93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2985


 
Introduced 2/6/2004, by Don Harmon
 
SYNOPSIS AS INTRODUCED:
 		













35 ILCS 105/14.1 new






35 ILCS 110/15.1 new






35 ILCS 115/15.1 new






35 ILCS 120/13.1 new










    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act.  Imposes a penalty in the amount of 200% of any amount of the proceeds of mandatory service charges separately stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are not turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting, or cleaning up the food or beverage function with respect to which the service charge is imposed. Effective January 1, 2005.
















LRB093 20402 SJM 46180 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB2985

LRB093 20402 SJM 46180 b






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    AN ACT concerning taxes.

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


 
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    Section 5. The Use Tax Act is amended  by adding Section 
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14.1 as follows:
 
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    (35 ILCS 105/14.1  new)
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    Sec. 14.1. Penalty for mandatory services charges not 
8
passed on to employees.  Two hundred percent of any amount of 
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the proceeds of mandatory service charges separately stated on 
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customers' bills for the purchase and consumption of food and 
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beverages purchased at retail from a retailer, to the extent 
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that the proceeds of the service charge are not turned over as 
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tips or as a substitute for tips to the employees who 
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participate directly in preparing, serving, hosting, or 
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cleaning up the food or beverage function with respect to which 
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the service charge is imposed, shall be paid to the Department 
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as a penalty.  The penalty shall be reported and remitted at the 
18
same time as and along with the next return required to be 
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submitted to the Department under this Act after the mandatory 
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service charge is collected by the taxpayer.
 
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    Section 10. The Service Use Tax Act is amended  by adding 
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Section 15.1 as follows:
 
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    (35 ILCS 110/15.1  new)
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    Sec. 15.1. Penalty for mandatory services charges not 
25
passed on to employees.  Two hundred percent of any amount of 
26
the proceeds of mandatory service charges separately stated on 
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customers' bills for the purchase and consumption of food and 
28
beverages acquired as an incident to the purchase of a service 
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from a serviceman, to the extent that the proceeds of the 
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service charge are not turned over as tips or as a substitute 
 


 






SB2985
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LRB093 20402 SJM 46180 b




1
for tips to the employees who participate directly in 
2
preparing, serving, hosting, or cleaning up the food or 
3
beverage function with respect to which the service charge is 
4
imposed, shall be paid to the Department as a penalty.  The 
5
penalty shall be reported and remitted at the same time as and 
6
along with the next return required to be submitted to the 
7
Department under this Act after the mandatory service charge is 
8
collected by the taxpayer.
 
9
    Section 15. The Service Occupation Tax Act is amended  by 
10
adding Section 15.1 as follows:
 
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    (35 ILCS 115/15.1  new)
12
    Sec. 15.1. Penalty for mandatory services charges not 
13
passed on to employees.  Two hundred percent of any amount of 
14
the proceeds of mandatory service charges separately stated on 
15
customers' bills for the purchase and consumption of food and 
16
beverages, to the extent that the proceeds of the service 
17
charge are not turned over as tips or as a substitute for tips 
18
to the employees who participate directly in preparing, 
19
serving, hosting, or cleaning up the food or beverage function 
20
with respect to which the service charge is imposed, shall be 
21
paid to the Department as a penalty.  The penalty shall be 
22
reported and remitted at the same time as and along with the 
23
next return required to be submitted to the Department under 
24
this Act after the mandatory service charge is collected by the 
25
taxpayer.
 
26
    Section 20. The Retailers' Occupation Tax Act is amended  by 
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adding Section 13.1 as follows:
 
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    (35 ILCS 120/13.1  new)
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    Sec. 13.1. Penalty for mandatory services charges not 
30
passed on to employees.  Two hundred percent of any amount of 
31
the proceeds of mandatory service charges separately stated on 
32
customers' bills for the purchase and consumption of food and 
 


 






SB2985
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1
beverages, to the extent that the proceeds of the service 
2
charge are not turned over as tips or as a substitute for tips 
3
to the employees who participate directly in preparing, 
4
serving, hosting, or cleaning up the food or beverage function 
5
with respect to which the service charge is imposed, shall be 
6
paid to the Department as a penalty.  The penalty shall be 
7
reported and remitted at the same time as and along with the 
8
next return required to be submitted to the Department under 
9
this Act after the mandatory service charge is collected by the 
10
taxpayer.
 

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    Section 99. Effective date. This Act takes effect on 
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January 1, 2005.