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91_HB2769
LRB9102707MWgc
1 AN ACT concerning the Northeastern Illinois Planning
2 Commission.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Use Tax Act is amended by changing
6 Section 9 as follows:
7 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
8 Sec. 9. Except as to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, each retailer required or
11 authorized to collect the tax imposed by this Act shall pay
12 to the Department the amount of such tax (except as otherwise
13 provided) at the time when he is required to file his return
14 for the period during which such tax was collected, less a
15 discount of 2.1% prior to January 1, 1990, and 1.75% on and
16 after January 1, 1990, or $5 per calendar year, whichever is
17 greater, which is allowed to reimburse the retailer for
18 expenses incurred in collecting the tax, keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. In the case of retailers
21 who report and pay the tax on a transaction by transaction
22 basis, as provided in this Section, such discount shall be
23 taken with each such tax remittance instead of when such
24 retailer files his periodic return. A retailer need not
25 remit that part of any tax collected by him to the extent
26 that he is required to remit and does remit the tax imposed
27 by the Retailers' Occupation Tax Act, with respect to the
28 sale of the same property.
29 Where such tangible personal property is sold under a
30 conditional sales contract, or under any other form of sale
31 wherein the payment of the principal sum, or a part thereof,
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1 is extended beyond the close of the period for which the
2 return is filed, the retailer, in collecting the tax (except
3 as to motor vehicles, watercraft, aircraft, and trailers that
4 are required to be registered with an agency of this State),
5 may collect for each tax return period, only the tax
6 applicable to that part of the selling price actually
7 received during such tax return period.
8 Except as provided in this Section, on or before the
9 twentieth day of each calendar month, such retailer shall
10 file a return for the preceding calendar month. Such return
11 shall be filed on forms prescribed by the Department and
12 shall furnish such information as the Department may
13 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 the business of selling tangible
25 personal property at retail in this State;
26 3. The total amount of taxable receipts received by
27 him during the preceding calendar month from sales of
28 tangible personal property by him during such preceding
29 calendar month, including receipts from charge and time
30 sales, but less all deductions allowed by law;
31 4. The amount of credit provided in Section 2d of
32 this Act;
33 5. The amount of tax due;
34 5-5. The signature of the taxpayer; and
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1 6. Such other reasonable information as the
2 Department may require.
3 If a taxpayer fails to sign a return within 30 days after
4 the proper notice and demand for signature by the Department,
5 the return shall be considered valid and any amount shown to
6 be due on the return shall be deemed assessed.
7 Beginning October 1, 1993, a taxpayer who has an average
8 monthly tax liability of $150,000 or more shall make all
9 payments required by rules of the Department by electronic
10 funds transfer. Beginning October 1, 1994, a taxpayer who has
11 an average monthly tax liability of $100,000 or more shall
12 make all payments required by rules of the Department by
13 electronic funds transfer. Beginning October 1, 1995, a
14 taxpayer who has an average monthly tax liability of $50,000
15 or more shall make all payments required by rules of the
16 Department by electronic funds transfer. The term "average
17 monthly tax liability" means the sum of the taxpayer's
18 liabilities under this Act, and under all other State and
19 local occupation and use tax laws administered by the
20 Department, for the immediately preceding calendar year
21 divided by 12.
22 Before August 1 of each year beginning in 1993, the
23 Department shall notify all taxpayers required to make
24 payments by electronic funds transfer. All taxpayers required
25 to make payments by electronic funds transfer shall make
26 those payments for a minimum of one year beginning on October
27 1.
28 Any taxpayer not required to make payments by electronic
29 funds transfer may make payments by electronic funds transfer
30 with the permission of the Department.
31 All taxpayers required to make payment by electronic
32 funds transfer and any taxpayers authorized to voluntarily
33 make payments by electronic funds transfer shall make those
34 payments in the manner authorized by the Department.
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1 The Department shall adopt such rules as are necessary to
2 effectuate a program of electronic funds transfer and the
3 requirements of this Section.
