Public Act 097-0335
 
HB2991 EnrolledLRB097 09100 HLH 49235 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Retailers' Occupation Tax Act is amended  by 
changing Section 2a as follows:
 
    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
    Sec. 2a. It is unlawful for any person to engage in the 
business of
selling tangible personal property at retail in 
this State without a
certificate of registration from the 
Department. Application
for a certificate of registration 
shall be made to the Department upon
forms furnished by it. 
Each such application shall be signed and verified
and shall 
state: (1) the name and social security number of the

applicant; (2) the address of his principal place
of business; 
(3) 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 and the addresses of all other 
places of business, if any
(enumerating such addresses, if any, 
in a separate list attached to and
made a part of the 
application), from which he engages in the business of
selling 
tangible personal property at retail in this State; (4)
the

name and address of the person or persons who will be 
responsible for
filing returns and payment of taxes due under 
this Act; (5) in the
case of
a corporation, the name, title, 
and social security number of
each corporate officer; (6) in 
the case of a limited liability
company, the
name, social 
security number, and FEIN number of
each
manager and member; 
and (7) such other information
as the Department may reasonably 
require.  The application shall contain
an acceptance of 
responsibility signed by the person or persons who will be

responsible for filing returns and payment of the taxes due 
under this
Act.  If the applicant will sell tangible personal 
property at retail
through vending machines, his application to 
register shall indicate the
number of vending machines to be so 
operated.  If requested by the Department at any time, that 
person shall verify the total number of vending machines he or 
she uses in his or her business of selling tangible personal 
property at retail. ; and thereafter, he shall
notify the 
Department by January 31 of the number of vending machines 
which
such person was using in his business of selling tangible 
personal property
at retail on the preceding December 31.
    The Department may deny a certificate of registration to 
any applicant
if the owner, any partner, any manager or member 
of a limited liability
company, or a corporate officer of the 
applicant, is or
has been the owner, a partner, a manager or 
member of a limited
liability company, or a corporate officer, 
of another retailer
that is in default for moneys due under 
this Act.
    The Department may require an applicant for a certificate 
of registration hereunder to, at
the time of filing such 
application, furnish a bond from a surety company
authorized to 
do business in the State of Illinois, or an irrevocable
bank 
letter of credit or a bond signed by 2
personal sureties who 
have filed, with the Department, sworn statements
disclosing 
net assets equal to at least 3 times the amount of the bond to

be required of such applicant, or a bond secured by an 
assignment of a bank
account or certificate of deposit, stocks 
or bonds, conditioned upon the
applicant paying to the State of 
Illinois all moneys becoming due under
this Act and under any 
other State tax law or municipal or county tax
ordinance or 
resolution under which the certificate of registration that is

issued to the applicant under this Act will permit the 
applicant to engage
in business without registering separately 
under such other law, ordinance
or resolution. In making a 
determination as to whether to require a bond or other 
security, the Department shall take into consideration whether 
the owner, any partner, any manager or member of a limited 
liability company, or a corporate officer of the applicant is 
or has been the owner, a partner, a manager or member of a 
limited liability company, or a corporate officer of another 
retailer that is in default for moneys due under this Act or 
any other tax or fee Act administered by the Department; and 
whether the owner, any partner, any manager or member of a 
limited liability company, or a corporate officer of the 
applicant is or has been the owner, a partner, a manager or 
member of a limited liability company, or a corporate officer 
of another retailer whose certificate of registration has been 
revoked within the previous 5 years under this Act or any other 
tax or fee Act administered by the Department.  If a bond or 
other security is required, the Department shall fix the amount 
of the bond or other security, taking into consideration the 
amount of money expected to become due from the applicant under 
this Act and under any other State tax law or municipal or 
county tax ordinance or resolution under which the certificate 
of registration that is issued to the applicant under this Act 
will permit the applicant to engage in business without 
registering separately under such other law, ordinance, or 
resolution. The amount of security required by
the Department 
shall be such as, in its opinion, will protect the State of

