[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB2173
LRB9102016PTpk
1 AN ACT relating to tax credits for expenditures for
2 projects and products to enhance energy efficiency.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Renewable Energy, Energy Efficiency, and
6 Coal Resources Development Law of 1997 is amended by changing
7 Section 6-6 as follows:
8 (20 ILCS 687/6-6)
9 (Section scheduled to be repealed on December 16, 2007)
10 Sec. 6-6. Energy efficiency program.
11 (a) For the year beginning January 1, 1998, and
12 thereafter as provided in this Section, each electric utility
13 as defined in Section 3-105 of the Public Utilities Act and
14 each alternative retail electric supplier as defined in
15 Section 16-102 of the Public Utilities Act supplying electric
16 power and energy to retail customers located in the State of
17 Illinois shall contribute annually a pro rata share of a
18 total amount of $3,000,000 based upon the number of
19 kilowatt-hours sold by each such entity in the 12 months
20 preceding the year of contribution. On or before May 1 of
21 each year, the Illinois Commerce Commission shall determine
22 and notify the Department of Commerce and Community Affairs
23 of the pro rata share owed by each electric utility and each
24 alternative retail electric supplier based upon information
25 supplied annually to the Illinois Commerce Commission. On or
26 before June 1 of each year, the Department of Commerce and
27 Community Affairs shall send written notification to each
28 electric utility and each alternative retail electric
29 supplier of the amount of pro rata share they owe. These
30 contributions shall be remitted to the Department of Revenue
31 on or before June 30 of each year the contribution is due on
-2- LRB9102016PTpk
1 a return prescribed and furnished by the Department of
2 Revenue showing such information as the Department of Revenue
3 may reasonably require. The funds received pursuant to this
4 Section shall be subject to the appropriation of funds by the
5 General Assembly. The Department of Revenue shall place the
6 funds remitted under this Section in a trust fund, that is
7 hereby created in the State Treasury, called the Energy
8 Efficiency Trust Fund. If an electric utility or alternative
9 retail electric supplier does not remit its pro rata share to
10 the Department of Revenue, the Department of Revenue must
11 inform the Illinois Commerce Commission of such failure. The
12 Illinois Commerce Commission may then revoke the
13 certification of that electric utility or alternative retail
14 electric supplier. The Illinois Commerce Commission may not
15 renew the certification of any electric utility or
16 alternative retail electric supplier that is delinquent in
17 paying its pro rata share.
18 (b) The Department of Commerce and Community Affairs
19 shall disburse the moneys as they become available in the
20 Energy Efficiency Trust Fund to residential electric
21 customers to fund projects and purchases of products that
22 which the Department of Commerce and Community Affairs has
23 determined will promote energy efficiency in the State of
24 Illinois. The Department of Commerce and Community Affairs
25 shall establish a list of projects and products eligible for
26 grants and other financial incentives from the Energy
27 Efficiency Trust Fund including, but not limited to,
28 supporting energy efficiency efforts for low-income
29 households, replacing energy inefficient windows with more
30 efficient windows, replacing energy inefficient appliances
31 with more efficient appliances, replacing energy inefficient
32 lighting with more efficient lighting, insulating dwellings
33 and buildings, and such other projects and products that
34 which will increase energy efficiency in homes and rental
-3- LRB9102016PTpk
1 properties.
2 (c) The Department of Commerce and Community Affairs
3 shall establish criteria and an application process for this
4 grant program of grants and other financial incentives by no
5 later than January 1, 2000.
6 (d) The Department of Commerce and Community Affairs
7 shall conduct a study of other possible energy efficiency
8 improvements and evaluate methods for promoting energy
9 efficiency and conservation, especially for the benefit of
10 low-income customers.
11 (d-5) The Department of Commerce and Community Affairs
12 shall establish criteria before January 1, 2000 for projects
13 and purchases of products that are eligible for the income
14 tax credit under Section 206.1 of the Illinois Income Tax Act
15 and the exemptions under Section 3-5 of the Use Tax Act,
16 Section 3-5 of the Service Use Tax Act, Section 3-5 of the
17 Service Occupation Tax Act, and Section 2-5 of the Retailers'
18 Occupation Tax Act.
19 (e) The Department of Commerce and Community Affairs
20 shall submit an annual report to the General Assembly
21 evaluating the effectiveness of the projects and programs
22 provided in this Section, and recommending further
23 legislation which will encourage additional development and
24 implementation of energy efficiency projects and programs in
25 Illinois and other actions that help to meet the goals of
26 this Section.
27 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)
28 Section 10. The State Finance Act is amended by changing
29 Sections 6z-18 and 6z-20 as follows:
30 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
31 Sec. 6z-18. Distributions from Local Government Tax
32 Fund. A portion of the money paid into the Local Government
-4- LRB9102016PTpk
1 Tax Fund from sales of food for human consumption which is to
2 be consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks and food which has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances and
6 insulin, urine testing materials, syringes and needles used
7 by diabetics, which occurred in municipalities, shall be
8 distributed to each municipality based upon the sales which
9 occurred in that municipality. The remainder shall be
10 distributed to each county based upon the sales which
11 occurred in the unincorporated area of that county.
12 A portion of the money paid into the Local Government Tax
13 Fund from the 6.25% general use tax rate on the selling price
14 of tangible personal property which is purchased outside
15 Illinois at retail from a retailer and which is titled or
16 registered by any agency of this State's government shall be
17 distributed to municipalities as provided in this paragraph.
18 Each municipality shall receive the amount attributable to
19 sales for which Illinois addresses for titling or
20 registration purposes are given as being in such
21 municipality. The remainder of the money paid into the Local
22 Government Tax Fund from such sales shall be distributed to
23 counties. Each county shall receive the amount attributable
24 to sales for which Illinois addresses for titling or
25 registration purposes are given as being located in the
26 unincorporated area of such county.
27 A portion of the money paid into the Local Government Tax
28 Fund from the tax 6.25% general rate on sales subject to
29 taxation under the Retailers' Occupation Tax Act and the
30 Service Occupation Tax Act, which occurred in municipalities,
31 shall be distributed to each municipality, based upon the
32 sales which occurred in that municipality. The remainder
33 shall be distributed to each county, based upon the sales
34 which occurred in the unincorporated area of such county.
-5- LRB9102016PTpk
1 For the purpose of determining allocation to the local
2 government unit, a retail sale by a producer of coal or other
3 mineral mined in Illinois is a sale at retail at the place
4 where the coal or other mineral mined in Illinois is
5 extracted from the earth. This paragraph does not apply to
6 coal or other mineral when it is delivered or shipped by the
7 seller to the purchaser at a point outside Illinois so that
8 the sale is exempt under the United States Constitution as a
9 sale in interstate or foreign commerce.
10 Whenever the Department determines that a refund of money
11 paid into the Local Government Tax Fund should be made to a
12 claimant instead of issuing a credit memorandum, the
13 Department shall notify the State Comptroller, who shall
14 cause the order to be drawn for the amount specified, and to
15 the person named, in such notification from the Department.
16 Such refund shall be paid by the State Treasurer out of the
17 Local Government Tax Fund.
18 On or before the 25th day of each calendar month, the
19 Department shall prepare and certify to the Comptroller the
20 disbursement of stated sums of money to named municipalities
21 and counties, the municipalities and counties to be those
22 entitled to distribution of taxes or penalties paid to the
23 Department during the second preceding calendar month. The
24 amount to be paid to each municipality or county shall be the
25 amount (not including credit memoranda) collected during the
26 second preceding calendar month by the Department and paid
27 into the Local Government Tax Fund, plus an amount the
28 Department determines is necessary to offset any amounts
29 which were erroneously paid to a different taxing body, and
30 not including an amount equal to the amount of refunds made
31 during the second preceding calendar month by the Department,
32 and not including any amount which the Department determines
33 is necessary to offset any amounts which are payable to a
34 different taxing body but were erroneously paid to the
-6- LRB9102016PTpk
1 municipality or county. Within 10 days after receipt, by the
2 Comptroller, of the disbursement certification to the
3 municipalities and counties, provided for in this Section to
4 be given to the Comptroller by the Department, the
5 Comptroller shall cause the orders to be drawn for the
6 respective amounts in accordance with the directions
7 contained in such certification.
8 When certifying the amount of monthly disbursement to a
9 municipality or county under this Section, the Department
10 shall increase or decrease that amount by an amount necessary
11 to offset any misallocation of previous disbursements. The
12 offset amount shall be the amount erroneously disbursed
13 within the 6 months preceding the time a misallocation is
14 discovered.
15 The provisions directing the distributions from the
16 special fund in the State Treasury provided for in this
17 Section shall constitute an irrevocable and continuing
18 appropriation of all amounts as provided herein. The State
19 Treasurer and State Comptroller are hereby authorized to make
20 distributions as provided in this Section.
21 In construing any development, redevelopment, annexation,
22 preannexation or other lawful agreement in effect prior to
23 September 1, 1990, which describes or refers to receipts from
24 a county or municipal retailers' occupation tax, use tax or
25 service occupation tax which now cannot be imposed, such
26 description or reference shall be deemed to include the
27 replacement revenue for such abolished taxes, distributed
28 from the Local Government Tax Fund.
29 (Source: P.A. 90-491, eff. 1-1-98.)
30 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
31 Sec. 6z-20. Distributions from County and Mass Transit
32 District Fund. Of the money received from the tax 6.25%
33 general rate on sales subject to taxation under the
-7- LRB9102016PTpk
1 Retailers' Occupation Tax Act and Service Occupation Tax Act
2 and paid into the County and Mass Transit District Fund,
3 distribution to the Regional Transportation Authority tax
4 fund, created pursuant to Section 4.03 of the Regional
5 Transportation Authority Act, for deposit therein shall be
6 made based upon the retail sales occurring in a county having
7 more than 3,000,000 inhabitants. The remainder shall be
8 distributed to each county having 3,000,000 or fewer
9 inhabitants based upon the retail sales occurring in each
10 such county.
11 For the purpose of determining allocation to the local
12 government unit, a retail sale by a producer of coal or other
13 mineral mined in Illinois is a sale at retail at the place
14 where the coal or other mineral mined in Illinois is
15 extracted from the earth. This paragraph does not apply to
16 coal or other mineral when it is delivered or shipped by the
17 seller to the purchaser at a point outside Illinois so that
18 the sale is exempt under the United States Constitution as a
19 sale in interstate or foreign commerce.
20 Of the money received from the 6.25% general use tax rate
21 on tangible personal property which is purchased outside
22 Illinois at retail from a retailer and which is titled or
23 registered by any agency of this State's government and paid
24 into the County and Mass Transit District Fund, the amount
25 for which Illinois addresses for titling or registration
26 purposes are given as being in each county having more than
27 3,000,000 inhabitants shall be distributed into the Regional
28 Transportation Authority tax fund, created pursuant to
29 Section 4.03 of the Regional Transportation Authority Act.
30 The remainder of the money paid from such sales shall be
31 distributed to each county based on sales for which Illinois
32 addresses for titling or registration purposes are given as
33 being located in the county. Any money paid into the
34 Regional Transportation Authority Occupation and Use Tax
-8- LRB9102016PTpk
1 Replacement Fund from the County and Mass Transit District
2 Fund prior to January 14, 1991, which has not been paid to
3 the Authority prior to that date, shall be transferred to the
4 Regional Transportation Authority tax fund.
5 Whenever the Department determines that a refund of money
6 paid into the County and Mass Transit District Fund should be
7 made to a claimant instead of issuing a credit memorandum,
8 the Department shall notify the State Comptroller, who shall
9 cause the order to be drawn for the amount specified, and to
10 the person named, in such notification from the Department.
11 Such refund shall be paid by the State Treasurer out of the
12 County and Mass Transit District Fund.
13 On or before the 25th day of each calendar month, the
14 Department shall prepare and certify to the Comptroller the
15 disbursement of stated sums of money to the Regional
16 Transportation Authority and to named counties, the counties
17 to be those entitled to distribution, as hereinabove
18 provided, of taxes or penalties paid to the Department during
19 the second preceding calendar month. The amount to be paid
20 to the Regional Transportation Authority and each county
21 having 3,000,000 or fewer inhabitants shall be the amount
22 (not including credit memoranda) collected during the second
23 preceding calendar month by the Department and paid into the
24 County and Mass Transit District Fund, plus an amount the
25 Department determines is necessary to offset any amounts
26 which were erroneously paid to a different taxing body, and
27 not including an amount equal to the amount of refunds made
28 during the second preceding calendar month by the Department,
29 and not including any amount which the Department determines
30 is necessary to offset any amounts which were payable to a
31 different taxing body but were erroneously paid to the
32 Regional Transportation Authority or county. Within 10 days
33 after receipt, by the Comptroller, of the disbursement
34 certification to the Regional Transportation Authority and
-9- LRB9102016PTpk
1 counties, provided for in this Section to be given to the
2 Comptroller by the Department, the Comptroller shall cause
3 the orders to be drawn for the respective amounts in
4 accordance with the directions contained in such
5 certification.
6 When certifying the amount of a monthly disbursement to
7 the Regional Transportation Authority or to a county under
8 this Section, the Department shall increase or decrease that
9 amount by an amount necessary to offset any misallocation of
10 previous disbursements. The offset amount shall be the
11 amount erroneously disbursed within the 6 months preceding
12 the time a misallocation is discovered.
13 The provisions directing the distributions from the
14 special fund in the State Treasury provided for in this
15 Section and from the Regional Transportation Authority tax
16 fund created by Section 4.03 of the Regional Transportation
17 Authority Act shall constitute an irrevocable and continuing
18 appropriation of all amounts as provided herein. The State
19 Treasurer and State Comptroller are hereby authorized to make
20 distributions as provided in this Section.
21 In construing any development, redevelopment, annexation,
22 preannexation or other lawful agreement in effect prior to
23 September 1, 1990, which describes or refers to receipts from
24 a county or municipal retailers' occupation tax, use tax or
25 service occupation tax which now cannot be imposed, such
26 description or reference shall be deemed to include the
27 replacement revenue for such abolished taxes, distributed
28 from the County and Mass Transit District Fund or Local
29 Government Distributive Fund, as the case may be.
30 (Source: P.A. 90-491, eff. 1-1-98.)
31 Section 15. The Illinois Income Tax Act is amended by
32 adding Section 206.1 as follows:
-10- LRB9102016PTpk
1 (35 ILCS 5/206.1 new)
2 Sec. 206.1. Energy efficiency tax credit. For taxable
3 years beginning on or after January 1, 2000 and ending on or
4 before December 31, 2004, a homeowner, renter, or landlord
5 subject to this Act shall be entitled to a credit against the
6 tax imposed by subsections (a) and (b) of Section 201 in an
7 amount not to exceed the lesser of $500 or 25% of the amount
8 spent by the homeowner, renter, or landlord on projects and
9 products that are designed to promote energy efficiency and
10 deemed eligible for a credit by the Department of Commerce
11 and Community Affairs pursuant to Section 6-6 of the
12 Renewable Energy, Energy Efficiency, and Coal Resources
13 Development Law of 1997.
14 Section 20. The Use Tax Act is amended by changing
15 Sections 3-10, 3-85, and 9 as follows:
16 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
17 Sec. 3-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of either the selling price or the fair market value,
20 if any, of the tangible personal property. In all cases
21 where property functionally used or consumed is the same as
22 the property that was purchased at retail, then the tax is
23 imposed on the selling price of the property. In all cases
24 where property functionally used or consumed is a by-product
25 or waste product that has been refined, manufactured, or
26 produced from property purchased at retail, then the tax is
27 imposed on the lower of the fair market value, if any, of the
28 specific property so used in this State or on the selling
29 price of the property purchased at retail. For purposes of
30 this Section "fair market value" means the price at which
31 property would change hands between a willing buyer and a
32 willing seller, neither being under any compulsion to buy or
-11- LRB9102016PTpk
1 sell and both having reasonable knowledge of the relevant
2 facts. The fair market value shall be established by Illinois
3 sales by the taxpayer of the same property as that
4 functionally used or consumed, or if there are no such sales
5 by the taxpayer, then comparable sales or purchases of
6 property of like kind and character in Illinois.
7 For January 1, 2000 through December 31, 2004, the tax
8 imposed by this Act is at the rate of 4.25% of either the
9 selling price or the fair market value, if any, of tangible
10 personal property designed to promote energy efficiency and
11 deemed eligible for this rate by the Department of Commerce
12 and Community Affairs pursuant to Section 6-6 of the
13 Renewable Energy, Energy Efficiency, and Coal Resources
14 Development Law of 1997.
15 With respect to gasohol, the tax imposed by this Act
16 applies to 70% of the proceeds of sales made on or after
17 January 1, 1990, and before July 1, 2003, and to 100% of the
18 proceeds of sales made thereafter.
