|  |
Public Act 103-0319
Public Act 0319 103RD GENERAL ASSEMBLY
|
Public Act 103-0319
| | HB2579 Enrolled | LRB103 00132 HLH 45136 b |
|
| AN ACT concerning revenue.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Department of Revenue Law of the
Civil | Administrative Code of Illinois is amended by changing Section | 2505-380 as follows:
| (20 ILCS 2505/2505-380) (was 20 ILCS 2505/39b47)
| Sec. 2505-380. Revocation of or refusal to issue or | reissue a certificate of
registration, permit, or license. | (a) The Department has the power, after notice and an | opportunity for
a hearing, to revoke a certificate of | registration, permit, or license
issued by the Department if | the holder of the certificate of registration, permit, or
| license fails to
file a return, or to pay the tax, fee, | penalty, or interest shown in a
filed
return, or to pay any | final assessment of tax, fee,
penalty, or interest, as | required by the tax or fee Act under which the
certificate
of | registration, permit, or license is required or any other tax | or fee Act
administered
by the Department.
| (b) The Department may refuse to issue, reissue, or renew | a certificate of registration, permit, or license authorized | to be issued by the Department if a person who is named as the | owner, a partner, a corporate officer, or, in the case of a |
| limited liability company, a manager or member, of the | applicant on the application for the certificate of | registration, permit or license, is or has been named as the | owner, a partner, a corporate officer, or in the case of a | limited liability company, a manager or member, on the | application for the certificate of registration, permit, or | license of a person that (i) is in default for moneys due under | the tax or fee Act upon which the certificate of registration, | permit, or license is required or any other tax or fee Act | administered by the Department or (ii) fails to file any | return, on or before the due date prescribed for filing that | return (including any extensions of time granted by the | Department), that the person is required to file under the tax | or fee Act upon which the certificate of registration, permit, | or license is required or any other tax or fee Act administered | by the Department. For purposes of this Section only, in | determining whether a person is in default for moneys due, the | Department shall include only amounts established as a final | liability within the 23 years prior to the date of the | Department's notice of refusal to issue or reissue the | certificate of registration, permit, or license. For purposes | of this Section, "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. |
| (c) When revoking or refusing to issue or reissue a | certificate of registration, permit, or license
issued by the | Department, the procedure for notice and hearing used shall be | the procedure
provided under the Act pursuant to which the | certificate of registration,
permit, or license was issued.
| (Source: P.A. 102-40, eff. 6-25-21.)
| Section 10. 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 publicly traded corporation, the | name and title of the Chief Financial Officer, Chief Operating | Officer, and any other officer or employee with responsibility | for preparing tax returns under this Act, and, in the
case of
| all other corporations, 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. | The Department shall provide by rule for an expedited | business registration process for remote retailers required to | register and file under subsection (b) of Section 2 who use a | certified service provider to file their returns under this | Act. Such expedited registration process shall allow the |
| Department to register a taxpayer based upon the same | registration information required by the Streamlined Sales Tax | Governing Board for states participating in the Streamlined | Sales Tax Project. | The Department may deny a certificate of registration to | any applicant
if a person who is named as the owner, a partner, | a manager or member of a limited liability
company, or a | corporate officer of the applicant on the application for the | certificate of registration is or
has been named as the owner, | a partner, a manager or member of a limited
liability company, | or a corporate officer on the application for the certificate | of registration of another retailer
that (i) is in default for | moneys due under this Act or any other tax or fee Act | administered by the Department or (ii) fails to file any | return, on or before the due date prescribed for filing that | return (including any extensions of time granted by the | Department), that the retailer is required to file under this | Act or any other tax or fee Act administered by the Department. | For purposes of this paragraph only, in determining whether a | person is in default for moneys due, the Department shall | include only amounts established as a final liability within | the 23 years prior to the date of the Department's notice of | denial of a certificate of registration. | 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 prior to July 1, | 2017 to a taxpayer who files returns
required by this Act on a | monthly basis or renewed prior to July 1, 2017 by 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. No certificate of registration | issued on or after July 1, 2017 to a taxpayer who files returns
| required by this Act on a monthly basis or renewed on or after | July 1, 2017 by a taxpayer who files returns
required by this | Act on a monthly basis shall be valid after the expiration
of | one year 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. Prior to July 1, 2017, 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. On and after | July 1, 2017, a certificate of
registration shall | automatically be renewed, subject to revocation as
provided by | this Act, for an additional one year 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 60 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 January 1, 1990 (the effective date of | Public Act 86-383) 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 January 1, 1990 (the effective date of Public Act | 86-383). A
certificate of registration issued less than 5 | years before January 1, 1990 (the effective
date of Public Act | 86-383) 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. 101-31, eff. 6-28-19; 102-40, eff. 6-25-21.)
|
Effective Date: 1/1/2024
|
|
|
|
