[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ House Amendment 001 ] | [ Senate Amendment 001 ] |
91_HB0402
LRB9101586PTpk
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Automobile Leasing Occupation and Use Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Automobile" means any motor vehicle of the first
8 division, a motor vehicle of the second division which is a
9 self-contained motor vehicle designed or permanently
10 converted to provide living quarters for recreational,
11 camping or travel use, with direct walk through access to the
12 living quarters from the driver's seat, or a motor vehicle of
13 the second division which is of the van configuration
14 designed for the transportation of not less than 7 nor more
15 than 16 passengers, as defined in Section 1-146 of the
16 Illinois Vehicle Code.
17 "Department" means the Department of Revenue.
18 "Person" means any natural individual, firm, partnership,
19 association, joint stock company, joint venture, public or
20 private corporation, or a receiver, executor, trustee,
21 conservator, or other representatives appointed by order of
22 any court.
23 "Leasing" means any transfer of the possession or right
24 to possession of an automobile to a user for a valuable
25 consideration for a period of more than 1 year.
26 "Lessor" means any person, firm, corporation, or
27 association engaged in the business of leasing automobiles to
28 users. For this purpose, the objective of making a profit is
29 not necessary to make the leasing activity a business.
30 "Lessee" means any user to whom the possession, or the
31 right to possession, of an automobile is transferred for a
-2- LRB9101586PTpk
1 valuable consideration for a period more than one year which
2 is paid by such lessee or by someone else.
3 "Gross receipts" means the total leasing price for the
4 lease of an automobile. In the case of lease transactions in
5 which the consideration is paid to the lessor on an
6 installment basis, the amounts of such payments shall be
7 included by the lessor in gross receipts only as and when
8 payments are received by the lessor.
9 "Leasing price" means the consideration for leasing an
10 automobile valued in money, whether received in money or
11 otherwise, including cash, credits, property and services,
12 and shall be determined without any deduction on account of
13 the cost of the property leased, the cost of materials used,
14 labor or service cost or any other expense whatsoever, but
15 does not include charges that are added by lessors on account
16 of the lessor's tax liability under this Act, or on account
17 of the lessor's duty to collect, from the lessee, the tax
18 that is imposed by Section 20 of this Act. The phrase
19 "leasing price" does not include the residual value of the
20 automobile or any separately stated charge on the lessee's
21 bill for insurance.
22 "Maintaining a place of business in this State" means
23 having or maintaining within this State, directly or by a
24 subsidiary, an office, repair facilities, distribution house,
25 sales house, warehouse, or other place of business, or any
26 agent, or other representative, operating within this State,
27 irrespective of whether the place of business or agent or
28 other representative is located here permanently or
29 temporarily.
30 "Residual value" means the estimated value of the vehicle
31 at the end of the scheduled lease term, used by the lessor in
32 determining the base lease payment, as established by the
33 lessor at the time the lessor and lessee enter into the
34 lease.
-3- LRB9101586PTpk
1 Section 10. Imposition of occupation tax. A tax is
2 imposed upon persons engaged in this State in the business of
3 leasing automobiles in Illinois at the rate of 5% of the
4 gross receipts received from such business. The tax herein
5 imposed does not apply to the leasing of automobiles to any
6 governmental body, nor to any corporation, society,
7 association, foundation or institution organized and operated
8 exclusively for charitable, religious or educational
9 purposes, nor to any not for profit corporation, society,
10 association, foundation, institution or organization which
11 has no compensated officers or employees and which is
12 organized and operated primarily for the recreation of
13 persons 55 years of age or older. Beginning July 1, 2000
14 through June 30, 2001, each month the Department shall pay
15 into the Tax Compliance and Administration Fund 3% of the
16 revenue realized from the tax imposed by this Section, and
17 the remaining such revenue shall be paid as provided for in
18 Section 3 of the Retailers' Occupation Tax Act. Beginning
19 July 1, 2001 and each month thereafter, the Department shall
20 pay into the Tax Compliance and Administration Fund 1% of the
21 revenue realized from the tax imposed by this Section, and
22 the remaining such revenue shall be paid as provided for in
23 Section 3 of the Retailers' Occupation Tax Act.
24 The Department shall have full power to administer and
25 enforce this Section, to collect all taxes and penalties due
26 hereunder, to dispose of taxes and penalties so collected in
27 the manner hereinafter provided, and to determine all rights
28 to credit memoranda, arising on account of the erroneous
29 payment of tax or penalty hereunder. In the administration
30 of, and compliance with, this Section, the Department and
31 persons who are subject to this Section shall have the same
32 rights, remedies, privileges, immunities, powers and duties,
33 and be subject to the same conditions, restrictions,
34 limitation, penalties and definitions of terms, and employ
-4- LRB9101586PTpk
1 the same modes of procedure, as are prescribed in Sections 1,
2 1a, 2 through 2-65 (in respect to all provisions therein
3 other than the State rate of tax), 2a, 2b, 2c, 3 (except
4 provisions relating to transaction returns and quarter
5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
6 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
7 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8 Penalty and Interest Act as fully as if those provisions were
9 set forth herein. For purposes of this Section, references
10 in such incorporated Sections of the Retailers' Occupation
11 Tax Act to retailers, sellers or persons engaged in the
12 business of selling tangible personal property means persons
13 engaged in the leasing of automobiles under leases subject to
14 this Act.
15 Section 15. Registration. Every person engaged in this
16 State in the business of leasing automobiles shall apply to
17 the Department (upon a form prescribed and furnished by the
18 Department) for a certificate of registration under this Act.
19 The certificate of registration that is issued by the
20 Department to a retailer under the Retailers' Occupation Tax
21 Act shall permit such lessor to engage in a business that is
22 taxable under this Section without registering separately
23 with the Department.
24 Section 20. Imposition of use tax. A tax is imposed upon
25 the privilege of using in this State, an automobile which is
26 leased from a lessor. Such tax is at the rate of 5% of the
27 leasing price of such automobile paid to the lessor under any
28 lease agreement. The tax herein imposed shall not apply to
29 any governmental body, nor to any corporation, society,
30 association, foundation or institution, organized and
31 operated exclusively for charitable, religious or educational
32 purposes, nor to any not for profit corporation, society,
-5- LRB9101586PTpk
1 association, foundation, institution or organization which
2 has no compensated officers or employees and which is
3 organized and operated primarily for the recreation of
4 persons 55 years of age or older, when using tangible
5 personal property as a lessee. Beginning July 1, 2000
6 through June 30, 2001, each month the Department shall pay
7 into the Tax Compliance and Administration Fund 3% of the
8 revenue realized from the tax imposed by this Section, and
9 the remaining such revenue shall be paid as provided for in
10 Section 9 of the Use Tax Act. Beginning July 1, 2001 and
11 each month thereafter, the Department shall pay into the Tax
12 Compliance and Administration Fund 1% of the revenue realized
13 from the tax imposed by this Section, and the remaining such
14 revenue shall be paid as provided for in Section 9 of the Use
15 Tax Act.
16 The Department shall have full power to administer and
17 enforce this Section; to collect all taxes, penalties and
18 interest due hereunder; to dispose of taxes, penalties and
19 interest so collected in the manner hereinafter provided, and
20 to determine all rights to credit memoranda or refunds
21 arising on account of the erroneous payment of tax, penalty
22 or interest hereunder. In the administration of, and
23 compliance with, this Section, the Department and persons who
24 are subject to this Section shall have the same rights,
25 remedies, privileges, immunities, powers and duties, and be
26 subject to the same conditions, restrictions, limitations,
27 penalties and definitions of terms, and employ the same modes
28 of procedure, as are prescribed in Sections 2, 3 through
29 3-80, 4, 6, 7, 8, 9 (except provisions relating to
30 transaction returns and quarter monthly payments), 10, 11,
31 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
32 Act, and are not inconsistent with this Section, as fully as
33 if those provisions were set forth herein. For purposes of
34 this Section, references in such incorporated Sections of the
-6- LRB9101586PTpk
1 Use Tax Act to users or purchasers means lessees of
2 automobiles under leases subject to this Act.
3 Section 25. Use tax collected. The use tax imposed by
4 Section 20 shall be collected from the lessee and remitted to
5 the Department by a lessor maintaining a place of business in
6 this State or who titles or registers an automobile with an
7 agency of this State's government that is used for leasing in
8 this State.
9 The use tax imposed by Section 20 and not paid to a
10 lessor pursuant to the preceding paragraph of this Section
11 shall be paid to the Department directly by any person using
12 such automobile within this State.
13 Lessors shall collect the tax from lessees by adding the
14 tax to the leasing price of the automobile, when leased for
15 use, in the manner prescribed by the Department. The
16 Department shall have the power to adopt and promulgate
17 reasonable rules and regulations for the adding of such tax
18 by lessors to leasing prices by prescribing bracket systems
19 for the purpose of enabling such lessors to add and collect,
20 as far as practicable, the amount of such tax.
21 The tax imposed by this Section shall, when collected, be
22 stated as a distinct item on the customer's bill, separate
23 and apart from the leasing price of the automobile.
24 Section 30. Severability clause. If any clause,
25 sentence, Section, provision or part thereof of this Act or
26 the application thereof to any person or circumstance shall
27 be adjudged to be unconstitutional, the remainder of this Act
28 or its application to persons or circumstances other than
29 those to which it is held invalid, shall not be affected
30 thereby. In particular, if any provision which exempts or
31 has the effect of exempting some class of users or some kind
32 of use from the tax imposed by this Act should be held to
-7- LRB9101586PTpk
1 constitute or to result in an invalid classification or to be
2 unconstitutional for some other reason, such provision shall
3 be deemed to be severable with the remainder of this Act
4 without said provision being held constitutional.
5 Section 80. The State Finance Act is amended by changing
6 Sections 6z-18 and 6z-20 as follows:
7 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
8 Sec. 6z-18. A portion of the money paid into the Local
9 Government Tax Fund from sales of food for human consumption
10 which is to be consumed off the premises where it is sold
11 (other than alcoholic beverages, soft drinks and food which
12 has been prepared for immediate consumption) and prescription
13 and nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics, which occurred in municipalities, shall be
16 distributed to each municipality based upon the sales which
17 occurred in that municipality. The remainder shall be
18 distributed to each county based upon the sales which
19 occurred in the unincorporated area of that county.
20 A portion of the money paid into the Local Government Tax
21 Fund from the 6.25% general use tax rate on the selling price
22 of tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by any agency of this State's government shall be
25 distributed to municipalities as provided in this paragraph.
26 Each municipality shall receive the amount attributable to
27 sales for which Illinois addresses for titling or
28 registration purposes are given as being in such
29 municipality. The remainder of the money paid into the Local
30 Government Tax Fund from such sales shall be distributed to
31 counties. Each county shall receive the amount attributable
32 to sales for which Illinois addresses for titling or
-8- LRB9101586PTpk
1 registration purposes are given as being located in the
2 unincorporated area of such county.
3 A portion of the money paid into the Local Government Tax
4 Fund from the 1.25% rate imposed under the Use Tax Act upon
5 the selling price of any motor vehicle that is purchased
6 outside of Illinois at retail by a lessor for purposes of
7 leasing under a lease subject to the Automobile Leasing
8 Occupation and Use Tax Act which is titled or registered by
9 any agency of this State's government shall be distributed as
10 provided in this paragraph, less 3% for the first 12 monthly
11 distributions and 1% for each monthly distribution
12 thereafter, which sum shall be paid into the Tax Compliance
13 and Administration Fund. Each municipality shall receive the
14 amount attributable to sales for which Illinois addresses for
15 titling or registration purposes are given as being in such
16 municipality. The remainder of the money paid into the Local
17 Government Tax Fund from such sales shall be distributed to
18 counties. Each county shall receive the amount attributable
19 to sales for which Illinois addresses for titling or
20 registration purposes are given as being located in the
21 unincorporated area of such county.