19 With respect to food for human consumption that is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks, and food that has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances,
24 modifications to a motor vehicle for the purpose of rendering
25 it usable by a disabled person, and insulin, urine testing
26 materials, syringes, and needles used by diabetics, for human
27 use, the tax is imposed at the rate of 1%. For the purposes
28 of this Section, the term "soft drinks" means any complete,
29 finished, ready-to-use, non-alcoholic drink, whether
30 carbonated or not, including but not limited to soda water,
31 cola, fruit juice, vegetable juice, carbonated water, and all
32 other preparations commonly known as soft drinks of whatever
33 kind or description that are contained in any closed or
34 sealed bottle, can, carton, or container, regardless of size.
-12- LRB9102016PTpk
1 "Soft drinks" does not include coffee, tea, non-carbonated
2 water, infant formula, milk or milk products as defined in
3 the Grade A Pasteurized Milk and Milk Products Act, or drinks
4 containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act, "food
6 for human consumption that is to be consumed off the premises
7 where it is sold" includes all food sold through a vending
8 machine, except soft drinks and food products that are
9 dispensed hot from a vending machine, regardless of the
10 location of the vending machine.
11 If the property that is purchased at retail from a
12 retailer is acquired outside Illinois and used outside
13 Illinois before being brought to Illinois for use here and is
14 taxable under this Act, the "selling price" on which the tax
15 is computed shall be reduced by an amount that represents a
16 reasonable allowance for depreciation for the period of prior
17 out-of-state use.
18 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
19 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
20 6-30-98; 90-606, eff. 6-30-98.)
21 (35 ILCS 105/3-85)
22 Sec. 3-85. Manufacturer's Purchase Credit. For purchases
23 of machinery and equipment made on and after January 1, 1995,
24 a purchaser of manufacturing machinery and equipment that
25 qualifies for the exemption provided by paragraph (18) of
26 Section 3-5 of this Act earns a credit in an amount equal to
27 a fixed percentage of the tax which would have been incurred
28 under this Act on those purchases. For purchases of graphic
29 arts machinery and equipment made on or after July 1, 1996, a
30 purchaser of graphic arts machinery and equipment that
31 qualifies for the exemption provided by paragraph (6) of
32 Section 3-5 of this Act earns a credit in an amount equal to
33 a fixed percentage of the tax that would have been incurred
-13- LRB9102016PTpk
1 under this Act on those purchases. The credit earned for
2 purchases of manufacturing machinery and equipment or graphic
3 arts machinery and equipment shall be referred to as the
4 Manufacturer's Purchase Credit. A graphic arts producer is a
5 person engaged in graphic arts production as defined in
6 Section 2-30 of the Retailers' Occupation Tax Act. Beginning
7 July 1, 1996, all references in this Section to manufacturers
8 or manufacturing shall also be deemed to refer to graphic
9 arts producers or graphic arts production.
10 The amount of credit shall be a percentage of the tax
11 that would have been incurred on the purchase of
12 manufacturing machinery and equipment or graphic arts
13 machinery and equipment if the exemptions provided by
14 paragraph (6) or paragraph (18) of Section 3-5 of this Act
15 had not been applicable. The percentage shall be as follows:
16 (1) 15% for purchases made on or before June 30,
17 1995.
18 (2) 25% for purchases made after June 30, 1995, and
19 on or before June 30, 1996.
20 (3) 40% for purchases made after June 30, 1996, and
21 on or before June 30, 1997.
22 (4) 50% for purchases made on or after July 1,
23 1997.
24 A purchaser of production related tangible personal
25 property desiring to use the Manufacturer's Purchase Credit
26 shall certify to the seller that the purchaser is satisfying
27 all or part of the liability under the Use Tax Act or the
28 Service Use Tax Act that is due on the purchase of the
29 production related tangible personal property by use of
30 Manufacturer's Purchase Credit. The Manufacturer's Purchase
31 Credit certification must be dated and shall include the name
32 and address of the purchaser, the purchaser's registration
33 number, if registered, the credit being applied, and a
34 statement that the State Use Tax or Service Use Tax liability
-14- LRB9102016PTpk
1 is being satisfied with the manufacturer's or graphic arts
2 producer's accumulated purchase credit. Certification may be
3 incorporated into the manufacturer's or graphic arts
4 producer's purchase order. Manufacturer's Purchase Credit
5 certification by the manufacturer or graphic arts producer
6 may be used to satisfy the retailer's or serviceman's
7 liability under the Retailers' Occupation Tax Act or Service
8 Occupation Tax Act for the credit claimed, not to exceed the
9 tax rate imposed on 6.25% of the receipts subject to tax from
10 a qualifying purchase, but only if the retailer or serviceman
11 reports the Manufacturer's Purchase Credit claimed as
12 required by the Department. The Manufacturer's Purchase
13 Credit earned by purchase of exempt manufacturing machinery
14 and equipment or graphic arts machinery and equipment is a
15 non-transferable credit. A manufacturer or graphic arts
16 producer that enters into a contract involving the
17 installation of tangible personal property into real estate
18 within a manufacturing or graphic arts production facility
19 may authorize a construction contractor to utilize credit
20 accumulated by the manufacturer or graphic arts producer to
21 purchase the tangible personal property. A manufacturer or
22 graphic arts producer intending to use accumulated credit to
23 purchase such tangible personal property shall execute a
24 written contract authorizing the contractor to utilize a
25 specified dollar amount of credit. The contractor shall
26 furnish the supplier with the manufacturer's or graphic arts
27 producer's name, registration or resale number, and a
28 statement that a specific amount of the Use Tax or Service
29 Use Tax liability, not to exceed the tax rate imposed on
30 6.25% of the selling price, is being satisfied with the
31 credit. The manufacturer or graphic arts producer shall
32 remain liable to timely report all information required by
33 the annual Report of Manufacturer's Purchase Credit Used for
34 all credit utilized by a construction contractor.
-15- LRB9102016PTpk
1 The Manufacturer's Purchase Credit may be used to satisfy
2 liability under the Use Tax Act or the Service Use Tax Act
3 due on the purchase of production related tangible personal
4 property (including purchases by a manufacturer, by a graphic
5 arts producer, or by a lessor who rents or leases the use of
6 the property to a manufacturer or graphic arts producer) that
7 does not otherwise qualify for the manufacturing machinery
8 and equipment exemption or the graphic arts machinery and
9 equipment exemption. "Production related tangible personal
10 property" means (i) all tangible personal property used or
11 consumed by the purchaser in a manufacturing facility in
12 which a manufacturing process described in Section 2-45 of
13 the Retailers' Occupation Tax Act takes place, including
14 tangible personal property purchased for incorporation into
15 real estate within a manufacturing facility and including,
16 but not limited to, tangible personal property used or
17 consumed in activities such as preproduction material
18 handling, receiving, quality control, inventory control,
19 storage, staging, and packaging for shipping and
20 transportation purposes; (ii) all tangible personal property
21 used or consumed by the purchaser in a graphic arts facility
22 in which graphic arts production as described in Section 2-30
23 of the Retailers' Occupation Tax Act takes place, including
24 tangible personal property purchased for incorporation into
25 real estate within a graphic arts facility and including, but
26 not limited to, all tangible personal property used or
27 consumed in activities such as graphic arts preliminary or
28 pre-press production, pre-production material handling,
29 receiving, quality control, inventory control, storage,
30 staging, sorting, labeling, mailing, tying, wrapping, and
31 packaging; and (iii) all tangible personal property used or
32 consumed by the purchaser for research and development.
33 "Production related tangible personal property" does not
34 include (i) tangible personal property used, within or
-16- LRB9102016PTpk
1 without a manufacturing facility, in sales, purchasing,
2 accounting, fiscal management, marketing, personnel
3 recruitment or selection, or landscaping or (ii) tangible
4 personal property required to be titled or registered with a
5 department, agency, or unit of federal, state, or local
6 government. The Manufacturer's Purchase Credit may be used
7 to satisfy the tax arising either from the purchase of
8 machinery and equipment on or after January 1, 1995 for which
9 the exemption provided by paragraph (18) of Section 3-5 of
10 this Act was erroneously claimed, or the purchase of
11 machinery and equipment on or after July 1, 1996 for which
12 the exemption provided by paragraph (6) of Section 3-5 of
13 this Act was erroneously claimed, but not in satisfaction of
14 penalty, if any, and interest for failure to pay the tax when
15 due. A purchaser of production related tangible personal
16 property who is required to pay Illinois Use Tax or Service
17 Use Tax on the purchase directly to the Department may
18 utilize the Manufacturer's Purchase Credit in satisfaction of
19 the tax arising from that purchase, but not in satisfaction
20 of penalty and interest. A purchaser who uses the
21 Manufacturer's Purchase Credit to purchase property which is
22 later determined not to be production related tangible
23 personal property may be liable for tax, penalty, and
24 interest on the purchase of that property as of the date of
25 purchase but shall be entitled to use the disallowed
26 Manufacturer's Purchase Credit, so long as it has not
27 expired, on qualifying purchases of production related
28 tangible personal property not previously subject to credit
29 usage. The Manufacturer's Purchase Credit earned by a
30 manufacturer or graphic arts producer expires the last day of
31 the second calendar year following the calendar year in which
32 the credit arose.
33 A purchaser earning Manufacturer's Purchase Credit shall
34 sign and file an annual Report of Manufacturer's Purchase
-17- LRB9102016PTpk
1 Credit Earned for each calendar year no later than the last
2 day of the sixth month following the calendar year in which a
3 Manufacturer's Purchase Credit is earned. A Report of
4 Manufacturer's Purchase Credit Earned shall be filed on forms
5 as prescribed or approved by the Department and shall state,
6 for each month of the calendar year: (i) the total purchase
7 price of all purchases of exempt manufacturing or graphic
8 arts machinery on which the credit was earned; (ii) the total
9 State Use Tax or Service Use Tax which would have been due on
10 those items; (iii) the percentage used to calculate the
11 amount of credit earned; (iv) the amount of credit earned;
12 and (v) such other information as the Department may
13 reasonably require. A purchaser earning Manufacturer's
14 Purchase Credit shall maintain records which identify, as to
15 each purchase of manufacturing or graphic arts machinery and
16 equipment on which the purchaser earned Manufacturer's
17 Purchase Credit, the vendor (including, if applicable, either
18 the vendor's registration number or Federal Employer
19 Identification Number), the purchase price, and the amount of
20 Manufacturer's Purchase Credit earned on each purchase.
21 A purchaser using Manufacturer's Purchase Credit shall
22 sign and file an annual Report of Manufacturer's Purchase
23 Credit Used for each calendar year no later than the last day
24 of the sixth month following the calendar year in which a
25 Manufacturer's Purchase Credit is used. A Report of
26 Manufacturer's Purchase Credit Used shall be filed on forms
27 as prescribed or approved by the Department and shall state,
28 for each month of the calendar year: (i) the total purchase
29 price of production related tangible personal property
30 purchased from Illinois suppliers; (ii) the total purchase
31 price of production related tangible personal property
32 purchased from out-of-state suppliers; (iii) the total amount
33 of credit used during such month; and (iv) such other
34 information as the Department may reasonably require. A
-18- LRB9102016PTpk
1 purchaser using Manufacturer's Purchase Credit shall maintain
2 records that identify, as to each purchase of production
3 related tangible personal property on which the purchaser
4 used Manufacturer's Purchase Credit, the vendor (including,
5 if applicable, either the vendor's registration number or
6 Federal Employer Identification Number), the purchase price,
7 and the amount of Manufacturer's Purchase Credit used on each
8 purchase.
9 No annual report shall be filed before May 1, 1996. A
10 purchaser that fails to file an annual Report of
11 Manufacturer's Purchase Credit Earned or an annual Report of
12 Manufacturer's Purchase Credit Used by the last day of the
13 sixth month following the end of the calendar year shall
14 forfeit all Manufacturer's Purchase Credit for that calendar
15 year unless it establishes that its failure to file was due
16 to reasonable cause. Manufacturer's Purchase Credit reports
17 may be amended to report and claim credit on qualifying
18 purchases not previously reported at any time before the
19 credit would have expired, unless both the Department and the
20 purchaser have agreed to an extension of the statute of
21 limitations for the issuance of a notice of tax liability as
22 provided in Section 4 of the Retailers' Occupation Tax Act.
23 If the time for assessment or refund has been extended, then
24 amended reports for a calendar year may be filed at any time
25 prior to the date to which the statute of limitations for the
26 calendar year or portion thereof has been extended. No
27 Manufacturer's Purchase Credit report filed with the
28 Department for periods prior to January 1, 1995 shall be
29 approved. Manufacturer's Purchase Credit claimed on an
30 amended report may be used to satisfy tax liability under the
31 Use Tax Act or the Service Use Tax Act (i) on qualifying
32 purchases of production related tangible personal property
33 made after the date the amended report is filed or (ii)
34 assessed by the Department on qualifying purchases of
-19- LRB9102016PTpk
1 production related tangible personal property made in the
2 case of manufacturers on or after January 1, 1995, or in the
3 case of graphic arts producers on or after July 1, 1996.
4 If the purchaser is not the manufacturer or a graphic
5 arts producer, but rents or leases the use of the property to
6 a manufacturer or graphic arts producer, the purchaser may
7 earn, report, and use Manufacturer's Purchase Credit in the
8 same manner as a manufacturer or graphic arts producer.
9 A purchaser shall not be entitled to any Manufacturer's
10 Purchase Credit for a purchase that is required to be
11 reported and is not timely reported as provided in this
12 Section. A purchaser remains liable for (i) any tax that was
13 satisfied by use of a Manufacturer's Purchase Credit, as of
14 the date of purchase, if that use is not timely reported as
15 required in this Section and (ii) for any applicable
16 penalties and interest for failing to pay the tax when due.
17 (Source: P.A. 88-547, eff. 6-30-94; 89-89, eff. 6-30-95;
18 89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)
19 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
20 Sec. 9. Except as to motor vehicles, watercraft,
21 aircraft, and trailers that are required to be registered
22 with an agency of this State, each retailer required or
23 authorized to collect the tax imposed by this Act shall pay
24 to the Department the amount of such tax (except as otherwise
25 provided) at the time when he is required to file his return
26 for the period during which such tax was collected, less a
27 discount of 2.1% prior to January 1, 1990, and 1.75% on and
28 after January 1, 1990, or $5 per calendar year, whichever is
29 greater, which is allowed to reimburse the retailer for
30 expenses incurred in collecting the tax, keeping records,
31 preparing and filing returns, remitting the tax and supplying
32 data to the Department on request. In the case of retailers
33 who report and pay the tax on a transaction by transaction
-20- LRB9102016PTpk
1 basis, as provided in this Section, such discount shall be
2 taken with each such tax remittance instead of when such
3 retailer files his periodic return. A retailer need not
4 remit that part of any tax collected by him to the extent
5 that he is required to remit and does remit the tax imposed
6 by the Retailers' Occupation Tax Act, with respect to the
7 sale of the same property.
8 Where such tangible personal property is sold under a
9 conditional sales contract, or under any other form of sale
10 wherein the payment of the principal sum, or a part thereof,
11 is extended beyond the close of the period for which the
12 return is filed, the retailer, in collecting the tax (except
13 as to motor vehicles, watercraft, aircraft, and trailers that
14 are required to be registered with an agency of this State),
15 may collect for each tax return period, only the tax
16 applicable to that part of the selling price actually
17 received during such tax return period.
18 Except as provided in this Section, on or before the
19 twentieth day of each calendar month, such retailer shall
20 file a return for the preceding calendar month. Such return
21 shall be filed on forms prescribed by the Department and
22 shall furnish such information as the Department may
23 reasonably require.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in the business of selling tangible
-21- LRB9102016PTpk
1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month from sales of
4 tangible personal property by him during such preceding
5 calendar month, including receipts from charge and time
6 sales, but less all deductions allowed by law;
7 4. The amount of credit provided in Section 2d of
8 this Act;
9 5. The amount of tax due;
10 5-5. The signature of the taxpayer; and
11 6. Such other reasonable information as the
12 Department may require.
13 If a taxpayer fails to sign a return within 30 days after
14 the proper notice and demand for signature by the Department,
15 the return shall be considered valid and any amount shown to
16 be due on the return shall be deemed assessed.
17 Beginning October 1, 1993, a taxpayer who has an average
18 monthly tax liability of $150,000 or more shall make all
19 payments required by rules of the Department by electronic
20 funds transfer. Beginning October 1, 1994, a taxpayer who has
21 an average monthly tax liability of $100,000 or more shall
22 make all payments required by rules of the Department by
23 electronic funds transfer. Beginning October 1, 1995, a
24 taxpayer who has an average monthly tax liability of $50,000
25 or more shall make all payments required by rules of the
26 Department by electronic funds transfer. The term "average
27 monthly tax liability" means the sum of the taxpayer's
28 liabilities under this Act, and under all other State and
29 local occupation and use tax laws administered by the
30 Department, for the immediately preceding calendar year
31 divided by 12.
