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91_HB2095
LRB9104073PTtm
1 AN ACT to amend the Retailers' Occupation Tax Act by
2 changing Section 2a.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Retailers' Occupation Tax Act is amended
6 by changing Section 2a as follows:
7 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
8 Sec. 2a. Certificate of registration. It is unlawful for
9 any person to engage in the business of selling tangible
10 personal property at retail in this State without a
11 certificate of registration from the Department. Application
12 for a certificate of registration shall be made to the
13 Department upon forms furnished by it. Each such application
14 shall be signed and verified and shall state: (1) the name
15 and social security number of the applicant; (2) the address
16 of his principal place of business; (3) the address of the
17 principal place of business from which he engages in the
18 business of selling tangible personal property at retail in
19 this State and the addresses of all other places of business,
20 if any (enumerating such addresses, if any, in a separate
21 list attached to and made a part of the application), from
22 which he engages in the business of selling tangible personal
23 property at retail in this State;, and (4) the name and
24 address of the person or persons who will be responsible for
25 filing returns and payment of taxes due under this Act;, (5)
26 in the case of a corporation, the name, title, and social
27 security number of each corporate officer;, (6) in the case
28 of a limited liability company, the name, social security
29 number, and FEIN number of each manager and member;, and (7)
30 such other information as the Department may reasonably
31 require. The application shall contain an acceptance of
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1 responsibility signed by the person or persons who will be
2 responsible for filing returns and payment of the taxes due
3 under this Act. If the applicant will sell tangible personal
4 property at retail through vending machines, his application
5 to register shall indicate the number of vending machines to
6 be so operated; and thereafter, he shall notify the
7 Department by January 31 of the number of vending machines
8 which such person was using in his business of selling
9 tangible personal property at retail on the preceding
10 December 31.
11 The Department may deny a certificate of registration to
12 any applicant if the owner, any partner, any manager or
13 member of a limited liability company, or a corporate officer
14 of the applicant, is or has been the owner, a partner, a
15 manager or member of a limited liability company, or a
16 corporate officer, of another retailer that is in default for
17 moneys due under this Act.
18 Every applicant for a certificate of registration
19 hereunder shall, at the time of filing such application,
20 furnish a bond from a surety company authorized to do
21 business in the State of Illinois, or an irrevocable bank
22 letter of credit or a bond signed by 2 personal sureties who
23 have filed, with the Department, sworn statements disclosing
24 net assets equal to at least 3 times the amount of the bond
25 to be required of such applicant, or a bond secured by an
26 assignment of a bank account or certificate of deposit,
27 stocks or bonds, conditioned upon the applicant paying to the
28 State of Illinois all moneys becoming due under this Act and
29 under any other State tax law or municipal or county tax
30 ordinance or resolution under which the certificate of
31 registration that is issued to the applicant under this Act
32 will permit the applicant to engage in business without
33 registering separately under such other law, ordinance or
34 resolution. The Department shall fix the amount of such
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1 security in each case, taking into consideration the amount
2 of money expected to become due from the applicant under this
3 Act and under any other State tax law or municipal or county
4 tax ordinance or resolution under which the certificate of
5 registration that is issued to the applicant under this Act
6 will permit the applicant to engage in business without
7 registering separately under such other law, ordinance or
8 resolution. The amount of security required by the Department
9 shall be such as, in its opinion, will protect the State of
10 Illinois against failure to pay the amount which may become
11 due from the applicant under this Act and under any other
12 State tax law or municipal or county tax ordinance or
13 resolution under which the certificate of registration that
14 is issued to the applicant under this Act will permit the
15 applicant to engage in business without registering
16 separately under such other law, ordinance or resolution, but
17 the amount of the security required by the Department shall
18 not exceed three times the amount of the applicant's average
19 monthly tax liability, or $50,000.00, whichever amount is
20 lower.
21 No certificate of registration under this Act shall be
22 issued by the Department until the applicant provides the
23 Department with satisfactory security as herein provided for.
24 Upon receipt of the application for certificate of
25 registration in proper form, and upon approval by the
26 Department of the security furnished by the applicant, the
27 Department shall issue to such applicant a certificate of
28 registration which shall permit the person to whom it is
29 issued to engage in the business of selling tangible personal
30 property at retail in this State. The certificate of
31 registration shall be conspicuously displayed at the place of
32 business which the person so registered states in his
33 application to be the principal place of business from which
34 he engages in the business of selling tangible personal
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1 property at retail in this State.