22 A portion of the money paid into the Local Government Tax
23 Fund from the 6.25% general rate on sales subject to taxation
24 under the Retailers' Occupation Tax Act and the Service
25 Occupation Tax Act, which occurred in municipalities, shall
26 be distributed to each municipality, based upon the sales
27 which occurred in that municipality. The remainder shall be
28 distributed to each county, based upon the sales which
29 occurred in the unincorporated area of such county.
30 A portion of the money paid into the Local Government Tax
31 Fund from the 1.25% rate imposed by the Retailers' Occupation
32 Tax Act upon the sale of any motor vehicle that is sold at
33 retail to a lessor for purposes of leasing under a lease
34 subject to the Automobile Leasing Occupation and Use Tax Act
-9- LRB9101586PTpk
1 shall be distributed as provided in this paragraph, less 3%
2 for the first 12 monthly distributions and 1% for each
3 monthly distribution thereafter, which sum shall be paid into
4 the Tax Compliance and Administration Fund. The funds shall
5 be distributed to each municipality, based upon the sales
6 which occurred in that municipality. The remainder shall be
7 distributed to each county, based upon the sales which
8 occurred in the unincorporated area of such county.
9 For the purpose of determining allocation to the local
10 government unit, a retail sale by a producer of coal or other
11 mineral mined in Illinois is a sale at retail at the place
12 where the coal or other mineral mined in Illinois is
13 extracted from the earth. This paragraph does not apply to
14 coal or other mineral when it is delivered or shipped by the
15 seller to the purchaser at a point outside Illinois so that
16 the sale is exempt under the United States Constitution as a
17 sale in interstate or foreign commerce.
18 Whenever the Department determines that a refund of money
19 paid into the Local Government Tax Fund should be made to a
20 claimant instead of issuing a credit memorandum, the
21 Department shall notify the State Comptroller, who shall
22 cause the order to be drawn for the amount specified, and to
23 the person named, in such notification from the Department.
24 Such refund shall be paid by the State Treasurer out of the
25 Local Government Tax Fund.
26 On or before the 25th day of each calendar month, the
27 Department shall prepare and certify to the Comptroller the
28 disbursement of stated sums of money to named municipalities
29 and counties, the municipalities and counties to be those
30 entitled to distribution of taxes or penalties paid to the
31 Department during the second preceding calendar month. The
32 amount to be paid to each municipality or county shall be the
33 amount (not including credit memoranda) collected during the
34 second preceding calendar month by the Department and paid
-10- LRB9101586PTpk
1 into the Local Government Tax Fund, plus an amount the
2 Department determines is necessary to offset any amounts
3 which were erroneously paid to a different taxing body, and
4 not including an amount equal to the amount of refunds made
5 during the second preceding calendar month by the Department,
6 and not including any amount which the Department determines
7 is necessary to offset any amounts which are payable to a
8 different taxing body but were erroneously paid to the
9 municipality or county. Within 10 days after receipt, by the
10 Comptroller, of the disbursement certification to the
11 municipalities and counties, provided for in this Section to
12 be given to the Comptroller by the Department, the
13 Comptroller shall cause the orders to be drawn for the
14 respective amounts in accordance with the directions
15 contained in such certification.
16 When certifying the amount of monthly disbursement to a
17 municipality or county under this Section, the Department
18 shall increase or decrease that amount by an amount necessary
19 to offset any misallocation of previous disbursements. The
20 offset amount shall be the amount erroneously disbursed
21 within the 6 months preceding the time a misallocation is
22 discovered.
23 The provisions directing the distributions from the
24 special fund in the State Treasury provided for in this
25 Section shall constitute an irrevocable and continuing
26 appropriation of all amounts as provided herein. The State
27 Treasurer and State Comptroller are hereby authorized to make
28 distributions as provided in this Section.
29 In construing any development, redevelopment, annexation,
30 preannexation or other lawful agreement in effect prior to
31 September 1, 1990, which describes or refers to receipts from
32 a county or municipal retailers' occupation tax, use tax or
33 service occupation tax which now cannot be imposed, such
34 description or reference shall be deemed to include the
-11- LRB9101586PTpk
1 replacement revenue for such abolished taxes, distributed
2 from the Local Government Tax Fund.
3 (Source: P.A. 90-491, eff. 1-1-98.)
4 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
5 Sec. 6z-20. Of the money received from the 6.25% general
6 rate on sales subject to taxation under the Retailers'
7 Occupation Tax Act and Service Occupation Tax Act and paid
8 into the County and Mass Transit District Fund, distribution
9 to the Regional Transportation Authority tax fund, created
10 pursuant to Section 4.03 of the Regional Transportation
11 Authority Act, for deposit therein shall be made based upon
12 the retail sales occurring in a county having more than
13 3,000,000 inhabitants. The remainder shall be distributed to
14 each county having 3,000,000 or fewer inhabitants based upon
15 the retail sales occurring in each such county.
16 Of the money received from the 1.25% rate imposed by the
17 Retailers' Occupation Tax Act upon the sale of any motor
18 vehicle that is sold at retail to a lessor for purposes of
19 leasing under a lease subject to the Automobile Leasing
20 Occupation and Use Tax Act, and paid into the County and Mass
21 Transit District Fund shall be distributed as provided in
22 this paragraph, less 3% for the first 12 monthly
23 distributions and 1% for each monthly distribution
24 thereafter, which sum shall be paid into the Tax Compliance
25 and Administration Fund. Distribution to the Regional
26 Transportation Authority Tax Fund, created pursuant to
27 Section 4.03 of the Regional Transportation Authority Act,
28 for deposit therein shall be made based upon the retail sales
29 occurring in a county having more than 3,000,000 inhabitants.
30 The remainder shall be distributed to each county having
31 3,000,000 or fewer inhabitants based upon the retail sales
32 occurring in each such county.
33 For the purpose of determining allocation to the local
-12- LRB9101586PTpk
1 government unit, a retail sale by a producer of coal or other
2 mineral mined in Illinois is a sale at retail at the place
3 where the coal or other mineral mined in Illinois is
4 extracted from the earth. This paragraph does not apply to
5 coal or other mineral when it is delivered or shipped by the
6 seller to the purchaser at a point outside Illinois so that
7 the sale is exempt under the United States Constitution as a
8 sale in interstate or foreign commerce.
9 Of the money received from the 6.25% general use tax rate
10 on tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by any agency of this State's government and paid
13 into the County and Mass Transit District Fund, the amount
14 for which Illinois addresses for titling or registration
15 purposes are given as being in each county having more than
16 3,000,000 inhabitants shall be distributed into the Regional
17 Transportation Authority tax fund, created pursuant to
18 Section 4.03 of the Regional Transportation Authority Act.
19 The remainder of the money paid from such sales shall be
20 distributed to each county based on sales for which Illinois
21 addresses for titling or registration purposes are given as
22 being located in the county. Any money paid into the
23 Regional Transportation Authority Occupation and Use Tax
24 Replacement Fund from the County and Mass Transit District
25 Fund prior to January 14, 1991, which has not been paid to
26 the Authority prior to that date, shall be transferred to the
27 Regional Transportation Authority tax fund.
28 Of the money received from the 1.25% rate imposed under
29 the Use Tax Act upon the selling price of any motor vehicle
30 that is purchased outside of Illinois at retail by a lessor
31 for purposes of leasing under a lease subject to the
32 Automobile Leasing Occupation and Use Tax Act which is titled
33 or registered by any agency of this State's government and is
34 paid into the County and Mass Transit District Fund, shall be
-13- LRB9101586PTpk
1 distributed as provided in this paragraph, less 3% for the
2 first 12 monthly distributions and 1% for each monthly
3 distribution thereafter, which sum shall be paid into the Tax
4 Compliance and Administration Fund. The amount for which
5 Illinois addresses for titling or registration purposes are
6 given as being in each county having more than 3,000,000
7 inhabitants shall be distributed into the Regional
8 Transportation Authority Tax Fund, created pursuant to
9 Section 4.03 of the Regional Transportation Authority Act.
10 The remainder of the moneys paid from such sales shall be
11 distributed to each county based on sales for which Illinois
12 addresses for titling or registration purposes are given as
13 being located in that county.
14 Whenever the Department determines that a refund of money
15 paid into the County and Mass Transit District Fund should be
16 made to a claimant instead of issuing a credit memorandum,
17 the Department shall notify the State Comptroller, who shall
18 cause the order to be drawn for the amount specified, and to
19 the person named, in such notification from the Department.
20 Such refund shall be paid by the State Treasurer out of the
21 County and Mass Transit District Fund.
22 On or before the 25th day of each calendar month, the
23 Department shall prepare and certify to the Comptroller the
24 disbursement of stated sums of money to the Regional
25 Transportation Authority and to named counties, the counties
26 to be those entitled to distribution, as hereinabove
27 provided, of taxes or penalties paid to the Department during
28 the second preceding calendar month. The amount to be paid
29 to the Regional Transportation Authority and each county
30 having 3,000,000 or fewer inhabitants shall be the amount
31 (not including credit memoranda) collected during the second
32 preceding calendar month by the Department and paid into the
33 County and Mass Transit District Fund, plus an amount the
34 Department determines is necessary to offset any amounts
-14- LRB9101586PTpk
1 which were erroneously paid to a different taxing body, and
2 not including an amount equal to the amount of refunds made
3 during the second preceding calendar month by the Department,
4 and not including any amount which the Department determines
5 is necessary to offset any amounts which were payable to a
6 different taxing body but were erroneously paid to the
7 Regional Transportation Authority or county. Within 10 days
8 after receipt, by the Comptroller, of the disbursement
9 certification to the Regional Transportation Authority and
10 counties, provided for in this Section to be given to the
11 Comptroller by the Department, the Comptroller shall cause
12 the orders to be drawn for the respective amounts in
13 accordance with the directions contained in such
14 certification.
15 When certifying the amount of a monthly disbursement to
16 the Regional Transportation Authority or to a county under
17 this Section, the Department shall increase or decrease that
18 amount by an amount necessary to offset any misallocation of
19 previous disbursements. The offset amount shall be the
20 amount erroneously disbursed within the 6 months preceding
21 the time a misallocation is discovered.
22 The provisions directing the distributions from the
23 special fund in the State Treasury provided for in this
24 Section and from the Regional Transportation Authority tax
25 fund created by Section 4.03 of the Regional Transportation
26 Authority Act shall constitute an irrevocable and continuing
27 appropriation of all amounts as provided herein. The State
28 Treasurer and State Comptroller are hereby authorized to make
29 distributions as provided in this Section.
30 In construing any development, redevelopment, annexation,
31 preannexation or other lawful agreement in effect prior to
32 September 1, 1990, which describes or refers to receipts from
33 a county or municipal retailers' occupation tax, use tax or
34 service occupation tax which now cannot be imposed, such
-15- LRB9101586PTpk
1 description or reference shall be deemed to include the
2 replacement revenue for such abolished taxes, distributed
3 from the County and Mass Transit District Fund or Local
4 Government Distributive Fund, as the case may be.
5 (Source: P.A. 90-491, eff. 1-1-98.)