32 Before August 1 of each year beginning in 1993, the
33 Department shall notify all taxpayers required to make
34 payments by electronic funds transfer. All taxpayers required
-22- LRB9102016PTpk
1 to make payments by electronic funds transfer shall make
2 those payments for a minimum of one year beginning on October
3 1.
4 Any taxpayer not required to make payments by electronic
5 funds transfer may make payments by electronic funds transfer
6 with the permission of the Department.
7 All taxpayers required to make payment by electronic
8 funds transfer and any taxpayers authorized to voluntarily
9 make payments by electronic funds transfer shall make those
10 payments in the manner authorized by the Department.
11 The Department shall adopt such rules as are necessary to
12 effectuate a program of electronic funds transfer and the
13 requirements of this Section.
14 If the taxpayer's average monthly tax liability to the
15 Department under this Act, the Retailers' Occupation Tax Act,
16 the Service Occupation Tax Act, the Service Use Tax Act was
17 $10,000 or more during the preceding 4 complete calendar
18 quarters, he shall file a return with the Department each
19 month by the 20th day of the month next following the month
20 during which such tax liability is incurred and shall make
21 payments to the Department on or before the 7th, 15th, 22nd
22 and last day of the month during which such liability is
23 incurred. If the month during which such tax liability is
24 incurred began prior to January 1, 1985, each payment shall
25 be in an amount equal to 1/4 of the taxpayer's actual
26 liability for the month or an amount set by the Department
27 not to exceed 1/4 of the average monthly liability of the
28 taxpayer to the Department for the preceding 4 complete
29 calendar quarters (excluding the month of highest liability
30 and the month of lowest liability in such 4 quarter period).
31 If the month during which such tax liability is incurred
32 begins on or after January 1, 1985, and prior to January 1,
33 1987, each payment shall be in an amount equal to 22.5% of
34 the taxpayer's actual liability for the month or 27.5% of the
-23- LRB9102016PTpk
1 taxpayer's liability for the same calendar month of the
2 preceding year. If the month during which such tax liability
3 is incurred begins on or after January 1, 1987, and prior to
4 January 1, 1988, each payment shall be in an amount equal to
5 22.5% of the taxpayer's actual liability for the month or
6 26.25% of the taxpayer's liability for the same calendar
7 month of the preceding year. If the month during which such
8 tax liability is incurred begins on or after January 1, 1988,
9 and prior to January 1, 1989, or begins on or after January
10 1, 1996, each payment shall be in an amount equal to 22.5% of
11 the taxpayer's actual liability for the month or 25% of the
12 taxpayer's liability for the same calendar month of the
13 preceding year. If the month during which such tax liability
14 is incurred begins on or after January 1, 1989, and prior to
15 January 1, 1996, each payment shall be in an amount equal to
16 22.5% of the taxpayer's actual liability for the month or 25%
17 of the taxpayer's liability for the same calendar month of
18 the preceding year or 100% of the taxpayer's actual liability
19 for the quarter monthly reporting period. The amount of such
20 quarter monthly payments shall be credited against the final
21 tax liability of the taxpayer's return for that month. Once
22 applicable, the requirement of the making of quarter monthly
23 payments to the Department shall continue until such
24 taxpayer's average monthly liability to the Department during
25 the preceding 4 complete calendar quarters (excluding the
26 month of highest liability and the month of lowest liability)
27 is less than $9,000, or until such taxpayer's average monthly
28 liability to the Department as computed for each calendar
29 quarter of the 4 preceding complete calendar quarter period
30 is less than $10,000. However, if a taxpayer can show the
31 Department that a substantial change in the taxpayer's
32 business has occurred which causes the taxpayer to anticipate
33 that his average monthly tax liability for the reasonably
34 foreseeable future will fall below $10,000, then such
-24- LRB9102016PTpk
1 taxpayer may petition the Department for change in such
2 taxpayer's reporting status. The Department shall change
3 such taxpayer's reporting status unless it finds that such
4 change is seasonal in nature and not likely to be long term.
5 If any such quarter monthly payment is not paid at the time
6 or in the amount required by this Section, then the taxpayer
7 shall be liable for penalties and interest on the difference
8 between the minimum amount due and the amount of such quarter
9 monthly payment actually and timely paid, except insofar as
10 the taxpayer has previously made payments for that month to
11 the Department in excess of the minimum payments previously
12 due as provided in this Section. The Department shall make
13 reasonable rules and regulations to govern the quarter
14 monthly payment amount and quarter monthly payment dates for
15 taxpayers who file on other than a calendar monthly basis.
16 If any such payment provided for in this Section exceeds
17 the taxpayer's liabilities under this Act, the Retailers'
18 Occupation Tax Act, the Service Occupation Tax Act and the
19 Service Use Tax Act, as shown by an original monthly return,
20 the Department shall issue to the taxpayer a credit
21 memorandum no later than 30 days after the date of payment,
22 which memorandum may be submitted by the taxpayer to the
23 Department in payment of tax liability subsequently to be
24 remitted by the taxpayer to the Department or be assigned by
25 the taxpayer to a similar taxpayer under this Act, the
26 Retailers' Occupation Tax Act, the Service Occupation Tax Act
27 or the Service Use Tax Act, in accordance with reasonable
28 rules and regulations to be prescribed by the Department,
29 except that if such excess payment is shown on an original
30 monthly return and is made after December 31, 1986, no credit
31 memorandum shall be issued, unless requested by the taxpayer.
32 If no such request is made, the taxpayer may credit such
33 excess payment against tax liability subsequently to be
34 remitted by the taxpayer to the Department under this Act,
-25- LRB9102016PTpk
1 the Retailers' Occupation Tax Act, the Service Occupation Tax
2 Act or the Service Use Tax Act, in accordance with reasonable
3 rules and regulations prescribed by the Department. If the
4 Department subsequently determines that all or any part of
5 the credit taken was not actually due to the taxpayer, the
6 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
7 by 2.1% or 1.75% of the difference between the credit taken
8 and that actually due, and the taxpayer shall be liable for
9 penalties and interest on such difference.
10 If the retailer is otherwise required to file a monthly
11 return and if the retailer's average monthly tax liability to
12 the Department does not exceed $200, the Department may
13 authorize his returns to be filed on a quarter annual basis,
14 with the return for January, February, and March of a given
15 year being due by April 20 of such year; with the return for
16 April, May and June of a given year being due by July 20 of
17 such year; with the return for July, August and September of
18 a given year being due by October 20 of such year, and with
19 the return for October, November and December of a given year
20 being due by January 20 of the following year.
21 If the retailer is otherwise required to file a monthly
22 or quarterly return and if the retailer's average monthly tax
23 liability to the Department does not exceed $50, the
24 Department may authorize his returns to be filed on an annual
25 basis, with the return for a given year being due by January
26 20 of the following year.
27 Such quarter annual and annual returns, as to form and
28 substance, shall be subject to the same requirements as
29 monthly returns.
30 Notwithstanding any other provision in this Act
31 concerning the time within which a retailer may file his
32 return, in the case of any retailer who ceases to engage in a
33 kind of business which makes him responsible for filing
34 returns under this Act, such retailer shall file a final
-26- LRB9102016PTpk
1 return under this Act with the Department not more than one
2 month after discontinuing such business.
3 In addition, with respect to motor vehicles, watercraft,
4 aircraft, and trailers that are required to be registered
5 with an agency of this State, every retailer selling this
6 kind of tangible personal property shall file, with the
7 Department, upon a form to be prescribed and supplied by the
8 Department, a separate return for each such item of tangible
9 personal property which the retailer sells, except that
10 where, in the same transaction, a retailer of aircraft,
11 watercraft, motor vehicles or trailers transfers more than
12 one aircraft, watercraft, motor vehicle or trailer to another
13 aircraft, watercraft, motor vehicle or trailer retailer for
14 the purpose of resale, that seller for resale may report the
15 transfer of all the aircraft, watercraft, motor vehicles or
16 trailers involved in that transaction to the Department on
17 the same uniform invoice-transaction reporting return form.
18 For purposes of this Section, "watercraft" means a Class 2,
19 Class 3, or Class 4 watercraft as defined in Section 3-2 of
20 the Boat Registration and Safety Act, a personal watercraft,
21 or any boat equipped with an inboard motor.
22 The transaction reporting return in the case of motor
23 vehicles or trailers that are required to be registered with
24 an agency of this State, shall be the same document as the
25 Uniform Invoice referred to in Section 5-402 of the Illinois
26 Vehicle Code and must show the name and address of the
27 seller; the name and address of the purchaser; the amount of
28 the selling price including the amount allowed by the
29 retailer for traded-in property, if any; the amount allowed
30 by the retailer for the traded-in tangible personal property,
31 if any, to the extent to which Section 2 of this Act allows
32 an exemption for the value of traded-in property; the balance
33 payable after deducting such trade-in allowance from the
34 total selling price; the amount of tax due from the retailer
-27- LRB9102016PTpk
1 with respect to such transaction; the amount of tax collected
2 from the purchaser by the retailer on such transaction (or
3 satisfactory evidence that such tax is not due in that
4 particular instance, if that is claimed to be the fact); the
5 place and date of the sale; a sufficient identification of
6 the property sold; such other information as is required in
7 Section 5-402 of the Illinois Vehicle Code, and such other
8 information as the Department may reasonably require.
9 The transaction reporting return in the case of
10 watercraft and aircraft must show the name and address of the
11 seller; the name and address of the purchaser; the amount of
12 the selling price including the amount allowed by the
13 retailer for traded-in property, if any; the amount allowed
14 by the retailer for the traded-in tangible personal property,
15 if any, to the extent to which Section 2 of this Act allows
16 an exemption for the value of traded-in property; the balance
17 payable after deducting such trade-in allowance from the
18 total selling price; the amount of tax due from the retailer
19 with respect to such transaction; the amount of tax collected
20 from the purchaser by the retailer on such transaction (or
21 satisfactory evidence that such tax is not due in that
22 particular instance, if that is claimed to be the fact); the
23 place and date of the sale, a sufficient identification of
24 the property sold, and such other information as the
25 Department may reasonably require.
26 Such transaction reporting return shall be filed not
27 later than 20 days after the date of delivery of the item
28 that is being sold, but may be filed by the retailer at any
29 time sooner than that if he chooses to do so. The
30 transaction reporting return and tax remittance or proof of
31 exemption from the tax that is imposed by this Act may be
32 transmitted to the Department by way of the State agency with
33 which, or State officer with whom, the tangible personal
34 property must be titled or registered (if titling or
-28- LRB9102016PTpk
1 registration is required) if the Department and such agency
2 or State officer determine that this procedure will expedite
3 the processing of applications for title or registration.
4 With each such transaction reporting return, the retailer
5 shall remit the proper amount of tax due (or shall submit
6 satisfactory evidence that the sale is not taxable if that is
7 the case), to the Department or its agents, whereupon the
8 Department shall issue, in the purchaser's name, a tax
9 receipt (or a certificate of exemption if the Department is
10 satisfied that the particular sale is tax exempt) which such
11 purchaser may submit to the agency with which, or State
12 officer with whom, he must title or register the tangible
13 personal property that is involved (if titling or
14 registration is required) in support of such purchaser's
15 application for an Illinois certificate or other evidence of
16 title or registration to such tangible personal property.
17 No retailer's failure or refusal to remit tax under this
18 Act precludes a user, who has paid the proper tax to the
19 retailer, from obtaining his certificate of title or other
20 evidence of title or registration (if titling or registration
21 is required) upon satisfying the Department that such user
22 has paid the proper tax (if tax is due) to the retailer. The
23 Department shall adopt appropriate rules to carry out the
24 mandate of this paragraph.
25 If the user who would otherwise pay tax to the retailer
26 wants the transaction reporting return filed and the payment
27 of tax or proof of exemption made to the Department before
28 the retailer is willing to take these actions and such user
29 has not paid the tax to the retailer, such user may certify
30 to the fact of such delay by the retailer, and may (upon the
31 Department being satisfied of the truth of such
32 certification) transmit the information required by the
33 transaction reporting return and the remittance for tax or
34 proof of exemption directly to the Department and obtain his
-29- LRB9102016PTpk
1 tax receipt or exemption determination, in which event the
2 transaction reporting return and tax remittance (if a tax
3 payment was required) shall be credited by the Department to
4 the proper retailer's account with the Department, but
5 without the 2.1% or 1.75% discount provided for in this
6 Section being allowed. When the user pays the tax directly
7 to the Department, he shall pay the tax in the same amount
8 and in the same form in which it would be remitted if the tax
9 had been remitted to the Department by the retailer.
10 Where a retailer collects the tax with respect to the
11 selling price of tangible personal property which he sells
12 and the purchaser thereafter returns such tangible personal
13 property and the retailer refunds the selling price thereof
14 to the purchaser, such retailer shall also refund, to the
15 purchaser, the tax so collected from the purchaser. When
16 filing his return for the period in which he refunds such tax
17 to the purchaser, the retailer may deduct the amount of the
18 tax so refunded by him to the purchaser from any other use
19 tax which such retailer may be required to pay or remit to
20 the Department, as shown by such return, if the amount of the
21 tax to be deducted was previously remitted to the Department
22 by such retailer. If the retailer has not previously
23 remitted the amount of such tax to the Department, he is
24 entitled to no deduction under this Act upon refunding such
25 tax to the purchaser.
26 Any retailer filing a return under this Section shall
27 also include (for the purpose of paying tax thereon) the
28 total tax covered by such return upon the selling price of
29 tangible personal property purchased by him at retail from a
30 retailer, but as to which the tax imposed by this Act was not
31 collected from the retailer filing such return, and such
32 retailer shall remit the amount of such tax to the Department
33 when filing such return.
34 If experience indicates such action to be practicable,
-30- LRB9102016PTpk
1 the Department may prescribe and furnish a combination or
2 joint return which will enable retailers, who are required to
3 file returns hereunder and also under the Retailers'
4 Occupation Tax Act, to furnish all the return information
5 required by both Acts on the one form.
6 Where the retailer has more than one business registered
7 with the Department under separate registration under this
8 Act, such retailer may not file each return that is due as a
9 single return covering all such registered businesses, but
10 shall file separate returns for each such registered
11 business.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the State and Local Sales Tax Reform Fund, a
14 special fund in the State Treasury which is hereby created,
15 the net revenue realized for the preceding month from the 1%
16 tax on sales of food for human consumption which is to be
17 consumed off the premises where it is sold (other than
18 alcoholic beverages, soft drinks and food which has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances and
21 insulin, urine testing materials, syringes and needles used
22 by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund 4%
25 of the net revenue realized for the preceding month from the
26 6.25% general rate on the selling price of tangible personal
27 property which is purchased outside Illinois at retail from a
28 retailer and which is titled or registered by an agency of
29 this State's government.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Sales Tax Reform Fund, a
32 special fund in the State Treasury, 20% of the net revenue
33 realized for the preceding month from the 6.25% general rate
34 on the selling price of tangible personal property, other
-31- LRB9102016PTpk
1 than tangible personal property which is purchased outside
2 Illinois at retail from a retailer and which is titled or
3 registered by an agency of this State's government.
4 For January 1, 2000 through December 31, 2004, each month
5 the Department shall pay into the County and Mass Transit
6 District Fund 20% of the net revenue realized for the
7 preceding month from the 4.25% rate on the selling price or
8 the fair market value, if any, of tangible personal property
9 designed to promote energy efficiency and deemed eligible for
10 this rate by the Department of Commerce and Community Affairs
11 pursuant to Section 6-6 of the Renewable Energy, Energy
12 Efficiency, and Coal Resources Development Law of 1997.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the Local Government Tax Fund 16% of the net
15 revenue realized for the preceding month from the 6.25%
16 general rate on the selling price of tangible personal
17 property which is purchased outside Illinois at retail from a
18 retailer and which is titled or registered by an agency of
19 this State's government.