Illinois against failure to pay the amount which may become due 
from the
applicant under this Act and under any other State tax 
law or municipal or
county tax ordinance or resolution under 
which the certificate of
registration that is issued to the 
applicant under this Act will permit the
applicant to engage in 
business without registering separately under such
other law, 
ordinance or resolution, but the amount of the security 
required
by the Department shall not exceed three times the 
amount of the
applicant's average monthly tax liability, or 
$50,000.00, whichever amount
is lower.
    No certificate of registration under this Act shall be 
issued by the
Department until the applicant provides the 
Department with satisfactory
security, if required, as herein 
provided for.
    Upon receipt of the application for certificate of 
registration in
proper form, and upon approval by the 
Department of the security furnished
by the applicant, if 
required, the Department shall issue to such applicant a

certificate of registration which shall permit the person to 
whom it is
issued to engage in the business of selling tangible 
personal property at
retail in this State. The certificate of 
registration shall be
conspicuously displayed at the place of 
business which the person so
registered states in his 
application to be the principal place of business
from which he 
engages in the business of selling tangible personal property

at retail in this State.
    No certificate of registration issued to a taxpayer who 
files returns
required by this Act on a monthly basis shall be 
valid after the expiration
of 5 years from the date of its 
issuance or last renewal.  The expiration
date of a 
sub-certificate of registration shall be that of the 
certificate
of registration to which the sub-certificate 
relates.  A certificate of
registration shall automatically be 
renewed, subject to revocation as
provided by this Act, for an 
additional 5 years from the date of its
expiration unless 
otherwise notified by the Department as provided by this

paragraph.  Where a taxpayer to whom a certificate of 
registration is
issued under this Act is in default to the 
State of Illinois for delinquent
returns or for moneys due

under this Act or any other State tax law or municipal or 
county ordinance
administered or enforced by the Department, 
the Department shall, not less
than 120 days before the 
expiration date of such certificate of
registration, give 
notice to the taxpayer to whom the certificate was
issued of 
the account period of the delinquent returns, the amount of

tax,
penalty and interest due and owing from the
taxpayer, and 
that the certificate of registration shall not be
automatically 
renewed upon its expiration date unless the taxpayer, on or

before the date of expiration, has filed and paid the 
delinquent returns or
paid the defaulted amount in full.  A

taxpayer to whom such a notice is issued shall be deemed an 
applicant for
renewal.  The Department shall promulgate 
regulations establishing
procedures for taxpayers who file 
returns on a monthly basis but desire and
qualify to change to 
a quarterly or yearly filing basis and will no longer
be 
subject to renewal under this Section, and for taxpayers who 
file
returns on a yearly or quarterly basis but who desire or 
are required to
change to a monthly filing basis and will be 
subject to renewal under
this Section.
    The Department may in its discretion approve renewal by an 
applicant
who is in default if, at the time of application for 
renewal, the applicant
files all of the delinquent returns or 
pays to the Department such
percentage of the defaulted amount 
as may be
determined by the Department and agrees in writing to 
waive all limitations
upon the Department for collection of the 
remaining defaulted amount to the
Department over a period not 
to exceed 5 years from the date of renewal of
the certificate; 
however, no renewal application submitted by an applicant
who 
is in default shall be approved if the immediately preceding 
renewal by
the applicant was conditioned upon the installment 
payment
agreement described in this Section.  The payment 
agreement herein provided
for shall be in addition to and not 
in lieu of the security that may be required by
this Section of 
a taxpayer who is no longer considered a prior continuous