6 Section 85. The Use Tax Act is amended by changing
7 Sections 1a, 3-10, and 9 as follows:
8 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
9 Sec. 1a. A person who is engaged in the business of
10 leasing or renting motor vehicles to others and who, in
11 connection with such business sells any used motor vehicle to
12 a purchaser for his use and not for the purpose of resale, is
13 a retailer engaged in the business of selling tangible
14 personal property at retail under this Act to the extent of
15 the value of the vehicle sold. For the purpose of this
16 Section, "motor vehicle" means any motor vehicle of the first
17 division, a motor vehicle of the second division which is a
18 self-contained motor vehicle designed or permanently
19 converted to provide living quarters for recreational,
20 camping or travel use, with direct walk through access to the
21 living quarters from the driver's seat, or a motor vehicle of
22 a second division which is of the van configuration designed
23 for the transportation of not less than 7 nor more than 16
24 passengers, as defined in Section 1-146 of the Illinois
25 Vehicle Code. For the purpose of this Section, "motor
26 vehicle" has the meaning prescribed in Section 1-157 of The
27 Illinois Vehicle Code, as now or hereafter amended. (Nothing
28 provided herein shall affect liability incurred under this
29 Act because of the use of such motor vehicles as a lessor.)
30 (Source: P.A. 80-598.)
31 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
-16- LRB9101586PTpk
1 Sec. 3-10. Rate of tax. Unless otherwise provided in
2 this Section, the tax imposed by this Act is at the rate of
3 6.25% of either the selling price or the fair market value,
4 if any, of the tangible personal property. In all cases
5 where property functionally used or consumed is the same as
6 the property that was purchased at retail, then the tax is
7 imposed on the selling price of the property. In all cases
8 where property functionally used or consumed is a by-product
9 or waste product that has been refined, manufactured, or
10 produced from property purchased at retail, then the tax is
11 imposed on the lower of the fair market value, if any, of the
12 specific property so used in this State or on the selling
13 price of the property purchased at retail. For purposes of
14 this Section "fair market value" means the price at which
15 property would change hands between a willing buyer and a
16 willing seller, neither being under any compulsion to buy or
17 sell and both having reasonable knowledge of the relevant
18 facts. The fair market value shall be established by Illinois
19 sales by the taxpayer of the same property as that
20 functionally used or consumed, or if there are no such sales
21 by the taxpayer, then comparable sales or purchases of
22 property of like kind and character in Illinois.
23 With respect to gasohol, the tax imposed by this Act
24 applies to 70% of the proceeds of sales made on or after
25 January 1, 1990, and before July 1, 2003, and to 100% of the
26 proceeds of sales made thereafter.
27 With respect to food for human consumption that is to be
28 consumed off the premises where it is sold (other than
29 alcoholic beverages, soft drinks, and food that has been
30 prepared for immediate consumption) and prescription and
31 nonprescription medicines, drugs, medical appliances,
32 modifications to a motor vehicle for the purpose of rendering
33 it usable by a disabled person, and insulin, urine testing
34 materials, syringes, and needles used by diabetics, for human
-17- LRB9101586PTpk
1 use, the tax is imposed at the rate of 1%. For the purposes
2 of this Section, the term "soft drinks" means any complete,
3 finished, ready-to-use, non-alcoholic drink, whether
4 carbonated or not, including but not limited to soda water,
5 cola, fruit juice, vegetable juice, carbonated water, and all
6 other preparations commonly known as soft drinks of whatever
7 kind or description that are contained in any closed or
8 sealed bottle, can, carton, or container, regardless of size.
9 "Soft drinks" does not include coffee, tea, non-carbonated
10 water, infant formula, milk or milk products as defined in
11 the Grade A Pasteurized Milk and Milk Products Act, or drinks
12 containing 50% or more natural fruit or vegetable juice.
13 Notwithstanding any other provisions of this Act, "food
14 for human consumption that is to be consumed off the premises
15 where it is sold" includes all food sold through a vending
16 machine, except soft drinks and food products that are
17 dispensed hot from a vending machine, regardless of the
18 location of the vending machine.
19 With respect to any motor vehicle (as the term "motor
20 vehicle" is defined in Section 1a of this Act) that is
21 purchased by a lessor for purposes of leasing under a lease
22 subject to the Automobile Leasing Occupation and Use Tax Act,
23 the tax is imposed at the rate of 1.25%.
24 With respect to any motor vehicle (as the term "motor
25 vehicle" is defined in Section 1a of this Act) that has been
26 leased by a lessor to a lessee under a lease that is subject
27 to the Automobile Leasing Occupation and Use Tax Act, and is
28 subsequently purchased by the lessee of such vehicle, the tax
29 is imposed at the rate of 5%.
30 If the property that is purchased at retail from a
31 retailer is acquired outside Illinois and used outside
32 Illinois before being brought to Illinois for use here and is
33 taxable under this Act, the "selling price" on which the tax
34 is computed shall be reduced by an amount that represents a
-18- LRB9101586PTpk
1 reasonable allowance for depreciation for the period of prior
2 out-of-state use.
3 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
4 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
5 6-30-98; 90-606, eff. 6-30-98.)
6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 Sec. 9. Except as to motor vehicles, watercraft,
8 aircraft, and trailers that are required to be registered
9 with an agency of this State, each retailer required or
10 authorized to collect the tax imposed by this Act shall pay
11 to the Department the amount of such tax (except as otherwise
12 provided) at the time when he is required to file his return
13 for the period during which such tax was collected, less a
14 discount of 2.1% prior to January 1, 1990, and 1.75% on and
15 after January 1, 1990, or $5 per calendar year, whichever is
16 greater, which is allowed to reimburse the retailer for
17 expenses incurred in collecting the tax, keeping records,
18 preparing and filing returns, remitting the tax and supplying
19 data to the Department on request. In the case of retailers
20 who report and pay the tax on a transaction by transaction
21 basis, as provided in this Section, such discount shall be
22 taken with each such tax remittance instead of when such
23 retailer files his periodic return. A retailer need not
24 remit that part of any tax collected by him to the extent
25 that he is required to remit and does remit the tax imposed
26 by the Retailers' Occupation Tax Act, with respect to the
27 sale of the same property.
28 Where such tangible personal property is sold under a
29 conditional sales contract, or under any other form of sale
30 wherein the payment of the principal sum, or a part thereof,
31 is extended beyond the close of the period for which the
32 return is filed, the retailer, in collecting the tax (except
33 as to motor vehicles, watercraft, aircraft, and trailers that
-19- LRB9101586PTpk
1 are required to be registered with an agency of this State),
2 may collect for each tax return period, only the tax
3 applicable to that part of the selling price actually
4 received during such tax return period.
5 Except as provided in this Section, on or before the
6 twentieth day of each calendar month, such retailer shall
7 file a return for the preceding calendar month. Such return
8 shall be filed on forms prescribed by the Department and
9 shall furnish such information as the Department may
10 reasonably require.
11 The Department may require returns to be filed on a
12 quarterly basis. If so required, a return for each calendar
13 quarter shall be filed on or before the twentieth day of the
14 calendar month following the end of such calendar quarter.
15 The taxpayer shall also file a return with the Department for
16 each of the first two months of each calendar quarter, on or
17 before the twentieth day of the following calendar month,
18 stating:
19 1. The name of the seller;
20 2. The address of the principal place of business
21 from which he engages in the business of selling tangible
22 personal property at retail in this State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month from sales of
25 tangible personal property by him during such preceding
26 calendar month, including receipts from charge and time
27 sales, but less all deductions allowed by law;
28 4. The amount of credit provided in Section 2d of
29 this Act;
30 5. The amount of tax due;
31 5-5. The signature of the taxpayer; and
32 6. Such other reasonable information as the
33 Department may require.
34 If a taxpayer fails to sign a return within 30 days after
-20- LRB9101586PTpk
1 the proper notice and demand for signature by the Department,
2 the return shall be considered valid and any amount shown to
3 be due on the return shall be deemed assessed.
4 Beginning October 1, 1993, a taxpayer who has an average
5 monthly tax liability of $150,000 or more shall make all
6 payments required by rules of the Department by electronic
7 funds transfer. Beginning October 1, 1994, a taxpayer who has
8 an average monthly tax liability of $100,000 or more shall
9 make all payments required by rules of the Department by
10 electronic funds transfer. Beginning October 1, 1995, a
11 taxpayer who has an average monthly tax liability of $50,000
12 or more shall make all payments required by rules of the
13 Department by electronic funds transfer. The term "average
14 monthly tax liability" means the sum of the taxpayer's
15 liabilities under this Act, and under all other State and
16 local occupation and use tax laws administered by the
17 Department, for the immediately preceding calendar year
18 divided by 12.
19 Before August 1 of each year beginning in 1993, the
20 Department shall notify all taxpayers required to make
21 payments by electronic funds transfer. All taxpayers required
22 to make payments by electronic funds transfer shall make
23 those payments for a minimum of one year beginning on October
24 1.
25 Any taxpayer not required to make payments by electronic
26 funds transfer may make payments by electronic funds transfer
27 with the permission of the Department.
28 All taxpayers required to make payment by electronic
29 funds transfer and any taxpayers authorized to voluntarily
30 make payments by electronic funds transfer shall make those
31 payments in the manner authorized by the Department.
32 The Department shall adopt such rules as are necessary to
33 effectuate a program of electronic funds transfer and the
34 requirements of this Section.
-21- LRB9101586PTpk
1 If the taxpayer's average monthly tax liability to the
2 Department under this Act, the Retailers' Occupation Tax Act,
3 the Service Occupation Tax Act, the Service Use Tax Act was
4 $10,000 or more during the preceding 4 complete calendar
5 quarters, he shall file a return with the Department each
6 month by the 20th day of the month next following the month
7 during which such tax liability is incurred and shall make
8 payments to the Department on or before the 7th, 15th, 22nd
9 and last day of the month during which such liability is
10 incurred. If the month during which such tax liability is
11 incurred began prior to January 1, 1985, each payment shall
12 be in an amount equal to 1/4 of the taxpayer's actual
13 liability for the month or an amount set by the Department
14 not to exceed 1/4 of the average monthly liability of the
15 taxpayer to the Department for the preceding 4 complete
16 calendar quarters (excluding the month of highest liability
17 and the month of lowest liability in such 4 quarter period).
18 If the month during which such tax liability is incurred
19 begins on or after January 1, 1985, and prior to January 1,
20 1987, each payment shall be in an amount equal to 22.5% of
21 the taxpayer's actual liability for the month or 27.5% of the
22 taxpayer's liability for the same calendar month of the
23 preceding year. If the month during which such tax liability
24 is incurred begins on or after January 1, 1987, and prior to
25 January 1, 1988, each payment shall be in an amount equal to
26 22.5% of the taxpayer's actual liability for the month or
27 26.25% of the taxpayer's liability for the same calendar
28 month of the preceding year. If the month during which such
29 tax liability is incurred begins on or after January 1, 1988,
30 and prior to January 1, 1989, or begins on or after January
31 1, 1996, each payment shall be in an amount equal to 22.5% of
32 the taxpayer's actual liability for the month or 25% of the
33 taxpayer's liability for the same calendar month of the
34 preceding year. If the month during which such tax liability
-22- LRB9101586PTpk
1 is incurred begins on or after January 1, 1989, and prior to
2 January 1, 1996, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or 25%
4 of the taxpayer's liability for the same calendar month of
5 the preceding year or 100% of the taxpayer's actual liability
6 for the quarter monthly reporting period. The amount of such
7 quarter monthly payments shall be credited against the final
8 tax liability of the taxpayer's return for that month. Once
9 applicable, the requirement of the making of quarter monthly
10 payments to the Department shall continue until such
11 taxpayer's average monthly liability to the Department during
12 the preceding 4 complete calendar quarters (excluding the
13 month of highest liability and the month of lowest liability)
14 is less than $9,000, or until such taxpayer's average monthly
15 liability to the Department as computed for each calendar
16 quarter of the 4 preceding complete calendar quarter period
17 is less than $10,000. However, if a taxpayer can show the
18 Department that a substantial change in the taxpayer's
19 business has occurred which causes the taxpayer to anticipate
20 that his average monthly tax liability for the reasonably
21 foreseeable future will fall below $10,000, then such
22 taxpayer may petition the Department for change in such
23 taxpayer's reporting status. The Department shall change
24 such taxpayer's reporting status unless it finds that such
25 change is seasonal in nature and not likely to be long term.