2 No certificate of registration issued to a taxpayer who
3 files returns required by this Act on a monthly basis shall
4 be valid after the expiration of 5 years from the date of its
5 issuance or last renewal. The expiration date of a
6 sub-certificate of registration shall be that of the
7 certificate of registration to which the sub-certificate
8 relates. A certificate of registration shall automatically
9 be renewed, subject to revocation as provided by this Act,
10 for an additional 5 years from the date of its expiration
11 unless otherwise notified by the Department as provided by
12 this paragraph. Where a taxpayer to whom a certificate of
13 registration is issued under this Act is in default to the
14 State of Illinois for delinquent returns or for moneys due
15 under this Act or any other State tax law or municipal or
16 county ordinance administered or enforced by the Department,
17 the Department shall, not less than 120 days before the
18 expiration date of such certificate of registration, give
19 notice to the taxpayer to whom the certificate was issued of
20 the account period of the delinquent returns, the amount of
21 tax, penalty and interest due and owing from the taxpayer,
22 and that the certificate of registration shall not be
23 automatically renewed upon its expiration date unless the
24 taxpayer, on or before the date of expiration, has filed and
25 paid the delinquent returns or paid the defaulted amount in
26 full. A taxpayer to whom such a notice is issued shall be
27 deemed an applicant for renewal. The Department shall
28 promulgate regulations establishing procedures for taxpayers
29 who file returns on a monthly basis but desire and qualify to
30 change to a quarterly or yearly filing basis and will no
31 longer be subject to renewal under this Section, and for
32 taxpayers who file returns on a yearly or quarterly basis but
33 who desire or are required to change to a monthly filing
34 basis and will be subject to renewal under this Section.
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1 The Department may in its discretion approve renewal by
2 an applicant who is in default if, at the time of application
3 for renewal, the applicant files all of the delinquent
4 returns or pays to the Department such percentage of the
5 defaulted amount as may be determined by the Department and
6 agrees in writing to waive all limitations upon the
7 Department for collection of the remaining defaulted amount
8 to the Department over a period not to exceed 5 years from
9 the date of renewal of the certificate; however, no renewal
10 application submitted by an applicant who is in default shall
11 be approved if the immediately preceding renewal by the
12 applicant was conditioned upon the installment payment
13 agreement described in this Section. The payment agreement
14 herein provided for shall be in addition to and not in lieu
15 of the security required by this Section of a taxpayer who is
16 no longer considered a prior continuous compliance taxpayer.
17 The execution of the payment agreement as provided in this
18 Act shall not toll the accrual of interest at the statutory
19 rate.
20 A certificate of registration issued under this Act more
21 than 5 years before the effective date of this amendatory Act
22 of 1989 shall expire and be subject to the renewal provisions
23 of this Section on the next anniversary of the date of
24 issuance of such certificate which occurs more than 6 months
25 after the effective date of this amendatory Act of 1989. A
26 certificate of registration issued less than 5 years before
27 the effective date of this amendatory Act of 1989 shall
28 expire and be subject to the renewal provisions of this
29 Section on the 5th anniversary of the issuance of the
30 certificate.
31 If the person so registered states that he operates other
32 places of business from which he engages in the business of
33 selling tangible personal property at retail in this State,
34 the Department shall furnish him with a sub-certificate of
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1 registration for each such place of business, and the
2 applicant shall display the appropriate sub-certificate of
3 registration at each such place of business. All
4 sub-certificates of registration shall bear the same
5 registration number as that appearing upon the certificate of
6 registration to which such sub-certificates relate.
7 If the applicant will sell tangible personal property at
8 retail through vending machines, the Department shall furnish
9 him with a sub-certificate of registration for each such
10 vending machine, and the applicant shall display the
11 appropriate sub-certificate of registration on each such
12 vending machine by attaching the sub-certificate of
13 registration to a conspicuous part of such vending machine.
14 Where the same person engages in 2 or more businesses of
15 selling tangible personal property at retail in this State,
16 which businesses are substantially different in character or
17 engaged in under different trade names or engaged in under
18 other substantially dissimilar circumstances (so that it is
19 more practicable, from an accounting, auditing or bookkeeping
20 standpoint, for such businesses to be separately registered),
21 the Department may require or permit such person (subject to
22 the same requirements concerning the furnishing of security
23 as those that are provided for hereinbefore in this Section
24 as to each application for a certificate of registration) to
25 apply for and obtain a separate certificate of registration
26 for each such business or for any of such businesses, under a
27 single certificate of registration supplemented by related
28 sub-certificates of registration.
29 Any person who is registered under the "Retailers'
30 Occupation Tax Act" as of March 8, 1963, and who, during the
31 3-year period immediately prior to March 8, 1963, or during a
32 continuous 3-year period part of which passed immediately
33 before and the remainder of which passes immediately after
34 March 8, 1963, has been so registered continuously and who is
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1 determined by the Department not to have been either