20 For January 1, 2000 through December 31, 2004, each month
21 the Department shall pay into the Local Government Tax Fund
22 80% of the net revenue realized for the preceding month from
23 the 4.25% rate on the selling price or the fair market value,
24 if any, of tangible personal property designed to promote
25 energy efficiency and deemed eligible for this rate by the
26 Department of Commerce and Community Affairs pursuant to
27 Section 6-6 of the Renewable Energy, Energy Efficiency, and
28 Coal Resources Development Law of 1997.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
-32- LRB9102016PTpk
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
-33- LRB9102016PTpk
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of the
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
-34- LRB9102016PTpk
1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 93,000,000
19 2005 97,000,000
20 2006 102,000,000
21 2007 and 106,000,000
22 each fiscal year
23 thereafter that bonds
24 are outstanding under
25 Section 13.2 of the
26 Metropolitan Pier and
27 Exposition Authority
28 Act, but not after fiscal year 2029.
29 Beginning July 20, 1993 and in each month of each fiscal
30 year thereafter, one-eighth of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority for that fiscal year, less the amount
33 deposited into the McCormick Place Expansion Project Fund by
34 the State Treasurer in the respective month under subsection
-35- LRB9102016PTpk
1 (g) of Section 13 of the Metropolitan Pier and Exposition
2 Authority Act, plus cumulative deficiencies in the deposits
3 required under this Section for previous months and years,
4 shall be deposited into the McCormick Place Expansion Project
5 Fund, until the full amount requested for the fiscal year,
6 but not in excess of the amount specified above as "Total
7 Deposit", has been deposited.
8 Subject to payment of amounts into the Build Illinois
9 Fund and the McCormick Place Expansion Project Fund pursuant
10 to the preceding paragraphs or in any amendment thereto
11 hereafter enacted, each month the Department shall pay into
12 the Local Government Distributive Fund .4% of the net revenue
13 realized for the preceding month from the 5% general rate, or
14 6.25% general rate imposed, as the case
16 may be, on the selling price of tangible personal property
17 which amount shall, subject to appropriation, be distributed
18 as provided in Section 2 of the State Revenue Sharing Act. No
19 payments or distributions pursuant to this paragraph shall be
20 made if the tax imposed by this Act on photoprocessing
21 products is declared unconstitutional, or if the proceeds
22 from such tax are unavailable for distribution because of
23 litigation.
24 Subject to payment of amounts into the Build Illinois
25 Fund, the McCormick Place Expansion Project Fund, and the
26 Local Government Distributive Fund pursuant to the preceding
27 paragraphs or in any amendments thereto hereafter enacted,
28 beginning July 1, 1993, the Department shall each month pay
29 into the Illinois Tax Increment Fund 0.27% of 80% of the net
30 revenue realized for the preceding month from the tax 6.25%
31 general rate imposed on the selling price of tangible
32 personal property.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, 75% thereof shall be paid into the
-36- LRB9102016PTpk
1 State Treasury and 25% shall be reserved in a special account
2 and used only for the transfer to the Common School Fund as
3 part of the monthly transfer from the General Revenue Fund in
4 accordance with Section 8a of the State Finance Act.
5 As soon as possible after the first day of each month,
6 upon certification of the Department of Revenue, the
7 Comptroller shall order transferred and the Treasurer shall
8 transfer from the General Revenue Fund to the Motor Fuel Tax
9 Fund an amount equal to 1.7% of 80% of the net revenue
10 realized under this Act for the second preceding month;
11 except that this transfer shall not be made for the months
12 February through June of 1992.
13 Net revenue realized for a month shall be the revenue
14 collected by the State pursuant to this Act, less the amount
15 paid out during that month as refunds to taxpayers for
16 overpayment of liability.
17 For greater simplicity of administration, manufacturers,
18 importers and wholesalers whose products are sold at retail
19 in Illinois by numerous retailers, and who wish to do so, may
20 assume the responsibility for accounting and paying to the
21 Department all tax accruing under this Act with respect to
22 such sales, if the retailers who are affected do not make
23 written objection to the Department to this arrangement.
24 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
25 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
26 Section 25. The Service Use Tax Act is amended by
27 changing Sections 3-10, 3-70, and 9 as follows:
28 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
29 Sec. 3-10. Rate of tax. Unless otherwise provided in
30 this Section, the tax imposed by this Act is at the rate of
31 6.25% of the selling price of tangible personal property
32 transferred as an incident to the sale of service, but, for
-37- LRB9102016PTpk
1 the purpose of computing this tax, in no event shall the
2 selling price be less than the cost price of the property to
3 the serviceman.
4 For January 1, 2000 through December 31, 2004, the tax
5 imposed by this Act is at the rate of 4.25% of the selling
6 price of tangible personal property designed to promote
7 energy efficiency transferred as an incident to the sale of
8 service and deemed eligible for this rate by the Department
9 of Commerce and Community Affairs pursuant to Section 6-6 of
10 the Renewable Energy, Energy Efficiency, and Coal Resources
11 Development Law of 1997.
12 With respect to gasohol, as defined in the Use Tax Act,
13 the tax imposed by this Act applies to 70% of the selling
14 price of property transferred as an incident to the sale of
15 service on or after January 1, 1990, and before July 1, 2003,
16 and to 100% of the selling price thereafter.
17 At the election of any registered serviceman made for
18 each fiscal year, sales of service in which the aggregate
19 annual cost price of tangible personal property transferred
20 as an incident to the sales of service is less than 35%, or
21 75% in the case of servicemen transferring prescription drugs
22 or servicemen engaged in graphic arts production, of the
23 aggregate annual total gross receipts from all sales of
24 service, the tax imposed by this Act shall be based on the
25 serviceman's cost price of the tangible personal property
26 transferred as an incident to the sale of those services.
27 The tax shall be imposed at the rate of 1% on food
28 prepared for immediate consumption and transferred incident
29 to a sale of service subject to this Act or the Service
30 Occupation Tax Act by an entity licensed under the Hospital
31 Licensing Act or the Nursing Home Care Act. The tax shall
32 also be imposed at the rate of 1% on food for human
33 consumption that is to be consumed off the premises where it
34 is sold (other than alcoholic beverages, soft drinks, and
-38- LRB9102016PTpk
1 food that has been prepared for immediate consumption and is
2 not otherwise included in this paragraph) and prescription
3 and nonprescription medicines, drugs, medical appliances,
4 modifications to a motor vehicle for the purpose of rendering
5 it usable by a disabled person, and insulin, urine testing
6 materials, syringes, and needles used by diabetics, for human
7 use. For the purposes of this Section, the term "soft drinks"
8 means any complete, finished, ready-to-use, non-alcoholic
9 drink, whether carbonated or not, including but not limited
10 to soda water, cola, fruit juice, vegetable juice, carbonated
11 water, and all other preparations commonly known as soft
12 drinks of whatever kind or description that are contained in
13 any closed or sealed bottle, can, carton, or container,
14 regardless of size. "Soft drinks" does not include coffee,
15 tea, non-carbonated water, infant formula, milk or milk
16 products as defined in the Grade A Pasteurized Milk and Milk
17 Products Act, or drinks containing 50% or more natural fruit
18 or vegetable juice.
19 Notwithstanding any other provisions of this Act, "food
20 for human consumption that is to be consumed off the premises
21 where it is sold" includes all food sold through a vending
22 machine, except soft drinks and food products that are
23 dispensed hot from a vending machine, regardless of the
24 location of the vending machine.
25 If the property that is acquired from a serviceman is
26 acquired outside Illinois and used outside Illinois before
27 being brought to Illinois for use here and is taxable under
28 this Act, the "selling price" on which the tax is computed
29 shall be reduced by an amount that represents a reasonable
30 allowance for depreciation for the period of prior
31 out-of-state use.
32 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
33 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
34 6-30-98; 90-606, eff. 6-30-98.)
-39- LRB9102016PTpk
1 (35 ILCS 110/3-70)
2 Sec. 3-70. Manufacturer's Purchase Credit. For purchases
3 of machinery and equipment made on and after January 1, 1995,
4 a purchaser of manufacturing machinery and equipment that
5 qualifies for the exemption provided by Section 2 of this Act
6 earns a credit in an amount equal to a fixed percentage of
7 the tax which would have been incurred under this Act on
8 those purchases. For purchases of graphic arts machinery and
9 equipment made on or after July 1, 1996, a purchase of
10 graphic arts machinery and equipment that qualifies for the
11 exemption provided by paragraph (5) of Section 3-5 of this
12 Act earns a credit in an amount equal to a fixed percentage
13 of the tax that would have been incurred under this Act on
14 those purchases. The credit earned for the purchase of
15 manufacturing machinery and equipment and graphic arts
16 machinery and equipment shall be referred to as the
17 Manufacturer's Purchase Credit. A graphic arts producer is a
18 person engaged in graphic arts production as defined in
19 Section 3-30 of the Service Occupation Tax Act. Beginning
20 July 1, 1996, all references in this Section to manufacturers
21 or manufacturing shall also refer to graphic arts producers
22 or graphic arts production.
23 The amount of credit shall be a percentage of the tax
24 that would have been incurred on the purchase of the
25 manufacturing machinery and equipment or graphic arts
26 machinery and equipment if the exemptions provided by Section
27 2 or paragraph (5) of Section 3-5 of this Act had not been
28 applicable.
29 All purchases of manufacturing machinery and equipment
30 and graphic arts machinery and equipment that qualify for the
31 exemptions provided by paragraph (5) of Section 2 or
32 paragraph (5) of Section 3-5 of this Act qualify for the
33 credit without regard to whether the serviceman elected, or
34 could have elected, under paragraph (7) of Section 2 of this
-40- LRB9102016PTpk
1 Act to exclude the transaction from this Act. If the
2 serviceman's billing to the service customer separately
3 states a selling price for the exempt manufacturing machinery
4 or equipment or the exempt graphic arts machinery and
5 equipment, the credit shall be calculated, as otherwise
6 provided herein, based on that selling price. If the
7 serviceman's billing does not separately state a selling
8 price for the exempt manufacturing machinery and equipment or
9 the exempt graphic arts machinery and equipment, the credit
10 shall be calculated, as otherwise provided herein, based on
11 50% of the entire billing. If the serviceman contracts to
12 design, develop, and produce special order manufacturing
13 machinery and equipment or special order graphic arts
14 machinery and equipment, and the billing does not separately
15 state a selling price for such special order machinery and
16 equipment, the credit shall be calculated, as otherwise
17 provided herein, based on 50% of the entire billing. The
18 provisions of this paragraph are effective for purchases made
19 on or after January 1, 1995.
20 The percentage shall be as follows:
21 (1) 15% for purchases made on or before June 30,
22 1995.
23 (2) 25% for purchases made after June 30, 1995, and
24 on or before June 30, 1996.
25 (3) 40% for purchases made after June 30, 1996, and
26 on or before June 30, 1997.
27 (4) 50% for purchases made on or after July 1,
28 1997.
29 A purchaser of production related tangible personal
30 property desiring to use the Manufacturer's Purchase Credit
31 shall certify to the seller that the purchaser is satisfying
32 all or part of the liability under the Use Tax Act or the
33 Service Use Tax Act that is due on the purchase of the
34 production related tangible personal property by use of a
-41- LRB9102016PTpk
1 Manufacturer's Purchase Credit. The Manufacturer's Purchase
2 Credit certification must be dated and shall include the name
3 and address of the purchaser, the purchaser's registration
4 number, if registered, the credit being applied, and a
5 statement that the State Use Tax or Service Use Tax liability
6 is being satisfied with the manufacturer's or graphic arts
7 producer's accumulated purchase credit. Certification may be
8 incorporated into the manufacturer's or graphic arts
9 producer's purchase order. Manufacturer's Purchase Credit
10 certification by the manufacturer or graphic arts producer
11 may be used to satisfy the retailer's or serviceman's
12 liability under the Retailers' Occupation Tax Act or Service
13 Occupation Tax Act for the credit claimed, not to exceed the
14 tax rate imposed on 6.25% of the receipts subject to tax from
15 a qualifying purchase, but only if the retailer or serviceman
16 reports the Manufacturer's Purchase Credit claimed as
17 required by the Department. The Manufacturer's Purchase
18 Credit earned by purchase of exempt manufacturing machinery
19 and equipment or graphic arts machinery and equipment is a
20 non-transferable credit. A manufacturer or graphic arts
21 producer that enters into a contract involving the
22 installation of tangible personal property into real estate
23 within a manufacturing or graphic arts production facility
24 may authorize a construction contractor to utilize credit
25 accumulated by the manufacturer or graphic arts producer to
26 purchase the tangible personal property. A manufacturer or
27 graphic arts producer intending to use accumulated credit to
28 purchase such tangible personal property shall execute a
29 written contract authorizing the contractor to utilize a
30 specified dollar amount of credit. The contractor shall
31 furnish the supplier with the manufacturer's or graphic arts
32 producer's name, registration or resale number, and a
33 statement that a specific amount of the Use Tax or Service
34 Use Tax liability, not to exceed the tax rate imposed on
-42- LRB9102016PTpk
1 6.25% of the selling price, is being satisfied with the
2 credit. The manufacturer or graphic arts producer shall
3 remain liable to timely report all information required by
4 the annual Report of Manufacturer's Purchase Credit Used for
5 credit utilized by a construction contractor.
6 The Manufacturer's Purchase Credit may be used to satisfy
7 liability under the Use Tax Act or the Service Use Tax Act
8 due on the purchase of production related tangible personal
9 property (including purchases by a manufacturer, by a graphic
10 arts producer, or a lessor who rents or leases the use of the
11 property to a manufacturer or graphic arts producer) that
12 does not otherwise qualify for the manufacturing machinery
13 and equipment exemption or the graphic arts machinery and
14 equipment exemption. "Production related tangible personal
15 property" means (i) all tangible personal property used or
16 consumed by the purchaser in a manufacturing facility in
17 which a manufacturing process described in Section 2-45 of
18 the Retailers' Occupation Tax Act takes place, including
19 tangible personal property purchased for incorporation into
20 real estate within a manufacturing facility and including,
21 but not limited to, tangible personal property used or
22 consumed in activities such as pre-production material
23 handling, receiving, quality control, inventory control,
24 storage, staging, and packaging for shipping and
25 transportation purposes; (ii) all tangible personal property
26 used or consumed by the purchaser in a graphic arts facility
27 in which graphic arts production as described in Section 2-30
28 of the Retailers' Occupation Tax Act takes place, including
29 tangible personal property purchased for incorporation into
30 real estate within a graphic arts facility and including, but
31 not limited to, all tangible personal property used or
32 consumed in activities such as graphic arts preliminary or
33 pre-press production, pre-production material handling,
34 receiving, quality control, inventory control, storage,
-43- LRB9102016PTpk
1 staging, sorting, labeling, mailing, tying, wrapping, and
2 packaging; and (iii) all tangible personal property used or
3 consumed by the purchaser for research and development.
4 "Production related tangible personal property" does not
5 include (i) tangible personal property used, within or
6 without a manufacturing or graphic arts facility, in sales,
7 purchasing, accounting, fiscal management, marketing,
8 personnel recruitment or selection, or landscaping or (ii)
9 tangible personal property required to be titled or
10 registered with a department, agency, or unit of federal,
11 state, or local government. The Manufacturer's Purchase
12 Credit may be used to satisfy the tax arising either from the
13 purchase of machinery and equipment on or after January 1,
14 1995 for which the manufacturing machinery and equipment
15 exemption provided by Section 2 of this Act was erroneously
16 claimed, or the purchase of machinery and equipment on or
17 after July 1, 1996 for which the exemption provided by
18 paragraph (5) of Section 3-5 of this Act was erroneously
19 claimed, but not in satisfaction of penalty, if any, and
20 interest for failure to pay the tax when due. A purchaser of
21 production related tangible personal property who is required
22 to pay Illinois Use Tax or Service Use Tax on the purchase
23 directly to the Department may utilize the Manufacturer's
24 Purchase Credit in satisfaction of the tax arising from that
25 purchase, but not in satisfaction of penalty and interest. A
26 purchaser who uses the Manufacturer's Purchase Credit to
27 purchase property which is later determined not to be
28 production related tangible personal property may be liable
29 for tax, penalty, and interest on the purchase of that
30 property as of the date of purchase but shall be entitled to
31 use the disallowed Manufacturer's Purchase Credit, so long as
32 it has not expired, on qualifying purchases of production
33 related tangible personal property not previously subject to
34 credit usage. The Manufacturer's Purchase Credit earned by a
-44- LRB9102016PTpk
1 manufacturer or graphic arts producer expires the last day of
2 the second calendar year following the calendar year in which
3 the credit arose.