26 If any such quarter monthly payment is not paid at the time
27 or in the amount required by this Section, then the taxpayer
28 shall be liable for penalties and interest on the difference
29 between the minimum amount due and the amount of such quarter
30 monthly payment actually and timely paid, except insofar as
31 the taxpayer has previously made payments for that month to
32 the Department in excess of the minimum payments previously
33 due as provided in this Section. The Department shall make
34 reasonable rules and regulations to govern the quarter
-23- LRB9101586PTpk
1 monthly payment amount and quarter monthly payment dates for
2 taxpayers who file on other than a calendar monthly basis.
3 If any such payment provided for in this Section exceeds
4 the taxpayer's liabilities under this Act, the Retailers'
5 Occupation Tax Act, the Service Occupation Tax Act and the
6 Service Use Tax Act, as shown by an original monthly return,
7 the Department shall issue to the taxpayer a credit
8 memorandum no later than 30 days after the date of payment,
9 which memorandum may be submitted by the taxpayer to the
10 Department in payment of tax liability subsequently to be
11 remitted by the taxpayer to the Department or be assigned by
12 the taxpayer to a similar taxpayer under this Act, the
13 Retailers' Occupation Tax Act, the Service Occupation Tax Act
14 or the Service Use Tax Act, in accordance with reasonable
15 rules and regulations to be prescribed by the Department,
16 except that if such excess payment is shown on an original
17 monthly return and is made after December 31, 1986, no credit
18 memorandum shall be issued, unless requested by the taxpayer.
19 If no such request is made, the taxpayer may credit such
20 excess payment against tax liability subsequently to be
21 remitted by the taxpayer to the Department under this Act,
22 the Retailers' Occupation Tax Act, the Service Occupation Tax
23 Act or the Service Use Tax Act, in accordance with reasonable
24 rules and regulations prescribed by the Department. If the
25 Department subsequently determines that all or any part of
26 the credit taken was not actually due to the taxpayer, the
27 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
28 by 2.1% or 1.75% of the difference between the credit taken
29 and that actually due, and the taxpayer shall be liable for
30 penalties and interest on such difference.
31 If the retailer is otherwise required to file a monthly
32 return and if the retailer's average monthly tax liability to
33 the Department does not exceed $200, the Department may
34 authorize his returns to be filed on a quarter annual basis,
-24- LRB9101586PTpk
1 with the return for January, February, and March of a given
2 year being due by April 20 of such year; with the return for
3 April, May and June of a given year being due by July 20 of
4 such year; with the return for July, August and September of
5 a given year being due by October 20 of such year, and with
6 the return for October, November and December of a given year
7 being due by January 20 of the following year.
8 If the retailer is otherwise required to file a monthly
9 or quarterly return and if the retailer's average monthly tax
10 liability to the Department does not exceed $50, the
11 Department may authorize his returns to be filed on an annual
12 basis, with the return for a given year being due by January
13 20 of the following year.
14 Such quarter annual and annual returns, as to form and
15 substance, shall be subject to the same requirements as
16 monthly returns.
17 Notwithstanding any other provision in this Act
18 concerning the time within which a retailer may file his
19 return, in the case of any retailer who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Act, such retailer shall file a final
22 return under this Act with the Department not more than one
23 month after discontinuing such business.
24 In addition, with respect to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, every retailer selling this
27 kind of tangible personal property shall file, with the
28 Department, upon a form to be prescribed and supplied by the
29 Department, a separate return for each such item of tangible
30 personal property which the retailer sells, except that
31 where, in the same transaction, a retailer of aircraft,
32 watercraft, motor vehicles or trailers transfers more than
33 one aircraft, watercraft, motor vehicle or trailer to another
34 aircraft, watercraft, motor vehicle or trailer retailer for
-25- LRB9101586PTpk
1 the purpose of resale, that seller for resale may report the
2 transfer of all the aircraft, watercraft, motor vehicles or
3 trailers involved in that transaction to the Department on
4 the same uniform invoice-transaction reporting return form.
5 For purposes of this Section, "watercraft" means a Class 2,
6 Class 3, or Class 4 watercraft as defined in Section 3-2 of
7 the Boat Registration and Safety Act, a personal watercraft,
8 or any boat equipped with an inboard motor.
9 The transaction reporting return in the case of motor
10 vehicles or trailers that are required to be registered with
11 an agency of this State, shall be the same document as the
12 Uniform Invoice referred to in Section 5-402 of the Illinois
13 Vehicle Code and must show the name and address of the
14 seller; the name and address of the purchaser; the amount of
15 the selling price including the amount allowed by the
16 retailer for traded-in property, if any; the amount allowed
17 by the retailer for the traded-in tangible personal property,
18 if any, to the extent to which Section 2 of this Act allows
19 an exemption for the value of traded-in property; the balance
20 payable after deducting such trade-in allowance from the
21 total selling price; the amount of tax due from the retailer
22 with respect to such transaction; the amount of tax collected
23 from the purchaser by the retailer on such transaction (or
24 satisfactory evidence that such tax is not due in that
25 particular instance, if that is claimed to be the fact); the
26 place and date of the sale; a sufficient identification of
27 the property sold; such other information as is required in
28 Section 5-402 of the Illinois Vehicle Code, and such other
29 information as the Department may reasonably require.
30 The transaction reporting return in the case of
31 watercraft and aircraft must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
-26- LRB9101586PTpk
1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale, a sufficient identification of
11 the property sold, and such other information as the
12 Department may reasonably require.
13 Such transaction reporting return shall be filed not
14 later than 20 days after the date of delivery of the item
15 that is being sold, but may be filed by the retailer at any
16 time sooner than that if he chooses to do so. The
17 transaction reporting return and tax remittance or proof of
18 exemption from the tax that is imposed by this Act may be
19 transmitted to the Department by way of the State agency with
20 which, or State officer with whom, the tangible personal
21 property must be titled or registered (if titling or
22 registration is required) if the Department and such agency
23 or State officer determine that this procedure will expedite
24 the processing of applications for title or registration.
25 With each such transaction reporting return, the retailer
26 shall remit the proper amount of tax due (or shall submit
27 satisfactory evidence that the sale is not taxable if that is
28 the case), to the Department or its agents, whereupon the
29 Department shall issue, in the purchaser's name, a tax
30 receipt (or a certificate of exemption if the Department is
31 satisfied that the particular sale is tax exempt) which such
32 purchaser may submit to the agency with which, or State
33 officer with whom, he must title or register the tangible
34 personal property that is involved (if titling or
-27- LRB9101586PTpk
1 registration is required) in support of such purchaser's
2 application for an Illinois certificate or other evidence of
3 title or registration to such tangible personal property.
4 No retailer's failure or refusal to remit tax under this
5 Act precludes a user, who has paid the proper tax to the
6 retailer, from obtaining his certificate of title or other
7 evidence of title or registration (if titling or registration
8 is required) upon satisfying the Department that such user
9 has paid the proper tax (if tax is due) to the retailer. The
10 Department shall adopt appropriate rules to carry out the
11 mandate of this paragraph.
12 If the user who would otherwise pay tax to the retailer
13 wants the transaction reporting return filed and the payment
14 of tax or proof of exemption made to the Department before
15 the retailer is willing to take these actions and such user
16 has not paid the tax to the retailer, such user may certify
17 to the fact of such delay by the retailer, and may (upon the
18 Department being satisfied of the truth of such
19 certification) transmit the information required by the
20 transaction reporting return and the remittance for tax or
21 proof of exemption directly to the Department and obtain his
22 tax receipt or exemption determination, in which event the
23 transaction reporting return and tax remittance (if a tax
24 payment was required) shall be credited by the Department to
25 the proper retailer's account with the Department, but
26 without the 2.1% or 1.75% discount provided for in this
27 Section being allowed. When the user pays the tax directly
28 to the Department, he shall pay the tax in the same amount
29 and in the same form in which it would be remitted if the tax
30 had been remitted to the Department by the retailer.
31 Where a retailer collects the tax with respect to the
32 selling price of tangible personal property which he sells
33 and the purchaser thereafter returns such tangible personal
34 property and the retailer refunds the selling price thereof
-28- LRB9101586PTpk
1 to the purchaser, such retailer shall also refund, to the
2 purchaser, the tax so collected from the purchaser. When
3 filing his return for the period in which he refunds such tax
4 to the purchaser, the retailer may deduct the amount of the
5 tax so refunded by him to the purchaser from any other use
6 tax which such retailer may be required to pay or remit to
7 the Department, as shown by such return, if the amount of the
8 tax to be deducted was previously remitted to the Department
9 by such retailer. If the retailer has not previously
10 remitted the amount of such tax to the Department, he is
11 entitled to no deduction under this Act upon refunding such
12 tax to the purchaser.
13 Any retailer filing a return under this Section shall
14 also include (for the purpose of paying tax thereon) the
15 total tax covered by such return upon the selling price of
16 tangible personal property purchased by him at retail from a
17 retailer, but as to which the tax imposed by this Act was not
18 collected from the retailer filing such return, and such
19 retailer shall remit the amount of such tax to the Department
20 when filing such return.
21 If experience indicates such action to be practicable,
22 the Department may prescribe and furnish a combination or
23 joint return which will enable retailers, who are required to
24 file returns hereunder and also under the Retailers'
25 Occupation Tax Act, to furnish all the return information
26 required by both Acts on the one form.
27 Where the retailer has more than one business registered
28 with the Department under separate registration under this
29 Act, such retailer may not file each return that is due as a
30 single return covering all such registered businesses, but
31 shall file separate returns for each such registered
32 business.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the State and Local Sales Tax Reform Fund, a
-29- LRB9101586PTpk
1 special fund in the State Treasury which is hereby created,
2 the net revenue realized for the preceding month from the 1%
3 tax on sales of food for human consumption which is to be
4 consumed off the premises where it is sold (other than
5 alcoholic beverages, soft drinks and food which has been
6 prepared for immediate consumption) and prescription and
7 nonprescription medicines, drugs, medical appliances and
8 insulin, urine testing materials, syringes and needles used
9 by diabetics.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the County and Mass Transit District Fund 4%
12 of the net revenue realized for the preceding month from the
13 6.25% general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of
16 this State's government.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury, 20% of the net revenue
20 realized for the preceding month from the 6.25% general rate
21 on the selling price of tangible personal property, other
22 than tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by an agency of this State's government.