2 delinquent or deficient in the payment of tax liability
3 during that period under this Act or under any other State
4 tax law or municipal or county tax ordinance or resolution
5 under which the certificate of registration that is issued to
6 the registrant under this Act will permit the registrant to
7 engage in business without registering separately under such
8 other law, ordinance or resolution, shall be considered to be
9 a Prior Continuous Compliance taxpayer. Also any taxpayer who
10 has, as verified by the Department, faithfully and
11 continuously complied with the condition of his bond or other
12 security under the provisions of this Act for a period of 3
13 consecutive years shall be considered to be a Prior
14 Continuous Compliance taxpayer.
15 Every Prior Continuous Compliance taxpayer shall be
16 exempt from all requirements under this Act concerning the
17 furnishing of security as a condition precedent to his being
18 authorized to engage in the business of selling tangible
19 personal property at retail in this State. This exemption
20 shall continue for each such taxpayer until such time as he
21 may be determined by the Department to be delinquent in the
22 filing of any returns, or is determined by the Department
23 (either through the Department's issuance of a final
24 assessment which has become final under the Act, or by the
25 taxpayer's filing of a return which admits tax that is not
26 paid to be due) to be delinquent or deficient in the paying
27 of any tax under this Act or under any other State tax law or
28 municipal or county tax ordinance or resolution under which
29 the certificate of registration that is issued to the
30 registrant under this Act will permit the registrant to
31 engage in business without registering separately under such
32 other law, ordinance or resolution, at which time that
33 taxpayer shall become subject to all the financial
34 responsibility requirements of this Act and, as a condition
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1 of being allowed to continue to engage in the business of
2 selling tangible personal property at retail, shall be
3 required to post bond or other acceptable security with the
4 Department covering liability which such taxpayer may
5 thereafter incur. Any taxpayer who fails to pay an admitted
6 or established liability under this Act may also be required
7 to post bond or other acceptable security with this
8 Department guaranteeing the payment of such admitted or
9 established liability.
10 No certificate of registration shall be issued to any
11 person who is in default to the State of Illinois for moneys
12 due under this Act or under any other State tax law or
13 municipal or county tax ordinance or resolution under which
14 the certificate of registration that is issued to the
15 applicant under this Act will permit the applicant to engage
16 in business without registering separately under such other
17 law, ordinance or resolution.
18 Any person aggrieved by any decision of the Department
19 under this Section may, within 30 20 days after notice of
20 such decision, protest and request a hearing, whereupon the
21 Department shall give notice to such person of the time and
22 place fixed for such hearing and shall hold a hearing in
23 conformity with the provisions of this Act and then issue its
24 final administrative decision in the matter to such person.
25 In the absence of such a protest within 30 20 days, the
26 Department's decision shall become final without any further
27 determination being made or notice given.
28 With respect to security other than bonds (upon which the
29 Department may sue in the event of a forfeiture), if the
30 taxpayer fails to pay, when due, any amount whose payment
31 such security guarantees, the Department shall, after such
32 liability is admitted by the taxpayer or established by the
33 Department through the issuance of a final assessment that
34 has become final under the law, convert the security which
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1 that taxpayer has furnished into money for the State, after
2 first giving the taxpayer at least 20 10 days' written
3 notice, by registered or certified mail, to pay the liability
4 or forfeit such security to the Department. If the security
5 consists of stocks or bonds or other securities which are
6 listed on a public exchange, the Department shall sell such
7 securities through such public exchange. If the security
8 consists of an irrevocable bank letter of credit, the
9 Department shall convert the security in the manner provided
10 for in the Uniform Commercial Code. If the security consists
11 of a bank certificate of deposit, the Department shall
12 convert the security into money by demanding and collecting
13 the amount of such bank certificate of deposit from the bank
14 which issued such certificate. If the security consists of a
15 type of stocks or other securities which are not listed on a
16 public exchange, the Department shall sell such security to
17 the highest and best bidder after giving at least 20 10 days'
18 notice of the date, time and place of the intended sale by
19 publication in the "State Official Newspaper". If the
20 Department realizes more than the amount of such liability
21 from the security, plus the expenses incurred by the
22 Department in converting the security into money, the
23 Department shall pay such excess to the taxpayer who
24 furnished such security, and the balance shall be paid into
25 the State Treasury.
26 The Department shall discharge any surety and shall
27 release and return any security deposited, assigned, pledged
28 or otherwise provided to it by a taxpayer under this Section
29 within 30 days after:
30 (1) such taxpayer becomes a Prior Continuous
31 Compliance taxpayer; or
32 (2) such taxpayer has ceased to collect receipts on
33 which he is required to remit tax to the Department, has
34 filed a final tax return, and has paid to the Department
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1 an amount sufficient to discharge his remaining tax
2 liability, as determined by the Department, under this
3 Act and under every other State tax law or municipal or
4 county tax ordinance or resolution under which the
5 certificate of registration issued under this Act permits
6 the registrant to engage in business without registering
7 separately under such other law, ordinance or resolution.
8 The Department shall make a final determination of the
9 taxpayer's outstanding tax liability as expeditiously as
10 possible after his final tax return has been filed; if
11 the Department cannot make such final determination
12 within 45 days after receiving the final tax return,
13 within such period it shall so notify the taxpayer,
14 stating its reasons therefor.
15 (Source: P.A. 89-399, eff. 8-20-95; 90-491, eff. 1-1-98;
16 revised 10-31-98.)