, contractor, or an affiliate of a
bidder or

contractor has failed to file returns under this Act or pay the 
tax, penalty,
and interest
shown therein, or has failed to pay 
any final assessment of tax, penalty, or
interest due
under 
this Act, for the limited purpose of enforcing bidder and 
contractor
certifications.
For purposes of this Section, the 
term "affiliate" means any entity that (1)
directly,

indirectly, or constructively controls another entity, (2) is 
directly,
indirectly, or
constructively controlled by another 
entity, or (3) is subject to the control
of
a common
entity. 
For purposes of this subsection (a), an entity controls another 
entity
if
it owns,
directly or individually, more than 10% of 
the voting securities of that
entity.
As used in
this 
subsection (a), the term "voting security" means a security 
that (1)
confers upon the
holder the right to vote for the 
election of members of the board of directors
or similar

governing body of the business or (2) is convertible into, or 
entitles the
holder to receive
upon its exercise, a security 
that confers such a right to vote. A general
partnership

interest is a voting security.

    The Director may make available to any State agency, 
including the
Illinois
Supreme Court, units of local 
government, and school districts, information
regarding

whether a bidder or contractor is an affiliate of a person who 
is not
collecting
and
remitting Illinois Use taxes, for the 
limited purpose of enforcing bidder and
contractor

certifications.

    The Director may also make available to the Secretary of 
State
information that a corporation which has been issued a 
certificate of
incorporation by the Secretary of State has 
failed to file returns under
this Act or pay the tax, penalty 
and interest shown therein, or has failed
to pay any final 
assessment of tax, penalty or interest due under this Act.
An 
assessment is final when all proceedings in court for
review of 
such assessment have terminated or the time for the taking

thereof has expired without such proceedings being instituted.  
For
taxable years ending on or after December 31, 1987, the 
Director may make
available to the Director or principal 
officer of any Department of the
State of Illinois, information 
that a person employed by such Department
has failed to file 
returns under this Act or pay the tax, penalty and
interest 
shown therein.  For purposes of this paragraph, the word

"Department" shall have the same meaning as provided in Section 
3 of the
State Employees Group Insurance Act of 1971.

    (d) The Director shall make available for public
inspection 
in the Department's principal office and for publication, at 
cost,
administrative decisions issued on or after January
1, 
1995. These decisions are to be made available in a manner so 
that the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    (e) Nothing contained in this Act shall prevent the 
Director from
divulging
information to any person pursuant to a 
request or authorization made by the
taxpayer, by an authorized 
representative of the taxpayer, or, in the case of
information 
related to a joint return, by the spouse filing the joint 
return
with the taxpayer.

(Source: P.A. 93-25, eff. 6-20-03; 93-721, eff. 1-1-05; 93-835; 
eff. 7-29-04; 93-841, eff. 7-30-04; revised 12-15-05.)

 



    (35 ILCS 5/1301)  (from Ch. 120, par. 13-1301)



    Sec. 1301. Willful and Fraudulent Acts. Any person who is 
subject to the provisions of this Act and who
willfully fails 
to file a return, or who files a fraudulent return, or who 
willfully attempts in any other
manner to evade or defeat any 
tax imposed by this Act or the payment
thereof, or any 
accountant or other agent who knowingly enters false

information on the return of any taxpayer under this Act, 
shall, in addition to
other penalties, be guilty of a Class 4 
felony for the
first offense and a Class 3 felony for each 
subsequent
offense.  Any person who is subject to this Act and 
who willfully violates
any rule or regulation of the Department

for the administration and enforcement of this Act or who fails 
to keep books
and records as required in this Act is, in 
addition to other penalties, guilty
of a Class A misdemeanor.

Any person whose commercial domicile or whose residence is in

this State and who is charged with a violation under this 
Section shall be
tried in the county where his commercial 
domicile or his residence is
located unless he asserts a right 
to be tried in another venue. A
prosecution for any act in 
violation of this Section may be
commenced at any time within 5 
years of the commission of that act.

(Source: P.A. 88-480; 88-669, eff. 11-29-94.)

 
    Section 10. The Use Tax Act is amended  by re-enacting 
Section 2 and re-enacting and changing Section 9 as follows:
 



    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)



    Sec. 2. "Use" means the exercise by any person of any right 
or power over
tangible personal property incident to the 
ownership of that property,
except that it does not include the 
sale of such property in any form as
tangible personal property 
in the regular course of business to the extent
that such 
property is not first subjected to a use for which it was

purchased, and does not include the use of such property by its 
owner for
demonstration purposes: Provided that the property 
purchased is deemed to
be purchased for the purpose of resale, 
despite first being used, to the
extent to which it is resold 
as an ingredient of an intentionally produced
product or 
by-product of manufacturing.  "Use" does not mean the 
demonstration
use or interim use of tangible personal property 
by a retailer before he sells
that tangible personal property.  
For watercraft or aircraft, if the period of
demonstration use 
or interim use by the retailer exceeds 18 months,
the retailer

shall pay on the retailers' original cost price the tax imposed 
by this Act,
and no credit for that tax is permitted if the 
watercraft or aircraft is
subsequently sold by the retailer.  
"Use" does not mean the physical
incorporation of tangible 
personal property, to the extent not first subjected
to a use 
for which it was purchased, as an ingredient or constituent, 
into
other tangible personal property (a) which is sold in the 
regular course of
business or (b) which the person 
incorporating such ingredient or constituent
therein has 
undertaken at the time of such purchase to cause to be 
transported
in interstate commerce to destinations outside the 
State of Illinois: Provided
that the property purchased is 
deemed to be purchased for the purpose of
resale, despite first 
being used, to the extent to which it is resold as an

ingredient of an intentionally produced product or by-product 
of manufacturing.

    "Watercraft" means a Class 2, Class 3, or Class 4 
watercraft as defined in
Section 3-2 of the Boat Registration 
and Safety Act, a personal watercraft, or
any boat equipped 
with an inboard motor.

    "Purchase at retail" means the acquisition of the ownership 
of or title
to tangible personal property through a sale at 
retail.

    "Purchaser" means anyone who, through a sale at retail, 
acquires the
ownership of tangible personal property for a 
valuable consideration.

    "Sale at retail" means any transfer of the ownership of or 
title to
tangible personal property to a purchaser, for the 
purpose of use, and not
for the purpose of resale in any form 
as tangible personal property to the
extent not first subjected 
to a use for which it was purchased, for a
valuable 
consideration: Provided that the property purchased is deemed 
to
be purchased for the purpose of resale, despite first being 
used, to the
extent to which it is resold as an ingredient of 
an intentionally produced
product or by-product of 
manufacturing.  For this purpose, slag produced as
an incident 
to manufacturing pig iron or steel and sold is considered to be

an intentionally produced by-product of manufacturing.  "Sale 
at retail"
includes any such transfer made for resale unless 
made in compliance with
Section 2c of the Retailers' Occupation 
Tax Act, as incorporated by
reference into Section 12 of this 
Act.  Transactions whereby the possession
of the property is 
transferred but the seller retains the title as security
for 
payment of the selling price are sales.

    "Sale at retail" shall also be construed to include any 
Illinois
florist's sales transaction in which the purchase 
order is received in
Illinois by a florist and the sale is for 
use or consumption, but the
Illinois florist has a florist in 
another state deliver the property to the
purchaser or the 
purchaser's donee in such other state.

    Nonreusable tangible personal property that is used by 
persons engaged in
the business of operating a restaurant, 
cafeteria, or drive-in is a sale for
resale when it is 
transferred to customers in the ordinary course of business
as 
part of the sale of food or beverages and is used to deliver, 
package, or
consume food or beverages, regardless of where 
consumption of the food or
beverages occurs.  Examples of those 
items include, but are not limited to
nonreusable, paper and 
plastic cups, plates, baskets, boxes, sleeves, buckets
or other 
containers, utensils, straws, placemats, napkins, doggie bags, 
and
wrapping or packaging
materials that are transferred to 
customers as part of the sale of food or
beverages in the 
ordinary course of business.

    The purchase, employment and transfer of such tangible 
personal property
as newsprint and ink for the primary purpose 
of conveying news (with or
without other information) is not a 
purchase, use or sale of tangible
personal property.

    "Selling price" means the consideration for a sale valued 
in money
whether received in money or otherwise, including 
cash, credits, property
other than as hereinafter provided, and 
services, but not including the
value of or credit given for 
traded-in tangible personal property where the
item that is 
traded-in is of like kind and character as that which is being

sold, and shall be determined without any deduction on account 
of the cost
of the property sold, the cost of materials used, 
labor or service cost or
any other expense whatsoever, but does 
not include interest or finance
charges which appear as 
separate items on the bill of sale or sales
contract nor 
charges that are added to prices by sellers on account of the

seller's tax liability under the "Retailers' Occupation Tax 
Act", or on
account of the seller's duty to collect, from the 
purchaser, the tax that
is imposed by this Act, or on account 
of the seller's tax liability under
Section 8-11-1 of the 
Illinois Municipal Code, as heretofore and hereafter
amended, 
or on account of the seller's tax liability under the "County

Retailers' Occupation Tax Act". Effective December 1, 1985, 
"selling price"
shall include charges that are added to prices 
by sellers on account of the
seller's tax liability under the 
Cigarette Tax Act, on account of the seller's
duty to collect, 
from the purchaser, the tax imposed under the Cigarette Use
Tax 
Act, and on account of the seller's duty to collect, from the 
purchaser,
any cigarette tax imposed by a home rule unit.

    The phrase "like kind and character" shall be liberally 
construed
(including but not limited to any form of motor 
vehicle for any form of
motor vehicle, or any kind of farm or 
agricultural implement for any other
kind of farm or 
agricultural implement), while not including a kind of item

which, if sold at retail by that retailer, would be exempt from 
retailers'
occupation tax and use tax as an isolated or 
occasional sale.

    "Department" means the Department of Revenue.

    "Person" means any natural individual, firm, partnership, 
association,
joint stock company, joint adventure, public or 
private corporation, limited
liability company, or a
receiver, 
executor, trustee, guardian or other representative appointed

by order of any court.

    "Retailer" means and includes every person engaged in the 
business of
making sales at retail as defined in this Section.

    A person who holds himself or herself out as being engaged 
(or who habitually
engages) in selling tangible personal 
property at retail is a retailer
hereunder with respect to such 
sales (and not primarily in a service
occupation) 
notwithstanding the fact that such person designs and produces

such tangible personal property on special order for the 
purchaser and in
such a way as to render the property of value 
only to such purchaser, if
such tangible personal property so 
produced on special order serves
substantially the same 
function as stock or standard items of tangible
personal 
property that are sold at retail.

    A person whose activities are organized and conducted 
primarily as a
not-for-profit service enterprise, and who 
engages in selling tangible
personal property at retail 
(whether to the public or merely to members and
their guests) 
is a retailer with respect to such transactions, excepting
only 
a person organized and operated exclusively for charitable, 
religious
or educational purposes either (1), to the extent of 
sales by such person
to its members, students, patients or 
inmates of tangible personal property
to be used primarily for 
the purposes of such person, or (2), to the extent
of sales by 
such person of tangible personal property which is not sold or

offered for sale by persons organized for profit.  The selling 
of school
books and school supplies by schools at retail to 
students is not
"primarily for the purposes of" the school 
which does such selling.  This
paragraph does not apply to nor 
subject to taxation occasional dinners,
social or similar 
activities of a person organized and operated exclusively
for 
charitable, religious or educational purposes, whether or not 
such
activities are open to the public.

    A person who is the recipient of a grant or contract under 
Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and 
serves meals to
participants in the federal Nutrition Program 
for the Elderly in return for
contributions established in 
amount by the individual participant pursuant
to a schedule of 
suggested fees as provided for in the federal Act is not a

retailer under this Act with respect to such transactions.

    Persons who engage in the business of transferring tangible 
personal
property upon the redemption of trading stamps are 
retailers hereunder when
engaged in such business.

    The isolated or occasional sale of tangible personal 
property at retail
by a person who does not hold himself out as 
being engaged (or who does not
habitually engage) in selling 
such tangible personal property at retail or
a sale through a 
bulk vending machine does not make such person a retailer

hereunder.  However, any person who is engaged in a business 
which is not
subject to the tax imposed by the "Retailers' 
Occupation Tax Act" because
of involving the sale of or a 
contract to sell real estate or a
construction contract to 
improve real estate, but who, in the course of
conducting such 
business, transfers tangible personal property to users or

consumers in the finished form in which it was purchased, and 
which does
not become real estate, under any provision of a 
construction contract or
real estate sale or real estate sales 
agreement entered into with some
other person arising out of or 
because of such nontaxable business, is a
retailer to the 
extent of the value of the tangible personal property so

transferred.  If, in such transaction, a separate charge is made 
for the
tangible personal property so transferred, the value of 
such property, for
the purposes of this Act, is the amount so 
separately charged, but not less
than the cost of such property 
to the transferor; if no separate charge is
made, the value of 
such property, for the purposes of this Act, is the cost
to the 
transferor of such tangible personal property.

    "Retailer maintaining a place of business in this State", 
or any like
term, means and includes any of the following 
retailers:


        1. A retailer having or maintaining within this State, 
    directly or by
a subsidiary, an office, distribution house, 
    sales house, warehouse or other
place of business, or any 
    agent or other representative operating within this
State 
    under the authority of the retailer or its subsidiary, 
    irrespective of
whether such place of business or agent or 
    other representative is located here
permanently or 
    temporarily, or whether such retailer or subsidiary is 
    licensed
to do business in this State. However, the 
    ownership of property that is
located at the premises of a 
    printer with which the retailer has contracted for
printing 
    and that consists of the final printed product, property 
    that becomes
a part of the final printed product, or copy 
    from which the printed product is
produced shall not result 
    in the retailer being deemed to have or maintain an
office, 
    distribution house, sales house, warehouse, or other place 
    of business
within this State.


        2. A retailer soliciting orders for tangible personal 
    property by
means of a telecommunication or television 
    shopping system (which utilizes toll
free numbers) which is 
    intended by the retailer to be broadcast by cable

    television or other means of broadcasting, to consumers 
    located in this State.


        3. A retailer, pursuant to a contract with a 
    broadcaster or publisher
located in this State, soliciting 
    orders for tangible personal property by
means of 
    advertising which is disseminated primarily to consumers 
    located in
this State and only secondarily to bordering 
    jurisdictions.


        4. A retailer soliciting orders for tangible personal 
    property by mail
if the solicitations are substantial and 
    recurring and if the retailer benefits
from any banking, 
    financing, debt collection, telecommunication, or 
    marketing
activities occurring in this State or benefits 
    from the location in this State
of authorized installation, 
    servicing, or repair facilities.


        5. A retailer that is owned or controlled by the same 
    interests that own
or control any retailer engaging in 
    business in the same or similar line of
business in this 
    State.


        6. A retailer having a franchisee or licensee operating 
    under its trade
name if the franchisee or licensee is 
    required to collect the tax under this
Section.


        7. A retailer, pursuant to a contract with a cable 
    television operator
located in this State, soliciting 
    orders for tangible personal property by
means of 
    advertising which is transmitted or distributed over a 
    cable
television system in this State.


        8. A retailer engaging in activities in Illinois, which 
    activities in
the state in which the retail business 
    engaging in such activities is located
would constitute 
    maintaining a place of business in that state.

    "Bulk vending machine" means a vending machine,
containing 
unsorted confections, nuts, toys, or other items designed

primarily to be used or played with by children
which, when a 
coin or coins of a denomination not larger than $0.50 are 
inserted, are dispensed in equal portions, at random and

without selection by the customer.

(Source: P.A. 92-213, eff. 1-1-02.)

 



    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)



    Sec. 9. Except as to motor vehicles, watercraft, aircraft, 
and
trailers that are required to be registered with an agency 
of this State,
each retailer
required or authorized to collect 
the tax imposed by this Act shall pay
to the Department the 
amount of such tax (except as otherwise provided)
at the time 
when he is required to file his return for the period during

which such tax was collected, less a discount of 2.1% prior to

January 1, 1990, and 1.75% on and after January 1, 1990, or $5 
per calendar
year, whichever is greater, which is allowed to 
reimburse the retailer
for expenses incurred in collecting the 
tax, keeping records, preparing
and filing returns, remitting 
the tax and supplying data to the
Department on request.  In the 
case of retailers who report and pay the
tax on a transaction 
by transaction basis, as provided in this Section,
such 
discount shall be taken with each such tax remittance instead 
of
when such retailer files his periodic return.  A retailer 
need not remit
that part of any tax collected by him to the 
extent that he is required
to remit and does remit the tax 
imposed by the Retailers' Occupation
Tax Act, with respect to 
the sale of the same property.

    Where such tangible personal property is sold under a 
conditional
sales contract, or under any other form of sale 
wherein the payment of
the principal sum, or a part thereof, is 
extended beyond the close of
the period for which the return is 
filed, the retailer, in collecting
the tax (except as to motor 
vehicles, watercraft, aircraft, and
trailers that are required 
to be registered with an agency of this State),
may collect for 
each
tax return period, only the tax applicable to that part of 
the selling
price actually received during such tax return 
period.

    Except as provided in this Section, on or before the 
twentieth day of each
calendar month, such retailer shall file 
a return for the preceding
calendar month.  Such return shall be 
filed on forms prescribed by the
Department and shall furnish 
such information as the Department may
reasonably require.

    The Department may require returns to be filed on a 
quarterly basis.
If so required, a return for each calendar 
quarter shall be filed on or
before the twentieth day of the 
calendar month following the end of such
calendar quarter.  The 
taxpayer shall also file a return with the
Department for each 
of the first two months of each calendar quarter, on or
before 
the twentieth day of the following calendar month, stating:


        1. The name of the seller;


        2. The address of the principal place of business from 
    which he engages
in the business of selling tangible 
    personal property at retail in this State;


        3. The total amount of taxable receipts received by him 
    during the
preceding calendar month from sales of tangible 
    personal property by him
during such preceding calendar 
    month, including receipts from charge and
time sales, but 
    less all deductions allowed by law;


        4. The amount of credit provided in Section 2d of this 
    Act;


        5. The amount of tax due;


        5-5. The signature of the taxpayer; and


        6. Such other reasonable information as the Department 
    may
require.

    If a taxpayer fails to sign a return within 30 days after 
the proper notice
and demand for signature by the Department, 
the return shall be considered
valid and any amount shown to be 
due on the return shall be deemed assessed.

    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax
liability of $150,000 or more shall make all 
payments required by rules of the
Department by electronic 
funds transfer. Beginning October 1, 1994, a taxpayer
who has 
an average monthly tax liability of $100,000 or more shall make 
all
payments required by rules of the Department by electronic 
funds transfer.
Beginning October 1, 1995, a taxpayer who has 
an average monthly tax liability
of $50,000 or more shall make 
all payments required by rules of the Department
by electronic 
funds transfer. Beginning October 1, 2000, a taxpayer who has

an annual tax liability of $200,000 or more shall make all 
payments required by
rules of the Department by electronic 
funds transfer.  The term "annual tax
liability" shall be the 
sum of the taxpayer's liabilities under this Act, and
under all 
other State and local occupation and use tax laws administered 
by the
Department, for the immediately preceding calendar year. 
The term "average
monthly tax liability" means
the sum of the 
taxpayer's liabilities under this Act, and under all other 
State
and local occupation and use tax laws administered by the 
Department, for the
immediately preceding calendar year 
divided by 12.
Beginning on October 1, 2002, a taxpayer who has 
a tax liability in the
amount set forth in subsection (b) of 
Section 2505-210 of the Department of
Revenue Law shall make 
all payments required by rules of the Department by
electronic 
funds transfer.

    Before August 1 of each year beginning in 1993, the 
Department shall notify
all taxpayers required to make payments 
by electronic funds transfer. All
taxpayers required to make 
payments by electronic funds transfer shall make
those payments 
for a minimum of one year beginning on October 1.

    Any taxpayer not required to make payments by electronic 
funds transfer may
make payments by electronic funds transfer 
with the permission of the
Department.

    All taxpayers required to make payment by electronic funds 
transfer and any
taxpayers authorized to voluntarily make 
payments by electronic funds transfer
shall make those payments 
in the manner authorized by the Department.

    The Department shall adopt such rules as are necessary to 
effectuate a
program of electronic funds transfer and the 
requirements of this Section.