25 Each month the Department shall pay into the County and
26 Mass Transit District Fund 20% the net revenue realized for
27 the preceding month from the 1.25% rate imposed upon the
28 selling price of any motor vehicle that is purchased outside
29 Illinois at retail by a lessor for purposes of leasing under
30 a lease subject to the Automobile Leasing Occupation and Use
31 Tax Act and which is titled or registered by an agency of
32 this State's government.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the Local Government Tax Fund 16% of the net
-30- LRB9101586PTpk
1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property which is purchased outside Illinois at retail from a
4 retailer and which is titled or registered by an agency of
5 this State's government.
6 Each month the Department shall pay into the Local
7 Government Tax Fund 80% of the net revenue realized for the
8 preceding month from the 1.25% rate imposed upon the selling
9 price of any motor vehicle that is purchased outside Illinois
10 at retail by a lessor for purposes of leasing under a lease
11 subject to the Automobile Leasing Occupation and Use Tax Act
12 and which is titled or registered by an agency of this
13 State's government.
14 Of the remainder of the moneys received by the Department
15 pursuant to this Act, and including all moneys received by
16 the Department under Section 20 of the Automobile Leasing
17 Occupation and Use Tax Act and including all of the moneys
18 received pursuant to the 5% rate imposed upon the selling
19 price of any motor vehicle that is purchased from lessors by
20 lessees of such vehicles in connection with a lease that was
21 subject to the Automobile Leasing Occupation and Use Tax Act
22 Of the remainder of the moneys received by the Department
23 pursuant to this Act, (a) 1.75% thereof shall be paid into
24 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
25 and on and after July 1, 1989, 3.8% thereof shall be paid
26 into the Build Illinois Fund; provided, however, that if in
27 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
28 as the case may be, of the moneys received by the Department
29 and required to be paid into the Build Illinois Fund pursuant
30 to Section 3 of the Retailers' Occupation Tax Act, Section 9
31 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
32 Section 9 of the Service Occupation Tax Act, such Acts being
33 hereinafter called the "Tax Acts" and such aggregate of 2.2%
34 or 3.8%, as the case may be, of moneys being hereinafter
-31- LRB9101586PTpk
1 called the "Tax Act Amount", and (2) the amount transferred
2 to the Build Illinois Fund from the State and Local Sales Tax
3 Reform Fund shall be less than the Annual Specified Amount
4 (as defined in Section 3 of the Retailers' Occupation Tax
5 Act), an amount equal to the difference shall be immediately
6 paid into the Build Illinois Fund from other moneys received
7 by the Department pursuant to the Tax Acts; and further
8 provided, that if on the last business day of any month the
9 sum of (1) the Tax Act Amount required to be deposited into
10 the Build Illinois Bond Account in the Build Illinois Fund
11 during such month and (2) the amount transferred during such
12 month to the Build Illinois Fund from the State and Local
13 Sales Tax Reform Fund shall have been less than 1/12 of the
14 Annual Specified Amount, an amount equal to the difference
15 shall be immediately paid into the Build Illinois Fund from
16 other moneys received by the Department pursuant to the Tax
17 Acts; and, further provided, that in no event shall the
18 payments required under the preceding proviso result in
19 aggregate payments into the Build Illinois Fund pursuant to
20 this clause (b) for any fiscal year in excess of the greater
21 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
22 for such fiscal year; and, further provided, that the amounts
23 payable into the Build Illinois Fund under this clause (b)
24 shall be payable only until such time as the aggregate amount
25 on deposit under each trust indenture securing Bonds issued
26 and outstanding pursuant to the Build Illinois Bond Act is
27 sufficient, taking into account any future investment income,
28 to fully provide, in accordance with such indenture, for the
29 defeasance of or the payment of the principal of, premium, if
30 any, and interest on the Bonds secured by such indenture and
31 on any Bonds expected to be issued thereafter and all fees
32 and costs payable with respect thereto, all as certified by
33 the Director of the Bureau of the Budget. If on the last
34 business day of any month in which Bonds are outstanding
-32- LRB9101586PTpk
1 pursuant to the Build Illinois Bond Act, the aggregate of the
2 moneys deposited in the Build Illinois Bond Account in the
3 Build Illinois Fund in such month shall be less than the
4 amount required to be transferred in such month from the
5 Build Illinois Bond Account to the Build Illinois Bond
6 Retirement and Interest Fund pursuant to Section 13 of the
7 Build Illinois Bond Act, an amount equal to such deficiency
8 shall be immediately paid from other moneys received by the
9 Department pursuant to the Tax Acts to the Build Illinois
10 Fund; provided, however, that any amounts paid to the Build
11 Illinois Fund in any fiscal year pursuant to this sentence
12 shall be deemed to constitute payments pursuant to clause (b)
13 of the preceding sentence and shall reduce the amount
14 otherwise payable for such fiscal year pursuant to clause (b)
15 of the preceding sentence. The moneys received by the
16 Department pursuant to this Act and required to be deposited
17 into the Build Illinois Fund are subject to the pledge, claim
18 and charge set forth in Section 12 of the Build Illinois Bond
19 Act.
20 Subject to payment of amounts into the Build Illinois
21 Fund as provided in the preceding paragraph or in any
22 amendment thereto hereafter enacted, the following specified
23 monthly installment of the amount requested in the
24 certificate of the Chairman of the Metropolitan Pier and
25 Exposition Authority provided under Section 8.25f of the
26 State Finance Act, but not in excess of the sums designated
27 as "Total Deposit", shall be deposited in the aggregate from
28 collections under Section 9 of the Use Tax Act, Section 9 of
29 the Service Use Tax Act, Section 9 of the Service Occupation
30 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
31 into the McCormick Place Expansion Project Fund in the
32 specified fiscal years.
33 Fiscal Year Total Deposit
34 1993 $0
-33- LRB9101586PTpk
1 1994 53,000,000
2 1995 58,000,000
3 1996 61,000,000
4 1997 64,000,000
5 1998 68,000,000
6 1999 71,000,000
7 2000 75,000,000
8 2001 80,000,000
9 2002 84,000,000
10 2003 89,000,000
11 2004 93,000,000
12 2005 97,000,000
13 2006 102,000,000
14 2007 and 106,000,000
15 each fiscal year
16 thereafter that bonds
17 are outstanding under
18 Section 13.2 of the
19 Metropolitan Pier and
20 Exposition Authority
21 Act, but not after fiscal year 2029.
22 Beginning July 20, 1993 and in each month of each fiscal
23 year thereafter, one-eighth of the amount requested in the
24 certificate of the Chairman of the Metropolitan Pier and
25 Exposition Authority for that fiscal year, less the amount
26 deposited into the McCormick Place Expansion Project Fund by
27 the State Treasurer in the respective month under subsection
28 (g) of Section 13 of the Metropolitan Pier and Exposition
29 Authority Act, plus cumulative deficiencies in the deposits
30 required under this Section for previous months and years,
31 shall be deposited into the McCormick Place Expansion Project
32 Fund, until the full amount requested for the fiscal year,
33 but not in excess of the amount specified above as "Total
34 Deposit", has been deposited.
-34- LRB9101586PTpk
1 Subject to payment of amounts into the Build Illinois
2 Fund and the McCormick Place Expansion Project Fund pursuant
3 to the preceding paragraphs or in any amendment thereto
4 hereafter enacted, each month the Department shall pay into
5 the Local Government Distributive Fund .4% of the net revenue
6 realized for the preceding month from the 5% general rate, or
7 .4% of 80% of the net revenue realized for the preceding
8 month from the 6.25% general rate, as the case may be, on the
9 selling price of tangible personal property which amount
10 shall, subject to appropriation, be distributed as provided
11 in Section 2 of the State Revenue Sharing Act. No payments or
12 distributions pursuant to this paragraph shall be made if the
13 tax imposed by this Act on photoprocessing products is
14 declared unconstitutional, or if the proceeds from such tax
15 are unavailable for distribution because of litigation.
16 Subject to payment of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project Fund, and the
18 Local Government Distributive Fund pursuant to the preceding
19 paragraphs or in any amendments thereto hereafter enacted,
20 beginning July 1, 1993, the Department shall each month pay
21 into the Illinois Tax Increment Fund 0.27% of 80% of the net
22 revenue realized for the preceding month from the 6.25%
23 general rate on the selling price of tangible personal
24 property.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, 75% thereof shall be paid into the
27 State Treasury and 25% shall be reserved in a special account
28 and used only for the transfer to the Common School Fund as
29 part of the monthly transfer from the General Revenue Fund in
30 accordance with Section 8a of the State Finance Act.
31 As soon as possible after the first day of each month,
32 upon certification of the Department of Revenue, the
33 Comptroller shall order transferred and the Treasurer shall
34 transfer from the General Revenue Fund to the Motor Fuel Tax
-35- LRB9101586PTpk
1 Fund an amount equal to 1.7% of 80% of the net revenue
2 realized under this Act for the second preceding month;
3 except that this transfer shall not be made for the months
4 February through June of 1992.
5 Net revenue realized for a month shall be the revenue
6 collected by the State pursuant to this Act, less the amount
7 paid out during that month as refunds to taxpayers for
8 overpayment of liability.
9 For greater simplicity of administration, manufacturers,
10 importers and wholesalers whose products are sold at retail
11 in Illinois by numerous retailers, and who wish to do so, may
12 assume the responsibility for accounting and paying to the
13 Department all tax accruing under this Act with respect to
14 such sales, if the retailers who are affected do not make
15 written objection to the Department to this arrangement.
16 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
17 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
18 Section 90. The Retailers' Occupation Tax Act is amended
19 by changing Sections 1c, 2-10, and 3 as follows:
20 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
21 Sec. 1c. A person who is engaged in the business of
22 leasing or renting motor vehicles to others and who, in
23 connection with such business sells any used motor vehicle to
24 a purchaser for his use and not for the purpose of resale, is
25 a retailer engaged in the business of selling tangible
26 personal property at retail under this Act to the extent of
27 the value of the vehicle sold. For the purpose of this
28 Section, "motor vehicle" means any motor vehicle of the first
29 division, a motor vehicle of the second division which is a
30 self-contained motor vehicle designed or permanently
31 converted to provide living quarters for recreational,
32 camping or travel use, with direct walk through access to the
-36- LRB9101586PTpk
1 living quarters from the driver's seat, or a motor vehicle of
2 a second division which is of the van configuration designed
3 for the transportation of not less than 7 nor more than 16
4 passengers, as defined in Section 1-146 of the Illinois
5 Vehicle Code. For the purpose of this Section "motor vehicle"
6 has the meaning prescribed in Section 1-157 of The Illinois
7 Vehicle Code, as now or hereafter amended. (Nothing provided
8 herein shall affect liability incurred under this Act because
9 of the sale at retail of such motor vehicles to a lessor.)
10 (Source: P.A. 80-598.)
11 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
12 Sec. 2-10. Rate of tax. Unless otherwise provided in
13 this Section, the tax imposed by this Act is at the rate of
14 6.25% of gross receipts from sales of tangible personal
15 property made in the course of business.
16 With respect to gasohol, as defined in the Use Tax Act,
17 the tax imposed by this Act applies to 70% of the proceeds of
18 sales made on or after January 1, 1990, and before July 1,
19 2003, and to 100% of the proceeds of sales made thereafter.
20 With respect to food for human consumption that is to be
21 consumed off the premises where it is sold (other than
22 alcoholic beverages, soft drinks, and food that has been
23 prepared for immediate consumption) and prescription and
24 nonprescription medicines, drugs, medical appliances,
25 modifications to a motor vehicle for the purpose of rendering
26 it usable by a disabled person, and insulin, urine testing
27 materials, syringes, and needles used by diabetics, for human
28 use, the tax is imposed at the rate of 1%. For the purposes
29 of this Section, the term "soft drinks" means any complete,
30 finished, ready-to-use, non-alcoholic drink, whether
31 carbonated or not, including but not limited to soda water,
32 cola, fruit juice, vegetable juice, carbonated water, and all
33 other preparations commonly known as soft drinks of whatever
-37- LRB9101586PTpk
1 kind or description that are contained in any closed or
2 sealed bottle, can, carton, or container, regardless of size.
