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90_HB1414
230 ILCS 20/5 from Ch. 120, par. 1055
230 ILCS 25/3 from Ch. 120, par. 1103
230 ILCS 30/9 from Ch. 120, par. 1129
Amends the Illinois Pull Tabs and Jar Games Act, the
Bingo License and Tax Act, and the Charitable Games Act.
Provides that the tax imposed under these Acts shall be
imposed on the gross proceeds after deducting from the gross
proceeds all amounts awarded as prizes (now on the gross
proceeds). Effective immediately.
LRB9003562KDks
LRB9003562KDks
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pull Tabs and Jar Games Act is
5 amended by changing Section 5 as follows:
6 (230 ILCS 20/5) (from Ch. 120, par. 1055)
7 Sec. 5. There shall be paid to the Department of Revenue
8 5% of the gross proceeds (after deducting from the gross
9 proceeds all amounts awarded as prizes) of any pull tabs and
10 jar games conducted under this Act. Such payments shall be
11 made 4 times per year, between the first and the 20th day of
12 April, July, October and January. Payment must be made by
13 money order or certified check. Accompanying each payment
14 shall be a report, on forms provided by the Department of
15 Revenue, listing the number of drawings conducted, the gross
16 income derived therefrom and such other information as the
17 Department of Revenue may require. Failure to submit either
18 the payment or the report within the specified time shall
19 result in automatic revocation of the license. All payments
20 made to the Department of Revenue under this Act shall be
21 deposited as follows:
22 (a) 50% shall be deposited in the Common School Fund;
23 and
24 (b) 50% shall be deposited in the Illinois Gaming Law
25 Enforcement Fund. Of the monies deposited in the Illinois
26 Gaming Law Enforcement Fund under this Section, the General
27 Assembly shall appropriate two-thirds to the Department of
28 Revenue, Department of State Police and the Office of the
29 Attorney General for State law enforcement purposes, and
30 one-third shall be appropriated to the Department of Revenue
31 for the purpose of distribution in the form of grants to
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1 counties or municipalities for law enforcement purposes. The
2 amounts of grants to counties or municipalities shall bear
3 the same ratio as the number of licenses issued in counties
4 or municipalities bears to the total number of licenses
5 issued in the State. In computing the number of licenses
6 issued in a county, licenses issued for locations within a
7 municipality's boundaries shall be excluded.
8 The Department of Revenue shall license suppliers and
9 manufacturers of pull tabs and jar games at an annual fee of
10 $5,000. Suppliers and manufacturers shall meet the
11 requirements and qualifications established by rule by the
12 Department. Licensed manufacturers shall sell pull tabs and
13 jar games only to licensed suppliers. Licensed suppliers
14 shall buy pull tabs and jar games only from licensed
15 manufacturers and shall sell pull tabs and jar games only to
16 licensed organizations. Licensed organizations shall buy pull
17 tabs and jar games only from licensed suppliers.
18 The Department of Revenue shall adopt by rule minimum
19 quality production standards for pull tabs and jar games. In
20 determining such standards, the Department shall consider the
21 standards adopted by the National Association of Gambling
22 Regulatory Agencies and the National Association of
23 Fundraising Ticket Manufacturers. Such standards shall
24 include the name of the supplier which shall appear in plain
25 view to the casual observer on the face side of each pull tab
26 ticket and on each jar game ticket. The pull tab ticket
27 shall contain the name of the game, the selling price of the
28 ticket, the amount of the prize and the serial number of the
29 ticket. The back side of a pull tab ticket shall contain a
30 series of perforated tabs marked "open here". The logo of
31 the manufacturer shall be clearly visible on each jar game
32 ticket.
33 The Department of Revenue shall adopt rules necessary to
34 provide for the proper accounting and control of activities
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1 under this Act, to ensure that the proper taxes are paid,
2 that the proceeds from the activities under this Act are used
3 lawfully, and to prevent illegal activity associated with the
4 use of pull tabs and jar games.
5 The provisions of Section 2a of the Retailers' Occupation
6 Tax Act pertaining to the furnishing of a bond or other
7 security are incorporated by reference into this Act and are
8 applicable to licensees under this Act as a precondition of
9 obtaining a license under this Act. The provisions of
10 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a,
11 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax
12 Act, and Section 3-7 of the Uniform Penalty and Interest Act,
13 which are not inconsistent with this Act shall apply, as far
14 as practicable, to the subject matter of this Act to the same
15 extent as if such provisions were included in this Act. For
16 the purposes of this Act, references in such incorporated
17 Sections of the Retailers' Occupation Tax Act to retailers,
18 sellers or persons engaged in the business of selling
19 tangible personal property means persons engaged in
20 conducting pull tabs and jar games and references in such
21 incorporated Sections of the Retailers' Occupation Tax Act to
22 sales of tangible personal property mean the conducting of
23 pull tabs and jar games and the making of charges for
24 participating in such drawings.
25 (Source: P.A. 87-205; 87-895.)