    Before October 1, 2000, if the taxpayer's average monthly 
tax liability
to the Department
under this Act, the Retailers' 
Occupation Tax Act, the Service
Occupation Tax Act, the Service 
Use Tax Act was $10,000 or more
during
the preceding 4 complete 
calendar quarters, he shall file a return with the
Department 
each month by the 20th day of the month next following the 
month
during which such tax liability is incurred and shall 
make payments to the
Department on or before the 7th, 15th, 
22nd and last day of the month
during which such liability is 
incurred.
On and after October 1, 2000, if the taxpayer's 
average monthly tax liability
to the Department under this Act, 
the Retailers' Occupation Tax Act,
the
Service Occupation Tax 
Act, and the Service Use Tax Act was $20,000 or more
during the 
preceding 4 complete calendar quarters, he shall file a return 
with
the Department each month by the 20th day of the month 
next following the month
during which such tax liability is 
incurred and shall make payment to the
Department on or before 
the 7th, 15th, 22nd and last day of the
month during
which such 
liability is incurred.
If the month during which such tax

liability is incurred began prior to January 1, 1985, each 
payment shall be
in an amount equal to 1/4 of the taxpayer's

actual liability for the month or an amount set by the 
Department not to
exceed 1/4 of the average monthly liability 
of the taxpayer to the
Department for the preceding 4 complete 
calendar quarters (excluding the
month of highest liability and 
the month of lowest liability in such 4
quarter period).  If the 
month during which such tax liability is incurred
begins on or 
after January 1, 1985, and prior to January 1, 1987, each

payment shall be in an amount equal to 22.5% of the taxpayer's 
actual liability
for the month or 27.5% of the taxpayer's 
liability for the same calendar
month of the preceding year.  If 
the month during which such tax liability
is incurred begins on 
or after January 1, 1987, and prior to January 1,
1988, each 
payment shall be in an amount equal to 22.5% of the taxpayer's

actual liability for the month or 26.25% of the taxpayer's 
liability for
the same calendar month of the preceding year.  If 
the month during which such
tax liability is incurred begins on 
or after January 1, 1988, and prior to
January 1, 1989,
or 
begins on or after January 1, 1996, each payment shall be in an 
amount equal
to 22.5% of the taxpayer's actual liability for 
the month or 25% of the
taxpayer's liability for the same 
calendar month of the preceding year.  If the
month during which 
such tax liability is incurred begins on or after January 1,

1989,
and prior to January 1, 1996, each payment shall be in an 
amount equal to 22.5%
of the taxpayer's actual liability for 
the month or 25% of the taxpayer's
liability for the same 
calendar month of the preceding year or 100% of the
taxpayer's 
actual liability for the quarter monthly reporting period.  The

amount of such quarter monthly payments shall be credited 
against the final tax
liability
of the taxpayer's return for 
that month.  Before October 1, 2000, once
applicable, the 
requirement
of the making of quarter monthly payments to the 
Department shall continue
until such taxpayer's average 
monthly liability to the Department during
the preceding 4 
complete calendar quarters (excluding the month of highest

liability and the month of lowest liability) is less than

$9,000, or until
such taxpayer's average monthly liability to 
the Department as computed for
each calendar quarter of the 4 
preceding complete calendar quarter period
is less than 
$10,000.  However, if a taxpayer can show the
Department that
a 
substantial change in the taxpayer's business has occurred 
which causes
the taxpayer to anticipate that his average 
monthly tax liability for the
reasonably foreseeable future 
will fall below the $10,000 threshold
stated above, then
such 
taxpayer
may petition the Department for change in such 
taxpayer's reporting status.
On and after October 1, 2000, once 
applicable, the requirement of the making
of quarter monthly 
payments to the Department shall continue until such
taxpayer's 
average monthly liability to the Department during the 
preceding 4
complete calendar quarters (excluding the month of 
highest liability and the
month of lowest liability) is less 
than $19,000 or until such taxpayer's
average monthly liability 
to the Department as computed for each calendar
quarter of the 
4 preceding complete calendar quarter period is less than

$20,000.  However, if a taxpayer can show the Department that a 
substantial
change in the taxpayer's business has occurred 
which causes the taxpayer to
anticipate that his average 
monthly tax liability for the reasonably
foreseeable future 
will fall below the $20,000 threshold stated above, then
such 
taxpayer may petition the Department for a change in such 
taxpayer's
reporting status.
 The Department shall change such 
taxpayer's reporting status unless it
finds that such change is 
seasonal in nature and not likely to be long
term. If any such 
quarter monthly payment is not paid at the time or in
the 
amount required by this Section, then the taxpayer shall be 
liable for
penalties and interest on
the difference between the 
minimum amount due and the amount of such
quarter monthly 
payment actually and timely paid, except insofar as the

taxpayer has previously made payments for that month to the 
Department in
excess of the minimum payments previously due as 
provided in this Section.
The Department shall make reasonable 
rules and regulations to govern the
quarter monthly payment 
amount and quarter monthly payment dates for
taxpayers who file 
on other than a calendar monthly basis.

    If any such payment provided for in this Section exceeds 
the taxpayer's
liabilities under this Act, the Retailers' 
Occupation Tax Act, the Service
Occupation Tax Act and the 
Service Use Tax Act, as shown by an original
monthly return, 
the Department shall issue to the taxpayer a credit
memorandum 
no later than 30 days after the date of payment, which

memorandum may be submitted by the taxpayer to the Department 
in payment of
tax liability subsequently to be remitted by the 
taxpayer to the Department
or be assigned by the taxpayer to a 
similar taxpayer under this Act, the
Retailers' Occupation Tax 
Act, the Service Occupation Tax Act or the
Service Use Tax Act, 
in accordance with reasonable rules and regulations to
be 
prescribed by the Department, except that if such excess 
payment is
shown on an original monthly return and is made 
after December 31, 1986, no
credit memorandum shall be issued, 
unless requested by the taxpayer.  If no
such request is made, 
the taxpayer may credit such excess payment against
tax 
liability subsequently to be remitted by the taxpayer to the 
Department
under this Act, the Retailers' Occupation Tax Act, 
the Service Occupation
Tax Act or the Service Use Tax Act, in 
accordance with reasonable rules and
regulations prescribed by 
the Department.  If the Department subsequently
determines that 
all or any part of the credit taken was not actually due to
the 
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 
be
reduced by 2.1% or 1.75% of the difference between the 
credit taken and
that actually due, and the taxpayer shall be 
liable for penalties and
interest on such difference.

    If the retailer is otherwise required to file a monthly 
return and if the
retailer's average monthly tax liability to 
the Department
does not exceed $200, the Department may 
authorize his returns to be
filed on a quarter annual basis, 
with the return for January, February,
and March of a given 
year being due by April 20 of such year; with the
return for 
April, May and June of a given year being due by July 20 of
such 
year; with the return for July, August and September of a given

year being due by October 20 of such year, and with the return 
for
October, November and December of a given year being due by 
January 20
of the following year.

    If the retailer is otherwise required to file a monthly or 
quarterly
return and if the retailer's average monthly tax 
liability to the
Department does not exceed $50, the Department 
may authorize his returns to
be filed on an annual basis, with 
the return for a given year being due by
January 20 of the 
following year.

    Such quarter annual and annual returns, as to form and 
substance,
shall be subject to the same requirements as monthly 
returns.

    Notwithstanding any other provision in this Act concerning 
the time
within which a retailer may file his return, in the 
case of any retailer
who ceases to engage in a kind of business 
which makes him responsible
for filing returns under this Act, 
such retailer shall file a final
return under this Act with the 
Department not more than one month after
discontinuing such 
business.

    In addition, with respect to motor vehicles, watercraft,

aircraft, and trailers that are required to be registered with 
an agency of
this State, every
retailer selling this kind of 
tangible personal property shall file,
with the Department, 
upon a form to be prescribed and supplied by the
Department, a 
separate return for each such item of tangible personal

property which the retailer sells, except that if, in the same

transaction, (i) a retailer of aircraft, watercraft, motor 
vehicles or
trailers transfers more than
one aircraft, 
watercraft, motor
vehicle or trailer to another aircraft, 
watercraft, motor vehicle or
trailer retailer for the purpose 
of resale
or (ii) a retailer of aircraft, watercraft, motor 
vehicles, or trailers
transfers more than one aircraft, 
watercraft, motor vehicle, or trailer to a
purchaser for use as 
a qualifying rolling stock as provided in Section 3-55 of
this 
Act, then
that seller may report the transfer of all the

aircraft, watercraft, motor
vehicles
or trailers involved in 
that transaction to the Department on the same
uniform

invoice-transaction reporting return form.
For purposes of 
this Section, "watercraft" means a Class 2, Class 3, or
Class
4 
watercraft as defined in Section 3-2 of the Boat Registration 
and Safety Act,
a
personal watercraft, or any boat equipped 
with an inboard motor.

    The transaction reporting return in the case of motor 
vehicles
or trailers that are required to be registered with an 
agency of this
State, shall
be the same document as the Uniform 
Invoice referred to in Section 5-402
of the Illinois Vehicle 
Code and must show the name and address of the
seller; the name 
and address of the purchaser; the amount of the selling
price 
including the amount allowed by the retailer for traded-in

property, if any; the amount allowed by the retailer for the 
traded-in
tangible personal property, if any, to the extent to 
which Section 2 of
this Act allows an exemption for the value 
of traded-in property; the
balance payable after deducting such 
trade-in allowance from the total
selling price; the amount of 
tax due from the retailer with respect to
such transaction; the 
amount of tax collected from the purchaser by the
retailer on 
such transaction (or satisfactory evidence that such tax is
not 
due in that particular instance, if that is claimed to be the 
fact);
the place and date of the sale; a sufficient 
identification of the
property sold; such other information as 
is required in Section 5-402 of
the Illinois Vehicle Code, and 
such other information as the Department
may reasonably 
require.

    The transaction reporting return in the case of watercraft

and aircraft must show
the name and address of the seller; the 
name and address of the
purchaser; the amount of the selling 
price including the amount allowed
by the retailer for 
traded-in property, if any; the amount allowed by
the retailer 
for the traded-in tangible personal property, if any, to
the 
extent to which Section 2 of this Act allows an exemption for 
the
value of traded-in property; the balance payable after 
deducting such
trade-in allowance from the total selling price; 
the amount of tax due
from the retailer with respect to such 
transaction; the amount of tax
collected from the purchaser by 
the retailer on such transaction (or
satisfactory evidence that 
such tax is not due in that particular
instance, if that is 
claimed to be the fact); the place and date of the
sale, a 
sufficient identification of the property sold, and such other

information as the Department may reasonably require.

    Such transaction reporting return shall be filed not later 
than 20
days after the date of delivery of the item that is 
being sold, but may
be filed by the retailer at any time sooner 
than that if he chooses to
do so.  The transaction reporting 
return and tax remittance or proof of
exemption from the tax 
that is imposed by this Act may be transmitted to
the 
Department by way of the State agency with which, or State 
officer
with whom, the tangible personal property must be 
titled or registered
(if titling or registration is required) 
if the Department and such
agency or State officer determine 
that this procedure will expedite the
processing of 
applications for title or registration.

    With each such transaction reporting return, the retailer 
shall remit
the proper amount of tax due (or shall submit 
satisfactory evidence that
the sale is not taxable if that is 
the case), to the Department or its
agents, whereupon the 
Department shall issue, in the purchaser's name, a
tax receipt 
(or a certificate of exemption if the Department is
satisfied 
that the particular sale is tax exempt) which such purchaser

may submit to the agency with which, or State officer with 
whom, he must
title or register the tangible personal property 
that is involved (if
titling or registration is required) in 
support of such purchaser's
application for an Illinois 
certificate or other evidence of title or
registration to such 
tangible personal property.

    No retailer's failure or refusal to remit tax under this 
Act
precludes a user, who has paid the proper tax to the 
retailer, from
obtaining his certificate of title or other 
evidence of title or
registration (if titling or registration 
is required) upon satisfying
the Department that such user has 
paid the proper tax (if tax is due) to
the retailer.  The 
Department shall adopt appropriate rules to carry out
the 
mandate of this paragraph.

    If the user who would otherwise pay tax to the retailer 
wants the
transaction reporting return filed and the payment of 
tax or proof of
exemption made to the Department before the 
retailer is willing to take
these actions and such user has not 
paid the tax to the retailer, such
user may certify to the fact 
of such delay by the retailer, and may
(upon the Department 
being satisfied of the truth of such certification)
transmit 
the information required by the transaction reporting return

and the remittance for tax or proof of exemption directly to 
the
Department and obtain his tax receipt or exemption 
determination, in
which event the transaction reporting return 
and tax remittance (if a
tax payment was required) shall be 
credited by the Department to the
proper retailer's account 
with the Department, but without the 2.1% or 1.75%
discount 
provided for in this Section being allowed.  When the user pays

the tax directly to the Department, he shall pay the tax in the 
same
amount and in the same form in which it would be remitted 
if the tax had
been remitted to the Department by the retailer.

    Where a retailer collects the tax with respect to the 
selling price
of tangible personal property which he sells and 
the purchaser
thereafter returns such tangible personal 
property and the retailer
refunds the selling price thereof to 
the purchaser, such retailer shall
also refund, to the 
purchaser, the tax so collected from the purchaser.
When filing 
his return for the period in which he refunds such tax to
the 
purchaser, the retailer may deduct the amount of the tax so 
refunded
by him to the purchaser from any other use tax which 
such retailer may
be required to pay or remit to the 
Department, as shown by such return,
if the amount of the tax 
to be deducted was previously remitted to the
Department by 
such retailer.  If the retailer has not previously
remitted the 
amount of such tax to the Department, he is entitled to no

deduction under this Act upon refunding such tax to the 
purchaser.

    Any retailer filing a return under this Section shall also 
include
(for the purpose of paying tax thereon) the total tax 
covered by such
return upon the selling price of tangible 
personal property purchased by
him at retail from a retailer, 
but as to which the tax imposed by this
Act was not collected 
from the retailer filing such return, and such
retailer shall 
remit the amount of such tax to the Department when
filing such 
return.

    If experience indicates such action to be practicable, the 
Department
may prescribe and furnish a combination or joint 
return which will
enable retailers, who are required to file 
returns hereunder and also
under the Retailers' Occupation Tax 
Act, to furnish all the return
information required by both 
Acts on the one form.

    Where the retailer has more than one business registered 
with the
Department under separate registration under this Act, 
such retailer may
not file each return that is due as a single 
return covering all such
registered businesses, but shall file 
separate returns for each such
registered business.

    Beginning January 1, 1990, each month the Department shall 
pay into the
State and Local Sales Tax Reform Fund, a special 
fund in the State Treasury
which is hereby created, the net 
revenue realized for the preceding month
from the 1% tax on 
sales of food for human consumption which is to be
consumed off 
the premises where it is sold (other than alcoholic beverages,

soft drinks and food which has been prepared for immediate 
consumption) and
prescription and nonprescription medicines, 
drugs, medical appliances and
insulin, urine testing 
materials, syringes and needles used by diabetics.

    Beginning January 1, 1990, each month the Department shall 
pay into
the County and Mass Transit District Fund 4% of the 
net revenue realized
for the preceding month from the 6.25% 
general rate
on the selling price of tangible personal property 
which is purchased
outside Illinois at retail from a retailer 
and which is titled or
registered by an agency of this State's 
government.

    Beginning January 1, 1990, each month the Department shall 
pay into
the State and Local Sales Tax Reform Fund, a special 
fund in the State
Treasury, 20% of the net revenue realized
for 
the preceding month from the 6.25% general rate on the selling

price of tangible personal property, other than tangible 
personal property
which is purchased outside Illinois at retail 
from a retailer and which is
titled or registered by an agency 
of this State's government.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the
preceding month from the 1.25% 
rate on the selling price of motor fuel and
gasohol.

    Beginning January 1, 1990, each month the Department shall 
pay into
the Local Government Tax Fund 16% of the net revenue 
realized for the
preceding month from the 6.25% general rate on 
the selling price of
tangible personal property which is 
purchased outside Illinois at retail
from a retailer and which 
is titled or registered by an agency of this
State's 
government.

    Of the remainder of the moneys received by the Department 
pursuant to
this Act, (a) 1.75% thereof shall be paid
into the 
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on 
and after July 1, 1989, 3.8% thereof shall be paid into the

Build Illinois Fund; provided, however, that if in any fiscal 
year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case 
may be, of the
moneys received by the Department and required 
to be paid into the Build
Illinois Fund pursuant to Section 3 
of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax 
Act, Section 9 of the Service Use
Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts being
hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case 
may be, of moneys being hereinafter called the "Tax Act 
Amount",
and (2) the amount transferred to the Build Illinois 
Fund from the State
and Local Sales Tax Reform Fund shall be 
less than the Annual Specified
Amount (as defined in Section 3 
of the Retailers' Occupation Tax Act), an
amount equal to the 
difference shall be immediately paid into the Build
Illinois 
Fund from other moneys received by the Department pursuant to 
the
Tax Acts; and further provided, that if on the last 
business day of any
month the sum of (1) the Tax Act Amount 
required to be deposited into the
Build Illinois Bond Account 
in the Build Illinois Fund during such month
and (2) the amount 
transferred during such month to the Build Illinois Fund
from 
the State and Local Sales Tax Reform Fund shall have been less 
than
1/12 of the Annual Specified Amount, an amount equal to 
the difference
shall be immediately paid into the Build 
Illinois Fund from other moneys
received by the Department 
pursuant to the Tax Acts; and,
further provided, that in no 
event shall the payments required under the
preceding proviso 
result in aggregate payments into the Build Illinois Fund

pursuant to this clause (b) for any fiscal year in excess of 
the greater
of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for such
fiscal year; and, further provided, 
that the amounts payable into the Build
Illinois Fund under 
this clause (b) shall be payable only until such time
as the 
aggregate amount on deposit under each trust
indenture securing 
Bonds issued and outstanding pursuant to the Build
Illinois 
Bond Act is sufficient, taking into account any future 
investment
income, to fully provide, in accordance with such 
indenture, for the
defeasance of or the payment of the 
principal of, premium, if any, and
interest on the Bonds 
secured by such indenture and on any Bonds expected
to be 
issued thereafter and all fees and costs payable with respect 
thereto,
all as certified by the Director of the
Bureau of the 
Budget (now Governor's Office of Management and Budget).  If
on 
the last
business day of any month in which Bonds are 
outstanding pursuant to the
Build Illinois Bond Act, the 
aggregate of the moneys deposited
in the Build Illinois Bond 
Account in the Build Illinois Fund in such month
shall be less 
than the amount required to be transferred in such month from

the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and
Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an
amount equal to such deficiency 
shall be immediately paid
from other moneys received by the 
Department pursuant to the Tax Acts
to the Build Illinois Fund; 
provided, however, that any amounts paid to the
Build Illinois 
Fund in any fiscal year pursuant to this sentence shall be

deemed to constitute payments pursuant to clause (b) of the 
preceding
sentence and shall reduce the amount otherwise 
payable for such fiscal year
pursuant to clause (b) of the 
preceding sentence.  The moneys received by
the Department 
pursuant to this Act and required to be deposited into the

Build Illinois Fund are subject to the pledge, claim and charge 
set forth
in Section 12 of the Build Illinois Bond Act.

    Subject to payment of amounts into the Build Illinois Fund 
as provided in
the preceding paragraph or in any amendment 
thereto hereafter enacted, the
following specified monthly 
installment of the amount requested in the
certificate of the 
Chairman of the Metropolitan Pier and Exposition
Authority 
provided under Section 8.25f of the State Finance Act, but not 
in
excess of the sums designated as "Total Deposit", shall be

deposited in the aggregate from collections under Section 9 of 
the Use Tax
Act, Section 9 of the Service Use Tax Act, Section 
9 of the Service
Occupation Tax Act, and Section 3 of the 
Retailers' Occupation Tax Act into
the McCormick Place 
Expansion Project Fund in the specified fiscal years.



































































































Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000




































































































2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023 and275,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2042.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter,
one-eighth of the amount requested in the 
certificate of the Chairman of
the Metropolitan Pier and 
Exposition Authority for that fiscal year, less
the amount 
deposited into the McCormick Place Expansion Project Fund by 
the
State Treasurer in the respective month under subsection 
(g) of Section 13
of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative
deficiencies in the deposits 
required under this Section for previous
months and years, 
shall be deposited into the McCormick Place Expansion
Project 
Fund, until the full amount requested for the fiscal year, but 
not
in excess of the amount specified above as "Total Deposit", 
has been deposited.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or
in any amendments thereto
hereafter 
enacted,
beginning July 1, 1993, the Department shall each 
month pay into the Illinois
Tax Increment Fund 0.27% of 80% of 
the net revenue realized for the preceding
month from the 6.25% 
general rate on the selling price of tangible personal

property.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any
amendments thereto hereafter 
enacted, beginning with the receipt of the first
report of 
taxes paid by an eligible business and continuing for a 25-year

period, the Department shall each month pay into the Energy 
Infrastructure
Fund 80% of the net revenue realized from the 
6.25% general rate on the
selling price of Illinois-mined coal 
that was sold to an eligible business.
For purposes of this 
paragraph, the term "eligible business" means a new
electric 
generating facility certified pursuant to Section 605-332 of 
the
Department of Commerce and
Economic Opportunity
Community 
Affairs Law of the Civil Administrative
Code of Illinois.