compliance taxpayer.  The execution of the payment agreement as 
provided in
this Act shall not toll the accrual of interest at 
the statutory rate.
    The Department may suspend a certificate of registration if 
the Department finds that the person to whom the certificate of 
registration has been issued knowingly sold contraband 
cigarettes. 
    A certificate of registration issued under this Act more 
than 5 years
before the effective date of this amendatory Act 
of 1989 shall expire and
be subject to the renewal provisions 
of this Section on the next
anniversary of the date of issuance 
of such certificate which occurs more
than 6 months after the 
effective date of this amendatory Act of 1989.  A
certificate of 
registration issued less than 5 years before the effective
date 
of this amendatory Act of 1989 shall expire and be subject to 
the
renewal provisions of this Section on the 5th anniversary 
of the issuance
of the certificate.
    If the person so registered states that he operates other 
places of
business from which he engages in the business of 
selling tangible personal
property at retail in this State, the 
Department shall furnish him with a
sub-certificate of 
registration for each such place of business, and the
applicant 
shall display the appropriate sub-certificate of registration 
at
each such place of business. All sub-certificates of 
registration shall
bear the same registration number as that 
appearing upon the certificate of
registration to which such 
sub-certificates relate.
    If the applicant will sell tangible personal property at 
retail through
vending machines, the Department shall furnish 
him with a sub-certificate
of registration for each such 
vending machine, and the applicant shall
display the 
appropriate sub-certificate of registration on each such

vending machine by attaching the sub-certificate of 
registration to a
conspicuous part of such vending machine. If 
a person who is registered to sell tangible personal property 
at retail through vending machines adds an additional vending 
machine or additional vending machines to the number of vending 
machines he or she uses in his or her business of selling 
tangible personal property at retail, he or she shall notify 
the Department, on a form prescribed by the Department, to 
request an additional sub-certificate or additional 
sub-certificates of registration, as applicable.  With each 
such request, the applicant shall report the number of 
sub-certificates of registration he or she is requesting as 
well as the total number of vending machines from which he or 
she makes retail sales. 
    Where the same person engages in 2 or more businesses of 
selling
tangible personal property at retail in this State, 
which businesses are
substantially different in character or 
engaged in under different trade
names or engaged in under 
other substantially dissimilar circumstances (so
that it is 
more practicable, from an accounting, auditing or bookkeeping

standpoint, for such businesses to be separately registered), 
the
Department may require or permit such person (subject to 
the same
requirements concerning the furnishing of security as 
those that are
provided for hereinbefore in this Section as to 
each application for a
certificate of registration) to apply 
for and obtain a separate certificate
of registration for each 
such business or for any of such businesses, under
a single 
certificate of registration supplemented by related

sub-certificates of registration.
    Any person who is registered under the "Retailers' 
Occupation Tax Act"
as of March 8, 1963, and who, during the 
3-year period immediately prior to
March 8, 1963, or during a 
continuous 3-year period part of which passed
immediately 
before and the remainder of which passes immediately after

March 8, 1963, has been so registered continuously and who is 
determined by
the Department not to have been either delinquent 
or deficient in the
payment of tax liability during that period 
under this Act or under any
other State tax law or municipal or 
county tax ordinance or resolution
under which the certificate 
of registration that is issued to the
registrant under this Act 
will permit the registrant to engage in business
without 
registering separately under such other law, ordinance or

resolution, shall be considered to be a Prior Continuous 
Compliance
taxpayer. Also any taxpayer who has, as verified by 
the Department,
faithfully and continuously complied with the 
condition of his bond or
other security under the provisions of 
this Act for a period of 3
consecutive years shall be 
considered to be a Prior Continuous Compliance
taxpayer.
    Every Prior Continuous Compliance taxpayer shall be exempt 
from all
requirements under this Act concerning the furnishing 
of a bond or other security as a
condition precedent to his 
being authorized to engage in the business of
selling tangible 
personal property at retail in this State. This exemption
shall 
continue for each such taxpayer until such time as he may be

determined by the Department to be delinquent in the filing of 
any returns,
or is determined by the Department (either through 
the Department's
issuance of a final assessment which has 
become final under the Act, or by
the taxpayer's filing of a 
return which admits tax that is not paid to be
due) to be 
delinquent or deficient in the paying of any tax under this Act

or under any other State tax law or municipal or county tax 
ordinance or
resolution under which the certificate of 
registration that is issued to
the registrant under this Act 
will permit the registrant to engage in
business without 
registering separately under such other law, ordinance or