3 "Soft drinks" does not include coffee, tea, non-carbonated
4 water, infant formula, milk or milk products as defined in
5 the Grade A Pasteurized Milk and Milk Products Act, or drinks
6 containing 50% or more natural fruit or vegetable juice.
7 Notwithstanding any other provisions of this Act, "food
8 for human consumption that is to be consumed off the premises
9 where it is sold" includes all food sold through a vending
10 machine, except soft drinks and food products that are
11 dispensed hot from a vending machine, regardless of the
12 location of the vending machine.
13 With respect to any motor vehicle (as the term "motor
14 vehicle" is defined in Section 1c of this Act) that is sold
15 to a lessor for purposes of leasing under a lease subject to
16 the Automobile Leasing Occupation and Use Tax Act, the tax is
17 imposed at the rate of 1.25%.
18 With respect to any motor vehicle (as the term "motor
19 vehicle" is defined in Section 1c of this Act) that has been
20 leased by a lessor to a lessee under a lease that is subject
21 to the Automobile Leasing Occupation and Use Tax Act, and is
22 subsequently sold to the lessee of such vehicle, the tax is
23 imposed at the rate of 5%.
24 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
25 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
26 6-30-98; 90-606, eff. 6-30-98.)
27 (35 ILCS 120/3) (from Ch. 120, par. 442)
28 Sec. 3. Except as provided in this Section, on or before
29 the twentieth day of each calendar month, every person
30 engaged in the business of selling tangible personal property
31 at retail in this State during the preceding calendar month
32 shall file a return with the Department, stating:
33 1. The name of the seller;
-38- LRB9101586PTpk
1 2. His residence address and the address of his
2 principal place of business and the address of the
3 principal place of business (if that is a different
4 address) from which he engages in the business of selling
5 tangible personal property at retail in this State;
6 3. Total amount of receipts received by him during
7 the preceding calendar month or quarter, as the case may
8 be, from sales of tangible personal property, and from
9 services furnished, by him during such preceding calendar
10 month or quarter;
11 4. Total amount received by him during the
12 preceding calendar month or quarter on charge and time
13 sales of tangible personal property, and from services
14 furnished, by him prior to the month or quarter for which
15 the return is filed;
16 5. Deductions allowed by law;
17 6. Gross receipts which were received by him during
18 the preceding calendar month or quarter and upon the
19 basis of which the tax is imposed;
20 7. The amount of credit provided in Section 2d of
21 this Act;
22 8. The amount of tax due;
23 9. The signature of the taxpayer; and
24 10. Such other reasonable information as the
25 Department may require.
26 If a taxpayer fails to sign a return within 30 days after
27 the proper notice and demand for signature by the Department,
28 the return shall be considered valid and any amount shown to
29 be due on the return shall be deemed assessed.
30 Each return shall be accompanied by the statement of
31 prepaid tax issued pursuant to Section 2e for which credit is
32 claimed.
33 A retailer may accept a Manufacturer's Purchase Credit
34 certification from a purchaser in satisfaction of Use Tax as
-39- LRB9101586PTpk
1 provided in Section 3-85 of the Use Tax Act if the purchaser
2 provides the appropriate documentation as required by Section
3 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4 certification, accepted by a retailer as provided in Section
5 3-85 of the Use Tax Act, may be used by that retailer to
6 satisfy Retailers' Occupation Tax liability in the amount
7 claimed in the certification, not to exceed 6.25% of the
8 receipts subject to tax from a qualifying purchase.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter.
13 The taxpayer shall also file a return with the Department for
14 each of the first two months of each calendar quarter, on or
15 before the twentieth day of the following calendar month,
16 stating:
17 1. The name of the seller;
18 2. The address of the principal place of business
19 from which he engages in the business of selling tangible
20 personal property at retail in this State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month from sales of
23 tangible personal property by him during such preceding
24 calendar month, including receipts from charge and time
25 sales, but less all deductions allowed by law;
26 4. The amount of credit provided in Section 2d of
27 this Act;
28 5. The amount of tax due; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a total amount of less than $1 is payable, refundable
32 or creditable, such amount shall be disregarded if it is less
33 than 50 cents and shall be increased to $1 if it is 50 cents
34 or more.
-40- LRB9101586PTpk
1 Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who
5 has an average monthly tax liability of $100,000 or more
6 shall make all payments required by rules of the Department
7 by electronic funds transfer. Beginning October 1, 1995, a
8 taxpayer who has an average monthly tax liability of $50,000
9 or more shall make all payments required by rules of the
10 Department by electronic funds transfer. The term "average
11 monthly tax liability" shall be the sum of the taxpayer's
12 liabilities under this Act, and under all other State and
13 local occupation and use tax laws administered by the
14 Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers
19 required to make payments by electronic funds transfer shall
20 make those payments for a minimum of one year beginning on
21 October 1.
22 Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25 All taxpayers required to make payment by electronic
26 funds transfer and any taxpayers authorized to voluntarily
27 make payments by electronic funds transfer shall make those
28 payments in the manner authorized by the Department.
29 The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32 Any amount which is required to be shown or reported on
33 any return or other document under this Act shall, if such
34 amount is not a whole-dollar amount, be increased to the
-41- LRB9101586PTpk
1 nearest whole-dollar amount in any case where the fractional
2 part of a dollar is 50 cents or more, and decreased to the
3 nearest whole-dollar amount where the fractional part of a
4 dollar is less than 50 cents.
5 If the retailer is otherwise required to file a monthly
6 return and if the retailer's average monthly tax liability to
7 the Department does not exceed $200, the Department may
8 authorize his returns to be filed on a quarter annual basis,
9 with the return for January, February and March of a given
10 year being due by April 20 of such year; with the return for
11 April, May and June of a given year being due by July 20 of
12 such year; with the return for July, August and September of
13 a given year being due by October 20 of such year, and with
14 the return for October, November and December of a given year
15 being due by January 20 of the following year.
16 If the retailer is otherwise required to file a monthly
17 or quarterly return and if the retailer's average monthly tax
18 liability with the Department does not exceed $50, the
19 Department may authorize his returns to be filed on an annual
20 basis, with the return for a given year being due by January
21 20 of the following year.
22 Such quarter annual and annual returns, as to form and
23 substance, shall be subject to the same requirements as
24 monthly returns.
25 Notwithstanding any other provision in this Act
26 concerning the time within which a retailer may file his
27 return, in the case of any retailer who ceases to engage in a
28 kind of business which makes him responsible for filing
29 returns under this Act, such retailer shall file a final
30 return under this Act with the Department not more than one
31 month after discontinuing such business.
32 Where the same person has more than one business
33 registered with the Department under separate registrations
34 under this Act, such person may not file each return that is
-42- LRB9101586PTpk
1 due as a single return covering all such registered
2 businesses, but shall file separate returns for each such
3 registered business.
4 In addition, with respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that
11 where, in the same transaction, a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle retailer or trailer
15 retailer for the purpose of resale, that seller for resale
16 may report the transfer of all aircraft, watercraft, motor
17 vehicles or trailers involved in that transaction to the
18 Department on the same uniform invoice-transaction reporting
19 return form. For purposes of this Section, "watercraft"
20 means a Class 2, Class 3, or Class 4 watercraft as defined in
21 Section 3-2 of the Boat Registration and Safety Act, a
22 personal watercraft, or any boat equipped with an inboard
23 motor.
24 Any retailer who sells only motor vehicles, watercraft,
25 aircraft, or trailers that are required to be registered with
26 an agency of this State, so that all retailers' occupation
27 tax liability is required to be reported, and is reported, on
28 such transaction reporting returns and who is not otherwise
29 required to file monthly or quarterly returns, need not file
30 monthly or quarterly returns. However, those retailers shall
31 be required to file returns on an annual basis.
32 The transaction reporting return, in the case of motor
33 vehicles or trailers that are required to be registered with
34 an agency of this State, shall be the same document as the
-43- LRB9101586PTpk
1 Uniform Invoice referred to in Section 5-402 of The Illinois
2 Vehicle Code and must show the name and address of the
3 seller; the name and address of the purchaser; the amount of
4 the selling price including the amount allowed by the
5 retailer for traded-in property, if any; the amount allowed
6 by the retailer for the traded-in tangible personal property,
7 if any, to the extent to which Section 1 of this Act allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the retailer
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance, if that is claimed to be the fact); the
15 place and date of the sale; a sufficient identification of
16 the property sold; such other information as is required in
17 Section 5-402 of The Illinois Vehicle Code, and such other
18 information as the Department may reasonably require.
19 The transaction reporting return in the case of
20 watercraft or aircraft must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 1 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale, a sufficient identification of
34 the property sold, and such other information as the
-44- LRB9101586PTpk
1 Department may reasonably require.
2 Such transaction reporting return shall be filed not
3 later than 20 days after the day of delivery of the item that
4 is being sold, but may be filed by the retailer at any time
5 sooner than that if he chooses to do so. The transaction
6 reporting return and tax remittance or proof of exemption
7 from the Illinois use tax may be transmitted to the
8 Department by way of the State agency with which, or State
9 officer with whom the tangible personal property must be
10 titled or registered (if titling or registration is required)
11 if the Department and such agency or State officer determine
12 that this procedure will expedite the processing of
13 applications for title or registration.
14 With each such transaction reporting return, the retailer
15 shall remit the proper amount of tax due (or shall submit
16 satisfactory evidence that the sale is not taxable if that is
17 the case), to the Department or its agents, whereupon the
18 Department shall issue, in the purchaser's name, a use tax
19 receipt (or a certificate of exemption if the Department is
20 satisfied that the particular sale is tax exempt) which such
21 purchaser may submit to the agency with which, or State
22 officer with whom, he must title or register the tangible
23 personal property that is involved (if titling or
24 registration is required) in support of such purchaser's
25 application for an Illinois certificate or other evidence of
26 title or registration to such tangible personal property.
27 No retailer's failure or refusal to remit tax under this
28 Act precludes a user, who has paid the proper tax to the
29 retailer, from obtaining his certificate of title or other
30 evidence of title or registration (if titling or registration
31 is required) upon satisfying the Department that such user
32 has paid the proper tax (if tax is due) to the retailer. The
33 Department shall adopt appropriate rules to carry out the
34 mandate of this paragraph.
-45- LRB9101586PTpk
1 If the user who would otherwise pay tax to the retailer
2 wants the transaction reporting return filed and the payment
3 of the tax or proof of exemption made to the Department
4 before the retailer is willing to take these actions and such
5 user has not paid the tax to the retailer, such user may
6 certify to the fact of such delay by the retailer and may
7 (upon the Department being satisfied of the truth of such
8 certification) transmit the information required by the
9 transaction reporting return and the remittance for tax or
10 proof of exemption directly to the Department and obtain his
11 tax receipt or exemption determination, in which event the
12 transaction reporting return and tax remittance (if a tax
13 payment was required) shall be credited by the Department to
14 the proper retailer's account with the Department, but
15 without the 2.1% or 1.75% discount provided for in this
16 Section being allowed. When the user pays the tax directly
17 to the Department, he shall pay the tax in the same amount
18 and in the same form in which it would be remitted if the tax
19 had been remitted to the Department by the retailer.