    Of the remainder of the moneys received by the Department 
pursuant
to this Act, 75% thereof shall be paid into the State 
Treasury and 25%
shall be reserved in a special account and 
used only for the transfer to
the Common School Fund as part of 
the monthly transfer from the General
Revenue Fund in 
accordance with Section 8a of the State
Finance Act.

    As soon as possible after the first day of each month, upon 
certification
of the Department of Revenue, the Comptroller 
shall order transferred and
the Treasurer shall transfer from 
the General Revenue Fund to the Motor
Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized
under this Act 
for the second preceding month.
Beginning April 1, 2000, this 
transfer is no longer required
and shall not be made.

    Net revenue realized for a month shall be the revenue 
collected
by the State pursuant to this Act, less the amount 
paid out during that
month as refunds to taxpayers for 
overpayment of liability.

    For greater simplicity of administration, manufacturers, 
importers
and wholesalers whose products are sold at retail in 
Illinois by
numerous retailers, and who wish to do so, may 
assume the responsibility
for accounting and paying to the 
Department all tax accruing under this
Act with respect to such 
sales, if the retailers who are affected do not
make written 
objection to the Department to this arrangement.

(Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, 
eff. 7-12-99;
91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 
91-901, eff. 1-1-01; 92-12, eff.
7-1-01; 92-16, eff. 6-28-01; 
92-208, eff. 8-2-01; 92-492, eff. 1-1-02; 92-600,
eff. 6-28-02; 
92-651, eff. 7-11-02; revised 10-15-03.)

 
    Section 15. The Service Use Tax Act is amended  by 
re-enacting and changing Section 9 as follows:
 



    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)



    Sec. 9. Each serviceman required or authorized to collect 
the tax
herein imposed shall pay to the Department the amount 
of such tax
(except as otherwise provided) at the time when he 
is required to file
his return for the period during which such 
tax was collected, less a
discount of 2.1% prior to January 1, 
1990 and 1.75% on and after January 1,
1990, or $5 per calendar 
year, whichever is greater, which is allowed to
reimburse the 
serviceman for expenses incurred in collecting the tax,
keeping 
records, preparing and filing returns, remitting the tax and

supplying data to the Department on request. A serviceman need 
not remit
that part of any tax collected by him to the extent 
that he is required to
pay and does pay the tax imposed by the 
Service Occupation Tax Act with
respect to his sale of service 
involving the incidental transfer by him of
the same property.

    Except as provided hereinafter in this Section, on or 
before the twentieth
day of each calendar month, such 
serviceman shall file a return for the
preceding calendar month 
in accordance with reasonable Rules and
Regulations to be 
promulgated by the Department. Such return shall be
filed on a 
form prescribed by the Department and shall contain such

information as the Department may reasonably require.

    The Department may require returns to be filed on a 
quarterly basis.
If so required, a return for each calendar 
quarter shall be filed on or
before the twentieth day of the 
calendar month following the end of such
calendar quarter.  The 
taxpayer shall also file a return with the
Department for each 
of the first two months of each calendar quarter, on or
before 
the twentieth day of the following calendar month, stating:


        1. The name of the seller;


        2. The address of the principal place of business from 
    which he engages
in business as a serviceman in this State;


        3. The total amount of taxable receipts received by him 
    during the
preceding calendar month, including receipts 
    from charge and time sales,
but less all deductions allowed 
    by law;


        4. The amount of credit provided in Section 2d of this 
    Act;


        5. The amount of tax due;


        5-5. The signature of the taxpayer; and


        6. Such other reasonable information as the Department 
    may
require.

    If a taxpayer fails to sign a return within 30 days after 
the proper notice
and demand for signature by the Department, 
the return shall be considered
valid and any amount shown to be 
due on the return shall be deemed assessed.

    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax
liability of $150,000 or more shall make all 
payments required by rules of
the Department by electronic 
funds transfer.  Beginning October 1, 1994, a
taxpayer who has 
an average monthly tax liability of $100,000 or more shall
make 
all payments required by rules of the Department by electronic 
funds
transfer.  Beginning October 1, 1995, a taxpayer who has 
an average monthly
tax liability of $50,000 or more shall make 
all payments required by rules
of the Department by electronic 
funds transfer.
Beginning October 1, 2000, a taxpayer who has 
an annual tax liability of
$200,000 or more shall make all 
payments required by rules of the Department by
electronic 
funds transfer.  The term "annual tax liability" shall be the 
sum of
the taxpayer's liabilities under this Act, and under all 
other State and local
occupation and use tax laws administered 
by the Department, for the immediately
preceding calendar year.
 
The term "average monthly tax
liability" means the sum of the 
taxpayer's liabilities under this Act, and
under all other 
State and local occupation and use tax laws administered by the

Department, for the immediately preceding calendar year 
divided by 12.
Beginning on October 1, 2002, a taxpayer who has 
a tax liability in the
amount set forth in subsection (b) of 
Section 2505-210 of the Department of
Revenue Law shall make 
all payments required by rules of the Department by
electronic 
funds transfer.

    Before August 1 of each year beginning in 1993, the 
Department shall
notify all taxpayers required to make payments 
by electronic funds transfer.
All taxpayers required to make 
payments by electronic funds transfer shall
make those payments 
for a minimum of one year beginning on October 1.

    Any taxpayer not required to make payments by electronic 
funds transfer
may make payments by electronic funds transfer 
with the permission of the
Department.

    All taxpayers required to make payment by electronic funds 
transfer and
any taxpayers authorized to voluntarily make 
payments by electronic funds
transfer shall make those payments 
in the manner authorized by the Department.

    The Department shall adopt such rules as are necessary to 
effectuate a
program of electronic funds transfer and the 
requirements of this Section.

    If the serviceman is otherwise required to file a monthly 
return and
if the serviceman's average monthly tax liability to 
the Department
does not exceed $200, the Department may 
authorize his returns to be
filed on a quarter annual basis, 
with the return for January, February
and March of a given year 
being due by April 20 of such year; with the
return for April, 
May and June of a given year being due by July 20 of
such year; 
with the return for July, August and September of a given
year 
being due by October 20 of such year, and with the return for

October, November and December of a given year being due by 
January 20
of the following year.

    If the serviceman is otherwise required to file a monthly 
or quarterly
return and if the serviceman's average monthly tax 
liability to the Department
does not exceed $50, the Department 
may authorize his returns to be
filed on an annual basis, with 
the return for a given year being due by
January 20 of the 
following year.

    Such quarter annual and annual returns, as to form and 
substance,
shall be subject to the same requirements as monthly 
returns.

    Notwithstanding any other provision in this Act concerning 
the time
within which a serviceman may file his return, in the 
case of any
serviceman who ceases to engage in a kind of 
business which makes him
responsible for filing returns under 
this Act, such serviceman shall
file a final return under this 
Act with the Department not more than 1
month after 
discontinuing such business.

    Where a serviceman collects the tax with respect to the 
selling price of
property which he sells and the purchaser 
thereafter returns such
property and the serviceman refunds the 
selling price thereof to the
purchaser, such serviceman shall 
also refund, to the purchaser, the tax
so collected from the 
purchaser. When filing his return for the period
in which he 
refunds such tax to the purchaser, the serviceman may deduct

the amount of the tax so refunded by him to the purchaser from 
any other
Service Use Tax, Service Occupation Tax, retailers' 
occupation tax or
use tax which such serviceman may be required 
to pay or remit to the
Department, as shown by such return, 
provided that the amount of the tax
to be deducted shall 
previously have been remitted to the Department by
such 
serviceman. If the serviceman shall not previously have 
remitted
the amount of such tax to the Department, he shall be 
entitled to no
deduction hereunder upon refunding such tax to 
the purchaser.

    Any serviceman filing a return hereunder shall also include 
the total
tax upon the selling price of tangible personal 
property purchased for use
by him as an incident to a sale of 
service, and such serviceman shall remit
the amount of such tax 
to the Department when filing such return.

    If experience indicates such action to be practicable, the 
Department
may prescribe and furnish a combination or joint 
return which will
enable servicemen, who are required to file 
returns hereunder and also
under the Service Occupation Tax 
Act, to furnish all the return
information required by both 
Acts on the one form.

    Where the serviceman has more than one business registered 
with the
Department under separate registration hereunder, 
such serviceman shall
not file each return that is due as a 
single return covering all such
registered businesses, but 
shall file separate returns for each such
registered business.

    Beginning January 1, 1990, each month the Department shall 
pay into
the State and Local Tax Reform Fund, a special fund in 
the State Treasury,
the net revenue realized for the preceding 
month from the 1% tax on sales
of food for human consumption 
which is to be consumed off the premises
where it is sold 
(other than alcoholic beverages, soft drinks and food
which has 
been prepared for immediate consumption) and prescription and

nonprescription medicines, drugs, medical appliances and 
insulin, urine
testing materials, syringes and needles used by 
diabetics.

    Beginning January 1, 1990, each month the Department shall 
pay into
the State and Local Sales Tax Reform Fund 20% of the 
net revenue realized
for the preceding month from the 6.25% 
general rate on transfers of
tangible personal property, other 
than tangible personal property which is
purchased outside 
Illinois at retail from a retailer and which is titled or

registered by an agency of this State's government.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
State and Local Sales Tax Reform Fund 100% of the 
net revenue realized for the
preceding
month from the 1.25% 
rate on the selling price of motor fuel and gasohol.

    Of the remainder of the moneys received by the Department 
pursuant
to this Act, (a)  1.75% thereof shall be paid into the 
Build
Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1,
1989, 3.8% thereof shall be  paid into the 
Build Illinois Fund; provided,
however, that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or
3.8%, as the case 
may be, of the moneys received by the Department and
required 
to be paid into the Build Illinois Fund pursuant to Section 3 
of
the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9
of the Service Use Tax Act, and Section 9 of the 
Service Occupation Tax
Act, such Acts being hereinafter called 
the "Tax Acts" and such aggregate
of 2.2% or 3.8%, as the case 
may be, of moneys being hereinafter called the
"Tax Act 
Amount", and (2) the amount transferred to the Build Illinois 
Fund
from the State and Local Sales Tax Reform Fund shall be 
less than the
Annual Specified  Amount (as defined in Section 3 
of the Retailers'
Occupation Tax Act), an amount equal to the 
difference shall be immediately
paid into the Build Illinois 
Fund from other moneys received by the
Department pursuant to 
the Tax Acts; and further provided, that if on the
last 
business day of any month the sum of (1) the Tax Act Amount 
required
to be deposited into the Build Illinois Bond Account 
in the Build Illinois
Fund during such month and (2) the amount 
transferred during such month to
the Build Illinois Fund from 
the State and Local Sales Tax Reform Fund
shall have been less 
than 1/12 of the Annual Specified Amount, an amount
equal to 
the difference shall be immediately paid into the Build 
Illinois
Fund from other moneys received by the Department 
pursuant to the Tax Acts;
and, further provided, that in no 
event shall the payments required under
the preceding proviso 
result in aggregate payments into the Build Illinois
Fund 
pursuant to this clause (b) for any fiscal year in excess of 
the
greater of (i) the Tax Act Amount or (ii) the Annual 
Specified Amount for
such fiscal year; and, further provided, 
that the amounts payable into the
Build Illinois Fund under 
this clause (b) shall be payable only until such
time as the 
aggregate amount on deposit under each trust indenture securing

Bonds issued and outstanding pursuant to the Build Illinois 
Bond Act is
sufficient, taking into account any future 
investment income, to fully
provide, in accordance with such 
indenture, for the defeasance of or the
payment of the 
principal of, premium, if any, and interest on the Bonds

secured by such indenture and on any Bonds expected to be 
issued thereafter
and all fees and costs payable with respect 
thereto, all as certified by
the Director of the
Bureau of the 
Budget (now Governor's Office of Management and Budget).  If
on 
the last business day of
any month in which Bonds are 
outstanding pursuant to the Build Illinois
Bond Act, the 
aggregate of the moneys deposited in the Build Illinois Bond

Account in the Build Illinois Fund in such month shall be less 
than the
amount required to be transferred in such month from 
the Build Illinois
Bond Account to the Build Illinois Bond 
Retirement and Interest Fund
pursuant to Section 13 of the 
Build Illinois Bond Act, an amount equal to
such deficiency 
shall be immediately paid from other moneys received by the

Department pursuant to the Tax Acts to the Build Illinois Fund; 
provided,
however, that any amounts paid to the Build Illinois 
Fund in any fiscal
year pursuant to this sentence shall be 
deemed to constitute payments
pursuant to clause (b) of the 
preceding sentence and shall reduce the
amount otherwise 
payable for such fiscal year pursuant to clause (b) of the

preceding sentence.  The moneys received by the Department 
pursuant to this
Act and required to be deposited into the 
Build Illinois Fund are subject
to the pledge, claim and charge 
set forth in Section 12 of the Build Illinois
Bond Act.

    Subject to payment of amounts into the Build Illinois Fund 
as provided in
the preceding paragraph or in any amendment 
thereto hereafter enacted, the
following specified monthly 
installment of the amount requested in the
certificate of the 
Chairman of the Metropolitan Pier and Exposition
Authority 
provided under Section 8.25f of the State Finance Act, but not 
in
excess of the sums designated as "Total Deposit", shall be 
deposited in the
aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and
Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place

Expansion Project Fund in the specified fiscal years.
















































































































































Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000

























































2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023 and275,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2042.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter,
one-eighth of the amount requested in the 
certificate of the Chairman of
the Metropolitan Pier and 
Exposition Authority for that fiscal year, less
the amount 
deposited into the McCormick Place Expansion Project Fund by 
the
State Treasurer in the respective month under subsection 
(g) of Section 13
of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative
deficiencies in the deposits 
required under this Section for previous
months and years, 
shall be deposited into the McCormick Place Expansion
Project 
Fund, until the full amount requested for the fiscal year, but 
not
in excess of the amount specified above as "Total Deposit", 
has been deposited.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund
pursuant to the 
preceding paragraphs or in any amendments thereto hereafter

enacted, beginning July 1, 1993, the Department shall each 
month pay into the
Illinois Tax Increment Fund 0.27% of 80% of 
the net revenue realized for the
preceding month from the 6.25% 
general rate on the selling price of tangible
personal 
property.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or
in any
amendments thereto hereafter 
enacted, beginning with the receipt of the first
report of 
taxes paid by an eligible business and continuing for a 25-year

period, the Department shall each month pay into the Energy 
Infrastructure
Fund 80% of the net revenue realized from the 
6.25% general rate on the
selling price of Illinois-mined coal 
that was sold to an eligible business.
For purposes of this 
paragraph, the term "eligible business" means a new
electric 
generating facility certified pursuant to Section 605-332 of 
the
Department of Commerce and
Economic Opportunity
Community 
Affairs Law of the Civil Administrative
Code of Illinois.

    All remaining moneys received by the Department pursuant to 
this
Act shall be paid into the General Revenue Fund of the 
State Treasury.

    As soon as possible after the first day of each month, upon 
certification
of the Department of Revenue, the Comptroller 
shall order transferred and
the Treasurer shall transfer from 
the General Revenue Fund to the Motor
Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized
under this Act 
for the second preceding month.
Beginning April 1, 2000, this 
transfer is no longer required
and shall not be made.

    Net revenue realized for a month shall be the revenue 
collected by the State
pursuant to this Act, less the amount 
paid out during that month as refunds
to taxpayers for 
overpayment of liability.

(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, 
eff.
1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 
revised 10-15-03.)

 
    Section 20. The Service Occupation Tax Act is amended  by 
re-enacting Section 9 as follows:
 



    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)



    Sec. 9. Each serviceman required or authorized to collect 
the tax
herein imposed shall pay to the Department the amount 
of such tax at the
time when he is required to file his return 
for the period during which
such tax was collectible, less a 
discount of 2.1% prior to
January 1, 1990, and 1.75% on and 
after January 1, 1990, or
$5 per calendar year, whichever is 
greater, which is allowed to reimburse
the serviceman for 
expenses incurred in collecting the tax, keeping
records, 
preparing and filing returns, remitting the tax and supplying 
data
to the Department on request.

    Where such tangible personal property is sold under a 
conditional
sales contract, or under any other form of sale 
wherein the payment of
the principal sum, or a part thereof, is 
extended beyond the close of
the period for which the return is 
filed, the serviceman, in collecting
the tax may collect, for 
each tax return period, only the tax applicable
to the part of 
the selling price actually received during such tax return

period.

    Except as provided hereinafter in this Section, on or 
before the twentieth
day of each calendar month, such 
serviceman shall file a
return for the preceding calendar month 
in accordance with reasonable
rules and regulations to be 
promulgated by the Department of Revenue.
Such return shall be 
filed on a form prescribed by the Department and
shall contain 
such information as the Department may reasonably require.

    The Department may require returns to be filed on a 
quarterly basis.
If so required, a return for each calendar 
quarter shall be filed on or
before the twentieth day of the 
calendar month following the end of such
calendar quarter.  The 
taxpayer shall also file a return with the
Department for each 
of the first two months of each calendar quarter, on or
before 
the twentieth day of the following calendar month, stating:


        1. The name of the seller;


        2. The address of the principal place of business from 
    which he engages
in business as a serviceman in this State;


        3. The total amount of taxable receipts received by him 
    during the
preceding calendar month, including receipts 
    from charge and time sales,
but less all deductions allowed 
    by law;


        4. The amount of credit provided in Section 2d of this 
    Act;


        5. The amount of tax due;


        5-5. The signature of the taxpayer; and


        6. Such other reasonable information as the Department 
    may
require.

    If a taxpayer fails to sign a return within 30 days after 
the proper notice
and demand for signature by the Department, 
the return shall be considered
valid and any amount shown to be 
due on the return shall be deemed assessed.

    Prior to October 1, 2003, and on and after September 1, 
2004 a serviceman may accept a Manufacturer's
Purchase Credit 
certification
from a purchaser in satisfaction
of Service Use 
Tax as provided in Section 3-70 of the
Service Use Tax Act if 
the purchaser provides
the
appropriate
documentation as 
required by Section 3-70 of the Service Use Tax Act.
A  
Manufacturer's Purchase Credit certification, accepted prior 
to October 1,
2003 or on or after September 1, 2004 by a 
serviceman as
provided in Section 3-70 of the Service Use Tax 
Act, may be used by that
serviceman to satisfy Service 
Occupation Tax liability in the amount claimed in
the 
certification, not to exceed 6.25% of the receipts subject to 
tax from a
qualifying purchase.  A Manufacturer's Purchase 
Credit reported on any
original or amended return
filed under

this Act after October 20, 2003 for reporting periods prior to 
September 1, 2004 shall be disallowed.  Manufacturer's Purchase 
Credit reported on annual returns due on or after January 1, 
2005 will be disallowed for periods prior to September 1, 2004.

No Manufacturer's
Purchase Credit may be used after September 
30, 2003 through August 31, 2004 to
satisfy any
tax liability 
imposed under this Act, including any audit liability.

    If the serviceman's average monthly tax liability to
the 
Department does not exceed $200, the Department may authorize 
his
returns to be filed on a quarter annual basis, with the 
return for
January, February and March of a given year being 
due by April 20 of
such year; with the return for April, May 
and June of a given year being
due by July 20 of such year; with 
the return for July, August and
September of a given year being 
due by October 20 of such year, and with
the return for 
October, November and December of a given year being due
by 
January 20 of the following year.

    If the serviceman's average monthly tax liability to
the 
Department does not exceed $50, the Department may authorize 
his
returns to be filed on an annual basis, with the return for 
a given year
being due by January 20 of the following year.

    Such quarter annual and annual returns, as to form and 
substance,
shall be subject to the same requirements as monthly 
returns.

    Notwithstanding any other provision in this Act concerning 
the time within
which a serviceman may file his return, in the 
case of any serviceman who
ceases to engage in a kind of 
business which makes him responsible for filing
returns under 
this Act, such serviceman shall file a final return under this

Act with the Department not more than 1 month after 
discontinuing such
business.

