| ||||
| Public Act 103-0319 | ||||
| ||||
| ||||
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.)
| ||