4 A purchaser earning Manufacturer's Purchase Credit shall
5 sign and file an annual Report of Manufacturer's Purchase
6 Credit Earned for each calendar year no later than the last
7 day of the sixth month following the calendar year in which a
8 Manufacturer's Purchase Credit is earned. A Report of
9 Manufacturer's Purchase Credit Earned shall be filed on forms
10 as prescribed or approved by the Department and shall state,
11 for each month of the calendar year: (i) the total purchase
12 price of all purchases of exempt manufacturing or graphic
13 arts machinery on which the credit was earned; (ii) the total
14 State Use Tax or Service Use Tax which would have been due on
15 those items; (iii) the percentage used to calculate the
16 amount of credit earned; (iv) the amount of credit earned;
17 and (v) such other information as the Department may
18 reasonably require. A purchaser earning Manufacturer's
19 Purchase Credit shall maintain records which identify, as to
20 each purchase of manufacturing or graphic arts machinery and
21 equipment on which the purchaser earned Manufacturer's
22 Purchase Credit, the vendor (including, if applicable, either
23 the vendor's registration number or Federal Employer
24 Identification Number), the purchase price, and the amount of
25 Manufacturer's Purchase Credit earned on each purchase.
26 A purchaser using Manufacturer's Purchase Credit shall
27 sign and file an annual Report of Manufacturer's Purchase
28 Credit Used for each calendar year no later than the last day
29 of the sixth month following the calendar year in which a
30 Manufacturer's Purchase Credit is used. A Report of
31 Manufacturer's Purchase Credit Used shall be filed on forms
32 as prescribed or approved by the Department and shall state,
33 for each month of the calendar year: (i) the total purchase
34 price of production related tangible personal property
-45- LRB9102016PTpk
1 purchased from Illinois suppliers; (ii) the total purchase
2 price of production related tangible personal property
3 purchased from out-of-state suppliers; (iii) the total amount
4 of credit used during such month; and (iv) such other
5 information as the Department may reasonably require. A
6 purchaser using Manufacturer's Purchase Credit shall maintain
7 records that identify, as to each purchase of production
8 related tangible personal property on which the purchaser
9 used Manufacturer's Purchase Credit, the vendor (including,
10 if applicable, either the vendor's registration number or
11 Federal Employer Identification Number), the purchase price,
12 and the amount of Manufacturer's Purchase Credit used on each
13 purchase.
14 No annual report shall be filed before May 1, 1996. A
15 purchaser that fails to file an annual Report of
16 Manufacturer's Purchase Credit Earned or an annual Report of
17 Manufacturer's Purchase Credit Used by the last day of the
18 sixth month following the end of the calendar year shall
19 forfeit all Manufacturer's Purchase Credit for that calendar
20 year unless it establishes that its failure to file was due
21 to reasonable cause. Manufacturer's Purchase Credit reports
22 may be amended to report and claim credit on qualifying
23 purchases not previously reported at any time before the
24 credit would have expired, unless both the Department and the
25 purchaser have agreed to an extension of the statute of
26 limitations for the issuance of a notice of tax liability as
27 provided in Section 4 of the Retailers' Occupation Tax Act.
28 If the time for assessment or refund has been extended, then
29 amended reports for a calendar year may be filed at any time
30 prior to the date to which the statute of limitations for the
31 calendar year or portion thereof has been extended. No
32 Manufacturer's Purchase Credit report filed with the
33 Department for periods prior to January 1, 1995 shall be
34 approved. Manufacturer's Purchase Credit claimed on an
-46- LRB9102016PTpk
1 amended report may be used to satisfy tax liability under the
2 Use Tax Act or the Service Use Tax Act (i) on qualifying
3 purchases of production related tangible personal property
4 made after the date the amended report is filed or (ii)
5 assessed by the Department on qualifying purchases of
6 production related tangible personal property made in the
7 case of manufacturers on or after January 1, 1995, or in the
8 case of graphic arts producers on or after July 1, 1996.
9 If the purchaser is not the manufacturer or a graphic
10 arts producer, but rents or leases the use of the property to
11 a manufacturer or a graphic arts producer, the purchaser may
12 earn, report, and use Manufacturer's Purchase Credit in the
13 same manner as a manufacturer or graphic arts producer.
14 A purchaser shall not be entitled to any Manufacturer's
15 Purchase Credit for a purchase that is required to be
16 reported and is not timely reported as provided in this
17 Section. A purchaser remains liable for (i) any tax that was
18 satisfied by use of a Manufacturer's Purchase Credit, as of
19 the date of purchase, if that use is not timely reported as
20 required in this Section and (ii) for any applicable
21 penalties and interest for failing to pay the tax when due.
22 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
23 89-531, eff. 7-19-96; 90-166, eff. 7-23-97.)
24 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
25 Sec. 9. Each serviceman required or authorized to
26 collect the tax herein imposed shall pay to the Department
27 the amount of such tax (except as otherwise provided) at the
28 time when he is required to file his return for the period
29 during which such tax was collected, less a discount of 2.1%
30 prior to January 1, 1990 and 1.75% on and after January 1,
31 1990, or $5 per calendar year, whichever is greater, which is
32 allowed to reimburse the serviceman for expenses incurred in
33 collecting the tax, keeping records, preparing and filing
-47- LRB9102016PTpk
1 returns, remitting the tax and supplying data to the
2 Department on request. A serviceman need not remit that part
3 of any tax collected by him to the extent that he is required
4 to pay and does pay the tax imposed by the Service Occupation
5 Tax Act with respect to his sale of service involving the
6 incidental transfer by him of the same property.
7 Except as provided hereinafter in this Section, on or
8 before the twentieth day of each calendar month, such
9 serviceman shall file a return for the preceding calendar
10 month in accordance with reasonable Rules and Regulations to
11 be promulgated by the Department. Such return shall be filed
12 on a form prescribed by the Department and shall contain such
13 information as the Department may reasonably require.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter.
18 The taxpayer shall also file a return with the Department for
19 each of the first two months of each calendar quarter, on or
20 before the twentieth day of the following calendar month,
21 stating:
22 1. The name of the seller;
23 2. The address of the principal place of business
24 from which he engages in business as a serviceman in this
25 State;
26 3. The total amount of taxable receipts received by
27 him during the preceding calendar month, including
28 receipts from charge and time sales, but less all
29 deductions allowed by law;
30 4. The amount of credit provided in Section 2d of
31 this Act;
32 5. The amount of tax due;
33 5-5. The signature of the taxpayer; and
34 6. Such other reasonable information as the
-48- LRB9102016PTpk
1 Department may require.
2 If a taxpayer fails to sign a return within 30 days after
3 the proper notice and demand for signature by the Department,
4 the return shall be considered valid and any amount shown to
5 be due on the return shall be deemed assessed.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who
10 has an average monthly tax liability of $100,000 or more
11 shall make all payments required by rules of the Department
12 by electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "average
16 monthly tax liability" means the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year
20 divided by 12.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers required
24 to make payments by electronic funds transfer shall make
25 those payments for a minimum of one year beginning on October
26 1.
27 Any taxpayer not required to make payments by electronic
28 funds transfer may make payments by electronic funds transfer
29 with the permission of the Department.
30 All taxpayers required to make payment by electronic
31 funds transfer and any taxpayers authorized to voluntarily
32 make payments by electronic funds transfer shall make those
33 payments in the manner authorized by the Department.
34 The Department shall adopt such rules as are necessary to
-49- LRB9102016PTpk
1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 If the serviceman is otherwise required to file a monthly
4 return and if the serviceman's average monthly tax liability
5 to the Department does not exceed $200, the Department may
6 authorize his returns to be filed on a quarter annual basis,
7 with the return for January, February and March of a given
8 year being due by April 20 of such year; with the return for
9 April, May and June of a given year being due by July 20 of
10 such year; with the return for July, August and September of
11 a given year being due by October 20 of such year, and with
12 the return for October, November and December of a given year
13 being due by January 20 of the following year.
14 If the serviceman is otherwise required to file a monthly
15 or quarterly return and if the serviceman's average monthly
16 tax liability to the Department does not exceed $50, the
17 Department may authorize his returns to be filed on an annual
18 basis, with the return for a given year being due by January
19 20 of the following year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a serviceman may file his
25 return, in the case of any serviceman who ceases to engage in
26 a kind of business which makes him responsible for filing
27 returns under this Act, such serviceman shall file a final
28 return under this Act with the Department not more than 1
29 month after discontinuing such business.
30 Where a serviceman collects the tax with respect to the
31 selling price of property which he sells and the purchaser
32 thereafter returns such property and the serviceman refunds
33 the selling price thereof to the purchaser, such serviceman
34 shall also refund, to the purchaser, the tax so collected
-50- LRB9102016PTpk
1 from the purchaser. When filing his return for the period in
2 which he refunds such tax to the purchaser, the serviceman
3 may deduct the amount of the tax so refunded by him to the
4 purchaser from any other Service Use Tax, Service Occupation
5 Tax, retailers' occupation tax or use tax which such
6 serviceman may be required to pay or remit to the Department,
7 as shown by such return, provided that the amount of the tax
8 to be deducted shall previously have been remitted to the
9 Department by such serviceman. If the serviceman shall not
10 previously have remitted the amount of such tax to the
11 Department, he shall be entitled to no deduction hereunder
12 upon refunding such tax to the purchaser.
13 Any serviceman filing a return hereunder shall also
14 include the total tax upon the selling price of tangible
15 personal property purchased for use by him as an incident to
16 a sale of service, and such serviceman shall remit the amount
17 of such tax to the Department when filing such return.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable servicemen, who are required
21 to file returns hereunder and also under the Service
22 Occupation Tax Act, to furnish all the return information
23 required by both Acts on the one form.
24 Where the serviceman has more than one business
25 registered with the Department under separate registration
26 hereunder, such serviceman shall not file each return that is
27 due as a single return covering all such registered
28 businesses, but shall file separate returns for each such
29 registered business.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Tax Reform Fund, a special
32 fund in the State Treasury, the net revenue realized for the
33 preceding month from the 1% tax on sales of food for human
34 consumption which is to be consumed off the premises where it
-51- LRB9102016PTpk
1 is sold (other than alcoholic beverages, soft drinks and food
2 which has been prepared for immediate consumption) and
3 prescription and nonprescription medicines, drugs, medical
4 appliances and insulin, urine testing materials, syringes and
5 needles used by diabetics.
6 For January 1, 2000 through December 31, 2004, each month
7 the Department shall pay into the County and Mass Transit
8 District Fund 20% of the net revenue realized for the
9 preceding month from the 4.25% rate on the selling price of
10 tangible personal property designed to promote energy
11 efficiency and deemed eligible for this rate by the
12 Department of Commerce and Community Affairs pursuant to
13 Section 6-6 of the Renewable Energy, Energy Efficiency, and
14 Coal Resources Development Law of 1997.
15 Beginning January 1, 1990, each month the Department
16 shall pay into the State and Local Sales Tax Reform Fund 20%
17 of the net revenue realized for the preceding month from the
18 6.25% general rate on transfers of tangible personal
19 property, other than tangible personal property which is
20 purchased outside Illinois at retail from a retailer and
21 which is titled or registered by an agency of this State's
22 government.
23 For January 1, 2000 through December 31, 2004, each month
24 the Department shall pay into the Local Government Tax Fund
25 80% of the net revenue realized for the preceding month from
26 the 4.25% rate on the selling price of tangible personal
27 property designed to promote energy efficiency and deemed
28 eligible for this rate by the Department of Commerce and
29 Community Affairs pursuant to Section 6-6 of the Renewable
30 Energy, Energy Efficiency, and Coal Resources Development Law
31 of 1997.
32 Of the remainder of the moneys received by the Department
33 pursuant to this Act, (a) 1.75% thereof shall be paid into
34 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
-52- LRB9102016PTpk
1 and on and after July 1, 1989, 3.8% thereof shall be paid
2 into the Build Illinois Fund; provided, however, that if in
3 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
4 as the case may be, of the moneys received by the Department
5 and required to be paid into the Build Illinois Fund pursuant
6 to Section 3 of the Retailers' Occupation Tax Act, Section 9
7 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
8 Section 9 of the Service Occupation Tax Act, such Acts being
9 hereinafter called the "Tax Acts" and such aggregate of 2.2%
10 or 3.8%, as the case may be, of moneys being hereinafter
11 called the "Tax Act Amount", and (2) the amount transferred
12 to the Build Illinois Fund from the State and Local Sales Tax
13 Reform Fund shall be less than the Annual Specified Amount
14 (as defined in Section 3 of the Retailers' Occupation Tax
15 Act), an amount equal to the difference shall be immediately
16 paid into the Build Illinois Fund from other moneys received
17 by the Department pursuant to the Tax Acts; and further
18 provided, that if on the last business day of any month the
19 sum of (1) the Tax Act Amount required to be deposited into
20 the Build Illinois Bond Account in the Build Illinois Fund
21 during such month and (2) the amount transferred during such
22 month to the Build Illinois Fund from the State and Local
23 Sales Tax Reform Fund shall have been less than 1/12 of the
24 Annual Specified Amount, an amount equal to the difference
25 shall be immediately paid into the Build Illinois Fund from
26 other moneys received by the Department pursuant to the Tax
27 Acts; and, further provided, that in no event shall the
28 payments required under the preceding proviso result in
29 aggregate payments into the Build Illinois Fund pursuant to
30 this clause (b) for any fiscal year in excess of the greater
31 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
32 for such fiscal year; and, further provided, that the amounts
33 payable into the Build Illinois Fund under this clause (b)
34 shall be payable only until such time as the aggregate amount
-53- LRB9102016PTpk
1 on deposit under each trust indenture securing Bonds issued
2 and outstanding pursuant to the Build Illinois Bond Act is
3 sufficient, taking into account any future investment income,
4 to fully provide, in accordance with such indenture, for the
5 defeasance of or the payment of the principal of, premium, if
6 any, and interest on the Bonds secured by such indenture and
7 on any Bonds expected to be issued thereafter and all fees
8 and costs payable with respect thereto, all as certified by
9 the Director of the Bureau of the Budget. If on the last
10 business day of any month in which Bonds are outstanding
11 pursuant to the Build Illinois Bond Act, the aggregate of the
12 moneys deposited in the Build Illinois Bond Account in the
13 Build Illinois Fund in such month shall be less than the
14 amount required to be transferred in such month from the
15 Build Illinois Bond Account to the Build Illinois Bond
16 Retirement and Interest Fund pursuant to Section 13 of the
17 Build Illinois Bond Act, an amount equal to such deficiency
18 shall be immediately paid from other moneys received by the
19 Department pursuant to the Tax Acts to the Build Illinois
20 Fund; provided, however, that any amounts paid to the Build
21 Illinois Fund in any fiscal year pursuant to this sentence
22 shall be deemed to constitute payments pursuant to clause (b)
23 of the preceding sentence and shall reduce the amount
24 otherwise payable for such fiscal year pursuant to clause (b)
25 of the preceding sentence. The moneys received by the
26 Department pursuant to this Act and required to be deposited
27 into the Build Illinois Fund are subject to the pledge, claim
28 and charge set forth in Section 12 of the Build Illinois Bond
29 Act.
30 Subject to payment of amounts into the Build Illinois
31 Fund as provided in the preceding paragraph or in any
32 amendment thereto hereafter enacted, the following specified
33 monthly installment of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
-54- LRB9102016PTpk
1 Exposition Authority provided under Section 8.25f of the
2 State Finance Act, but not in excess of the sums designated
3 as "Total Deposit", shall be deposited in the aggregate from
4 collections under Section 9 of the Use Tax Act, Section 9 of
5 the Service Use Tax Act, Section 9 of the Service Occupation
6 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
7 into the McCormick Place Expansion Project Fund in the
8 specified fiscal years.
9 Fiscal Year Total Deposit
10 1993 $0
11 1994 53,000,000
12 1995 58,000,000
13 1996 61,000,000
14 1997 64,000,000
15 1998 68,000,000
16 1999 71,000,000
17 2000 75,000,000
18 2001 80,000,000
19 2002 84,000,000
20 2003 89,000,000
21 2004 93,000,000
22 2005 97,000,000
23 2006 102,000,000
24 2007 and 106,000,000
25 each fiscal year
26 thereafter that bonds
27 are outstanding under
28 Section 13.2 of the
29 Metropolitan Pier and
30 Exposition Authority Act,
31 but not after fiscal year 2029.
32 Beginning July 20, 1993 and in each month of each fiscal
33 year thereafter, one-eighth of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
-55- LRB9102016PTpk
1 Exposition Authority for that fiscal year, less the amount
2 deposited into the McCormick Place Expansion Project Fund by
3 the State Treasurer in the respective month under subsection
4 (g) of Section 13 of the Metropolitan Pier and Exposition
5 Authority Act, plus cumulative deficiencies in the deposits
6 required under this Section for previous months and years,
7 shall be deposited into the McCormick Place Expansion Project
8 Fund, until the full amount requested for the fiscal year,
9 but not in excess of the amount specified above as "Total
10 Deposit", has been deposited.
11 Subject to payment of amounts into the Build Illinois
12 Fund and the McCormick Place Expansion Project Fund pursuant
13 to the preceding paragraphs or in any amendment thereto
14 hereafter enacted, each month the Department shall pay into
15 the Local Government Distributive Fund 0.4% of the net
16 revenue realized for the preceding month from the 5% general
17 rate or 0.4% of 80% of the net revenue realized for the
18 preceding month from the tax 6.25% general rate imposed, as
19 the case may be, on the selling price of tangible personal
20 property which amount shall, subject to appropriation, be
21 distributed as provided in Section 2 of the State Revenue
22 Sharing Act. No payments or distributions pursuant to this
23 paragraph shall be made if the tax imposed by this Act on
24 photo processing products is declared unconstitutional, or if
25 the proceeds from such tax are unavailable for distribution
26 because of litigation.