    Beginning October 1, 1993, a taxpayer who has an average 
monthly tax
liability of $150,000 or more shall make all 
payments required by rules of the
Department by electronic 
funds transfer.  Beginning October 1, 1994, a taxpayer
who has 
an average monthly tax liability of $100,000 or more shall make 
all
payments required by rules of the Department by electronic 
funds transfer.
Beginning October 1, 1995, a taxpayer who has 
an average monthly tax liability
of $50,000 or more shall make 
all payments required by rules of the Department
by electronic 
funds transfer.  Beginning October 1, 2000, a taxpayer who has

an annual tax liability of $200,000 or more shall make all 
payments required by
rules of the Department by electronic 
funds transfer.  The term "annual tax
liability" shall be the 
sum of the taxpayer's liabilities under this Act, and
under all 
other State and local occupation and use tax laws administered 
by the
Department, for the immediately preceding calendar year. 
The term "average
monthly tax liability" means
the sum of the 
taxpayer's liabilities under this Act, and under all other 
State
and local occupation and use tax laws administered by the 
Department, for the
immediately preceding calendar year 
divided by 12.
Beginning on October 1, 2002, a taxpayer who has 
a tax liability in the
amount set forth in subsection (b) of 
Section 2505-210 of the Department of
Revenue Law shall make 
all payments required by rules of the Department by
electronic 
funds transfer.

    Before August 1 of each year beginning in 1993, the 
Department shall
notify all taxpayers required to make payments 
by electronic funds transfer.
All taxpayers required to make 
payments by electronic funds transfer shall make
those payments 
for a minimum of one year beginning on October 1.

    Any taxpayer not required to make payments by electronic 
funds transfer may
make payments by electronic funds transfer 
with the
permission of the Department.

    All taxpayers required to make payment by electronic funds 
transfer and
any taxpayers authorized to voluntarily make 
payments by electronic funds
transfer shall make those payments 
in the manner authorized by the Department.

    The Department shall adopt such rules as are necessary to 
effectuate a
program of electronic funds transfer and the 
requirements of this Section.

    Where a serviceman collects the tax with respect to the 
selling price of
tangible personal property which he sells and 
the purchaser thereafter returns
such tangible personal 
property and the serviceman refunds the
selling price thereof 
to the purchaser, such serviceman shall also refund,
to the 
purchaser, the tax so collected from the purchaser.  When
filing 
his return for the period in which he refunds such tax to the

purchaser, the serviceman may deduct the amount of the tax so 
refunded by
him to the purchaser from any other Service 
Occupation Tax, Service Use
Tax, Retailers' Occupation Tax or 
Use Tax which such serviceman may be
required to pay or remit 
to the Department, as shown by such return,
provided that the 
amount of the tax to be deducted shall previously have
been 
remitted to the Department by such serviceman.  If the 
serviceman shall
not previously have remitted the amount of 
such tax to the Department,
he shall be entitled to no 
deduction hereunder upon refunding such tax
to the purchaser.

    If experience indicates such action to be practicable, the 
Department
may prescribe and furnish a combination or joint 
return which will
enable servicemen, who are required to file 
returns
hereunder and also under the Retailers' Occupation Tax 
Act, the Use
Tax Act or the Service Use Tax Act, to furnish all 
the return
information required by all said Acts on the one 
form.

    Where the serviceman has more than one business
registered 
with the Department under separate registrations hereunder,

such serviceman shall file separate returns for each
registered 
business.

    Beginning January 1, 1990, each month the Department shall 
pay into
the Local Government Tax Fund the revenue realized for 
the
preceding month from the 1% tax on sales of food for human 
consumption
which is to be consumed off the premises where it 
is sold (other than
alcoholic beverages, soft drinks and food 
which has been prepared for
immediate consumption) and 
prescription and nonprescription medicines,
drugs, medical 
appliances and insulin, urine testing materials, syringes
and 
needles used by diabetics.

    Beginning January 1, 1990, each month the Department shall 
pay into
the County and Mass Transit District Fund 4% of the 
revenue realized
for the preceding month from the 6.25% general 
rate.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
County and Mass Transit District Fund 20% of the 
net revenue realized for the
preceding month from the 1.25% 
rate on the selling price of motor fuel and
gasohol.

    Beginning January 1, 1990, each month the Department shall 
pay into
the Local Government Tax Fund 16% of the revenue 
realized for the
preceding month from the 6.25% general rate on 
transfers of
tangible personal property.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
Local Government Tax Fund 80% of the net revenue 
realized for the preceding
month from the 1.25% rate on the 
selling price of motor fuel and gasohol.

    Of the remainder of the moneys received by the Department 
pursuant to
this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois Fund and
(b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989, 3.8% thereof
shall be paid into the 
Build Illinois Fund; provided, however, that if in
any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

may be, of the moneys received by the Department and required 
to be paid
into the Build Illinois Fund pursuant to Section 3 
of the Retailers'
Occupation Tax Act, Section 9 of the Use Tax 
Act, Section 9 of the Service
Use Tax Act, and Section 9 of the 
Service Occupation Tax Act, such Acts
being hereinafter called 
the "Tax Acts" and such aggregate of 2.2% or 3.8%,
as the case 
may be, of moneys being hereinafter called the "Tax Act

Amount", and (2) the amount transferred to the Build Illinois 
Fund from the
State and Local Sales Tax Reform Fund shall be 
less than the Annual
Specified Amount (as defined in Section 3 
of the Retailers' Occupation Tax
Act), an amount equal to the 
difference shall be immediately paid into the
Build Illinois 
Fund from other moneys received by the Department pursuant
to 
the Tax Acts; and further provided, that if on the last 
business day of
any month the sum of (1) the Tax Act Amount 
required to be deposited into
the Build Illinois Account in the 
Build Illinois Fund during such month and
(2) the amount 
transferred during such month to the Build Illinois Fund
from 
the State and Local Sales Tax Reform Fund shall have been less 
than
1/12 of the Annual Specified Amount, an amount equal to 
the difference
shall be immediately paid into the Build 
Illinois Fund from other moneys
received by the Department 
pursuant to the Tax Acts; and, further provided,
that in no 
event shall the payments required under the preceding proviso

result in aggregate payments into the Build Illinois Fund 
pursuant to this
clause (b) for any fiscal year in excess of 
the greater of (i) the Tax Act
Amount or (ii) the Annual 
Specified Amount for such fiscal year; and,
further provided, 
that the amounts payable into the Build Illinois Fund
under 
this clause (b) shall be payable only until such time as the

aggregate amount on deposit under each trust indenture securing 
Bonds
issued and outstanding pursuant to the Build Illinois 
Bond Act is
sufficient, taking into account any future 
investment income, to fully
provide, in accordance with such 
indenture, for the defeasance of or the
payment of the 
principal of, premium, if any, and interest on the Bonds

secured by such indenture and on any Bonds expected to be 
issued thereafter
and all fees and costs payable with respect 
thereto, all as certified by
the Director of the
Bureau of the 
Budget (now Governor's Office of Management and Budget).  If
on 
the last business day of
any month in which Bonds are 
outstanding pursuant to the Build Illinois
Bond Act, the 
aggregate of the moneys deposited
in the Build Illinois Bond 
Account in the Build Illinois Fund in such month
shall be less 
than the amount required to be transferred in such month from

the Build Illinois Bond Account to the Build Illinois Bond 
Retirement and
Interest Fund pursuant to Section 13 of the 
Build Illinois Bond Act, an
amount equal to such deficiency 
shall be immediately paid
from other moneys received by the 
Department pursuant to the Tax Acts
to the Build Illinois Fund; 
provided, however, that any amounts paid to the
Build Illinois 
Fund in any fiscal year pursuant to this sentence shall be

deemed to constitute payments pursuant to clause (b) of the 
preceding
sentence and shall reduce the amount otherwise 
payable for such fiscal year
pursuant to clause (b) of the 
preceding sentence.  The moneys received by
the Department 
pursuant to this Act and required to be deposited into the

Build Illinois Fund are subject to the pledge, claim and charge 
set forth
in Section 12 of the Build Illinois Bond Act.

    Subject to payment of amounts into the Build Illinois Fund 
as provided in
the preceding paragraph or in any amendment 
thereto hereafter enacted, the
following specified monthly 
installment of the amount requested in the
certificate of the 
Chairman of the Metropolitan Pier and Exposition
Authority 
provided under Section 8.25f of the State Finance Act, but not 
in
excess of the sums designated as "Total Deposit", shall be 
deposited in the
aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and
Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place

Expansion Project Fund in the specified fiscal years.
















































































































































Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000

























































2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023 and275,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2042.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter,
one-eighth of the amount requested in the 
certificate of the Chairman of
the Metropolitan Pier and 
Exposition Authority for that fiscal year, less
the amount 
deposited into the McCormick Place Expansion Project Fund by 
the
State Treasurer in the respective month under subsection 
(g) of Section 13
of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative
deficiencies in the deposits 
required under this Section for previous
months and years, 
shall be deposited into the McCormick Place Expansion
Project 
Fund, until the full amount requested for the fiscal year, but 
not
in excess of the amount specified above as "Total Deposit", 
has been deposited.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick
Place Expansion Project Fund
pursuant to the 
preceding paragraphs or in any amendments thereto hereafter

enacted, beginning July 1, 1993, the Department shall each 
month pay into the
Illinois Tax Increment Fund 0.27% of 80% of 
the net revenue realized for the
preceding month from the 6.25% 
general rate on the selling price of tangible
personal 
property.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any
amendments thereto hereafter 
enacted, beginning with the receipt of the first
report of 
taxes paid by an eligible business and continuing for a 25-year

period, the Department shall each month pay into the Energy 
Infrastructure
Fund 80% of the net revenue realized from the 
6.25% general rate on the
selling price of Illinois-mined coal 
that was sold to an eligible business.
For purposes of this 
paragraph, the term "eligible business" means a new
electric 
generating facility certified pursuant to Section 605-332 of 
the
Department of Commerce and
Economic Opportunity Law of the 
Civil Administrative
Code of Illinois.

    Remaining moneys received by the Department pursuant to 
this
Act shall be paid into the General Revenue Fund of the 
State Treasury.

    The Department may, upon separate written notice to a 
taxpayer,
require the taxpayer to prepare and file with the 
Department on a form
prescribed by the Department within not 
less than 60 days after receipt
of the notice an annual 
information return for the tax year specified in
the notice.  
Such annual return to the Department shall include a
statement 
of gross receipts as shown by the taxpayer's last Federal 
income
tax return.  If the total receipts of the business as 
reported in the
Federal income tax return do not agree with the 
gross receipts reported to
the Department of Revenue for the 
same period, the taxpayer shall attach
to his annual return a 
schedule showing a reconciliation of the 2
amounts and the 
reasons for the difference.  The taxpayer's annual
return to the 
Department shall also disclose the cost of goods sold by
the 
taxpayer during the year covered by such return, opening and 
closing
inventories of such goods for such year, cost of goods 
used from stock
or taken from stock and given away by the 
taxpayer during such year, pay
roll information of the 
taxpayer's business during such year and any
additional 
reasonable information which the Department deems would be

helpful in determining the accuracy of the monthly, quarterly 
or annual
returns filed by such taxpayer as hereinbefore 
provided for in this
Section.

    If the annual information return required by this Section 
is not
filed when and as required, the taxpayer shall be liable 
as follows:


        (i) Until January 1, 1994, the taxpayer shall be liable

    for a penalty equal to 1/6 of 1% of the tax due from such 
    taxpayer
under this Act during the period to be covered by 
    the annual return
for each month or fraction of a month 
    until such return is filed as
required, the penalty to be 
    assessed and collected in the same manner
as any other 
    penalty provided for in this Act.


        (ii) On and after January 1, 1994, the taxpayer shall 
    be liable for a
penalty as described in Section 3-4 of the 
    Uniform Penalty and Interest Act.

    The chief executive officer, proprietor, owner or highest 
ranking
manager shall sign the annual return to certify the 
accuracy of the
information contained therein.  Any person who 
willfully signs the
annual return containing false or 
inaccurate information shall be guilty
of perjury and punished 
accordingly.  The annual return form prescribed
by the 
Department shall include a warning that the person signing the

return may be liable for perjury.

    The foregoing portion of this Section concerning the filing 
of an
annual information return shall not apply to a serviceman 
who is not
required to file an income tax return with the 
United States Government.

    As soon as possible after the first day of each month, upon 
certification
of the Department of Revenue, the Comptroller 
shall order transferred and
the Treasurer shall transfer from 
the General Revenue Fund to the Motor
Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized
under this Act 
for the second preceding month.
Beginning April 1, 2000, this 
transfer is no longer required
and shall not be made.

    Net revenue realized for a month shall be the revenue 
collected by the State
pursuant to this Act, less the amount 
paid out during that month as
refunds to taxpayers for 
overpayment of liability.

    For greater simplicity of administration, it shall be 
permissible for
manufacturers, importers and wholesalers whose 
products are sold by numerous
servicemen in Illinois, and who 
wish to do so, to
assume the responsibility for accounting and 
paying to the Department
all tax accruing under this Act with 
respect to such sales, if the
servicemen who are affected do 
not make written objection to the
Department to this 
arrangement.

(Source: P.A. 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, 
eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02; 93-24, 
eff. 6-20-03; 93-840, eff. 7-30-04.)

 
    Section 25. The Retailers' Occupation Tax Act is amended  by 
re-enacting Sections 3 and 11 as follows:
 



    (35 ILCS 120/3)  (from Ch. 120, par. 442)


    Sec. 3. Except as provided in this Section, on or before 
the twentieth
day of each calendar month, every person engaged 
in the business of
selling tangible personal property at retail 
in this State during the
preceding calendar month shall file a 
return with the Department, stating:


        1. The name of the seller;


        2. His residence address and the address of his 
    principal place of
business and the address of the 
    principal place of business (if that is
a different 
    address) from which he engages in the business of selling

    tangible personal property at retail in this State;


        3. Total amount of receipts received by him during the 
    preceding
calendar month or quarter, as the case may be, 
    from sales of tangible
personal property, and from services 
    furnished, by him during such
preceding calendar month or 
    quarter;


        4. Total amount received by him during the preceding 
    calendar month or
quarter on charge and time sales of 
    tangible personal property, and from
services furnished, 
    by him prior to the month or quarter for which the return

    is filed;


        5. Deductions allowed by law;


        6. Gross receipts which were received by him during the 
    preceding
calendar month or quarter and upon the basis of 
    which the tax is imposed;


        7. The amount of credit provided in Section 2d of this 
    Act;


        8. The amount of tax due;


        9. The signature of the taxpayer; and


        10. Such other reasonable information as the 
    Department may require.

    If a taxpayer fails to sign a return within 30 days after 
the proper notice
and demand for signature by the Department, 
the return shall be considered
valid and any amount shown to be 
due on the return shall be deemed assessed.

    Each return shall be accompanied by the statement of 
prepaid tax issued
pursuant to Section 2e for which credit is 
claimed.

    Prior to October 1, 2003, and on and after September 1, 
2004 a retailer may accept a Manufacturer's Purchase
Credit

certification from a purchaser in satisfaction of Use Tax
as 
provided in Section 3-85 of the Use Tax Act if the purchaser 
provides the
appropriate documentation as required by Section 
3-85
of the Use Tax Act.  A Manufacturer's Purchase Credit

certification, accepted by a retailer prior to October 1, 2003 
and on and after September 1, 2004 as provided
in
Section 3-85 
of the Use Tax Act, may be used by that retailer to
satisfy 
Retailers' Occupation Tax liability in the amount claimed in

the certification, not to exceed 6.25% of the receipts
subject 
to tax from a qualifying purchase.  A Manufacturer's Purchase 
Credit
reported on any original or amended return
filed under

this Act after October 20, 2003 for reporting periods prior to 
September 1, 2004 shall be disallowed.  Manufacturer's 
Purchaser Credit reported on annual returns due on or after 
January 1, 2005 will be disallowed for periods prior to 
September 1, 2004. No Manufacturer's
Purchase Credit may be 
used after September 30, 2003 through August 31, 2004 to

satisfy any
tax liability imposed under this Act, including any 
audit liability.

    The Department may require returns to be filed on a 
quarterly basis.
If so required, a return for each calendar 
quarter shall be filed on or
before the twentieth day of the 
calendar month following the end of such
calendar quarter.  The 
taxpayer shall also file a return with the
Department for each 
of the first two months of each calendar quarter, on or
before 
the twentieth day of the following calendar month, stating:


        1. The name of the seller;


        2. The address of the principal place of business from 
    which he engages
in the business of selling tangible 
    personal property at retail in this State;


        3. The total amount of taxable receipts received by him 
    during the
preceding calendar month from sales of tangible 
    personal property by him
during such preceding calendar 
    month, including receipts from charge and
time sales, but 
    less all deductions allowed by law;


        4. The amount of credit provided in Section 2d of this 
    Act;


        5. The amount of tax due; and


        6. Such other reasonable information as the Department 
    may
require.

    Beginning on October 1, 2003, any person who is not a 
licensed
distributor, importing distributor, or manufacturer, 
as defined in the Liquor
Control Act of 1934, but is engaged in 
the business of
selling, at retail, alcoholic liquor
 shall file 
a statement with the Department of Revenue, in a format
and at 
a time prescribed by the Department, showing the total amount 
paid for
alcoholic liquor purchased during the preceding month 
and such other
information as is reasonably required by the 
Department.
The Department may adopt rules to require
that this 
statement be filed in an electronic or telephonic format.  Such 
rules
may provide for exceptions from the filing requirements 
of this paragraph.  For
the
purposes of this
paragraph, the term 
"alcoholic liquor" shall have the meaning prescribed in the

Liquor Control Act of 1934.

    Beginning on October 1, 2003, every distributor, importing 
distributor, and
manufacturer of alcoholic liquor as defined in 
the Liquor Control Act of 1934,
shall file a
statement with the 
Department of Revenue, no later than the 10th day of the
month 
for the
preceding month during which transactions occurred, by 
electronic means,
showing the
total amount of gross receipts 
from the sale of alcoholic liquor sold or
distributed during

the preceding month to purchasers; identifying the purchaser to 
whom it was
sold or
distributed; the purchaser's tax 
registration number; and such other
information
reasonably 
required by the Department. A distributor, importing 
distributor, or manufacturer of alcoholic liquor must 
personally deliver, mail, or provide by electronic means  to 
each retailer listed on the monthly statement a report 
containing a cumulative total of that distributor's, importing 
distributor's, or manufacturer's total sales of alcoholic 
liquor to that retailer no later than the 10th day of the month 
for the preceding month during which the transaction occurred.  
The distributor, importing distributor, or manufacturer shall 
notify the retailer as to the method by which the distributor, 
importing distributor, or manufacturer will provide the sales 
information.  If the retailer is unable to receive the sales 
information by electronic means, the distributor, importing 
distributor, or manufacturer shall furnish the sales 
information by personal delivery or by mail. For purposes of 
this paragraph, the term "electronic means" includes, but is 
not limited to, the use of a secure Internet website, e-mail, 
or facsimile.

    If a total amount of less than $1 is payable, refundable or 
creditable,
such amount shall be disregarded if it is less than 
50 cents and shall be
increased to $1 if it is 50 cents or more.

    Beginning October 1, 1993,
a taxpayer who has an average 
monthly tax liability of $150,000 or more shall
make all 
payments required by rules of the
Department by electronic 
funds transfer.  Beginning October 1, 1994, a taxpayer
who has 
an average monthly tax liability of $100,000 or more shall make 
all
payments required by rules of the Department by electronic 
funds transfer.
Beginning October 1, 1995, a taxpayer who has 
an average monthly tax liability
of $50,000 or more shall make 
all
payments required by rules of the Department by electronic 
funds transfer.
Beginning October 1, 2000, a taxpayer who has 
an annual tax liability of
$200,000 or more shall make all 
payments required by rules of the Department by
electronic 
funds transfer.  The term "annual tax liability" shall be the 
sum of
the taxpayer's liabilities under this Act, and under all 
other State and local
occupation and use tax laws administered 
by the Department, for the immediately
preceding calendar year.

The term "average monthly tax liability" shall be the sum of 
the
taxpayer's liabilities under this
Act, and under all other 
State and local occupation and use tax
laws administered by the 
Department, for the immediately preceding calendar
year 
divided by 12.
Beginning on October 1, 2002, a taxpayer who has 
a tax liability in the
amount set forth in subsection (b) of 
Section 2505-210 of the Department of
Revenue Law shall make 
all payments required by rules of the Department by
electronic 
funds transfer.

    Before August 1 of each year beginning in 1993, the 
Department shall
notify all taxpayers required to make payments 
by electronic funds
transfer.  All taxpayers
required to make 
payments by electronic funds transfer shall make those
payments 
for
a minimum of one year beginning on October 1.

    Any taxpayer not required to make payments by electronic 
funds transfer may
make payments by electronic funds transfer 
with
the permission of the Department.

    All taxpayers required to make payment by electronic funds 
transfer and
any taxpayers authorized to voluntarily make 
payments by electronic funds
transfer shall make those payments 
in the manner authorized by the Department.