26 Section 10. The Bingo License and Tax Act is amended by
27 changing Section 3 as follows:
28 (230 ILCS 25/3) (from Ch. 120, par. 1103)
29 Sec. 3. There shall be paid to the Department of Revenue,
30 5% of the gross proceeds (after deducting from the gross
31 proceeds all amounts awarded as prizes) of any game of bingo
32 conducted under the provision of this Act. Such payments
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1 shall be made 4 times per year, between the first and the
2 20th day of April, July, October and January. Payment must
3 be by money order or certified check. Accompanying each
4 payment shall be a report, on forms provided by the
5 Department of Revenue, listing the number of games conducted,
6 the gross income derived and such other information as the
7 Department of Revenue may require. Failure to submit either
8 the payment or the report within the specified time may
9 result in suspension or revocation of the license.
10 The provisions of Section 2a of the Retailers' Occupation
11 Tax Act pertaining to the furnishing of a bond or other
12 security are incorporated by reference into this Act and are
13 applicable to licensees under this Act as a precondition of
14 obtaining a license under this Act. The Department shall
15 establish by rule the standards and criteria it will use in
16 determining whether to require the furnishing of a bond or
17 other security, the amount of such bond or other security,
18 whether to require the furnishing of an additional bond or
19 other security by a licensee, and the amount of such
20 additional bond or other security. Such standards and
21 criteria may include payment history, general financial
22 condition or other factors which may pose risks to insuring
23 the payment to the Department of Revenue, of applicable
24 taxes. Such rulemaking is subject to the provisions of the
25 Illinois Administrative Procedure Act. The provisions of
26 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
27 6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act
28 which are not inconsistent with this Act, and Section 3-7 of
29 the Uniform Penalty and Interest Act shall apply, as far as
30 practicable, to the subject matter of this Act to the same
31 extent as if such provisions were included in this Act. Tax
32 returns filed pursuant to this Act shall not be confidential
33 and shall be available for public inspection. For the
34 purposes of this Act, references in such incorporated
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1 Sections of the Retailers' Occupation Tax Act to retailers,
2 sellers or persons engaged in the business of selling
3 tangible personal property means persons engaged in
4 conducting bingo games, and references in such incorporated
5 Sections of the Retailers' Occupation Tax Act to sales of
6 tangible personal property mean the conducting of bingo games
7 and the making of charges for playing such games.
8 One-half of all of the sums collected under this Section
9 shall be deposited into the Mental Health Fund and 1/2 of all
10 of the sums collected under this Section shall be deposited
11 in the Common School Fund.
12 (Source: P.A. 87-205; 87-895.)
13 Section 15. The Charitable Games Act is amended by
14 changing Section 9 as follows:
15 (230 ILCS 30/9) (from Ch. 120, par. 1129)
16 Sec. 9. There shall be paid to the Department of Revenue,
17 3% of the gross proceeds (after deducting from the gross
18 proceeds all amounts awarded as prizes) of charitable games
19 conducted under the provisions of this Act. Such payments
20 shall be made within 30 days after the completion of the
21 games. Payment must be by money order or certified check.
22 Accompanying each payment shall be a report, on forms
23 provided by the Department of Revenue, listing the games
24 conducted, the gross income derived and such other
25 information as the Department of Revenue may require.
26 Failure to submit either the payment or the report within the
27 specified time may result in suspension or revocation of the
28 license and may be used in future considerations for renewal
29 of the license.
30 The provisions of Section 2a of the Retailers' Occupation
31 Tax Act pertaining to the furnishing of a bond or other
32 security are incorporated by reference into this Act and are
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1 applicable to licensees under this Act as a precondition of
2 obtaining a license under this Act. For purposes of this Act
3 gross proceeds shall be defined as all chips, scrip or other
4 form of play money purchased or any fee or donation for
5 admission or entry into such games. The Department shall
6 establish by rule the standards and criteria it will use in
7 determining whether to require the furnishing of a bond or
8 other security, the amount of such bond or other security,
9 whether to require the furnishing of an additional bond or
10 other security by a licensee, and the amount of such
11 additional bond or other security. Such standards and
12 criteria may include payment history, general financial
13 condition or other factors which may pose risks to insuring
14 the payment to the Department of Revenue, of applicable
15 taxes. Such rulemaking is subject to the provisions of the
16 Illinois Administrative Procedure Act. The provisions of
17 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
18 6c, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act,
19 and Section 3-7 of the Uniform Penalty and Interest Act,
20 which are not inconsistent with this Act shall apply, as far
21 as practicable, to the subject matter of this Act to the same
22 extent as if such provisions were included in this Act.
23 Financial reports filed pursuant to this Act shall not be
24 confidential and shall be available for public inspection.
25 For the purposes of this Act, references in such incorporated
26 Sections of the Retailers' Occupation Tax Act to retailers,
27 sellers or persons engaged in the business of selling
28 tangible personal property means persons engaged in
29 conducting charitable games, and references in such
30 incorporated Sections of the Retailers' Occupation Tax Act to
31 sales of tangible personal property mean the conducting of
32 charitable games and the making of charges for playing such
33 games.
34 All of the sums collected under this Section shall be
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1 deposited into the Illinois Gaming Law Enforcement Fund of
2 the State Treasury.
3 (Source: P.A. 87-205; 87-895.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.