27 Subject to payment of amounts into the Build Illinois
28 Fund, the McCormick Place Expansion Project Fund, and the
29 Local Government Distributive Fund pursuant to the preceding
30 paragraphs or in any amendments thereto hereafter enacted,
31 beginning July 1, 1993, the Department shall each month pay
32 into the Illinois Tax Increment Fund 0.27% of 80% of the net
33 revenue realized for the preceding month from the tax 6.25%
34 general rate imposed on the selling price of tangible
-56- LRB9102016PTpk
1 personal property.
2 All remaining moneys received by the Department pursuant
3 to this Act shall be paid into the General Revenue Fund of
4 the State Treasury.
5 As soon as possible after the first day of each month,
6 upon certification of the Department of Revenue, the
7 Comptroller shall order transferred and the Treasurer shall
8 transfer from the General Revenue Fund to the Motor Fuel Tax
9 Fund an amount equal to 1.7% of 80% of the net revenue
10 realized under this Act for the second preceding month;
11 except that this transfer shall not be made for the months
12 February through June, 1992.
13 Net revenue realized for a month shall be the revenue
14 collected by the State pursuant to this Act, less the amount
15 paid out during that month as refunds to taxpayers for
16 overpayment of liability.
17 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
18 Section 30. The Service Occupation Tax Act is amended by
19 changing Sections 3-10 and 9 as follows:
20 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
21 Sec. 3-10. Rate of tax. Unless otherwise provided in
22 this Section, the tax imposed by this Act is at the rate of
23 6.25% of the "selling price", as defined in Section 2 of the
24 Service Use Tax Act, of the tangible personal property. For
25 the purpose of computing this tax, in no event shall the
26 "selling price" be less than the cost price to the serviceman
27 of the tangible personal property transferred. The selling
28 price of each item of tangible personal property transferred
29 as an incident of a sale of service may be shown as a
30 distinct and separate item on the serviceman's billing to the
31 service customer. If the selling price is not so shown, the
32 selling price of the tangible personal property is deemed to
-57- LRB9102016PTpk
1 be 50% of the serviceman's entire billing to the service
2 customer. When, however, a serviceman contracts to design,
3 develop, and produce special order machinery or equipment,
4 the tax imposed by this Act shall be based on the
5 serviceman's cost price of the tangible personal property
6 transferred incident to the completion of the contract.
7 For January 1, 2000 through December 31, 2004, the tax
8 imposed by this Act is at the rate of 4.25% of the "selling
9 price", as defined in Section 2 of the Service Use Tax Act,
10 of tangible personal property designed to promote energy
11 efficiency and deemed eligible for this rate by the
12 Department of Commerce and Community Affairs pursuant to
13 Section 6-6 of the Renewable Energy, Energy Efficiency, and
14 Coal Resources Development Law of 1997.
15 With respect to gasohol, as defined in the Use Tax Act,
16 the tax imposed by this Act shall apply to 70% of the cost
17 price of property transferred as an incident to the sale of
18 service on or after January 1, 1990, and before July 1, 2003,
19 and to 100% of the cost price thereafter.
20 At the election of any registered serviceman made for
21 each fiscal year, sales of service in which the aggregate
22 annual cost price of tangible personal property transferred
23 as an incident to the sales of service is less than 35%, or
24 75% in the case of servicemen transferring prescription drugs
25 or servicemen engaged in graphic arts production, of the
26 aggregate annual total gross receipts from all sales of
27 service, the tax imposed by this Act shall be based on the
28 serviceman's cost price of the tangible personal property
29 transferred incident to the sale of those services.
30 The tax shall be imposed at the rate of 1% on food
31 prepared for immediate consumption and transferred incident
32 to a sale of service subject to this Act or the Service
33 Occupation Tax Act by an entity licensed under the Hospital
34 Licensing Act or the Nursing Home Care Act. The tax shall
-58- LRB9102016PTpk
1 also be imposed at the rate of 1% on food for human
2 consumption that is to be consumed off the premises where it
3 is sold (other than alcoholic beverages, soft drinks, and
4 food that has been prepared for immediate consumption and is
5 not otherwise included in this paragraph) and prescription
6 and nonprescription medicines, drugs, medical appliances,
7 modifications to a motor vehicle for the purpose of rendering
8 it usable by a disabled person, and insulin, urine testing
9 materials, syringes, and needles used by diabetics, for human
10 use. For the purposes of this Section, the term "soft
11 drinks" means any complete, finished, ready-to-use,
12 non-alcoholic drink, whether carbonated or not, including but
13 not limited to soda water, cola, fruit juice, vegetable
14 juice, carbonated water, and all other preparations commonly
15 known as soft drinks of whatever kind or description that are
16 contained in any closed or sealed can, carton, or container,
17 regardless of size. "Soft drinks" does not include coffee,
18 tea, non-carbonated water, infant formula, milk or milk
19 products as defined in the Grade A Pasteurized Milk and Milk
20 Products Act, or drinks containing 50% or more natural fruit
21 or vegetable juice.
22 Notwithstanding any other provisions of this Act, "food
23 for human consumption that is to be consumed off the premises
24 where it is sold" includes all food sold through a vending
25 machine, except soft drinks and food products that are
26 dispensed hot from a vending machine, regardless of the
27 location of the vending machine.
28 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
29 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
30 6-30-98; 90-606, eff. 6-30-98.)
31 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
32 Sec. 9. Each serviceman required or authorized to
33 collect the tax herein imposed shall pay to the Department
-59- LRB9102016PTpk
1 the amount of such tax at the time when he is required to
2 file his return for the period during which such tax was
3 collectible, less a discount of 2.1% prior to January 1,
4 1990, and 1.75% on and after January 1, 1990, or $5 per
5 calendar year, whichever is greater, which is allowed to
6 reimburse the serviceman for expenses incurred in collecting
7 the tax, keeping records, preparing and filing returns,
8 remitting the tax and supplying data to the Department on
9 request.
10 Where such tangible personal property is sold under a
11 conditional sales contract, or under any other form of sale
12 wherein the payment of the principal sum, or a part thereof,
13 is extended beyond the close of the period for which the
14 return is filed, the serviceman, in collecting the tax may
15 collect, for each tax return period, only the tax applicable
16 to the part of the selling price actually received during
17 such tax return period.
18 Except as provided hereinafter in this Section, on or
19 before the twentieth day of each calendar month, such
20 serviceman shall file a return for the preceding calendar
21 month in accordance with reasonable rules and regulations to
22 be promulgated by the Department of Revenue. Such return
23 shall be filed on a form prescribed by the Department and
24 shall contain such information as the Department may
25 reasonably require.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
34 1. The name of the seller;
-60- LRB9102016PTpk
1 2. The address of the principal place of business
2 from which he engages in business as a serviceman in this
3 State;
4 3. The total amount of taxable receipts received by
5 him during the preceding calendar month, including
6 receipts from charge and time sales, but less all
7 deductions allowed by law;
8 4. The amount of credit provided in Section 2d of
9 this Act;
10 5. The amount of tax due;
11 5-5. The signature of the taxpayer; and
12 6. Such other reasonable information as the
13 Department may require.
14 If a taxpayer fails to sign a return within 30 days after
15 the proper notice and demand for signature by the Department,
16 the return shall be considered valid and any amount shown to
17 be due on the return shall be deemed assessed.
18 A serviceman may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of Service Use
20 Tax as provided in Section 3-70 of the Service Use Tax Act if
21 the purchaser provides the appropriate documentation as
22 required by Section 3-70 of the Service Use Tax Act. A
23 Manufacturer's Purchase Credit certification, accepted by a
24 serviceman as provided in Section 3-70 of the Service Use Tax
25 Act, may be used by that serviceman to satisfy Service
26 Occupation Tax liability in the amount claimed in the
27 certification, not to exceed the tax rate imposed on 6.25% of
28 0.4% of the net
32 revenue realized for the preceding month from the 5% general
33 rate or 0.4% of 80% of the net revenue realized for the
34 preceding month from the tax 6.25% general rate imposed, as
-68- LRB9102016PTpk
1 the case may be, on the selling price of tangible personal
2 property which amount shall, subject to appropriation, be
3 distributed as provided in Section 2 of the State Revenue
4 Sharing Act. No payments or distributions pursuant to this
5 paragraph shall be made if the tax imposed by this Act on
6 photoprocessing products is declared unconstitutional, or if
7 the proceeds from such tax are unavailable for distribution
8 because of litigation.
9 Subject to payment of amounts into the Build Illinois
10 Fund, the McCormick Place Expansion Project Fund, and the
11 Local Government Distributive Fund pursuant to the preceding
12 paragraphs or in any amendments thereto hereafter enacted,
13 beginning July 1, 1993, the Department shall each month pay
14 into the Illinois Tax Increment Fund 0.27% of 80% of the net
15 revenue realized for the preceding month from the tax 6.25%
16 general rate imposed on the selling price of tangible
17 personal property.
18 Remaining moneys received by the Department pursuant to
19 this Act shall be paid into the General Revenue Fund of the
20 State Treasury.
21 The Department may, upon separate written notice to a
22 taxpayer, require the taxpayer to prepare and file with the
23 Department on a form prescribed by the Department within not
24 less than 60 days after receipt of the notice an annual
25 information return for the tax year specified in the notice.
26 Such annual return to the Department shall include a
27 statement of gross receipts as shown by the taxpayer's last
28 Federal income tax return. If the total receipts of the
29 business as reported in the Federal income tax return do not
30 agree with the gross receipts reported to the Department of
31 Revenue for the same period, the taxpayer shall attach to his
32 annual return a schedule showing a reconciliation of the 2
33 amounts and the reasons for the difference. The taxpayer's
34 annual return to the Department shall also disclose the cost
-69- LRB9102016PTpk
1 of goods sold by the taxpayer during the year covered by such
2 return, opening and closing inventories of such goods for
3 such year, cost of goods used from stock or taken from stock
4 and given away by the taxpayer during such year, pay roll
5 information of the taxpayer's business during such year and
6 any additional reasonable information which the Department
7 deems would be helpful in determining the accuracy of the
8 monthly, quarterly or annual returns filed by such taxpayer
9 as hereinbefore provided for in this Section.
10 If the annual information return required by this Section
11 is not filed when and as required, the taxpayer shall be
12 liable as follows:
13 (i) Until January 1, 1994, the taxpayer shall be
14 liable for a penalty equal to 1/6 of 1% of the tax due
15 from such taxpayer under this Act during the period to be
16 covered by the annual return for each month or fraction
17 of a month until such return is filed as required, the
18 penalty to be assessed and collected in the same manner
19 as any other penalty provided for in this Act.
20 (ii) On and after January 1, 1994, the taxpayer
21 shall be liable for a penalty as described in Section 3-4
22 of the Uniform Penalty and Interest Act.
23 The chief executive officer, proprietor, owner or highest
24 ranking manager shall sign the annual return to certify the
25 accuracy of the information contained therein. Any person
26 who willfully signs the annual return containing false or
27 inaccurate information shall be guilty of perjury and
28 punished accordingly. The annual return form prescribed by
29 the Department shall include a warning that the person
30 signing the return may be liable for perjury.
31 The foregoing portion of this Section concerning the
32 filing of an annual information return shall not apply to a
33 serviceman who is not required to file an income tax return
34 with the United States Government.
-70- LRB9102016PTpk
1 As soon as possible after the first day of each month,
2 upon certification of the Department of Revenue, the
3 Comptroller shall order transferred and the Treasurer shall
4 transfer from the General Revenue Fund to the Motor Fuel Tax
5 Fund an amount equal to 1.7% of 80% of the net revenue
6 realized under this Act for the second preceding month;
7 except that this transfer shall not be made for the months
8 February through June, 1992.
9 Net revenue realized for a month shall be the revenue
10 collected by the State pursuant to this Act, less the amount
11 paid out during that month as refunds to taxpayers for
12 overpayment of liability.
13 For greater simplicity of administration, it shall be
14 permissible for manufacturers, importers and wholesalers
15 whose products are sold by numerous servicemen in Illinois,
16 and who wish to do so, to assume the responsibility for
17 accounting and paying to the Department all tax accruing
18 under this Act with respect to such sales, if the servicemen
19 who are affected do not make written objection to the
20 Department to this arrangement.
21 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
22 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
23 7-8-98.)
24 Section 35. The Retailers' Occupation Tax Act is amended
25 by changing Sections 2-10, 3, and 5l as follows:
26 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
27 Sec. 2-10. Rate of tax. Unless otherwise provided in
28 this Section, the tax imposed by this Act is at the rate of
29 6.25% of gross receipts from sales of tangible personal
30 property made in the course of business.
31 For January 1, 2000 through December 31, 2004, the tax
32 imposed by this Act is at the rate of 4.25% of gross receipts
-71- LRB9102016PTpk
1 from sales of tangible personal property designed to promote
2 energy efficiency and deemed eligible for this rate by the
3 Department of Commerce and Community Affairs pursuant to
4 Section 6-6 of the Renewable Energy, Energy Efficiency, and
5 Coal Resources Development Law of 1997.
6 With respect to gasohol, as defined in the Use Tax Act,
7 the tax imposed by this Act applies to 70% of the proceeds of
8 sales made on or after January 1, 1990, and before July 1,
9 2003, and to 100% of the proceeds of sales made thereafter.
10 With respect to food for human consumption that is to be
11 consumed off the premises where it is sold (other than
12 alcoholic beverages, soft drinks, and food that has been
13 prepared for immediate consumption) and prescription and
14 nonprescription medicines, drugs, medical appliances,
15 modifications to a motor vehicle for the purpose of rendering
16 it usable by a disabled person, and insulin, urine testing
17 materials, syringes, and needles used by diabetics, for human
18 use, the tax is imposed at the rate of 1%. For the purposes
19 of this Section, the term "soft drinks" means any complete,
20 finished, ready-to-use, non-alcoholic drink, whether
21 carbonated or not, including but not limited to soda water,
22 cola, fruit juice, vegetable juice, carbonated water, and all
23 other preparations commonly known as soft drinks of whatever
24 kind or description that are contained in any closed or
25 sealed bottle, can, carton, or container, regardless of size.
26 "Soft drinks" does not include coffee, tea, non-carbonated
27 water, infant formula, milk or milk products as defined in
28 the Grade A Pasteurized Milk and Milk Products Act, or drinks
29 containing 50% or more natural fruit or vegetable juice.
30 Notwithstanding any other provisions of this Act, "food
31 for human consumption that is to be consumed off the premises
32 where it is sold" includes all food sold through a vending
33 machine, except soft drinks and food products that are
34 dispensed hot from a vending machine, regardless of the
-72- LRB9102016PTpk
1 location of the vending machine.
2 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
3 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
4 6-30-98; 90-606, eff. 6-30-98.)
5 (35 ILCS 120/3) (from Ch. 120, par. 442)
6 Sec. 3. Except as provided in this Section, on or before
7 the twentieth day of each calendar month, every person
8 engaged in the business of selling tangible personal property
9 at retail in this State during the preceding calendar month
10 shall file a return with the Department, stating:
11 1. The name of the seller;
12 2. His residence address and the address of his
13 principal place of business and the address of the
14 principal place of business (if that is a different
15 address) from which he engages in the business of selling
16 tangible personal property at retail in this State;
17 3. Total amount of receipts received by him during
18 the preceding calendar month or quarter, as the case may
19 be, from sales of tangible personal property, and from
20 services furnished, by him during such preceding calendar
21 month or quarter;
22 4. Total amount received by him during the
23 preceding calendar month or quarter on charge and time
24 sales of tangible personal property, and from services
25 furnished, by him prior to the month or quarter for which
26 the return is filed;
27 5. Deductions allowed by law;
28 6. Gross receipts which were received by him during
29 the preceding calendar month or quarter and upon the
30 basis of which the tax is imposed;
31 7. The amount of credit provided in Section 2d of
32 this Act;
33 8. The amount of tax due;
-73- LRB9102016PTpk
1 9. The signature of the taxpayer; and
2 10. Such other reasonable information as the
3 Department may require.
4 If a taxpayer fails to sign a return within 30 days after
5 the proper notice and demand for signature by the Department,
6 the return shall be considered valid and any amount shown to
7 be due on the return shall be deemed assessed.
8 Each return shall be accompanied by the statement of
9 prepaid tax issued pursuant to Section 2e for which credit is
10 claimed.
11 A retailer may accept a Manufacturer's Purchase Credit
12 certification from a purchaser in satisfaction of Use Tax as
13 provided in Section 3-85 of the Use Tax Act if the purchaser
14 provides the appropriate documentation as required by Section
15 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
16 certification, accepted by a retailer as provided in Section
17 3-85 of the Use Tax Act, may be used by that retailer to
18 satisfy Retailers' Occupation Tax liability in the amount
19 claimed in the certification, not to exceed the tax rate
20 imposed on 6.25% of the receipts subject to tax from a
21 qualifying purchase.