    The Department shall adopt such rules as are necessary to 
effectuate a
program of electronic funds transfer and the 
requirements of this Section.

    Any amount which is required to be shown or reported on any 
return or
other document under this Act shall, if such amount 
is not a whole-dollar
amount, be increased to the nearest 
whole-dollar amount in any case where
the fractional part of a 
dollar is 50 cents or more, and decreased to the
nearest 
whole-dollar amount where the fractional part of a dollar is 
less
than 50 cents.

    If the retailer is otherwise required to file a monthly 
return and if the
retailer's average monthly tax liability to 
the Department does not exceed
$200, the Department may 
authorize his returns to be filed on a quarter
annual basis, 
with the return for January, February and March of a given
year 
being due by April 20 of such year; with the return for April, 
May and
June of a given year being due by July 20 of such year; 
with the return for
July, August and September of a given year 
being due by October 20 of such
year, and with the return for 
October, November and December of a given
year being due by 
January 20 of the following year.

    If the retailer is otherwise required to file a monthly or 
quarterly
return and if the retailer's average monthly tax 
liability with the
Department does not exceed $50, the 
Department may authorize his returns to
be filed on an annual 
basis, with the return for a given year being due by
January 20 
of the following year.

    Such quarter annual and annual returns, as to form and 
substance,
shall be subject to the same requirements as monthly 
returns.

    Notwithstanding any other provision in this Act concerning 
the time
within which a retailer may file his return, in the 
case of any retailer
who ceases to engage in a kind of business 
which makes him responsible
for filing returns under this Act, 
such retailer shall file a final
return under this Act with the 
Department not more than one month after
discontinuing such 
business.

    Where the same person has more than one business registered 
with the
Department under separate registrations under this 
Act, such person may
not file each return that is due as a 
single return covering all such
registered businesses, but 
shall file separate returns for each such
registered business.

    In addition, with respect to motor vehicles, watercraft,

aircraft, and trailers that are required to be registered with 
an agency of
this State, every
retailer selling this kind of 
tangible personal property shall file,
with the Department, 
upon a form to be prescribed and supplied by the
Department, a 
separate return for each such item of tangible personal

property which the retailer sells, except that if, in the same

transaction, (i) a retailer of aircraft, watercraft, motor 
vehicles or
trailers transfers more than one aircraft, 
watercraft, motor
vehicle or trailer to another aircraft, 
watercraft, motor vehicle
retailer or trailer retailer for the 
purpose of resale
or (ii) a retailer of aircraft, watercraft, 
motor vehicles, or trailers
transfers more than one aircraft, 
watercraft, motor vehicle, or trailer to a
purchaser for use as 
a qualifying rolling stock as provided in Section 2-5 of
this 
Act, then
that seller may report the transfer of all aircraft,

watercraft, motor vehicles or trailers involved in that 
transaction to the
Department on the same uniform 
invoice-transaction reporting return form.  For
purposes of 
this Section, "watercraft" means a Class 2, Class 3, or Class 4

watercraft as defined in Section 3-2 of the Boat Registration 
and Safety Act, a
personal watercraft, or any boat equipped 
with an inboard motor.

    Any retailer who sells only motor vehicles, watercraft,

aircraft, or trailers that are required to be registered with 
an agency of
this State, so that all
retailers' occupation tax 
liability is required to be reported, and is
reported, on such 
transaction reporting returns and who is not otherwise
required 
to file monthly or quarterly returns, need not file monthly or

quarterly returns.  However, those retailers shall be required 
to
file returns on an annual basis.

    The transaction reporting return, in the case of motor 
vehicles
or trailers that are required to be registered with an 
agency of this
State, shall
be the same document as the Uniform 
Invoice referred to in Section 5-402
of The Illinois Vehicle 
Code and must show the name and address of the
seller; the name 
and address of the purchaser; the amount of the selling
price 
including the amount allowed by the retailer for traded-in

property, if any; the amount allowed by the retailer for the 
traded-in
tangible personal property, if any, to the extent to 
which Section 1 of
this Act allows an exemption for the value 
of traded-in property; the
balance payable after deducting such 
trade-in allowance from the total
selling price; the amount of 
tax due from the retailer with respect to
such transaction; the 
amount of tax collected from the purchaser by the
retailer on 
such transaction (or satisfactory evidence that such tax is
not 
due in that particular instance, if that is claimed to be the 
fact);
the place and date of the sale; a sufficient 
identification of the
property sold; such other information as 
is required in Section 5-402 of
The Illinois Vehicle Code, and 
such other information as the Department
may reasonably 
require.

    The transaction reporting return in the case of watercraft

or aircraft must show
the name and address of the seller; the 
name and address of the
purchaser; the amount of the selling 
price including the amount allowed
by the retailer for 
traded-in property, if any; the amount allowed by
the retailer 
for the traded-in tangible personal property, if any, to
the 
extent to which Section 1 of this Act allows an exemption for 
the
value of traded-in property; the balance payable after 
deducting such
trade-in allowance from the total selling price; 
the amount of tax due
from the retailer with respect to such 
transaction; the amount of tax
collected from the purchaser by 
the retailer on such transaction (or
satisfactory evidence that 
such tax is not due in that particular
instance, if that is 
claimed to be the fact); the place and date of the
sale, a 
sufficient identification of the property sold, and such other

information as the Department may reasonably require.

    Such transaction reporting return shall be filed not later 
than 20
days after the day of delivery of the item that is 
being sold, but may
be filed by the retailer at any time sooner 
than that if he chooses to
do so.  The transaction reporting 
return and tax remittance or proof of
exemption from the 
Illinois use tax may be transmitted to the Department
by way of 
the State agency with which, or State officer with whom the

tangible personal property must be titled or registered (if 
titling or
registration is required) if the Department and such 
agency or State
officer determine that this procedure will 
expedite the processing of
applications for title or 
registration.

    With each such transaction reporting return, the retailer 
shall remit
the proper amount of tax due (or shall submit 
satisfactory evidence that
the sale is not taxable if that is 
the case), to the Department or its
agents, whereupon the 
Department shall issue, in the purchaser's name, a
use tax 
receipt (or a certificate of exemption if the Department is

satisfied that the particular sale is tax exempt) which such 
purchaser
may submit to the agency with which, or State officer 
with whom, he must
title or register the tangible personal 
property that is involved (if
titling or registration is 
required) in support of such purchaser's
application for an 
Illinois certificate or other evidence of title or
registration 
to such tangible personal property.

    No retailer's failure or refusal to remit tax under this 
Act
precludes a user, who has paid the proper tax to the 
retailer, from
obtaining his certificate of title or other 
evidence of title or
registration (if titling or registration 
is required) upon satisfying
the Department that such user has 
paid the proper tax (if tax is due) to
the retailer.  The 
Department shall adopt appropriate rules to carry out
the 
mandate of this paragraph.

    If the user who would otherwise pay tax to the retailer 
wants the
transaction reporting return filed and the payment of 
the tax or proof
of exemption made to the Department before the 
retailer is willing to
take these actions and such user has not 
paid the tax to the retailer,
such user may certify to the fact 
of such delay by the retailer and may
(upon the Department 
being satisfied of the truth of such certification)
transmit 
the information required by the transaction reporting return

and the remittance for tax or proof of exemption directly to 
the
Department and obtain his tax receipt or exemption 
determination, in
which event the transaction reporting return 
and tax remittance (if a
tax payment was required) shall be 
credited by the Department to the
proper retailer's account 
with the Department, but without the 2.1% or 1.75%
discount 
provided for in this Section being allowed.  When the user pays

the tax directly to the Department, he shall pay the tax in the 
same
amount and in the same form in which it would be remitted 
if the tax had
been remitted to the Department by the retailer.

    Refunds made by the seller during the preceding return 
period to
purchasers, on account of tangible personal property 
returned to the
seller, shall be allowed as a deduction under 
subdivision 5 of his monthly
or quarterly return, as the case 
may be, in case the
seller had theretofore included the 
receipts from the sale of such
tangible personal property in a 
return filed by him and had paid the tax
imposed by this Act 
with respect to such receipts.

    Where the seller is a corporation, the return filed on 
behalf of such
corporation shall be signed by the president, 
vice-president, secretary
or treasurer or by the properly 
accredited agent of such corporation.

    Where the seller is a limited liability company, the return 
filed on behalf
of the limited liability company shall be 
signed by a manager, member, or
properly accredited agent of 
the limited liability company.

    Except as provided in this Section, the retailer filing the 
return
under this Section shall, at the time of filing such 
return, pay to the
Department the amount of tax imposed by this 
Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% 
on and after January 1, 1990, or $5 per
calendar year, 
whichever is greater, which is allowed to
reimburse the 
retailer for the expenses incurred in keeping records,

preparing and filing returns, remitting the tax and supplying 
data to
the Department on request.  Any prepayment made pursuant 
to Section 2d
of this Act shall be included in the amount on 
which such
2.1% or 1.75% discount is computed.  In the case of 
retailers who report
and pay the tax on a transaction by 
transaction basis, as provided in this
Section, such discount 
shall be taken with each such tax remittance
instead of when 
such retailer files his periodic return.

    Before October 1, 2000, if the taxpayer's average monthly 
tax liability
to the Department
under this Act, the Use Tax 
Act, the Service Occupation Tax
Act, and the Service Use Tax 
Act, excluding any liability for prepaid sales
tax to be 
remitted in accordance with Section 2d of this Act, was
$10,000

or more during the preceding 4 complete calendar quarters, he 
shall file a
return with the Department each month by the 20th 
day of the month next
following the month during which such tax 
liability is incurred and shall
make payments to the Department 
on or before the 7th, 15th, 22nd and last
day of the month 
during which such liability is incurred.
On and after October 
1, 2000, if the taxpayer's average monthly tax liability
to the 
Department under this Act, the Use Tax Act, the Service 
Occupation Tax
Act, and the Service Use Tax Act, excluding any 
liability for prepaid sales tax
to be remitted in accordance 
with Section 2d of this Act, was $20,000 or more
during the 
preceding 4 complete calendar quarters, he shall file a return 
with
the Department each month by the 20th day of the month 
next following the month
during which such tax liability is 
incurred and shall make payment to the
Department on or before 
the 7th, 15th, 22nd and last day of the month during
which such 
liability is incurred.
 If the month
during which such tax 
liability is incurred began prior to January 1, 1985,
each 
payment shall be in an amount equal to 1/4 of the taxpayer's 
actual
liability for the month or an amount set by the 
Department not to exceed
1/4 of the average monthly liability 
of the taxpayer to the Department for
the preceding 4 complete 
calendar quarters (excluding the month of highest
liability and 
the month of lowest liability in such 4 quarter period).  If
the 
month during which such tax liability is incurred begins on or 
after
January 1, 1985 and prior to January 1, 1987, each 
payment shall be in an
amount equal to 22.5% of the taxpayer's 
actual liability for the month or
27.5% of the taxpayer's 
liability for the same calendar
month of the preceding year.  If 
the month during which such tax
liability is incurred begins on 
or after January 1, 1987 and prior to
January 1, 1988, each 
payment shall be in an amount equal to 22.5% of the
taxpayer's 
actual liability for the month or 26.25% of the taxpayer's

liability for the same calendar month of the preceding year.  If 
the month
during which such tax liability is incurred begins on 
or after January 1,
1988, and prior to January 1, 1989, or 
begins on or after January 1, 1996, each
payment shall be in an 
amount
equal to 22.5% of the taxpayer's actual liability for 
the month or 25% of
the taxpayer's liability for the same 
calendar month of the preceding year. If
the month during which 
such tax liability is incurred begins on or after
January 1, 
1989, and prior to January 1, 1996, each payment shall be in an

amount equal to 22.5% of the
taxpayer's actual liability for 
the month or 25% of the taxpayer's
liability for the same 
calendar month of the preceding year or 100% of the
taxpayer's 
actual liability for the quarter monthly reporting period.  The

amount of such quarter monthly payments shall be credited 
against
the final tax liability of the taxpayer's return for 
that month.  Before
October 1, 2000, once
applicable, the 
requirement of the making of quarter monthly payments to
the 
Department by taxpayers having an average monthly tax liability 
of
$10,000 or more as determined in the manner provided above

shall continue
until such taxpayer's average monthly liability 
to the Department during
the preceding 4 complete calendar 
quarters (excluding the month of highest
liability and the 
month of lowest liability) is less than
$9,000, or until
such 
taxpayer's average monthly liability to the Department as 
computed for
each calendar quarter of the 4 preceding complete 
calendar quarter period
is less than $10,000.  However, if a 
taxpayer can show the
Department that
a substantial change in 
the taxpayer's business has occurred which causes
the taxpayer 
to anticipate that his average monthly tax liability for the

reasonably foreseeable future will fall below the $10,000 
threshold
stated above, then
such taxpayer
may petition the 
Department for a change in such taxpayer's reporting
status.  On 
and after October 1, 2000, once applicable, the requirement of

the making of quarter monthly payments to the Department by 
taxpayers having an
average monthly tax liability of $20,000 or 
more as determined in the manner
provided above shall continue 
until such taxpayer's average monthly liability
to the 
Department during the preceding 4 complete calendar quarters 
(excluding
the month of highest liability and the month of 
lowest liability) is less than
$19,000 or until such taxpayer's 
average monthly liability to the Department as
computed for 
each calendar quarter of the 4 preceding complete calendar 
quarter
period is less than $20,000.  However, if a taxpayer can 
show the Department
that a substantial change in the taxpayer's 
business has occurred which causes
the taxpayer to anticipate 
that his average monthly tax liability for the
reasonably 
foreseeable future will fall below the $20,000 threshold stated

above, then such taxpayer may petition the Department for a 
change in such
taxpayer's reporting status. The Department 
shall change such taxpayer's
reporting status
unless it finds 
that such change is seasonal in nature and not likely to be

long term.  If any such quarter monthly payment is not paid at 
the time or
in the amount required by this Section, then the 
taxpayer shall be liable for
penalties and interest on the 
difference
between the minimum amount due as a payment and the 
amount of such quarter
monthly payment actually and timely 
paid, except insofar as the
taxpayer has previously made 
payments for that month to the Department in
excess of the 
minimum payments previously due as provided in this Section.

The Department shall make reasonable rules and regulations to 
govern the
quarter monthly payment amount and quarter monthly 
payment dates for
taxpayers who file on other than a calendar 
monthly basis.

    The provisions of this paragraph apply before October 1, 
2001.
Without regard to whether a taxpayer is required to make 
quarter monthly
payments as specified above, any taxpayer who 
is required by Section 2d
of this Act to collect and remit 
prepaid taxes and has collected prepaid
taxes which average in 
excess of $25,000 per month during the preceding
2 complete 
calendar quarters, shall file a return with the Department as

required by Section 2f and shall make payments to the 
Department on or before
the 7th, 15th, 22nd and last day of the 
month during which such liability
is incurred.  If the month 
during which such tax liability is incurred
began prior to the 
effective date of this amendatory Act of 1985, each
payment 
shall be in an amount not less than 22.5% of the taxpayer's 
actual
liability under Section 2d.  If the month during which 
such tax liability
is incurred begins on or after January 1, 
1986, each payment shall be in an
amount equal to 22.5% of the 
taxpayer's actual liability for the month or
27.5% of the 
taxpayer's liability for the same calendar month of the

preceding calendar year.  If the month during which such tax 
liability is
incurred begins on or after January 1, 1987, each 
payment shall be in an
amount equal to 22.5% of the taxpayer's 
actual liability for the month or
26.25% of the taxpayer's 
liability for the same calendar month of the
preceding year.  
The amount of such quarter monthly payments shall be
credited 
against the final tax liability of the taxpayer's return for 
that
month filed under this Section or Section 2f, as the case 
may be.  Once
applicable, the requirement of the making of 
quarter monthly payments to
the Department pursuant to this 
paragraph shall continue until such
taxpayer's average monthly 
prepaid tax collections during the preceding 2
complete 
calendar quarters is $25,000 or less.  If any such quarter 
monthly
payment is not paid at the time or in the amount 
required, the taxpayer
shall be liable for penalties and 
interest on such difference, except
insofar as the taxpayer has 
previously made payments for that month in
excess of the 
minimum payments previously due.

    The provisions of this paragraph apply on and after October 
1, 2001.
Without regard to whether a taxpayer is required to 
make quarter monthly
payments as specified above, any taxpayer 
who is required by Section 2d of this
Act to collect and remit 
prepaid taxes and has collected prepaid taxes that
average in 
excess of $20,000 per month during the preceding 4 complete 
calendar
quarters shall file a return with the Department as 
required by Section 2f
and shall make payments to the 
Department on or before the 7th, 15th, 22nd and
last day of the 
month during which the liability is incurred.  Each payment

shall be in an amount equal to 22.5% of the taxpayer's actual 
liability for the
month or 25% of the taxpayer's liability for 
the same calendar month of the
preceding year.  The amount of 
the quarter monthly payments shall be credited
against the 
final tax liability of the taxpayer's return for that month 
filed
under this Section or Section 2f, as the case may be.  
Once applicable, the
requirement of the making of quarter 
monthly payments to the Department
pursuant to this paragraph 
shall continue until the taxpayer's average monthly
prepaid tax 
collections during the preceding 4 complete calendar quarters

(excluding the month of highest liability and the month of 
lowest liability) is
less than $19,000 or until such taxpayer's 
average monthly liability to the
Department as computed for 
each calendar quarter of the 4 preceding complete
calendar 
quarters is less than $20,000.  If any such quarter monthly 
payment is
not paid at the time or in the amount required, the 
taxpayer shall be liable
for penalties and interest on such 
difference, except insofar as the taxpayer
has previously made 
payments for that month in excess of the minimum payments

previously due.

    If any payment provided for in this Section exceeds
the 
taxpayer's liabilities under this Act, the Use Tax Act, the 
Service
Occupation Tax Act and the Service Use Tax Act, as 
shown on an original
monthly return, the Department shall, if 
requested by the taxpayer, issue to
the taxpayer a credit 
memorandum no later than 30 days after the date of
payment.  The 
credit evidenced by such credit memorandum may
be assigned by 
the taxpayer to a similar taxpayer under this Act, the
Use Tax 
Act, the Service Occupation Tax Act or the Service Use Tax Act, 
in
accordance with reasonable rules and regulations to be 
prescribed by the
Department.  If no such request is made, the 
taxpayer may credit such excess
payment against tax liability 
subsequently to be remitted to the Department
under this Act, 
the Use Tax Act, the Service Occupation Tax Act or the
Service 
Use Tax Act, in accordance with reasonable rules and 
regulations
prescribed by the Department.  If the Department 
subsequently determined
that all or any part of the credit 
taken was not actually due to the
taxpayer, the taxpayer's 2.1% 
and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% 
of the difference between the credit taken and that
actually 
due, and that taxpayer shall be liable for penalties and 
interest
on such difference.

    If a retailer of motor fuel is entitled to a credit under 
Section 2d of
this Act which exceeds the taxpayer's liability 
to the Department under
this Act for the month which the 
taxpayer is filing a return, the
Department shall issue the 
taxpayer a credit memorandum for the excess.

    Beginning January 1, 1990, each month the Department shall 
pay into
the Local Government Tax Fund, a special fund in the 
State treasury which
is hereby created, the net revenue 
realized for the preceding month from
the 1% tax on sales of 
food for human consumption which is to be consumed
off the 
premises where it is sold (other than alcoholic beverages, soft

drinks and food which has been prepared for immediate 
consumption) and
prescription and nonprescription medicines, 
drugs, medical appliances and
insulin, urine testing 
materials, syringes and needles used by diabetics.

    Beginning January 1, 1990, each month the Department shall 
pay into
the County and Mass Transit District Fund, a special 
fund in the State
treasury which is hereby created, 4% of the 
net revenue realized
for the preceding month from the 6.25% 
general rate.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
County and Mass Transit District Fund 20% of the 
net revenue realized for the
preceding month from the 1.25% 
rate on the selling price of motor fuel and
gasohol.

    Beginning January 1, 1990, each month the Department shall 
pay into
the Local Government Tax Fund 16% of the net revenue 
realized for the
preceding month from the 6.25% general rate on 
the selling price of
tangible personal property.

    Beginning August 1, 2000, each
month the Department shall 
pay into the
Local Government Tax Fund 80% of the net revenue 
realized for the preceding
month from the 1.25% rate on the 
selling price of motor fuel and gasohol.