20 Refunds made by the seller during the preceding return
21 period to purchasers, on account of tangible personal
22 property returned to the seller, shall be allowed as a
23 deduction under subdivision 5 of his monthly or quarterly
24 return, as the case may be, in case the seller had
25 theretofore included the receipts from the sale of such
26 tangible personal property in a return filed by him and had
27 paid the tax imposed by this Act with respect to such
28 receipts.
29 Where the seller is a corporation, the return filed on
30 behalf of such corporation shall be signed by the president,
31 vice-president, secretary or treasurer or by the properly
32 accredited agent of such corporation.
33 Where the seller is a limited liability company, the
34 return filed on behalf of the limited liability company shall
-46- LRB9101586PTpk
1 be signed by a manager, member, or properly accredited agent
2 of the limited liability company.
3 Except as provided in this Section, the retailer filing
4 the return under this Section shall, at the time of filing
5 such return, pay to the Department the amount of tax imposed
6 by this Act less a discount of 2.1% prior to January 1, 1990
7 and 1.75% on and after January 1, 1990, or $5 per calendar
8 year, whichever is greater, which is allowed to reimburse the
9 retailer for the expenses incurred in keeping records,
10 preparing and filing returns, remitting the tax and supplying
11 data to the Department on request. Any prepayment made
12 pursuant to Section 2d of this Act shall be included in the
13 amount on which such 2.1% or 1.75% discount is computed. In
14 the case of retailers who report and pay the tax on a
15 transaction by transaction basis, as provided in this
16 Section, such discount shall be taken with each such tax
17 remittance instead of when such retailer files his periodic
18 return.
19 If the taxpayer's average monthly tax liability to the
20 Department under this Act, the Use Tax Act, the Service
21 Occupation Tax Act, and the Service Use Tax Act, excluding
22 any liability for prepaid sales tax to be remitted in
23 accordance with Section 2d of this Act, was $10,000 or more
24 during the preceding 4 complete calendar quarters, he shall
25 file a return with the Department each month by the 20th day
26 of the month next following the month during which such tax
27 liability is incurred and shall make payments to the
28 Department on or before the 7th, 15th, 22nd and last day of
29 the month during which such liability is incurred. If the
30 month during which such tax liability is incurred began prior
31 to January 1, 1985, each payment shall be in an amount equal
32 to 1/4 of the taxpayer's actual liability for the month or an
33 amount set by the Department not to exceed 1/4 of the average
34 monthly liability of the taxpayer to the Department for the
-47- LRB9101586PTpk
1 preceding 4 complete calendar quarters (excluding the month
2 of highest liability and the month of lowest liability in
3 such 4 quarter period). If the month during which such tax
4 liability is incurred begins on or after January 1, 1985 and
5 prior to January 1, 1987, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 27.5% of the taxpayer's liability for the same
8 calendar month of the preceding year. If the month during
9 which such tax liability is incurred begins on or after
10 January 1, 1987 and prior to January 1, 1988, each payment
11 shall be in an amount equal to 22.5% of the taxpayer's actual
12 liability for the month or 26.25% of the taxpayer's liability
13 for the same calendar month of the preceding year. If the
14 month during which such tax liability is incurred begins on
15 or after January 1, 1988, and prior to January 1, 1989, or
16 begins on or after January 1, 1996, each payment shall be in
17 an amount equal to 22.5% of the taxpayer's actual liability
18 for the month or 25% of the taxpayer's liability for the same
19 calendar month of the preceding year. If the month during
20 which such tax liability is incurred begins on or after
21 January 1, 1989, and prior to January 1, 1996, each payment
22 shall be in an amount equal to 22.5% of the taxpayer's actual
23 liability for the month or 25% of the taxpayer's liability
24 for the same calendar month of the preceding year or 100% of
25 the taxpayer's actual liability for the quarter monthly
26 reporting period. The amount of such quarter monthly
27 payments shall be credited against the final tax liability of
28 the taxpayer's return for that month. Once applicable, the
29 requirement of the making of quarter monthly payments to the
30 Department by taxpayers having an average monthly tax
31 liability of $10,000 or more as determined in the manner
32 provided above shall continue until such taxpayer's average
33 monthly liability to the Department during the preceding 4
34 complete calendar quarters (excluding the month of highest
-48- LRB9101586PTpk
1 liability and the month of lowest liability) is less than
2 $9,000, or until such taxpayer's average monthly liability to
3 the Department as computed for each calendar quarter of the 4
4 preceding complete calendar quarter period is less than
5 $10,000. However, if a taxpayer can show the Department that
6 a substantial change in the taxpayer's business has occurred
7 which causes the taxpayer to anticipate that his average
8 monthly tax liability for the reasonably foreseeable future
9 will fall below $10,000, then such taxpayer may petition the
10 Department for a change in such taxpayer's reporting status.
11 The Department shall change such taxpayer's reporting status
12 unless it finds that such change is seasonal in nature and
13 not likely to be long term. If any such quarter monthly
14 payment is not paid at the time or in the amount required by
15 this Section, then the taxpayer shall be liable for penalties
16 and interest on the difference between the minimum amount due
17 as a payment and the amount of such quarter monthly payment
18 actually and timely paid, except insofar as the taxpayer has
19 previously made payments for that month to the Department in
20 excess of the minimum payments previously due as provided in
21 this Section. The Department shall make reasonable rules and
22 regulations to govern the quarter monthly payment amount and
23 quarter monthly payment dates for taxpayers who file on other
24 than a calendar monthly basis.
25 Without regard to whether a taxpayer is required to make
26 quarter monthly payments as specified above, any taxpayer who
27 is required by Section 2d of this Act to collect and remit
28 prepaid taxes and has collected prepaid taxes which average
29 in excess of $25,000 per month during the preceding 2
30 complete calendar quarters, shall file a return with the
31 Department as required by Section 2f and shall make payments
32 to the Department on or before the 7th, 15th, 22nd and last
33 day of the month during which such liability is incurred. If
34 the month during which such tax liability is incurred began
-49- LRB9101586PTpk
1 prior to the effective date of this amendatory Act of 1985,
2 each payment shall be in an amount not less than 22.5% of the
3 taxpayer's actual liability under Section 2d. If the month
4 during which such tax liability is incurred begins on or
5 after January 1, 1986, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 27.5% of the taxpayer's liability for the same
8 calendar month of the preceding calendar year. If the month
9 during which such tax liability is incurred begins on or
10 after January 1, 1987, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 26.25% of the taxpayer's liability for the same
13 calendar month of the preceding year. The amount of such
14 quarter monthly payments shall be credited against the final
15 tax liability of the taxpayer's return for that month filed
16 under this Section or Section 2f, as the case may be. Once
17 applicable, the requirement of the making of quarter monthly
18 payments to the Department pursuant to this paragraph shall
19 continue until such taxpayer's average monthly prepaid tax
20 collections during the preceding 2 complete calendar quarters
21 is $25,000 or less. If any such quarter monthly payment is
22 not paid at the time or in the amount required, the taxpayer
23 shall be liable for penalties and interest on such
24 difference, except insofar as the taxpayer has previously
25 made payments for that month in excess of the minimum
26 payments previously due.
27 If any payment provided for in this Section exceeds the
28 taxpayer's liabilities under this Act, the Use Tax Act, the
29 Service Occupation Tax Act and the Service Use Tax Act, as
30 shown on an original monthly return, the Department shall, if
31 requested by the taxpayer, issue to the taxpayer a credit
32 memorandum no later than 30 days after the date of payment.
33 The credit evidenced by such credit memorandum may be
34 assigned by the taxpayer to a similar taxpayer under this
-50- LRB9101586PTpk
1 Act, the Use Tax Act, the Service Occupation Tax Act or the
2 Service Use Tax Act, in accordance with reasonable rules and
3 regulations to be prescribed by the Department. If no such
4 request is made, the taxpayer may credit such excess payment
5 against tax liability subsequently to be remitted to the
6 Department under this Act, the Use Tax Act, the Service
7 Occupation Tax Act or the Service Use Tax Act, in accordance
8 with reasonable rules and regulations prescribed by the
9 Department. If the Department subsequently determined that
10 all or any part of the credit taken was not actually due to
11 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
12 shall be reduced by 2.1% or 1.75% of the difference between
13 the credit taken and that actually due, and that taxpayer
14 shall be liable for penalties and interest on such
15 difference.
16 If a retailer of motor fuel is entitled to a credit under
17 Section 2d of this Act which exceeds the taxpayer's liability
18 to the Department under this Act for the month which the
19 taxpayer is filing a return, the Department shall issue the
20 taxpayer a credit memorandum for the excess.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the Local Government Tax Fund, a special fund
23 in the State treasury which is hereby created, the net
24 revenue realized for the preceding month from the 1% tax on
25 sales of food for human consumption which is to be consumed
26 off the premises where it is sold (other than alcoholic
27 beverages, soft drinks and food which has been prepared for
28 immediate consumption) and prescription and nonprescription
29 medicines, drugs, medical appliances and insulin, urine
30 testing materials, syringes and needles used by diabetics.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the County and Mass Transit District Fund, a
33 special fund in the State treasury which is hereby created,
34 4% of the net revenue realized for the preceding month from
-51- LRB9101586PTpk
1 the 6.25% general rate.
2 Each month the Department shall pay into the County and
3 Mass Transit District Fund 20% of the net revenue realized
4 for the preceding month from the 1.25% rate imposed upon the
5 sale of any motor vehicle that is sold at retail to a lessor
6 for purposes of leasing under a lease subject to the
7 Automobile Leasing Occupation and Use Tax Act.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the Local Government Tax Fund 16% of the net
10 revenue realized for the preceding month from the 6.25%
11 general rate on the selling price of tangible personal
12 property.