22 The Department may require returns to be filed on a
23 quarterly basis. If so required, a return for each calendar
24 quarter shall be filed on or before the twentieth day of the
25 calendar month following the end of such calendar quarter.
26 The taxpayer shall also file a return with the Department for
27 each of the first two months of each calendar quarter, on or
28 before the twentieth day of the following calendar month,
29 stating:
30 1. The name of the seller;
31 2. The address of the principal place of business
32 from which he engages in the business of selling tangible
33 personal property at retail in this State;
34 3. The total amount of taxable receipts received by
-74- LRB9102016PTpk
1 him during the preceding calendar month from sales of
2 tangible personal property by him during such preceding
3 calendar month, including receipts from charge and time
4 sales, but less all deductions allowed by law;
5 4. The amount of credit provided in Section 2d of
6 this Act;
7 5. The amount of tax due; and
8 6. Such other reasonable information as the
9 Department may require.
10 If a total amount of less than $1 is payable, refundable
11 or creditable, such amount shall be disregarded if it is less
12 than 50 cents and shall be increased to $1 if it is 50 cents
13 or more.
14 Beginning October 1, 1993, a taxpayer who has an average
15 monthly tax liability of $150,000 or more shall make all
16 payments required by rules of the Department by electronic
17 funds transfer. Beginning October 1, 1994, a taxpayer who
18 has an average monthly tax liability of $100,000 or more
19 shall make all payments required by rules of the Department
20 by electronic funds transfer. Beginning October 1, 1995, a
21 taxpayer who has an average monthly tax liability of $50,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. The term "average
24 monthly tax liability" shall be the sum of the taxpayer's
25 liabilities under this Act, and under all other State and
26 local occupation and use tax laws administered by the
27 Department, for the immediately preceding calendar year
28 divided by 12.
29 Before August 1 of each year beginning in 1993, the
30 Department shall notify all taxpayers required to make
31 payments by electronic funds transfer. All taxpayers
32 required to make payments by electronic funds transfer shall
33 make those payments for a minimum of one year beginning on
34 October 1.
-75- LRB9102016PTpk
1 Any taxpayer not required to make payments by electronic
2 funds transfer may make payments by electronic funds transfer
3 with the permission of the Department.
4 All taxpayers required to make payment by electronic
5 funds transfer and any taxpayers authorized to voluntarily
6 make payments by electronic funds transfer shall make those
7 payments in the manner authorized by the Department.
8 The Department shall adopt such rules as are necessary to
9 effectuate a program of electronic funds transfer and the
10 requirements of this Section.
11 Any amount which is required to be shown or reported on
12 any return or other document under this Act shall, if such
13 amount is not a whole-dollar amount, be increased to the
14 nearest whole-dollar amount in any case where the fractional
15 part of a dollar is 50 cents or more, and decreased to the
16 nearest whole-dollar amount where the fractional part of a
17 dollar is less than 50 cents.
18 If the retailer is otherwise required to file a monthly
19 return and if the retailer's average monthly tax liability to
20 the Department does not exceed $200, the Department may
21 authorize his returns to be filed on a quarter annual basis,
22 with the return for January, February and March of a given
23 year being due by April 20 of such year; with the return for
24 April, May and June of a given year being due by July 20 of
25 such year; with the return for July, August and September of
26 a given year being due by October 20 of such year, and with
27 the return for October, November and December of a given year
28 being due by January 20 of the following year.
29 If the retailer is otherwise required to file a monthly
30 or quarterly return and if the retailer's average monthly tax
31 liability with the Department does not exceed $50, the
32 Department may authorize his returns to be filed on an annual
33 basis, with the return for a given year being due by January
34 20 of the following year.
-76- LRB9102016PTpk
1 Such quarter annual and annual returns, as to form and
2 substance, shall be subject to the same requirements as
3 monthly returns.
4 Notwithstanding any other provision in this Act
5 concerning the time within which a retailer may file his
6 return, in the case of any retailer who ceases to engage in a
7 kind of business which makes him responsible for filing
8 returns under this Act, such retailer shall file a final
9 return under this Act with the Department not more than one
10 month after discontinuing such business.
11 Where the same person has more than one business
12 registered with the Department under separate registrations
13 under this Act, such person may not file each return that is
14 due as a single return covering all such registered
15 businesses, but shall file separate returns for each such
16 registered business.
17 In addition, with respect to motor vehicles, watercraft,
18 aircraft, and trailers that are required to be registered
19 with an agency of this State, every retailer selling this
20 kind of tangible personal property shall file, with the
21 Department, upon a form to be prescribed and supplied by the
22 Department, a separate return for each such item of tangible
23 personal property which the retailer sells, except that
24 where, in the same transaction, a retailer of aircraft,
25 watercraft, motor vehicles or trailers transfers more than
26 one aircraft, watercraft, motor vehicle or trailer to another
27 aircraft, watercraft, motor vehicle retailer or trailer
28 retailer for the purpose of resale, that seller for resale
29 may report the transfer of all aircraft, watercraft, motor
30 vehicles or trailers involved in that transaction to the
31 Department on the same uniform invoice-transaction reporting
32 return form. For purposes of this Section, "watercraft"
33 means a Class 2, Class 3, or Class 4 watercraft as defined in
34 Section 3-2 of the Boat Registration and Safety Act, a
-77- LRB9102016PTpk
1 personal watercraft, or any boat equipped with an inboard
2 motor.
3 Any retailer who sells only motor vehicles, watercraft,
4 aircraft, or trailers that are required to be registered with
5 an agency of this State, so that all retailers' occupation
6 tax liability is required to be reported, and is reported, on
7 such transaction reporting returns and who is not otherwise
8 required to file monthly or quarterly returns, need not file
9 monthly or quarterly returns. However, those retailers shall
10 be required to file returns on an annual basis.
11 The transaction reporting return, in the case of motor
12 vehicles or trailers that are required to be registered with
13 an agency of this State, shall be the same document as the
14 Uniform Invoice referred to in Section 5-402 of The Illinois
15 Vehicle Code and must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 1 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale; a sufficient identification of
29 the property sold; such other information as is required in
30 Section 5-402 of The Illinois Vehicle Code, and such other
31 information as the Department may reasonably require.
32 The transaction reporting return in the case of
33 watercraft or aircraft must show the name and address of the
34 seller; the name and address of the purchaser; the amount of
-78- LRB9102016PTpk
1 the selling price including the amount allowed by the
2 retailer for traded-in property, if any; the amount allowed
3 by the retailer for the traded-in tangible personal property,
4 if any, to the extent to which Section 1 of this Act allows
5 an exemption for the value of traded-in property; the balance
6 payable after deducting such trade-in allowance from the
7 total selling price; the amount of tax due from the retailer
8 with respect to such transaction; the amount of tax collected
9 from the purchaser by the retailer on such transaction (or
10 satisfactory evidence that such tax is not due in that
11 particular instance, if that is claimed to be the fact); the
12 place and date of the sale, a sufficient identification of
13 the property sold, and such other information as the
14 Department may reasonably require.
15 Such transaction reporting return shall be filed not
16 later than 20 days after the day of delivery of the item that
17 is being sold, but may be filed by the retailer at any time
18 sooner than that if he chooses to do so. The transaction
19 reporting return and tax remittance or proof of exemption
20 from the Illinois use tax may be transmitted to the
21 Department by way of the State agency with which, or State
22 officer with whom the tangible personal property must be
23 titled or registered (if titling or registration is required)
24 if the Department and such agency or State officer determine
25 that this procedure will expedite the processing of
26 applications for title or registration.
27 With each such transaction reporting return, the retailer
28 shall remit the proper amount of tax due (or shall submit
29 satisfactory evidence that the sale is not taxable if that is
30 the case), to the Department or its agents, whereupon the
31 Department shall issue, in the purchaser's name, a use tax
32 receipt (or a certificate of exemption if the Department is
33 satisfied that the particular sale is tax exempt) which such
34 purchaser may submit to the agency with which, or State
-79- LRB9102016PTpk
1 officer with whom, he must title or register the tangible
2 personal property that is involved (if titling or
3 registration is required) in support of such purchaser's
4 application for an Illinois certificate or other evidence of
5 title or registration to such tangible personal property.
6 No retailer's failure or refusal to remit tax under this
7 Act precludes a user, who has paid the proper tax to the
8 retailer, from obtaining his certificate of title or other
9 evidence of title or registration (if titling or registration
10 is required) upon satisfying the Department that such user
11 has paid the proper tax (if tax is due) to the retailer. The
12 Department shall adopt appropriate rules to carry out the
13 mandate of this paragraph.
14 If the user who would otherwise pay tax to the retailer
15 wants the transaction reporting return filed and the payment
16 of the tax or proof of exemption made to the Department
17 before the retailer is willing to take these actions and such
18 user has not paid the tax to the retailer, such user may
19 certify to the fact of such delay by the retailer and may
20 (upon the Department being satisfied of the truth of such
21 certification) transmit the information required by the
22 transaction reporting return and the remittance for tax or
23 proof of exemption directly to the Department and obtain his
24 tax receipt or exemption determination, in which event the
25 transaction reporting return and tax remittance (if a tax
26 payment was required) shall be credited by the Department to
27 the proper retailer's account with the Department, but
28 without the 2.1% or 1.75% discount provided for in this
29 Section being allowed. When the user pays the tax directly
30 to the Department, he shall pay the tax in the same amount
31 and in the same form in which it would be remitted if the tax
32 had been remitted to the Department by the retailer.
33 Refunds made by the seller during the preceding return
34 period to purchasers, on account of tangible personal
-80- LRB9102016PTpk
1 property returned to the seller, shall be allowed as a
2 deduction under subdivision 5 of his monthly or quarterly
3 return, as the case may be, in case the seller had
4 theretofore included the receipts from the sale of such
5 tangible personal property in a return filed by him and had
6 paid the tax imposed by this Act with respect to such
7 receipts.
8 Where the seller is a corporation, the return filed on
9 behalf of such corporation shall be signed by the president,
10 vice-president, secretary or treasurer or by the properly
11 accredited agent of such corporation.
12 Where the seller is a limited liability company, the
13 return filed on behalf of the limited liability company shall
14 be signed by a manager, member, or properly accredited agent
15 of the limited liability company.
16 Except as provided in this Section, the retailer filing
17 the return under this Section shall, at the time of filing
18 such return, pay to the Department the amount of tax imposed
19 by this Act less a discount of 2.1% prior to January 1, 1990
20 and 1.75% on and after January 1, 1990, or $5 per calendar
21 year, whichever is greater, which is allowed to reimburse the
22 retailer for the expenses incurred in keeping records,
23 preparing and filing returns, remitting the tax and supplying
24 data to the Department on request. Any prepayment made
25 pursuant to Section 2d of this Act shall be included in the
26 amount on which such 2.1% or 1.75% discount is computed. In
27 the case of retailers who report and pay the tax on a
28 transaction by transaction basis, as provided in this
29 Section, such discount shall be taken with each such tax
30 remittance instead of when such retailer files his periodic
31 return.
32 If the taxpayer's average monthly tax liability to the
33 Department under this Act, the Use Tax Act, the Service
34 Occupation Tax Act, and the Service Use Tax Act, excluding
-81- LRB9102016PTpk
1 any liability for prepaid sales tax to be remitted in
2 accordance with Section 2d of this Act, was $10,000 or more
3 during the preceding 4 complete calendar quarters, he shall
4 file a return with the Department each month by the 20th day
5 of the month next following the month during which such tax
6 liability is incurred and shall make payments to the
7 Department on or before the 7th, 15th, 22nd and last day of
8 the month during which such liability is incurred. If the
9 month during which such tax liability is incurred began prior
10 to January 1, 1985, each payment shall be in an amount equal
11 to 1/4 of the taxpayer's actual liability for the month or an
12 amount set by the Department not to exceed 1/4 of the average
13 monthly liability of the taxpayer to the Department for the
14 preceding 4 complete calendar quarters (excluding the month
15 of highest liability and the month of lowest liability in
16 such 4 quarter period). If the month during which such tax
17 liability is incurred begins on or after January 1, 1985 and
18 prior to January 1, 1987, each payment shall be in an amount
19 equal to 22.5% of the taxpayer's actual liability for the
20 month or 27.5% of the taxpayer's liability for the same
21 calendar month of the preceding year. If the month during
22 which such tax liability is incurred begins on or after
23 January 1, 1987 and prior to January 1, 1988, each payment
24 shall be in an amount equal to 22.5% of the taxpayer's actual
25 liability for the month or 26.25% of the taxpayer's liability
26 for the same calendar month of the preceding year. If the
27 month during which such tax liability is incurred begins on
28 or after January 1, 1988, and prior to January 1, 1989, or
29 begins on or after January 1, 1996, each payment shall be in
30 an amount equal to 22.5% of the taxpayer's actual liability
31 for the month or 25% of the taxpayer's liability for the same
32 calendar month of the preceding year. If the month during
33 which such tax liability is incurred begins on or after
34 January 1, 1989, and prior to January 1, 1996, each payment
-82- LRB9102016PTpk
1 shall be in an amount equal to 22.5% of the taxpayer's actual
2 liability for the month or 25% of the taxpayer's liability
3 for the same calendar month of the preceding year or 100% of
4 the taxpayer's actual liability for the quarter monthly
5 reporting period. The amount of such quarter monthly
6 payments shall be credited against the final tax liability of
7 the taxpayer's return for that month. Once applicable, the
8 requirement of the making of quarter monthly payments to the
9 Department by taxpayers having an average monthly tax
10 liability of $10,000 or more as determined in the manner
11 provided above shall continue until such taxpayer's average
12 monthly liability to the Department during the preceding 4
13 complete calendar quarters (excluding the month of highest
14 liability and the month of lowest liability) is less than
15 $9,000, or until such taxpayer's average monthly liability to
16 the Department as computed for each calendar quarter of the 4
17 preceding complete calendar quarter period is less than
18 $10,000. However, if a taxpayer can show the Department that
19 a substantial change in the taxpayer's business has occurred
20 which causes the taxpayer to anticipate that his average
21 monthly tax liability for the reasonably foreseeable future
22 will fall below $10,000, then such taxpayer may petition the
23 Department for a change in such taxpayer's reporting status.
24 The Department shall change such taxpayer's reporting status
25 unless it finds that such change is seasonal in nature and
26 not likely to be long term. If any such quarter monthly
27 payment is not paid at the time or in the amount required by
28 this Section, then the taxpayer shall be liable for penalties
29 and interest on the difference between the minimum amount due
30 as a payment and the amount of such quarter monthly payment
31 actually and timely paid, except insofar as the taxpayer has
32 previously made payments for that month to the Department in
33 excess of the minimum payments previously due as provided in
34 this Section. The Department shall make reasonable rules and
-83- LRB9102016PTpk
1 regulations to govern the quarter monthly payment amount and
2 quarter monthly payment dates for taxpayers who file on other
3 than a calendar monthly basis.
4 Without regard to whether a taxpayer is required to make
5 quarter monthly payments as specified above, any taxpayer who
6 is required by Section 2d of this Act to collect and remit
7 prepaid taxes and has collected prepaid taxes which average
8 in excess of $25,000 per month during the preceding 2
9 complete calendar quarters, shall file a return with the
10 Department as required by Section 2f and shall make payments
11 to the Department on or before the 7th, 15th, 22nd and last
12 day of the month during which such liability is incurred. If
13 the month during which such tax liability is incurred began
14 prior to the effective date of this amendatory Act of 1985,
15 each payment shall be in an amount not less than 22.5% of the
16 taxpayer's actual liability under Section 2d. If the month
17 during which such tax liability is incurred begins on or
18 after January 1, 1986, each payment shall be in an amount
19 equal to 22.5% of the taxpayer's actual liability for the
20 month or 27.5% of the taxpayer's liability for the same
21 calendar month of the preceding calendar year. If the month
22 during which such tax liability is incurred begins on or
23 after January 1, 1987, each payment shall be in an amount
24 equal to 22.5% of the taxpayer's actual liability for the
25 month or 26.25% of the taxpayer's liability for the same
26 calendar month of the preceding year. The amount of such
27 quarter monthly payments shall be credited against the final
28 tax liability of the taxpayer's return for that month filed
29 under this Section or Section 2f, as the case may be. Once
30 applicable, the requirement of the making of quarter monthly
31 payments to the Department pursuant to this paragraph shall
32 continue until such taxpayer's average monthly prepaid tax
33 collections during the preceding 2 complete calendar quarters
34 is $25,000 or less. If any such quarter monthly payment is
-84- LRB9102016PTpk
1 not paid at the time or in the amount required, the taxpayer
2 shall be liable for penalties and interest on such
3 difference, except insofar as the taxpayer has previously
4 made payments for that month in excess of the minimum
5 payments previously due.