    Of the remainder of the moneys received by the Department 
pursuant
to this Act, (a) 1.75% thereof shall be paid into the 
Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on 
and after July 1, 1989,
3.8% thereof shall be paid into the 
Build Illinois Fund; provided, however,
that if in any fiscal 
year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case 
may be, of the moneys received by the Department and required 
to
be paid into the Build Illinois Fund pursuant to this Act, 
Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax 
Act, and Section 9 of the
Service Occupation Tax Act, such Acts 
being hereinafter called the "Tax
Acts" and such aggregate of 
2.2% or 3.8%, as the case may be, of moneys
being hereinafter 
called the "Tax Act Amount", and (2) the amount
transferred to 
the Build Illinois Fund from the State and Local Sales Tax

Reform Fund shall be less than the Annual Specified Amount (as 
hereinafter
defined), an amount equal to the difference shall 
be immediately paid into
the Build Illinois Fund from other 
moneys received by the Department
pursuant to the Tax Acts; the 
"Annual Specified Amount" means the amounts
specified below for 
fiscal years 1986 through 1993:












Fiscal YearAnnual Specified Amount




































1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as 
defined in
Section 13 of the Build Illinois Bond Act) or the 
Tax Act Amount, whichever
is greater, for fiscal year 1994 and 
each fiscal year thereafter; and
further provided, that if on 
the last business day of any month the sum of
(1) the Tax Act 
Amount required to be deposited into the Build Illinois
Bond 
Account in the Build Illinois Fund during such month and (2) 
the
amount transferred to the Build Illinois Fund from the 
State and Local
Sales Tax Reform Fund shall have been less than 
1/12 of the Annual
Specified Amount, an amount equal to the 
difference shall be immediately
paid into the Build Illinois 
Fund from other moneys received by the
Department pursuant to 
the Tax Acts; and, further provided, that in no
event shall the 
payments required under the preceding proviso result in

aggregate payments into the Build Illinois Fund pursuant to 
this clause (b)
for any fiscal year in excess of the greater of 
(i) the Tax Act Amount or
(ii) the Annual Specified Amount for 
such fiscal year.  The amounts payable
into the Build Illinois 
Fund under clause (b) of the first sentence in this
paragraph 
shall be payable only until such time as the aggregate amount 
on
deposit under each trust indenture securing Bonds issued and 
outstanding
pursuant to the Build Illinois Bond Act is 
sufficient, taking into account
any future investment income, 
to fully provide, in accordance with such
indenture, for the 
defeasance of or the payment of the principal of,
premium, if 
any, and interest on the Bonds secured by such indenture and on

any Bonds expected to be issued thereafter and all fees and 
costs payable
with respect thereto, all as certified by the 
Director of the Bureau of the
Budget (now Governor's Office of 
Management and Budget).  If on the last
business day of any 
month in which Bonds are
outstanding pursuant to the Build 
Illinois Bond Act, the aggregate of
moneys deposited in the 
Build Illinois Bond Account in the Build Illinois
Fund in such 
month shall be less than the amount required to be transferred

in such month from the Build Illinois Bond Account to the Build 
Illinois
Bond Retirement and Interest Fund pursuant to Section 
13 of the Build
Illinois Bond Act, an amount equal to such 
deficiency shall be immediately
paid from other moneys received 
by the Department pursuant to the Tax Acts
to the Build 
Illinois Fund; provided, however, that any amounts paid to the

Build Illinois Fund in any fiscal year pursuant to this 
sentence shall be
deemed to constitute payments pursuant to 
clause (b) of the first sentence
of this paragraph and shall 
reduce the amount otherwise payable for such
fiscal year 
pursuant to that clause (b).  The moneys received by the

Department pursuant to this Act and required to be deposited 
into the Build
Illinois Fund are subject to the pledge, claim 
and charge set forth in
Section 12 of the Build Illinois Bond 
Act.

    Subject to payment of amounts into the Build Illinois Fund 
as provided in
the preceding paragraph or in any amendment 
thereto hereafter enacted, the
following specified monthly 
installment of the amount requested in the
certificate of the 
Chairman of the Metropolitan Pier and Exposition
Authority 
provided under Section 8.25f of the State Finance Act, but not 
in
excess of sums designated as "Total Deposit", shall be 
deposited in the
aggregate from collections under Section 9 of 
the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 
9 of the Service Occupation Tax Act, and
Section 3 of the 
Retailers' Occupation Tax Act into the McCormick Place

Expansion Project Fund in the specified fiscal years.



















Fiscal YearTotal Deposit
1993         $0
















































































































































































1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023 and275,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,







but not after fiscal year 2042.
    Beginning July 20, 1993 and in each month of each fiscal 
year thereafter,
one-eighth of the amount requested in the 
certificate of the Chairman of
the Metropolitan Pier and 
Exposition Authority for that fiscal year, less
the amount 
deposited into the McCormick Place Expansion Project Fund by 
the
State Treasurer in the respective month under subsection 
(g) of Section 13
of the Metropolitan Pier and Exposition 
Authority Act, plus cumulative
deficiencies in the deposits 
required under this Section for previous
months and years, 
shall be deposited into the McCormick Place Expansion
Project 
Fund, until the full amount requested for the fiscal year, but 
not
in excess of the amount specified above as "Total Deposit", 
has been deposited.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs
or in any amendments
thereto hereafter 
enacted, beginning July 1, 1993, the Department shall each

month pay into the Illinois Tax Increment Fund 0.27% of 80% of 
the net revenue
realized for the preceding month from the 6.25% 
general rate on the selling
price of tangible personal 
property.

    Subject to payment of amounts into the Build Illinois Fund 
and the
McCormick Place Expansion Project Fund pursuant to the 
preceding paragraphs or in any
amendments thereto hereafter 
enacted, beginning with the receipt of the first
report of 
taxes paid by an eligible business and continuing for a 25-year

period, the Department shall each month pay into the Energy 
Infrastructure
Fund 80% of the net revenue realized from the 
6.25% general rate on the
selling price of Illinois-mined coal 
that was sold to an eligible business.
For purposes of this 
paragraph, the term "eligible business" means a new
electric 
generating facility certified pursuant to Section 605-332 of 
the
Department of Commerce and Economic Opportunity

Law of the 
Civil Administrative Code of Illinois.

    Of the remainder of the moneys received by the Department 
pursuant to
this Act, 75% thereof shall be paid into the State 
Treasury and 25% shall
be reserved in a special account and 
used only for the transfer to the
Common School Fund as part of 
the monthly transfer from the General Revenue
Fund in 
accordance with Section 8a of the State Finance Act.

    The Department may, upon separate written notice to a 
taxpayer,
require the taxpayer to prepare and file with the 
Department on a form
prescribed by the Department within not 
less than 60 days after receipt
of the notice an annual 
information return for the tax year specified in
the notice.  
Such annual return to the Department shall include a
statement 
of gross receipts as shown by the retailer's last Federal 
income
tax return.  If the total receipts of the business as 
reported in the
Federal income tax return do not agree with the 
gross receipts reported to
the Department of Revenue for the 
same period, the retailer shall attach
to his annual return a 
schedule showing a reconciliation of the 2
amounts and the 
reasons for the difference.  The retailer's annual
return to the 
Department shall also disclose the cost of goods sold by
the 
retailer during the year covered by such return, opening and 
closing
inventories of such goods for such year, costs of goods 
used from stock
or taken from stock and given away by the 
retailer during such year,
payroll information of the 
retailer's business during such year and any
additional 
reasonable information which the Department deems would be

helpful in determining the accuracy of the monthly, quarterly 
or annual
returns filed by such retailer as provided for in 
this Section.

    If the annual information return required by this Section 
is not
filed when and as required, the taxpayer shall be liable 
as follows:


        (i) Until January 1, 1994, the taxpayer shall be liable

    for a penalty equal to 1/6 of 1% of the tax due from such 
    taxpayer under
this Act during the period to be covered by 
    the annual return for each
month or fraction of a month 
    until such return is filed as required, the
penalty to be 
    assessed and collected in the same manner as any other

    penalty provided for in this Act.


        (ii) On and after January 1, 1994, the taxpayer shall 
    be
liable for a penalty as described in Section 3-4 of the 
    Uniform Penalty and
Interest Act.

    The chief executive officer, proprietor, owner or highest 
ranking
manager shall sign the annual return to certify the 
accuracy of the
information contained therein.   Any person who 
willfully signs the
annual return containing false or 
inaccurate information shall be guilty
of perjury and punished 
accordingly.  The annual return form prescribed
by the 
Department shall include a warning that the person signing the

return may be liable for perjury.

    The provisions of this Section concerning the filing of an 
annual
information return do not apply to a retailer who is not 
required to
file an income tax return with the United States 
Government.

    As soon as possible after the first day of each month, upon 
certification
of the Department of Revenue, the Comptroller 
shall order transferred and
the Treasurer shall transfer from 
the General Revenue Fund to the Motor
Fuel Tax Fund an amount 
equal to 1.7% of 80% of the net revenue realized
under this Act 
for the second preceding
month.
Beginning April 1, 2000, this 
transfer is no longer required
and shall not be made.

    Net revenue realized for a month shall be the revenue 
collected by the
State pursuant to this Act, less the amount 
paid out during that month as
refunds to taxpayers for 
overpayment of liability.

    For greater simplicity of administration, manufacturers, 
importers
and wholesalers whose products are sold at retail in 
Illinois by
numerous retailers, and who wish to do so, may 
assume the responsibility
for accounting and paying to the 
Department all tax accruing under this
Act with respect to such 
sales, if the retailers who are affected do not
make written 
objection to the Department to this arrangement.

    Any person who promotes, organizes, provides retail 
selling space for
concessionaires or other types of sellers at 
the Illinois State Fair, DuQuoin
State Fair, county fairs, 
local fairs, art shows, flea markets and similar
exhibitions or 
events, including any transient merchant as defined by Section 
2
of the Transient Merchant Act of 1987, is required to file a 
report with the
Department providing the name of the merchant's 
business, the name of the
person or persons engaged in 
merchant's business, the permanent address and
Illinois 
Retailers Occupation Tax Registration Number of the merchant, 
the
dates and location of the event and other reasonable 
information that the
Department may require.  The report must be 
filed not later than the 20th day
of the month next following 
the month during which the event with retail sales
was held.  
Any person who fails to file a report required by this Section

commits a business offense and is subject to a fine not to 
exceed $250.

    Any person engaged in the business of selling tangible 
personal
property at retail as a concessionaire or other type 
of seller at the
Illinois State Fair, county fairs, art shows, 
flea markets and similar
exhibitions or events, or any 
transient merchants, as defined by Section 2
of the Transient 
Merchant Act of 1987, may be required to make a daily report
of 
the amount of such sales to the Department and to make a daily 
payment of
the full amount of tax due.  The Department shall 
impose this
requirement when it finds that there is a 
significant risk of loss of
revenue to the State at such an 
exhibition or event.  Such a finding
shall be based on evidence 
that a substantial number of concessionaires
or other sellers 
who are not residents of Illinois will be engaging in
the 
business of selling tangible personal property at retail at the

exhibition or event, or other evidence of a significant risk of 
loss of revenue
to the State.  The Department shall notify 
concessionaires and other sellers
affected by the imposition of 
this requirement.  In the absence of
notification by the 
Department, the concessionaires and other sellers
shall file 
their returns as otherwise required in this Section.

(Source: P.A. 92-12, eff. 7-1-01; 92-16, eff. 6-28-01; 92-208, 
eff. 8-2-01; 92-484, eff. 8-23-01; 92-492, eff. 1-1-02; 92-600, 
eff. 6-28-02; 92-651, eff. 7-11-02; 93-22, eff. 6-20-03; 93-24, 
eff. 6-20-03; 93-840, eff. 7-30-04; 93-926, eff. 8-12-04; 
93-1057, eff. 12-2-04; revised 12-6-04.)

 



    (35 ILCS 120/11)  (from Ch. 120, par. 450)



    Sec. 11. All information received by the Department from 
returns filed
under this Act, or from any investigation 
conducted under this Act, shall
be confidential, except for 
official purposes, and any person who divulges
any such 
information in any manner, except in accordance with a proper

judicial order or as otherwise provided by law, shall be guilty 
of a Class
B misdemeanor.

    Nothing in this Act prevents the Director of Revenue from 
publishing or
making available to the public the names and 
addresses of persons filing
returns under this Act, or 
reasonable statistics concerning the operation
of the tax by 
grouping the contents of returns so the information in any

individual return is not disclosed.

    Nothing in this Act prevents the Director of Revenue from 
divulging to
the United States Government or the government of 
any other state, or any
village that does not levy any real 
property taxes for village operations
and that receives more 
than 60% of its general corporate revenue from
taxes under the 
Use Tax Act, the Service Use Tax Act, the Service
Occupation 
Tax Act, and the Retailers' Occupation Tax Act, or any
officer 
or agency thereof, for exclusively official purposes, 
information
received by the Department in administering this 
Act, provided that such
other governmental agency agrees to 
divulge requested tax information to
the Department.

    The Department's furnishing of information derived from a 
taxpayer's
return or from an investigation conducted under this 
Act to the surety on a
taxpayer's bond that has been furnished 
to the Department under this Act,
either to provide notice to 
such surety of its potential liability under
the bond or, in 
order to support the Department's demand for payment from
such 
surety under the bond, is an official purpose within the 
meaning of
this Section.

    The furnishing upon request of information obtained by the 
Department
from returns filed under this Act or investigations 
conducted under this
Act to the Illinois Liquor Control 
Commission for official use is deemed to
be an official purpose 
within the meaning of this Section.

    Notice to a surety of potential liability shall not be 
given unless the
taxpayer has first been notified, not less 
than 10 days prior thereto, of
the Department's intent to so 
notify the surety.

    The furnishing upon request of the Auditor General, or his 
authorized agents,
for official use, of returns filed and 
information related thereto under
this Act is deemed to be an 
official purpose within the meaning of this
Section.

    Where an appeal or a protest has been filed on behalf of a 
taxpayer, the
furnishing upon request of the attorney for the 
taxpayer of returns filed
by the taxpayer and information 
related thereto under this Act is deemed
to be an official 
purpose within the meaning of this Section.

    The furnishing of financial information to a home rule unit 
or non-home rule unit that has
imposed a tax similar to that 
imposed by this Act pursuant to
its home rule powers or the 
successful passage of a public referendum by a majority of the 
registered voters of the community, or to any
village that does 
not levy any real property taxes for village operations
and 
that receives more than 60% of its general corporate revenue 
from
taxes under the Use Tax Act, the Service Use Tax Act, the 
Service Occupation
Tax Act, and the Retailers' Occupation Tax 
Act, upon request of the Chief
Executive thereof, is an 
official purpose within the meaning of this Section,
provided 
the home rule unit, non-home rule unit with referendum 
approval, or village that does not levy any real property
taxes 
for village operations and that receives more than 60% of its 
general
corporate revenue from taxes under the Use Tax Act, the 
Service Use Tax Act,
the Service Occupation Tax Act, and the 
Retailers' Occupation Tax Act agrees in
writing to the 
requirements of this Section.

    For a village that does not levy any real property taxes 
for village
operations and that receives more than 60% of its 
general corporate revenue
from taxes under the Use Tax Act, 
Service Use Tax Act, Service Occupation Tax
Act, and Retailers' 
Occupation Tax Act, the officers eligible to receive

information from the Department of Revenue under this Section 
are the village
manager and the chief financial officer of the 
village.

    Information so provided shall be subject to all 
confidentiality provisions
of this Section.  The written 
agreement shall provide for reciprocity,
limitations on 
access, disclosure, and procedures for requesting information.

    The Department may make available to the Board of Trustees 
of any Metro
East Mass Transit District information contained 
on transaction reporting
returns required to be filed under 
Section 3 of this Act that report sales made
within the 
boundary of the taxing authority of that Metro East Mass 
Transit
District, as provided in Section 5.01 of the Local Mass 
Transit District Act.
The disclosure shall be made pursuant to 
a written agreement between the
Department and the Board of 
Trustees of a Metro East Mass Transit District,
which is an 
official purpose within the meaning of this Section.  The 
written
agreement between the Department and the Board of 
Trustees of a Metro East
Mass Transit District shall provide 
for reciprocity, limitations on access,
disclosure, and 
procedures for requesting information.  Information so provided

shall be subject to all confidentiality provisions of this 
Section.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.
The Director may make available to any State agency, 
including the Illinois
Supreme
Court, information regarding 
whether a bidder, contractor, or an affiliate of a
bidder or

contractor has failed to collect and remit Illinois Use tax on 
sales into
Illinois, or any tax
under this Act or pay the tax, 
penalty, and interest shown therein, or has
failed to pay any

final assessment of tax, penalty, or interest due under this 
Act, for the
limited purpose of
enforcing bidder and contractor 
certifications. The Director may make available
to units
of 
local government and school districts that require bidder and 
contractor
certifications,
as set forth in Sections 50-11 and 
50-12 of the Illinois Procurement Code,
information
regarding 
whether a bidder, contractor, or an affiliate of a bidder or

contractor has failed
to collect and remit Illinois Use tax on 
sales into Illinois, file returns under
this Act, or
pay the 
tax, penalty, and interest shown therein, or has failed to pay 
any final
assessment
of tax, penalty, or interest due under 
this Act, for the limited purpose of
enforcing bidder
and 
contractor certifications. For purposes of this Section, the 
term
"affiliate" means any
entity that (1) directly, 
indirectly, or constructively controls another
entity,
(2) is 
directly,
indirectly, or constructively controlled by another 
entity, or (3) is subject
to
the control of
a common entity. 
For purposes of this Section, an entity controls another
entity

if it owns,
directly or individually, more than 10% of the 
voting securities of that
entity.
As used in
this Section, the 
term "voting security" means a security that (1) confers upon

the holder
the right to vote for the election of members of the 
board of directors or
similar governing
body of the business or 
(2) is convertible into, or entitles the holder to
receive upon 
its
exercise, a security that confers such a right to vote. A 
general partnership
interest is a
voting security.

    The Director may make available to any State agency, 
including the
Illinois
Supreme Court, units of local 
government, and school districts, information
regarding

whether a bidder or contractor is an affiliate of a person who 
is not
collecting
and
remitting Illinois Use taxes for the 
limited purpose of enforcing bidder and
contractor

certifications.

    The Director may also make available to the Secretary of 
State
information that a limited liability company, which has 
filed articles of
organization with the Secretary of State, or 
corporation which has been
issued a certificate of 
incorporation by the Secretary of State has failed to
file 
returns under this Act or pay the tax, penalty and interest 
shown therein,
or has failed to pay any final assessment of 
tax, penalty or interest due under
this Act.  An assessment is 
final when all proceedings in court for review of
such 
assessment have terminated or the time for the taking thereof 
has expired
without such proceedings being instituted.

    The Director shall make available for public inspection in 
the Department's
principal office and for publication, at cost, 
administrative decisions issued
on or after January 1, 1995.  
These decisions are to be made available in a
manner so that 
the following taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the appropriate extent of the 
deletions allowed
in paragraph (2). In the event the taxpayer 
does not submit deletions, the
Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative decision. The term 
"administrative decision" has the same
meaning as defined in 
Section 3-101 of Article III of the Code of Civil
Procedure. 
Costs collected under this Section shall be paid into the Tax

Compliance and Administration Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 93-25, eff. 6-20-03; 93-939, eff. 8-13-04.)

 
    Section 30. The Cigarette Tax Act is amended  by re-enacting 
Section 10b as follows:
 



    (35 ILCS 130/10b)  (from Ch. 120, par. 453.10b)



    Sec. 10b. All information received by the Department from 
returns
filed under this Act, or from any investigation 
conducted under this
Act, shall be confidential, except for 
official purposes, and any person
who divulges any such 
information in any manner, except in accordance
with a proper 
judicial order or as otherwise provided by law, shall be
guilty 
of a Class A misdemeanor.

    Nothing in this Act prevents the Director of Revenue from 
publishing
or making available to the public the names and 
addresses of persons
filing returns under this Act, or 
reasonable statistics concerning the
operation of the tax by 
grouping the contents of returns so that the
information in any 
individual return is not disclosed.

    Nothing in this Act prevents the Director of Revenue from 
divulging
to the United States Government or the government of 
any other state, or
any officer or agency thereof, for 
exclusively official purposes,
information received by the 
Department in administering this Act,
provided that such other 
governmental agency agrees to divulge requested
tax 
information to the Department.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related
thereto under this Act is deemed to be an 
official purpose within the
meaning of this Section.