resolution, at which time that taxpayer shall become subject to 
all the
financial responsibility requirements of this Act and, 
as a condition of
being allowed to continue to engage in the 
business of selling tangible
personal property at retail, may 
be required to post bond or other
acceptable security with the 
Department covering liability which such
taxpayer may 
thereafter incur. Any taxpayer who fails to pay an admitted or

established liability under this Act may also be required to 
post bond or
other acceptable security with this Department 
guaranteeing the payment of
such admitted or established 
liability.
    No certificate of registration shall be issued to any 
person who is in
default to the State of Illinois for moneys 
due under this Act or under any
other State tax law or 
municipal or county tax ordinance or resolution
under which the 
certificate of registration that is issued to the applicant

under this Act will permit the applicant to engage in business 
without
registering separately under such other law, ordinance 
or resolution.
    Any person aggrieved by any decision of the Department 
under this
Section may, within 20 days after notice of such 
decision, protest and
request a hearing, whereupon the 
Department shall give notice to such
person of the time and 
place fixed for such hearing and shall hold a
hearing in 
conformity with the provisions of this Act and then issue its

final administrative decision in the matter to such person. In 
the absence
of such a protest within 20 days, the Department's 
decision shall become
final without any further determination 
being made or notice given.
    With respect to security other than bonds (upon which the 
Department may
sue in the event of a forfeiture), if the 
taxpayer fails to pay, when due,
any amount whose payment such 
security guarantees, the Department shall,
after such 
liability is admitted by the taxpayer or established by the

Department through the issuance of a final assessment that has 
become final
under the law, convert the security which that 
taxpayer has furnished into
money for the State, after first 
giving the taxpayer at least 10 days'
written notice, by 
registered or certified mail, to pay the liability or
forfeit 
such security to the Department. If the security consists of 
stocks
or bonds or other securities which are listed on a 
public exchange, the
Department shall sell such securities 
through such public exchange. If
the security consists of an 
irrevocable bank letter of credit, the
Department shall convert 
the security in the manner provided for in the
Uniform 
Commercial Code. If the security consists of a bank certificate 
of
deposit, the Department shall convert the security into 
money by demanding
and collecting the amount of such bank 
certificate of deposit from the bank
which issued such 
certificate. If the security consists of a type of stocks
or 
other securities which are not listed on a public exchange, the

Department shall sell such security to the highest and best 
bidder after
giving at least 10 days' notice of the date, time 
and place of the intended
sale by publication in the "State 
Official Newspaper". If the Department
realizes more than the 
amount of such liability from the security, plus the
expenses 
incurred by the Department in converting the security into 
money,
the Department shall pay such excess to the taxpayer who 
furnished such
security, and the balance shall be paid into the 
State Treasury.
    The Department shall discharge any surety and shall release 
and return
any security deposited, assigned, pledged or 
otherwise provided to it by
a taxpayer under this Section 
within 30 days after:
        (1) such taxpayer becomes a Prior Continuous 
    Compliance taxpayer; or
        (2) such taxpayer has ceased to collect receipts on 
    which he is required
to remit tax to the Department, has 
    filed a final tax return, and has paid
to the Department an 
    amount sufficient to discharge his remaining tax

    liability, as determined by the Department,  under this Act 
    and under every
other State tax law or municipal or county 
    tax ordinance or resolution
under which the certificate of 
    registration issued under this Act permits
the registrant 
    to engage in business without registering separately under

    such other law, ordinance or resolution.  The Department 
    shall make a final
determination of the taxpayer's 
    outstanding tax liability as expeditiously
as possible 
    after his final tax return has been filed; if the 
    Department
cannot make such final determination within 45 
    days after receiving the
final tax return, within such 
    period it shall so notify the taxpayer,
stating its reasons 
    therefor.
(Source: P.A. 95-1053, eff. 1-1-10; 96-1355, eff. 7-28-10.)
  


Effective Date:  1/1/2012