6 If any payment provided for in this Section exceeds the
7 taxpayer's liabilities under this Act, the Use Tax Act, the
8 Service Occupation Tax Act and the Service Use Tax Act, as
9 shown on an original monthly return, the Department shall, if
10 requested by the taxpayer, issue to the taxpayer a credit
11 memorandum no later than 30 days after the date of payment.
12 The credit evidenced by such credit memorandum may be
13 assigned by the taxpayer to a similar taxpayer under this
14 Act, the Use Tax Act, the Service Occupation Tax Act or the
15 Service Use Tax Act, in accordance with reasonable rules and
16 regulations to be prescribed by the Department. If no such
17 request is made, the taxpayer may credit such excess payment
18 against tax liability subsequently to be remitted to the
19 Department under this Act, the Use Tax Act, the Service
20 Occupation Tax Act or the Service Use Tax Act, in accordance
21 with reasonable rules and regulations prescribed by the
22 Department. If the Department subsequently determined that
23 all or any part of the credit taken was not actually due to
24 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
25 shall be reduced by 2.1% or 1.75% of the difference between
26 the credit taken and that actually due, and that taxpayer
27 shall be liable for penalties and interest on such
28 difference.
29 If a retailer of motor fuel is entitled to a credit under
30 Section 2d of this Act which exceeds the taxpayer's liability
31 to the Department under this Act for the month which the
32 taxpayer is filing a return, the Department shall issue the
33 taxpayer a credit memorandum for the excess.
34 Beginning January 1, 1990, each month the Department
-85- LRB9102016PTpk
1 shall pay into the Local Government Tax Fund, a special fund
2 in the State treasury which is hereby created, the net
3 revenue realized for the preceding month from the 1% tax on
4 sales of food for human consumption which is to be consumed
5 off the premises where it is sold (other than alcoholic
6 beverages, soft drinks and food which has been prepared for
7 immediate consumption) and prescription and nonprescription
8 medicines, drugs, medical appliances and insulin, urine
9 testing materials, syringes and needles used by diabetics.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the County and Mass Transit District Fund, a
12 special fund in the State treasury which is hereby created,
13 4% of the net revenue realized for the preceding month from
14 the 6.25% general rate.
15 For January 1, 2000 through December 31, 2004, each month
16 the Department shall pay into the County and Mass Transit
17 District Fund 20% of the net revenue realized for the
18 preceding month from the 4.25% rate on the gross receipts
19 from sales of tangible personal property designed to promote
20 energy efficiency and deemed eligible for this rate by the
21 Department of Commerce and Community Affairs pursuant to
22 Section 6-6 of the Renewable Energy, Energy Efficiency, and
23 Coal Resources Development Law of 1997.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the Local Government Tax Fund 16% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 For January 1, 2000 through December 31, 2004, each month
30 the Department shall pay into the Local Government Tax Fund
31 80% of the net revenue realized for the preceding month from
32 the 4.25% rate on the gross receipts from sales of tangible
33 personal property designed to promote energy efficiency and
34 deemed eligible for this rate by the Department of Commerce
-86- LRB9102016PTpk
1 and Community Affairs pursuant to Section 6-6 of the
2 Renewable Energy, Energy Efficiency, and Coal Resources
3 Development Law of 1997.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to this Act, Section 9 of the Use Tax Act, Section 9 of the
13 Service Use Tax Act, and Section 9 of the Service Occupation
14 Tax Act, such Acts being hereinafter called the "Tax Acts"
15 and such aggregate of 2.2% or 3.8%, as the case may be, of
16 moneys being hereinafter called the "Tax Act Amount", and (2)
17 the amount transferred to the Build Illinois Fund from the
18 State and Local Sales Tax Reform Fund shall be less than the
19 Annual Specified Amount (as hereinafter defined), an amount
20 equal to the difference shall be immediately paid into the
21 Build Illinois Fund from other moneys received by the
22 Department pursuant to the Tax Acts; the "Annual Specified
23 Amount" means the amounts specified below for fiscal years
24 1986 through 1993:
25 Fiscal Year Annual Specified Amount
26 1986 $54,800,000
27 1987 $76,650,000
28 1988 $80,480,000
29 1989 $88,510,000
30 1990 $115,330,000
31 1991 $145,470,000
32 1992 $182,730,000
33 1993 $206,520,000;
34 and means the Certified Annual Debt Service Requirement (as
-87- LRB9102016PTpk
1 defined in Section 13 of the Build Illinois Bond Act) or the
2 Tax Act Amount, whichever is greater, for fiscal year 1994
3 and each fiscal year thereafter; and further provided, that
4 if on the last business day of any month the sum of (1) the
5 Tax Act Amount required to be deposited into the Build
6 Illinois Bond Account in the Build Illinois Fund during such
7 month and (2) the amount transferred to the Build Illinois
8 Fund from the State and Local Sales Tax Reform Fund shall
9 have been less than 1/12 of the Annual Specified Amount, an
10 amount equal to the difference shall be immediately paid into
11 the Build Illinois Fund from other moneys received by the
12 Department pursuant to the Tax Acts; and, further provided,
13 that in no event shall the payments required under the
14 preceding proviso result in aggregate payments into the Build
15 Illinois Fund pursuant to this clause (b) for any fiscal year
16 in excess of the greater of (i) the Tax Act Amount or (ii)
17 the Annual Specified Amount for such fiscal year. The
18 amounts payable into the Build Illinois Fund under clause (b)
19 of the first sentence in this paragraph shall be payable only
20 until such time as the aggregate amount on deposit under each
21 trust indenture securing Bonds issued and outstanding
22 pursuant to the Build Illinois Bond Act is sufficient, taking
23 into account any future investment income, to fully provide,
24 in accordance with such indenture, for the defeasance of or
25 the payment of the principal of, premium, if any, and
26 interest on the Bonds secured by such indenture and on any
27 Bonds expected to be issued thereafter and all fees and costs
28 payable with respect thereto, all as certified by the
29 Director of the Bureau of the Budget. If on the last
30 business day of any month in which Bonds are outstanding
31 pursuant to the Build Illinois Bond Act, the aggregate of
32 moneys deposited in the Build Illinois Bond Account in the
33 Build Illinois Fund in such month shall be less than the
34 amount required to be transferred in such month from the
-88- LRB9102016PTpk
1 Build Illinois Bond Account to the Build Illinois Bond
2 Retirement and Interest Fund pursuant to Section 13 of the
3 Build Illinois Bond Act, an amount equal to such deficiency
4 shall be immediately paid from other moneys received by the
5 Department pursuant to the Tax Acts to the Build Illinois
6 Fund; provided, however, that any amounts paid to the Build
7 Illinois Fund in any fiscal year pursuant to this sentence
8 shall be deemed to constitute payments pursuant to clause (b)
9 of the first sentence of this paragraph and shall reduce the
10 amount otherwise payable for such fiscal year pursuant to
11 that clause (b). The moneys received by the Department
12 pursuant to this Act and required to be deposited into the
13 Build Illinois Fund are subject to the pledge, claim and
14 charge set forth in Section 12 of the Build Illinois Bond
15 Act.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in the preceding paragraph or in any
18 amendment thereto hereafter enacted, the following specified
19 monthly installment of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority provided under Section 8.25f of the
22 State Finance Act, but not in excess of sums designated as
23 "Total Deposit", shall be deposited in the aggregate from
24 collections under Section 9 of the Use Tax Act, Section 9 of
25 the Service Use Tax Act, Section 9 of the Service Occupation
26 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
27 into the McCormick Place Expansion Project Fund in the
28 specified fiscal years.
29 Fiscal Year Total Deposit
30 1993 $0
31 1994 53,000,000
32 1995 58,000,000
33 1996 61,000,000
34 1997 64,000,000
-89- LRB9102016PTpk
1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 84,000,000
6 2003 89,000,000
7 2004 93,000,000
8 2005 97,000,000
9 2006 102,000,000
10 2007 and 106,000,000
11 each fiscal year
12 thereafter that bonds
13 are outstanding under
14 Section 13.2 of the
15 Metropolitan Pier and
16 Exposition Authority
17 Act, but not after fiscal year 2029.
18 Beginning July 20, 1993 and in each month of each fiscal
19 year thereafter, one-eighth of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority for that fiscal year, less the amount
22 deposited into the McCormick Place Expansion Project Fund by
23 the State Treasurer in the respective month under subsection
24 (g) of Section 13 of the Metropolitan Pier and Exposition
25 Authority Act, plus cumulative deficiencies in the deposits
26 required under this Section for previous months and years,
27 shall be deposited into the McCormick Place Expansion Project
28 Fund, until the full amount requested for the fiscal year,
29 but not in excess of the amount specified above as "Total
30 Deposit", has been deposited.
31 Subject to payment of amounts into the Build Illinois
32 Fund and the McCormick Place Expansion Project Fund pursuant
33 to the preceding paragraphs or in any amendment thereto
34 hereafter enacted, each month the Department shall pay into
-90- LRB9102016PTpk
1 the Local Government Distributive Fund 0.4% of the net
2 revenue realized for the preceding month from the 5% general
3 rate or 0.4% of 80% of the net revenue realized for the
4 preceding month from the tax 6.25% general rate imposed, as
5 the case may be, on the selling price of tangible personal
6 property which amount shall, subject to appropriation, be
7 distributed as provided in Section 2 of the State Revenue
8 Sharing Act. No payments or distributions pursuant to this
9 paragraph shall be made if the tax imposed by this Act on
10 photoprocessing products is declared unconstitutional, or if
11 the proceeds from such tax are unavailable for distribution
12 because of litigation.
13 Subject to payment of amounts into the Build Illinois
14 Fund, the McCormick Place Expansion Project to the preceding
15 paragraphs or in any amendments thereto hereafter enacted,
16 beginning July 1, 1993, the Department shall each month pay
17 into the Illinois Tax Increment Fund 0.27% of 80% of the net
18 revenue realized for the preceding month from the tax 6.25%
19 general rate imposed on the selling price of tangible
20 personal property.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act, 75% thereof shall be paid into the
23 State Treasury and 25% shall be reserved in a special account
24 and used only for the transfer to the Common School Fund as
25 part of the monthly transfer from the General Revenue Fund in
26 accordance with Section 8a of the State Finance Act.
27 The Department may, upon separate written notice to a
28 taxpayer, require the taxpayer to prepare and file with the
29 Department on a form prescribed by the Department within not
30 less than 60 days after receipt of the notice an annual
31 information return for the tax year specified in the notice.
32 Such annual return to the Department shall include a
33 statement of gross receipts as shown by the retailer's last
34 Federal income tax return. If the total receipts of the
-91- LRB9102016PTpk
1 business as reported in the Federal income tax return do not
2 agree with the gross receipts reported to the Department of
3 Revenue for the same period, the retailer shall attach to his
4 annual return a schedule showing a reconciliation of the 2
5 amounts and the reasons for the difference. The retailer's
6 annual return to the Department shall also disclose the cost
7 of goods sold by the retailer during the year covered by such
8 return, opening and closing inventories of such goods for
9 such year, costs of goods used from stock or taken from stock
10 and given away by the retailer during such year, payroll
11 information of the retailer's business during such year and
12 any additional reasonable information which the Department
13 deems would be helpful in determining the accuracy of the
14 monthly, quarterly or annual returns filed by such retailer
15 as provided for in this Section.
16 If the annual information return required by this Section
17 is not filed when and as required, the taxpayer shall be
18 liable as follows:
19 (i) Until January 1, 1994, the taxpayer shall be
20 liable for a penalty equal to 1/6 of 1% of the tax due
21 from such taxpayer under this Act during the period to be
22 covered by the annual return for each month or fraction
23 of a month until such return is filed as required, the
24 penalty to be assessed and collected in the same manner
25 as any other penalty provided for in this Act.
26 (ii) On and after January 1, 1994, the taxpayer
27 shall be liable for a penalty as described in Section 3-4
28 of the Uniform Penalty and Interest Act.
29 The chief executive officer, proprietor, owner or highest
30 ranking manager shall sign the annual return to certify the
31 accuracy of the information contained therein. Any person
32 who willfully signs the annual return containing false or
33 inaccurate information shall be guilty of perjury and
34 punished accordingly. The annual return form prescribed by
-92- LRB9102016PTpk
1 the Department shall include a warning that the person
2 signing the return may be liable for perjury.
3 The provisions of this Section concerning the filing of
4 an annual information return do not apply to a retailer who
5 is not required to file an income tax return with the United
6 States Government.
7 As soon as possible after the first day of each month,
8 upon certification of the Department of Revenue, the
9 Comptroller shall order transferred and the Treasurer shall
10 transfer from the General Revenue Fund to the Motor Fuel Tax
11 Fund an amount equal to 1.7% of 80% of the net revenue
12 realized under this Act for the second preceding month;
13 except that this transfer shall not be made for the months
14 February through June, 1992.
15 Net revenue realized for a month shall be the revenue
16 collected by the State pursuant to this Act, less the amount
17 paid out during that month as refunds to taxpayers for
18 overpayment of liability.
19 For greater simplicity of administration, manufacturers,
20 importers and wholesalers whose products are sold at retail
21 in Illinois by numerous retailers, and who wish to do so, may
22 assume the responsibility for accounting and paying to the
23 Department all tax accruing under this Act with respect to
24 such sales, if the retailers who are affected do not make
25 written objection to the Department to this arrangement.
26 Any person who promotes, organizes, provides retail
27 selling space for concessionaires or other types of sellers
28 at the Illinois State Fair, DuQuoin State Fair, county fairs,
29 local fairs, art shows, flea markets and similar exhibitions
30 or events, including any transient merchant as defined by
31 Section 2 of the Transient Merchant Act of 1987, is required
32 to file a report with the Department providing the name of
33 the merchant's business, the name of the person or persons
34 engaged in merchant's business, the permanent address and
-93- LRB9102016PTpk
1 Illinois Retailers Occupation Tax Registration Number of the
2 merchant, the dates and location of the event and other
3 reasonable information that the Department may require. The
4 report must be filed not later than the 20th day of the month
5 next following the month during which the event with retail
6 sales was held. Any person who fails to file a report
7 required by this Section commits a business offense and is
8 subject to a fine not to exceed $250.
9 Any person engaged in the business of selling tangible
10 personal property at retail as a concessionaire or other type
11 of seller at the Illinois State Fair, county fairs, art
12 shows, flea markets and similar exhibitions or events, or any
13 transient merchants, as defined by Section 2 of the Transient
14 Merchant Act of 1987, may be required to make a daily report
15 of the amount of such sales to the Department and to make a
16 daily payment of the full amount of tax due. The Department
17 shall impose this requirement when it finds that there is a
18 significant risk of loss of revenue to the State at such an
19 exhibition or event. Such a finding shall be based on
20 evidence that a substantial number of concessionaires or
21 other sellers who are not residents of Illinois will be
22 engaging in the business of selling tangible personal
23 property at retail at the exhibition or event, or other
24 evidence of a significant risk of loss of revenue to the
25 State. The Department shall notify concessionaires and other
26 sellers affected by the imposition of this requirement. In
27 the absence of notification by the Department, the
28 concessionaires and other sellers shall file their returns as
29 otherwise required in this Section.
30 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
31 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
32 1-1-99; 90-612, eff. 7-8-98.)
33 (35 ILCS 120/5l) (from Ch. 120, par. 444l)
-94- LRB9102016PTpk
1 Sec. 5l. High Impact Business location; building
2 materials. Beginning January 1, 1995, each retailer who makes
3 a sale of building materials that will be incorporated into a
4 High Impact Business location as designated by the Department
5 of Commerce and Community Affairs under Section 5.5 of the
6 Illinois Enterprise Zone Act may deduct receipts from such
7 sales when calculating only the 6.25% State rate of tax
8 imposed by this Act. Beginning on the effective date of this
9 amendatory Act of 1995, a retailer may also deduct receipts
10 from such sales when calculating any applicable local taxes.
11 However, until the effective date of this amendatory Act of
12 1995, a retailer may file claims for credit or refund to
13 recover the amount of any applicable local tax paid on such
14 sales. No retailer who is eligible for the deduction or
15 credit under Section 5k of this Act for making a sale of
16 building materials to be incorporated into real estate in an
17 enterprise zone by rehabilitation, remodeling or new
18 construction shall be eligible for the deduction or credit
19 authorized under this Section.
20 (Source: P.A. 89-89, eff. 6-30-95.)
21 Section 90. The State Mandates Act is amended by adding
22 Section 8.23 as follows:
23 (30 ILCS 805/8.23 new)
24 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of the 91st General Assembly.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.