13 Each month the Department shall pay into the Local
14 Government Tax Fund 80% of the net revenue realized for the
15 preceding month from the 1.25% rate imposed upon the sale of
16 any motor vehicle that is sold at retail to a lessor for
17 purposes of leasing under a lease subject to the Automobile
18 Leasing Occupation and Use Tax Act.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, and including all moneys received by
21 the Department pursuant to Section 10 of the Automobile
22 Leasing Occupation and Use Tax Act, and including all of the
23 moneys received pursuant to the 5% rate imposed upon sales of
24 motor vehicles by lessors to the lessees of such vehicles in
25 connection with a lease that was subject to the Automobile
26 Leasing Occupation and Use Tax Act Of the remainder of the
27 moneys received by the Department pursuant to this Act, (a)
28 1.75% thereof shall be paid into the Build Illinois Fund and
29 (b) prior to July 1, 1989, 2.2% and on and after July 1,
30 1989, 3.8% thereof shall be paid into the Build Illinois
31 Fund; provided, however, that if in any fiscal year the sum
32 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
33 the moneys received by the Department and required to be paid
34 into the Build Illinois Fund pursuant to this Act, Section 9
-52- LRB9101586PTpk
1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
2 Section 9 of the Service Occupation Tax Act, such Acts being
3 hereinafter called the "Tax Acts" and such aggregate of 2.2%
4 or 3.8%, as the case may be, of moneys being hereinafter
5 called the "Tax Act Amount", and (2) the amount transferred
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall be less than the Annual Specified Amount
8 (as hereinafter defined), an amount equal to the difference
9 shall be immediately paid into the Build Illinois Fund from
10 other moneys received by the Department pursuant to the Tax
11 Acts; the "Annual Specified Amount" means the amounts
12 specified below for fiscal years 1986 through 1993:
13 Fiscal Year Annual Specified Amount
14 1986 $54,800,000
15 1987 $76,650,000
16 1988 $80,480,000
17 1989 $88,510,000
18 1990 $115,330,000
19 1991 $145,470,000
20 1992 $182,730,000
21 1993 $206,520,000;
22 and means the Certified Annual Debt Service Requirement (as
23 defined in Section 13 of the Build Illinois Bond Act) or the
24 Tax Act Amount, whichever is greater, for fiscal year 1994
25 and each fiscal year thereafter; and further provided, that
26 if on the last business day of any month the sum of (1) the
27 Tax Act Amount required to be deposited into the Build
28 Illinois Bond Account in the Build Illinois Fund during such
29 month and (2) the amount transferred to the Build Illinois
30 Fund from the State and Local Sales Tax Reform Fund shall
31 have been less than 1/12 of the Annual Specified Amount, an
32 amount equal to the difference shall be immediately paid into
33 the Build Illinois Fund from other moneys received by the
34 Department pursuant to the Tax Acts; and, further provided,
-53- LRB9101586PTpk
1 that in no event shall the payments required under the
2 preceding proviso result in aggregate payments into the Build
3 Illinois Fund pursuant to this clause (b) for any fiscal year
4 in excess of the greater of (i) the Tax Act Amount or (ii)
5 the Annual Specified Amount for such fiscal year. The
6 amounts payable into the Build Illinois Fund under clause (b)
7 of the first sentence in this paragraph shall be payable only
8 until such time as the aggregate amount on deposit under each
9 trust indenture securing Bonds issued and outstanding
10 pursuant to the Build Illinois Bond Act is sufficient, taking
11 into account any future investment income, to fully provide,
12 in accordance with such indenture, for the defeasance of or
13 the payment of the principal of, premium, if any, and
14 interest on the Bonds secured by such indenture and on any
15 Bonds expected to be issued thereafter and all fees and costs
16 payable with respect thereto, all as certified by the
17 Director of the Bureau of the Budget. If on the last
18 business day of any month in which Bonds are outstanding
19 pursuant to the Build Illinois Bond Act, the aggregate of
20 moneys deposited in the Build Illinois Bond Account in the
21 Build Illinois Fund in such month shall be less than the
22 amount required to be transferred in such month from the
23 Build Illinois Bond Account to the Build Illinois Bond
24 Retirement and Interest Fund pursuant to Section 13 of the
25 Build Illinois Bond Act, an amount equal to such deficiency
26 shall be immediately paid from other moneys received by the
27 Department pursuant to the Tax Acts to the Build Illinois
28 Fund; provided, however, that any amounts paid to the Build
29 Illinois Fund in any fiscal year pursuant to this sentence
30 shall be deemed to constitute payments pursuant to clause (b)
31 of the first sentence of this paragraph and shall reduce the
32 amount otherwise payable for such fiscal year pursuant to
33 that clause (b). The moneys received by the Department
34 pursuant to this Act and required to be deposited into the
-54- LRB9101586PTpk
1 Build Illinois Fund are subject to the pledge, claim and
2 charge set forth in Section 12 of the Build Illinois Bond
3 Act.
4 Subject to payment of amounts into the Build Illinois
5 Fund as provided in the preceding paragraph or in any
6 amendment thereto hereafter enacted, the following specified
7 monthly installment of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority provided under Section 8.25f of the
10 State Finance Act, but not in excess of sums designated as
11 "Total Deposit", shall be deposited in the aggregate from
12 collections under Section 9 of the Use Tax Act, Section 9 of
13 the Service Use Tax Act, Section 9 of the Service Occupation
14 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
15 into the McCormick Place Expansion Project Fund in the
16 specified fiscal years.
17 Fiscal Year Total Deposit
18 1993 $0
19 1994 53,000,000
20 1995 58,000,000
21 1996 61,000,000
22 1997 64,000,000
23 1998 68,000,000
24 1999 71,000,000
25 2000 75,000,000
26 2001 80,000,000
27 2002 84,000,000
28 2003 89,000,000
29 2004 93,000,000
30 2005 97,000,000
31 2006 102,000,000
32 2007 and 106,000,000
33 each fiscal year
34 thereafter that bonds
-55- LRB9101586PTpk
1 are outstanding under
2 Section 13.2 of the
3 Metropolitan Pier and
4 Exposition Authority
5 Act, but not after fiscal year 2029.
6 Beginning July 20, 1993 and in each month of each fiscal
7 year thereafter, one-eighth of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority for that fiscal year, less the amount
10 deposited into the McCormick Place Expansion Project Fund by
11 the State Treasurer in the respective month under subsection
12 (g) of Section 13 of the Metropolitan Pier and Exposition
13 Authority Act, plus cumulative deficiencies in the deposits
14 required under this Section for previous months and years,
15 shall be deposited into the McCormick Place Expansion Project
16 Fund, until the full amount requested for the fiscal year,
17 but not in excess of the amount specified above as "Total
18 Deposit", has been deposited.
19 Subject to payment of amounts into the Build Illinois
20 Fund and the McCormick Place Expansion Project Fund pursuant
21 to the preceding paragraphs or in any amendment thereto
22 hereafter enacted, each month the Department shall pay into
23 the Local Government Distributive Fund 0.4% of the net
24 revenue realized for the preceding month from the 5% general
25 rate or 0.4% of 80% of the net revenue realized for the
26 preceding month from the 6.25% general rate, as the case may
27 be, on the selling price of tangible personal property which
28 amount shall, subject to appropriation, be distributed as
29 provided in Section 2 of the State Revenue Sharing Act. No
30 payments or distributions pursuant to this paragraph shall be
31 made if the tax imposed by this Act on photoprocessing
32 products is declared unconstitutional, or if the proceeds
33 from such tax are unavailable for distribution because of
34 litigation.
-56- LRB9101586PTpk
1 Subject to payment of amounts into the Build Illinois
2 Fund, the McCormick Place Expansion Project to the preceding
3 paragraphs or in any amendments thereto hereafter enacted,
4 beginning July 1, 1993, the Department shall each month pay
5 into the Illinois Tax Increment Fund 0.27% of 80% of the net
6 revenue realized for the preceding month from the 6.25%
7 general rate on the selling price of tangible personal
8 property.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act, 75% thereof shall be paid into the
11 State Treasury and 25% shall be reserved in a special account
12 and used only for the transfer to the Common School Fund as
13 part of the monthly transfer from the General Revenue Fund in
14 accordance with Section 8a of the State Finance Act.
15 The Department may, upon separate written notice to a
16 taxpayer, require the taxpayer to prepare and file with the
17 Department on a form prescribed by the Department within not
18 less than 60 days after receipt of the notice an annual
19 information return for the tax year specified in the notice.
20 Such annual return to the Department shall include a
21 statement of gross receipts as shown by the retailer's last
22 Federal income tax return. If the total receipts of the
23 business as reported in the Federal income tax return do not
24 agree with the gross receipts reported to the Department of
25 Revenue for the same period, the retailer shall attach to his
26 annual return a schedule showing a reconciliation of the 2
27 amounts and the reasons for the difference. The retailer's
28 annual return to the Department shall also disclose the cost
29 of goods sold by the retailer during the year covered by such
30 return, opening and closing inventories of such goods for
31 such year, costs of goods used from stock or taken from stock
32 and given away by the retailer during such year, payroll
33 information of the retailer's business during such year and
34 any additional reasonable information which the Department
-57- LRB9101586PTpk
1 deems would be helpful in determining the accuracy of the
2 monthly, quarterly or annual returns filed by such retailer
3 as provided for in this Section.
4 If the annual information return required by this Section
5 is not filed when and as required, the taxpayer shall be
6 liable as follows:
7 (i) Until January 1, 1994, the taxpayer shall be
8 liable for a penalty equal to 1/6 of 1% of the tax due
9 from such taxpayer under this Act during the period to be
10 covered by the annual return for each month or fraction
11 of a month until such return is filed as required, the
12 penalty to be assessed and collected in the same manner
13 as any other penalty provided for in this Act.
14 (ii) On and after January 1, 1994, the taxpayer
15 shall be liable for a penalty as described in Section 3-4
16 of the Uniform Penalty and Interest Act.
17 The chief executive officer, proprietor, owner or highest
18 ranking manager shall sign the annual return to certify the
19 accuracy of the information contained therein. Any person
20 who willfully signs the annual return containing false or
21 inaccurate information shall be guilty of perjury and
22 punished accordingly. The annual return form prescribed by
23 the Department shall include a warning that the person
24 signing the return may be liable for perjury.
25 The provisions of this Section concerning the filing of
26 an annual information return do not apply to a retailer who
27 is not required to file an income tax return with the United
28 States Government.
29 As soon as possible after the first day of each month,
30 upon certification of the Department of Revenue, the
31 Comptroller shall order transferred and the Treasurer shall
32 transfer from the General Revenue Fund to the Motor Fuel Tax
33 Fund an amount equal to 1.7% of 80% of the net revenue
34 realized under this Act for the second preceding month;
-58- LRB9101586PTpk
1 except that this transfer shall not be made for the months
2 February through June, 1992.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, manufacturers,
8 importers and wholesalers whose products are sold at retail
9 in Illinois by numerous retailers, and who wish to do so, may
10 assume the responsibility for accounting and paying to the
11 Department all tax accruing under this Act with respect to
12 such sales, if the retailers who are affected do not make
13 written objection to the Department to this arrangement.
14 Any person who promotes, organizes, provides retail
15 selling space for concessionaires or other types of sellers
16 at the Illinois State Fair, DuQuoin State Fair, county fairs,
17 local fairs, art shows, flea markets and similar exhibitions
18 or events, including any transient merchant as defined by
19 Section 2 of the Transient Merchant Act of 1987, is required
20 to file a report with the Department providing the name of
21 the merchant's business, the name of the person or persons
22 engaged in merchant's business, the permanent address and
23 Illinois Retailers Occupation Tax Registration Number of the
24 merchant, the dates and location of the event and other
25 reasonable information that the Department may require. The
26 report must be filed not later than the 20th day of the month
27 next following the month during which the event with retail
28 sales was held. Any person who fails to file a report
29 required by this Section commits a business offense and is
30 subject to a fine not to exceed $250.
31 Any person engaged in the business of selling tangible
32 personal property at retail as a concessionaire or other type
33 of seller at the Illinois State Fair, county fairs, art
34 shows, flea markets and similar exhibitions or events, or any
-59- LRB9101586PTpk
1 transient merchants, as defined by Section 2 of the Transient
2 Merchant Act of 1987, may be required to make a daily report
3 of the amount of such sales to the Department and to make a
4 daily payment of the full amount of tax due. The Department
5 shall impose this requirement when it finds that there is a
6 significant risk of loss of revenue to the State at such an
7 exhibition or event. Such a finding shall be based on
8 evidence that a substantial number of concessionaires or
9 other sellers who are not residents of Illinois will be
10 engaging in the business of selling tangible personal
11 property at retail at the exhibition or event, or other
12 evidence of a significant risk of loss of revenue to the
13 State. The Department shall notify concessionaires and other
14 sellers affected by the imposition of this requirement. In
15 the absence of notification by the Department, the
16 concessionaires and other sellers shall file their returns as
17 otherwise required in this Section.
18 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
19 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
20 1-1-99; 90-612, eff. 7-8-98.)
21 Section 99. Effective date. This Act takes effect on
22 July 1, 2000.