    The furnishing of financial information to a home rule unit 
with a
population in excess of 2,000,000 that has
imposed a tax 
similar to that imposed by this Act under its home rule powers,

upon request of the Chief Executive of the home rule unit, is 
an official
purpose within the meaning of this Section, 
provided the home rule unit agrees
in writing to the 
requirements of this Section. Information so provided is

subject to all confidentiality provisions of this Section. The 
written
agreement shall provide for reciprocity, limitations 
on access, disclosure,
and procedures for requesting 
information.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.  An assessment is final when all proceedings in court 
for
review of such assessment have terminated or the time for 
the taking
thereof has expired without such proceedings being 
instituted.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 35. The Cigarette Use Tax Act is amended  by 
re-enacting Section 20 as follows:
 



    (35 ILCS 135/20)  (from Ch. 120, par. 453.50)



    Sec. 20. All information received by the Department from 
returns
filed under this Act, or from any investigation 
conducted under this
Act, shall be confidential, except for 
official purposes, and any person
who divulges any such 
information in any manner, except in accordance
with a proper 
judicial order or as otherwise provided by law, shall be
guilty 
of a Class A misdemeanor.

    Nothing in this Act prevents the Director of Revenue from 
publishing
or making available to the public the names and 
addresses of persons
filing returns under this Act, or 
reasonable statistics concerning the
operation of the tax by 
grouping the contents of returns so that the
information in any 
individual return is not disclosed.

    Nothing in this Act prevents the Director of Revenue from 
divulging
to the United States Government or the government of 
any other state, or
any officer or agency thereof, for 
exclusively official purposes,
information received by the 
Department in administering this Act,
provided that such other 
governmental agency agrees to divulge requested
tax 
information to the Department.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related
thereto under this Act is deemed to be an 
official purpose within the meaning
of this Section.

    The furnishing of financial information to a home rule unit 
with a
population in excess of 2,000,000 that has
imposed a tax 
similar to that imposed by this Act under its home rule powers,

upon request of the Chief Executive of the home rule unit, is 
an official
purpose within the meaning of this Section, 
provided the home rule unit agrees
in writing to the 
requirements of this Section. Information so provided is

subject to all confidentiality provisions of this Section. The 
written
agreement shall provide for reciprocity, limitations 
on access, disclosure,
and procedures for requesting 
information.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.  An assessment is final when all proceedings in court 
for
review of such assessment have terminated or the time for 
the taking
thereof has expired without such proceedings being 
instituted.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 45. The Longtime Owner-Occupant Property Tax 
Relief Act is amended  by re-enacting Section 20 as follows:
 



    (35 ILCS 250/20)



    Sec. 20. Conditions of deferral or exemption. 

    (a) Any deferral or exemption of payment of an increase in 
real property
taxes granted under this Act shall be limited to 
real property that meets both
of the following conditions:


        (1) The property is owned and occupied by a longtime 
    owner-occupant.


        (2) The property is the principal residence and 
    domicile of the
longtime owner-occupant.

    The corporate authorities of a county, by ordinance or 
resolution, may
impose additional criteria for qualifying for a 
deferral or exemption under
this
Act including, but not limited 
to, (i) requiring the owner-occupant to have
owned and occupied 
the same dwelling place as principal residence and domicile
for 
a period of more than 10 years, (ii) establishing age criteria 
for
eligibility of an owner-occupant, and (iii) establishing 
income criteria for
eligibility of an owner-occupant. A 
deferral or exemption, or combination thereof, under an 
ordinance or resolution adopted pursuant to this Act, may not 
exceed $20,000 in equalized assessed value per tax year.


    (b) No penalties or interest shall accrue on the portion of 
any deferral
granted under this Act.

    (c) Except as provided in subsection (d) of Section 15, 
school districts
and municipalities within a county to which 
this
Act applies may determine whether financial need, age, or 
both, of the
longtime owner-occupant shall be used to determine 
eligibility.

(Source: P.A. 93-715, eff. 7-12-04.)

 
    Section 50. The Motor Fuel Tax Law is amended  by 
re-enacting Sections 1.16, 13a.3, 13a.4, 13a.5, 13a.6, 15, and 
16 as follows:
 



    (35 ILCS 505/1.16)  (from Ch. 120, par. 417.16)



    Sec. 1.16. "Commercial motor vehicle" means a motor vehicle 
used, designed,
or maintained for the transportation of persons 
or property and either having 2
axles and a gross vehicle 
weight or registered gross vehicle weight
exceeding 26,000

pounds or 11,793 kilograms, or having 3 or more axles 
regardless
of weight, or
that is used in combination, when the 
weight of the combination exceeds 26,000
pounds or 11,793 
kilograms gross vehicle weight or registered
gross vehicle 
weight, except for motor vehicles
operated by this State or the 
United States, recreational vehicles, school
buses, and 
commercial motor vehicles operated solely within this State for

which all motor fuel is purchased within this State.  Vehicles 
that are
exempted from registration, but are required to be 
registered for operations in
other jurisdictions may apply for 
a motor fuel use tax license
and decal under the provisions of

the International Fuel Tax Agreement referenced in Section 14a 
of this Act.

(Source: P.A. 88-480; 88-669, eff. 11-29-94.)

 



    (35 ILCS 505/13a.3)  (from Ch. 120, par. 429a3)



    Sec. 13a.3. Every person holding a valid unrevoked motor 
fuel use tax
license issued under
Section 13a.4 of this Act 
shall, on or before the last day of the month next
succeeding 
any calendar quarter, file with the Department a report, in 
such
form as the Department may by rule or regulation 
prescribe, setting forth a
statement of the number of miles 
traveled in every jurisdiction and in this
State during the 
previous calendar quarter, the number of gallons and type of

reportable motor fuel consumed on the highways of every 
jurisdiction and of
this State, and the total number of gallons 
and types of tax paid fuel
purchased within every jurisdiction 
during said previous calendar quarter. A
motor carrier who 
purchases motor fuel in this State who pays a tax thereon
under 
any section of the Motor Fuel Tax Law other than Sections 13a, 
13a.1,
13a.2 and 13a.3, and who does not apply for a refund 
under
Section 13 of the Motor Fuel Tax Law, shall receive a 
gallon for gallon
credit against his liability under Sections 
13a, 13a.1, 13a.2 and 13a.3
hereof.  The rate under Section 2 of 
this Act shall apply to each gallon of
motor fuel used by such 
motor carrier on the highways of Illinois during
the previous 
calendar quarter in excess of the motor fuel
purchased in 
Illinois during such previous calendar quarter.

    The rate under subsection (2) of Section 13a of this Act 
shall apply to
each gallon of motor fuel used by such motor 
carrier on the highways of
Illinois during the previous 
calendar quarter. For purposes of the preceding
paragraphs 
"used" shall be determined as provided in Section 13a.2 of this 
Act.

    For such motor fuel consumed during the previous calendar 
quarter, said tax
shall be payable on the last day of the month 
next succeeding such previous
calendar quarter and shall bear 
interest at the rate of 1% per month or
fraction of month until 
paid. Motor carriers required to file bonds under
Section 13a.4 
of this Act shall make tax payments to the Department by

certified check.

    Reports not filed by the due date shall be considered late 
and any taxes due
considered delinquent.  The licensee may be 
assessed a penalty of $50 or 10% of
the delinquent taxes, 
whichever is greater, for failure to file a report, or
for 
filing a late report, or for underpayment of taxes due.

    As to each gallon of motor fuel purchased in Illinois by 
such motor
carrier during the previous calendar quarter in 
excess of the number of
gallons of motor fuel used by such 
motor carrier on the
highways of
Illinois during such previous 
calendar quarter, the taxpayer may take a
credit for the 
current calendar quarter or the Department may issue a
credit 
memorandum or refund to such motor carrier for any tax imposed 
by
Part (a) of Section 13a of this Act paid on each such 
gallon.
If a credit is given, the credit memorandum shall be 
carried over to offset
liabilities of the licensee until the 
credit is fully offset or until 8
calendar quarters pass after 
the end of the calendar quarter in which the
credit accrued, 
whichever occurs sooner.

    A motor carrier who purchases motor fuel in this State 
shall be entitled
to a refund under this Section or a credit 
against all his liabilities under
Sections 13a, 13a.1, 13a.2 
and 13a.3 hereof for taxes imposed by the Use
Tax Act, the 
Retailers' Occupation Tax Act, the Municipal Retailers' 
Occupation
Tax Act and the County Retailers' Occupation Tax Act 
on such motor fuel
at a rate equal to that established by 
subsection (2) of Section 13a of
this Act, provided that such 
taxes have been paid by the taxpayer and such
taxes have been  
charged  to  the  motor  carrier claiming the
credit or refund.

(Source: P.A. 87-205; 88-480; 88-669, eff. 11-29-94.)

 



    (35 ILCS 505/13a.4)  (from Ch. 120, par. 429a4)



    Sec. 13a.4. Except as provided in Section 13a.5 of this 
Act, no motor
carrier shall operate in Illinois without first 
securing a motor fuel use tax
license and decals
from the 
Department or a motor fuel use tax license and decals issued 
under
the
International Fuel Tax Agreement by any member 
jurisdiction.  Application for
such license and decals
shall be 
made
annually to the Department on forms prescribed by the 
Department.  The
application shall be under oath, and shall 
contain such information as the
Department deems necessary. The 
Department, for cause, may require an applicant
to post a bond 
on a form to be approved by and with a surety or sureties

satisfactory to the Department conditioned upon such applicant 
paying to the
State of Illinois all monies becoming due by 
reason of the sale or use of motor
fuel by the applicant, 
together with all penalties and interest thereon. If a
bond is 
required, it shall be equal to at least twice the estimated 
average tax
liability of a quarterly return. The Department 
shall fix
the penalty of such bond in each case taking into 
consideration
the amount of motor fuel expected to be used by 
such applicant
and the penalty fixed by the Department shall be 
such as, in
its opinion, will protect the State of Illinois 
against failure
to pay the amount hereinafter provided on motor 
fuel used.
No person who is in default to the State for monies 
due under
this Act for the sale, distribution or use of motor 
fuel shall
receive such a license or decal.

    Upon receipt of the application for license in proper form,

and upon payment
of any required $100 reinstatement fee, and 
upon approval by the Department of
the bond furnished by the 
applicant, the Department may issue to such applicant
a license 
which allows the operation of commercial motor
vehicles in 
Illinois,
and decals for each commercial motor vehicle

operating in Illinois.  Prior to January 1, 1985, motor fuel use 
tax
licenses shall be
conspicuously displayed in the cab of 
each commercial motor vehicle operating
in Illinois. After 
January 1, 1986, motor fuel use tax licenses
shall be carried 
in the cab of each
commercial motor vehicle operating in 
Illinois.

    The Department shall, by regulation, provide for the use of 
reproductions of
original motor fuel use tax licenses in lieu 
of issuing
multiple original motor fuel use tax licenses to 
licensees.

    On and after January 1, 1985, external motor fuel tax 
decals shall be
conspicuously displayed on the passenger side 
of each commercial motor vehicle
propelled by motor fuel 
operating in Illinois, except buses, which may display
such 
devices on the driver's side of the vehicle. Beginning with the 
effective
date of this amendatory Act of 1993 or the membership 
of the State of Illinois
in the International Fuel Tax 
Agreement, whichever is later, the decals issued
to the 
licensee shall be placed on both exterior sides of the cab.  In 
the case
of transporters, manufacturers, dealers, or driveway 
operations, the decals
need not be permanently affixed but may 
be temporarily displayed in a visible
manner on the exterior 
sides of the cab.  Failure to display the decals in the
required 
locations may subject the vehicle operator to the purchase of a 
trip
permit and a citation.  Such motor fuel tax decals shall be 
issued by
the Department and remain valid for a period of 2 
calendar years, beginning
January 1, 1985. The decals shall 
expire at the end of the regular 2 year
issuance period, with 
new decals required to be displayed at that time.
Beginning 
January 1, 1993, the motor fuel decals shall be issued by the

Department and remain valid for a period of one calendar year.  
The decals
shall expire at the end of the regular one year 
issuance period, with new
decals required to be displayed at 
that time.  Decals shall be no larger than 3
inches by 3 inches.  
Prior to January 1, 1993, a fee of $7.50 shall be charged
by 
the Department for each decal issued prior to and during the 2 
calendar
years such decal is valid.  Beginning January 1, 1993, 
a fee of $3.75 shall be
charged by the Department for each 
decal issued prior to and during the
calendar year such decal 
is valid.  Beginning January 1, 1994, $3.75 shall be
charged for 
a set of 2 decals. The Department may also prescribe procedures 
for
the issuance of replacement decals, with a maximum fee of 
$2 for each set of
replacement decals issued.  The transfer of 
decals from one vehicle to another
vehicle or from one motor 
carrier to another motor carrier is prohibited. The
fees paid 
for the decals issued under this Section shall be deposited in 
the
Motor Fuel Tax Fund, and may be appropriated to the 
Department for
administration of this Section and enforcement 
of the tax imposed by Section
13a of this Act.

    To avoid duplicate reporting of mileage and payment of any 
tax arising
therefrom under Section 13a.3 of this Act, the 
Department
shall, by regulation, provide for the allocation 
between
lessors and lessees of the same commercial motor 
vehicle or
vehicles of the responsibility as a motor carrier 
for the
reporting of mileage and the liability for tax arising 
under
Section 13a.3 of this Act, and for registration, 
furnishing of
bond, carrying of motor fuel use tax licenses, 
and display of
decals under this Section,
and for all other 
duties imposed upon motor carriers by this Act.

(Source: P.A. 87-879; 88-480; 88-669, eff. 11-29-94.)

 



    (35 ILCS 505/13a.5)  (from Ch. 120, par. 429a5)



    Sec. 13a.5. As to a commercial motor vehicle operated in 
Illinois in
the course of interstate traffic by a motor carrier 
not holding a motor fuel
use tax license issued under this Act, 
a single trip permit
authorizing operation of such commercial 
motor vehicle for a single trip
through the State of Illinois, 
or from a point on the border of this State to a
point within 
and return to the border may be issued by the Department or its

agents after proper application.  The fee for each single trip 
permit shall be
$20 and such single trip permit shall be valid 
for a period of 72 hours.
This fee
shall be in lieu of the tax 
required by
Section 13a of this Act, all reports required by 
Section 13a.3 of this
Act, and the registration, decal display 
and
furnishing of bond required by Section 13a.4 of this Act.  
Rules or regulations
promulgated by the Department under this 
Section shall provide for reasonable
and proper limitations and 
restrictions governing application for and issuance
and use of, 
single trip permits, so as to preclude evasion of the license

requirement in Section 13a.4.

(Source: P.A. 88-194; 88-480; 88-669, eff. 11-29-94; 88-670, 
eff. 12-2-94;
89-399, eff. 8-20-95.)

 



    (35 ILCS 505/13a.6)  (from Ch. 120, par. 429a6)



    Sec. 13a.6. In addition to any other penalties imposed by 
this Act: 

    (a) If a commercial motor vehicle is found operating in 
Illinois (i) without
displaying
decals required by Section

13a.4 of this Act, or in lieu thereof only for the period 
specified on the
temporary permit, a valid 30-day International 
Fuel Tax Agreement temporary
permit, (ii) without carrying a 
motor fuel use tax license as required
by
Section 13a.4 of this 
Act, (iii) without carrying a single
trip permit, when 
applicable, as provided in Section 13a.5 of this Act, or
(iv) 
with a revoked motor fuel use tax license,
the operator is 
guilty of a petty offense and must pay a minimum of $75.
For 
each subsequent occurrence, the operator must pay a minimum of 
$150.

    When a commercial motor vehicle is found operating in 
Illinois with a
revoked motor
fuel use tax license, the vehicle 
shall be placed out of service and not
allowed to
operate in 
Illinois until the motor fuel use tax license is reinstated.

    (b) If a commercial motor vehicle is found to be operating 
in Illinois
without a valid motor fuel use tax license and 
without
properly displaying decals required by
Section 13a.4 or 
without a valid single trip permit when
required by Section 
13a.5 of this Act or a valid 30-day International Fuel
Tax 
Agreement temporary permit, the
person required to obtain a 
license or permit under Section 13a.4 or 13a.5
of this Law must 
pay a minimum of $1,000 as a penalty.  For
each subsequent 
occurrence, the person must pay a minimum of
$2,000 as a 
penalty.

    All penalties received under this Section shall be 
deposited into the Tax
Compliance and Administration Fund.

    Improper use of the motor fuel use tax license, single trip 
permit,
or decals provided for in this Section may be cause for

revocation of the license.

    For purposes of this Section, "motor fuel use tax license" 
means (i) a
motor
fuel use tax license issued by the Department 
or by any member jurisdiction
under the International Fuel Tax 
Agreement, or (ii) a valid 30-day
International
Fuel Tax 
Agreement temporary permit.

(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01.)

 



    (35 ILCS 505/15)  (from Ch. 120, par. 431)



    Sec. 15. 1. Any person who knowingly acts as a distributor 
of motor fuel
or supplier of special fuel, or receiver of fuel 
without having a license so to
do, or who knowingly fails or 
refuses to file a return with the Department as
provided in 
Section 2b, Section 5, or Section 5a of this Act, or who 
knowingly
fails or refuses to make payment to the Department as 
provided either in
Section 2b, Section 6, Section 6a, or 
Section 7 of this Act, shall be guilty of
a Class 3 felony. 
Each day any person knowingly acts as a distributor of motor

fuel, supplier of special fuel, or receiver of fuel without 
having a
license so to do or after such a license has been 
revoked, constitutes a
separate offense.

    2. Any person who acts as a motor carrier without having a 
valid
motor fuel use tax license, issued by the Department or 
by a member
jurisdiction under the provisions of the 
International Fuel Tax Agreement, or a
valid single trip permit 
is guilty of a Class A misdemeanor for a first offense
and is 
guilty of a Class 4 felony for each subsequent offense.  Any 
person (i)
who fails or refuses to make payment to the 
Department as provided in Section
13a.1 of this Act or in the 
International Fuel Tax Agreement referenced in
Section 14a, or 
(ii) who fails or refuses to make the quarterly return as

provided in Section 13a.3 is guilty of a Class 4 felony; and 
for each
subsequent offense, such person is guilty of a Class 3 
felony.

    3. In case such person acting as a distributor, receiver, 
supplier,
or motor carrier is a corporation, then the officer 
or officers, agent
or agents, employee or employees, of such 
corporation responsible for any
act of such corporation, or 
failure of such corporation to act, which acts
or failure to 
act constitutes a violation of any of the provisions of this

Act as enumerated in paragraphs 1 and 2 of this Section, shall 
be punished
by such fine or imprisonment, or by both such fine 
and imprisonment as
provided in those paragraphs.

    3.5. Any person who knowingly enters false information on 
any supporting
documentation required to be kept by Section 6 
or 6a of this Act is guilty of a
Class 3
felony.

    3.7. Any person who knowingly attempts in any manner to 
evade or defeat any
tax imposed by this Act or the payment of 
any tax imposed by this Act is guilty
of a Class 2 felony.

    4. Any person who refuses, upon demand, to submit for 
inspection,
books and records, or who fails or refuses to keep 
books and records in
violation of Section 12 of this Act, or 
any distributor, receiver, or
supplier who violates
any 
reasonable rule or regulation adopted
by the Department for the 
enforcement of this Act is guilty of a Class A
misdemeanor.  Any 
person
who acts
as a blender in violation of Section 3 of this 
Act or who
having transported reportable motor fuel within 
Section 7b
of this Act fails to make the return required by 
that Section,
is guilty of a Class 4 felony.

    5. Any person licensed under Section 13a.4, 13a.5, or the 
International
Fuel Tax Agreement who: (a) fails or refuses to 
keep records
and
books, as provided in Section 13a.2 or as 
required
by the terms of the
International Fuel Tax Agreement, 
(b) refuses upon demand
by the Department to submit for 
inspection and examination the records required
by Section 
13a.2 of this Act or by the terms of the International Fuel
Tax 
Agreement, or (c) violates any reasonable rule or
regulation 
adopted by the Department for the enforcement of this Act, is

guilty of a Class A misdemeanor.

    6. Any person who makes any false return or report to the

Department as to any material fact required by Sections 2b, 5, 
5a, 7, 13, or
13a.3 of this Act or by the International Fuel 
Tax Agreement
is guilty of a Class 2 felony.

    7. A prosecution for any violation of this Section may be

commenced anytime within 5 years of the commission of that 
violation.
A prosecution for tax evasion as set forth in 
paragraph 3.7 of this Section
may be prosecuted any time within 
5 years of the commission of the last act in
furtherance of 
evasion. The running of the period of limitations under this

Section shall be suspended while any proceeding or appeal from

any proceeding relating to the quashing or enforcement of any 
grand jury or
administrative subpoena issued in connection with 
an investigation of the
violation of any provision of this Act 
is pending.

    8. Any person who provides false documentation required by 
any
Section of this Act is guilty of a Class 4 felony.

    9. Any person filing a fraudulent application or order form 
under any
provision of this Act is guilty of a Class A 
misdemeanor.  For each subsequent
offense, the person is guilty 
of a Class 4 felony.

