Public Act 103-0319
 
HB2579 EnrolledLRB103 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