    10. Any person who acts as a motor carrier and who fails to 
carry a
manifest as provided in Section 5.5 is guilty of a 
Class A misdemeanor. For
each subsequent offense, the person is 
guilty of a Class 4 felony.

    11. Any person who knowingly sells or attempts to sell dyed 
diesel fuel
for highway use or for use by recreational-type 
watercraft on the waters of
this State is guilty of a Class 4 
felony.  For each subsequent
offense, the person is guilty of a 
Class 2 felony.

    12. Any person who knowingly possesses dyed diesel fuel for 
highway
use or for use by recreational-type watercraft on the 
waters of this State
is guilty of a Class A misdemeanor.  For 
each subsequent offense,
the person is guilty of a Class 4 
felony.

    13. Any person who sells or transports dyed diesel fuel 
without the
notice required by Section 4e shall pay the 
following penalty:

    First occurrence...................................$ 500

    Second and each occurrence thereafter.............$1,000

    14. Any person who owns, operates, or controls any 
container, storage
tank, or facility used to store or 
distribute dyed diesel fuel without the
notice required by 
Section 4f shall pay the following penalty:

    First occurrence...................................$ 500

    Second and each occurrence thereafter.............$1,000

    15. If a motor vehicle required to be registered for 
highway purposes
is found to have dyed diesel fuel within
the 
ordinary fuel tanks attached to the motor vehicle or if a

recreational-type watercraft on the waters of this State is 
found to have dyed
diesel fuel within the ordinary fuel tanks 
attached to the watercraft, the
operator shall pay the 
following penalty:

    First occurrence..................................$2,500

    Second and each occurrence thereafter.............$5,000

    16. Any licensed motor fuel distributor or licensed 
supplier who sells
or attempts to sell dyed diesel fuel for 
highway use or for use by
recreational-type watercraft on the 
waters of this State shall pay the
following penalty:

    First occurrence.................................$ 5,000

    Second and each occurrence thereafter............$10,000

    17. Any person who knowingly sells or distributes dyed 
diesel fuel
without the notice required by Section 4e is guilty 
of a petty offense.  For
each subsequent offense, the person is 
guilty of a Class A misdemeanor.

    18. Any person who knowingly owns, operates, or controls 
any
container, storage tank, or facility used to store or 
distribute dyed diesel
fuel without the notice required by 
Section 4f is guilty of a petty offense.
For each subsequent 
offense the person is guilty of a Class A
misdemeanor.

    For purposes of this Section, dyed diesel fuel means any 
dyed diesel fuel
whether or not dyed pursuant to Section 4d of 
this Law.

    Any person aggrieved by any action of the Department under 
item 13, 14, 15,
or 16 of this Section may protest the action 
by making a written request for a
hearing within 60 days of the 
original action.  If the hearing is not requested
in writing 
within 60 days, the original action is final.

    All penalties received under items 13, 14, 15, and 16 of 
this Section shall
be deposited into the Tax Compliance and 
Administration Fund.

(Source: P.A. 91-173, eff. 1-1-00; 92-30, eff. 7-1-01; 92-232, 
eff.
8-2-01; 92-651, eff. 7-11-02.)

 



    (35 ILCS 505/16)  (from Ch. 120, par. 432)



    Sec. 16. The Department may, after 5 days' notice, revoke 
the
distributor's, receiver's, or supplier's license or
permit 
of any
person (1) who does
not operate as a distributor, 
receiver, supplier (a) under
Sections 1.2,
1.14, or 1.20, (2) 
who violates
any provision of this Act or any rule or 
regulation promulgated by the
Department under Section 14 of 
this Act, or (3) who refuses to allow any
inspection or test 
authorized by this Law.

    Any person whose returns for 2 or more consecutive months 
do not show
sufficient taxable sales to indicate an active 
business as a distributor,
receiver, or
supplier shall be 
deemed to not be operating as a distributor, receiver, or

supplier
as defined in Sections 1.2, 1.14 or 1.20.

    The Department may, after 5 days notice, revoke any 
distributor's,
receiver's, or
supplier's license of a person 
who is registered as a reseller of motor
fuel pursuant to 
Section 2a or 2c of the Retailers' Occupation Tax Act and
who 
fails to collect such prepaid tax on invoiced gallons of motor 
fuel sold or
who fails to deliver a statement of tax paid to 
the purchaser or to the
Department as required by Sections 2d 
and 2e of the Retailers' Occupation Tax
Act.

    The Department may, on notice given by registered mail, 
cancel a
Blender's Permit for any violation of any provisions 
of this Act or for
noncompliance with any rule or regulation 
made by the Department under
Section 14 of this Act.

    The Department, upon complaint filed in the circuit court, 
may, by
injunction, restrain any person who fails or refuses to 
comply with the
provisions of this Act from acting as a blender 
or distributor of motor
fuel, supplier of special fuel, or

receiver of fuel in this State.

    The Department may revoke the motor fuel use tax license of 
a
motor
carrier registered under
Section 13a.4, or that is 
required to be registered under the terms of the
International 
Fuel Tax Agreement, that violates any provision of this Act or

any
rule promulgated by the Department under Sections 14 or 14a 
of this Act.
Motor fuel use tax licenses that have been revoked 
are subject to a $100
reinstatement fee.

    Licensees registered or required to be registered under 
Section 13a.4,
or persons required to obtain single trip 
permits under Section 13a.5, may
protest any action or audit

finding made by the Department by making a written request for 
a hearing within
30 days after service of the notice of the 
original action or finding.  If the
hearing is not requested 
within 30 days in writing, the original finding or
action is 
final.  Once a hearing has been properly requested, the 
Department
shall give at least 20 days written notice of the 
time and place of the
hearing.

(Source: P.A. 91-173, eff. 1-1-00.)

 
    Section 55. The Messages Tax Act is amended  by re-enacting 
Section 11 as follows:
 



    (35 ILCS 610/11)  (from Ch. 120, par. 467.11)



    Sec. 11. All information received by the Department from 
returns filed under this
Act, or from any investigations 
conducted under this Act, shall be
confidential, except for 
official purposes, and any person who divulges any
such 
information in any manner, except in accordance with a proper 
judicial
order or as otherwise provided by law, shall be guilty 
of a Class B
misdemeanor.

    Provided, that nothing contained in this Act shall prevent 
the Director
from publishing or making available to the public 
the names and addresses
of taxpayers filing returns under this 
Act, or from publishing or making
available reasonable 
statistics concerning the operation of the tax wherein
the 
contents of returns are grouped into aggregates in such a way 
that the
information contained in any individual return shall 
not be disclosed.

    And provided, that nothing contained in this Act shall 
prevent the
Director from making available to the United States 
Government or any
officer or agency thereof, for exclusively 
official purposes, information
received by the Department in 
the administration of this Act.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related thereto
under this Act is deemed to be an 
official purpose within the meaning of
this Section.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.  An assessment is final when all proceedings in court 
for
review of such assessment have terminated or the time for 
the taking
thereof has expired without such proceedings being 
instituted.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 60. The Gas Revenue Tax Act is amended  by 
re-enacting Section 11 as follows:
 



    (35 ILCS 615/11)  (from Ch. 120, par. 467.26)



    Sec. 11. All information received by the Department from 
returns filed under this
Act, or from any investigations 
conducted under this Act, shall be
confidential, except for 
official purposes, and any person who divulges any
such 
information in any manner, except in accordance with a proper 
judicial
order or as otherwise provided by law, shall be guilty 
of a Class B
misdemeanor.

    Provided, that nothing contained in this Act shall prevent 
the Director
from publishing or making available to the public 
the names and addresses
of taxpayers filing returns under this 
Act, or from publishing or making
available reasonable 
statistics concerning the operation of the tax wherein
the 
contents of returns are grouped into aggregates in such a way 
that the
information contained in any individual return shall 
not be disclosed.

    And provided, that nothing contained in this Act shall 
prevent the
Director from making available to the United States 
Government or any
officer or agency thereof, for exclusively 
official purposes, information
received by the Department in 
the administration of this Act.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related thereto
under this Act is deemed to be an 
official purpose within the meaning of
this Section.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.  An assessment is final when all proceedings in court 
for
review of such assessment have terminated or the time for 
the taking
thereof has expired without such proceedings being 
instituted.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 65. The Public Utilities Revenue Act is amended  by 
re-enacting Section 11 as follows:
 



    (35 ILCS 620/11)  (from Ch. 120, par. 478)



    Sec. 11. All information received by the Department from 
returns filed under this
Act, or from any investigations 
conducted under this Act, shall be
confidential, except for 
official purposes, and any person who divulges any
such 
information in any manner, except in accordance with a proper 
judicial
order or as otherwise provided by law, shall be guilty 
of a Class B
misdemeanor.

    Provided, that nothing contained in this Act shall prevent 
the Director
from publishing or making available to the public 
the names and addresses
of taxpayers filing returns under this 
Act, or from publishing or making
available reasonable 
statistics concerning the operation of the tax wherein
the 
contents of returns are grouped into aggregates in such a way 
that the
information contained in any individual return shall 
not be disclosed.

    And provided, that nothing contained in this Act shall 
prevent the
Director from making available to the United States 
Government or any
officer or agency thereof, for exclusively 
official purposes, information
received by the Department in 
the administration of this Act.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related thereto
under this Act is deemed to be an 
official purpose within the meaning of
this Section.

    The Director may make available to any State agency, 
including the
Illinois Supreme Court, which licenses persons to 
engage in any occupation,
information that a person licensed by 
such agency has failed to file
returns under this Act or pay 
the tax, penalty and interest shown therein,
or has failed to 
pay any final assessment of tax, penalty or interest due
under 
this Act.  An assessment is final when all proceedings in court 
for
review of such assessment have terminated or the time for 
the taking
thereof has expired without such proceedings being 
instituted.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 70. The Telecommunications Excise Tax Act is 
amended  by re-enacting Section 15 as follows:
 



    (35 ILCS 630/15)  (from Ch. 120, par. 2015)



    Sec. 15. Confidential information. All information 
received by the
Department from returns
filed under this 
Article, or from any investigations conducted under this

Article, shall be confidential, except for official purposes, 
and any person
who
divulges any such information in any manner, 
except in accordance with a
proper judicial order or as 
otherwise provided by law, shall be guilty of a
Class B 
misdemeanor.

    Provided, that nothing contained in this Article shall 
prevent the Director
from publishing or making available to the 
public the names and addresses
of retailers or taxpayers filing 
returns under this Article, or from publishing
or making 
available reasonable statistics concerning the operation of 
the
tax wherein the contents of returns are grouped into 
aggregates in such a
way that the information contained in any 
individual return shall not be
disclosed.

    And provided, that nothing contained in this Article shall 
prevent the
Director from making available to the United States 
Government or the
government of any other state, or any officer 
or agency thereof, for
exclusively official purposes, 
information received by the Department in
the administration of 
this Article, if such other governmental agency agrees to

divulge requested tax information to the Department.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related thereto
under this Article is deemed to be 
an official purpose within the meaning of
this Section.

    The furnishing of financial information to a municipality 
that has imposed
a tax under the Simplified Municipal 
Telecommunications Tax Act, upon request
of the
chief executive 
thereof, is an official purpose within the meaning of this

Section, provided that the municipality agrees in writing to 
the requirements
of this Section.  Information so provided shall 
be subject to all
confidentiality provisions of this Section.  
The written agreement shall
provide for reciprocity, 
limitations on access, disclosure, and procedures for

requesting information.

    The Director shall make available for public
inspection in 
the Department's principal office and for publication, at cost,

administrative decisions issued on or after January
1, 1995. 
These decisions are to be made available in a manner so that 
the
following
taxpayer information is not disclosed:


        (1) The names, addresses, and identification numbers 
    of the taxpayer,
related entities, and employees.


        (2) At the sole discretion of the Director, trade 
    secrets
or other confidential information identified as 
    such by the taxpayer, no later
than 30 days after receipt 
    of an administrative decision, by such means as the

    Department shall provide by rule.

    The Director shall determine the
appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer 
does not submit
deletions,
the Director shall make only the 
deletions specified in paragraph (1).

    The Director shall make available for public inspection and 
publication an
administrative decision within 180 days after 
the issuance of the
administrative
decision. The term 
"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure. 
Costs collected
under this Section shall be paid into the Tax 
Compliance and Administration
Fund.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 92-526, eff. 1-1-03.)

 
    Section 80. The Liquor Control Act of 1934 is amended  by 
re-enacting Section 8-9 as follows:
 



    (235 ILCS 5/8-9)  (from Ch. 43, par. 163e)



    Sec. 8-9. Tax information; confidentiality. All 
information received by
the Department from returns filed under

this Act, or from any investigation conducted under this Act, 
shall be
confidential, except for official purposes, and any 
person who divulges
any such information in any manner, except 
in accordance with a proper
judicial order or as otherwise 
provided by law, shall be guilty of a
Class B misdemeanor.

    Nothing in this Act prevents the Director of Revenue from 
publishing
or making available to the public the names and 
addresses of persons
filing returns under this Act, or 
reasonable statistics concerning the
operation of the tax by 
grouping the contents of returns so that the
information in any 
individual return is not disclosed.

    Nothing in this Act prevents the Director of Revenue from 
divulging
to the United States Government or the government of 
any other state, or
any officer or agency thereof, for 
exclusively official purposes,
information received by the 
Department in administering this Act,
provided that such other 
governmental agency agrees to divulge requested
tax 
information to the Department.

    The furnishing upon request of information obtained by the 
Department
from returns filed under this Act or investigations 
conducted under this
Act to the Illinois Liquor Control 
Commission for official use is deemed
to be an official purpose 
within the meaning of this Section.

    The furnishing upon request of the Auditor General, or his 
authorized
agents, for official use, of returns filed and 
information related
thereto under this Act is deemed to be an 
official purpose within the
meaning of this Section.

    The furnishing of financial information to a home rule unit 
with a
population in excess of 2,000,000 that has
imposed a tax 
similar to that imposed by this Act under its home rule powers,

upon request of the Chief Executive of the home rule unit, is 
an official
purpose within the meaning of this Section, 
provided the home rule unit agrees
in writing to the 
requirements of this Section. Information so provided is

subject to all confidentiality provisions of this Section. The 
written
agreement shall provide for reciprocity, limitations 
on access, disclosure,
and procedures for requesting 
information.

    Nothing contained in this Act shall prevent the Director 
from divulging
information to any person pursuant to a request 
or authorization made by the
taxpayer or by an authorized 
representative of the taxpayer.

(Source: P.A. 90-491, eff. 1-1-98.)

 
    Section 85. The Illinois Vehicle Code is amended  by 
re-enacting Sections 11-1419.01, 11-1419.02, and 11-1419.03 as 
follows:
 



    (625 ILCS 5/11-1419.01)  (from Ch. 95 1/2, par. 11-1419.01)


    Sec. 11-1419.01. Operating without a valid single trip 
permit. If a single
trip permit is
required by Section 13a.5 of 
the
Motor Fuel Tax Law, a motor carrier shall not operate in

Illinois without a single
trip permit issued by the Department 
of Revenue or its agents.

    If a
commercial motor vehicle is found operating in 
Illinois without displaying a
required valid single trip 
permit, the operator is guilty of a petty
offense as provided 
in Section 13a.6 of the Motor Fuel Tax Law.

(Source: P.A. 88-669, eff. 11-29-94; 89-399, eff. 8-20-95.)


 



    (625 ILCS 5/11-1419.02)  (from Ch. 95 1/2, par. 11-1419.02)


    Sec. 11-1419.02. Failure to display a valid motor fuel use 
tax license. 

    (a) If required by Section 13a.4 of the Motor Fuel Tax Law,

every valid motor
fuel use tax license, or an authorized 
reproduction, shall at all times be
carried in the cab of the 
vehicle.  The operator shall display the license or
reproduction 
upon
demand of a police officer or agent of the Department of 
Revenue. An operator
who
fails to display a valid motor fuel 
use tax license is guilty of a petty
offense as provided in 
Section 13a.6 of the Motor Fuel Tax Law.

    (b) As used in this Section:

    "Display" means the
manual surrender of
the motor fuel use 
tax license into the hands of the demanding officer or agent

for inspection.

    "Motor fuel use tax license" means a motor
fuel
use tax 
license issued by the Department of Revenue or by any member

jurisdiction under
the International Fuel Tax Agreement, or a 
valid 30 day International Fuel Tax
Agreement temporary permit.

(Source: P.A. 88-669, eff. 11-29-94; 89-399, eff. 8-20-95.)


 



    (625 ILCS 5/11-1419.03)


    Sec. 11-1419.03. Failure to Display Valid External Motor 
Fuel Use Tax
Decals.

    (a) Except as provided in the Motor Fuel Tax Law, a
motor 
carrier
shall not operate or cause to be operated a commercial 
motor vehicle upon
the
highways of this State unless there is 
properly affixed to that commercial
vehicle 2 valid external 
motor use tax decals required by
Section 13a.4 of the Motor 
Fuel Tax Law. An operator who operates a commercial
motor

vehicle without 2 properly displayed valid external motor
fuel 
use tax decals is guilty of a petty offense as provided in 
Section 13a.6
of the Motor Fuel Tax Law. A valid 30-day 
International
Fuel Tax Agreement temporary permit may be 
displayed instead of decals during
the temporary period 
specified on the permit.

    (b) As used in this Section:

    "Properly displayed" means 2
motor fuel use tax decals, one 
placed on each side of the exterior
of the cab.  In the case of 
transporters, manufacturers,
dealers, or
driveaway operations, 
the decals need not be permanently
affixed but may be

temporarily displayed in a visible manner on the exterior sides 
of the cab.

    "Commercial motor vehicle" means a motor
vehicle used, 
designed, or maintained for the transportation of people or

property and either having 2 axles and a gross vehicle weight 
or registered
gross vehicle weight exceeding 26,000 pounds or 
11,793 kilograms, or having
3 or more axles regardless of 
weight, or that is used in combination, when
the weight of the 
combination exceeds 26,000 pounds or 11,793 kilograms gross

vehicle weight or registered gross vehicle weight except for 
motor vehicles
operated by this State or the United States, 
recreational vehicles, school
buses, and commercial motor 
vehicles operated solely within this State for
which all motor 
fuel is purchased within this State.

    "Motor carrier" means any
person who operates or causes to 
be operated any commercial motor vehicle on
any highway within 
this State.

(Source: P.A. 88-669, eff. 11-29-94; 89-399, eff. 8-20-95.)



 
    Section 90. The State Mandates Act is amended by adding 
Section 8.30 as
follows:


 
    (30 ILCS 805/8.30 new)

    Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 
of this
Act, no reimbursement by the State is required for the 
implementation of
any mandate created by this amendatory Act of 
the 94th General Assembly.

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.


































































									INDEX
								

									Statutes amended in order of appearance
								

    35 ILCS 5/203
from Ch. 120, par. 2-203


    35 ILCS 5/502
from Ch. 120, par. 5-502


    35 ILCS 5/506.5




    35 ILCS 5/917
from Ch. 120, par. 9-917


    35 ILCS 5/1301
from Ch. 120, par. 13-1301


    35 ILCS 105/2
from Ch. 120, par. 439.2


    35 ILCS 105/9
from Ch. 120, par. 439.9


    35 ILCS 110/9
from Ch. 120, par. 439.39


    35 ILCS 115/9
from Ch. 120, par. 439.109


    35 ILCS 120/3
from Ch. 120, par. 442


    35 ILCS 120/11
from Ch. 120, par. 450


    35 ILCS 130/10b
from Ch. 120, par. 453.10b


    35 ILCS 135/20
from Ch. 120, par. 453.50


    35 ILCS 250/20




    35 ILCS 505/1.16
from Ch. 120, par. 417.16


    35 ILCS 505/13a.3
from Ch. 120, par. 429a3


    35 ILCS 505/13a.4
from Ch. 120, par. 429a4


    35 ILCS 505/13a.5
from Ch. 120, par. 429a5


    35 ILCS 505/13a.6
from Ch. 120, par. 429a6


    35 ILCS 505/15
from Ch. 120, par. 431


    35 ILCS 505/16
from Ch. 120, par. 432


    35 ILCS 610/11
from Ch. 120, par. 467.11


    35 ILCS 615/11
from Ch. 120, par. 467.26


    35 ILCS 620/11
from Ch. 120, par. 478


    35 ILCS 630/15
from Ch. 120, par. 2015


    70 ILCS 805/18.6d




    235 ILCS 5/8-9
from Ch. 43, par. 163e


    625 ILCS 5/11-1419.01
from Ch. 95 1/2, par. 11-1419.01


    625 ILCS 5/11-1419.02
from Ch. 95 1/2, par. 11-1419.02


    625 ILCS 5/11-1419.03






    30 ILCS 805/8.30 new