4 If the taxpayer's average monthly tax liability to the
5 Department under this Act, the Retailers' Occupation Tax Act,
6 the Service Occupation Tax Act, the Service Use Tax Act was
7 $10,000 or more during the preceding 4 complete calendar
8 quarters, he shall file a return with the Department each
9 month by the 20th day of the month next following the month
10 during which such tax liability is incurred and shall make
11 payments to the Department on or before the 7th, 15th, 22nd
12 and last day of the month during which such liability is
13 incurred. If the month during which such tax liability is
14 incurred began prior to January 1, 1985, each payment shall
15 be in an amount equal to 1/4 of the taxpayer's actual
16 liability for the month or an amount set by the Department
17 not to exceed 1/4 of the average monthly liability of the
18 taxpayer to the Department for the preceding 4 complete
19 calendar quarters (excluding the month of highest liability
20 and the month of lowest liability in such 4 quarter period).
21 If the month during which such tax liability is incurred
22 begins on or after January 1, 1985, and prior to January 1,
23 1987, each payment shall be in an amount equal to 22.5% of
24 the taxpayer's actual liability for the month or 27.5% of the
25 taxpayer's liability for the same calendar month of the
26 preceding year. If the month during which such tax liability
27 is incurred begins on or after January 1, 1987, and prior to
28 January 1, 1988, each payment shall be in an amount equal to
29 22.5% of the taxpayer's actual liability for the month or
30 26.25% of the taxpayer's liability for the same calendar
31 month of the preceding year. If the month during which such
32 tax liability is incurred begins on or after January 1, 1988,
33 and prior to January 1, 1989, or begins on or after January
34 1, 1996, each payment shall be in an amount equal to 22.5% of
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1 the taxpayer's actual liability for the month or 25% of the
2 taxpayer's liability for the same calendar month of the
3 preceding year. If the month during which such tax liability
4 is incurred begins on or after January 1, 1989, and prior to
5 January 1, 1996, each payment shall be in an amount equal to
6 22.5% of the taxpayer's actual liability for the month or 25%
7 of the taxpayer's liability for the same calendar month of
8 the preceding year or 100% of the taxpayer's actual liability
9 for the quarter monthly reporting period. The amount of such
10 quarter monthly payments shall be credited against the final
11 tax liability of the taxpayer's return for that month. Once
12 applicable, the requirement of the making of quarter monthly
13 payments to the Department shall continue until such
14 taxpayer's average monthly liability to the Department during
15 the preceding 4 complete calendar quarters (excluding the
16 month of highest liability and the month of lowest liability)
17 is less than $9,000, or until such taxpayer's average monthly
18 liability to the Department as computed for each calendar
19 quarter of the 4 preceding complete calendar quarter period
20 is less than $10,000. However, if a taxpayer can show the
21 Department that a substantial change in the taxpayer's
22 business has occurred which causes the taxpayer to anticipate
23 that his average monthly tax liability for the reasonably
24 foreseeable future will fall below $10,000, then such
25 taxpayer may petition the Department for change in such
26 taxpayer's reporting status. The Department shall change
27 such taxpayer's reporting status unless it finds that such
28 change is seasonal in nature and not likely to be long term.
29 If any such quarter monthly payment is not paid at the time
30 or in the amount required by this Section, then the taxpayer
31 shall be liable for penalties and interest on the difference
32 between the minimum amount due and the amount of such quarter
33 monthly payment actually and timely paid, except insofar as
34 the taxpayer has previously made payments for that month to
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1 the Department in excess of the minimum payments previously
2 due as provided in this Section. The Department shall make
3 reasonable rules and regulations to govern the quarter
4 monthly payment amount and quarter monthly payment dates for
5 taxpayers who file on other than a calendar monthly basis.
6 If any such payment provided for in this Section exceeds
7 the taxpayer's liabilities under this Act, the Retailers'
8 Occupation Tax Act, the Service Occupation Tax Act and the
9 Service Use Tax Act, as shown by an original monthly return,
10 the Department shall issue to the taxpayer a credit
11 memorandum no later than 30 days after the date of payment,
12 which memorandum may be submitted by the taxpayer to the
13 Department in payment of tax liability subsequently to be
14 remitted by the taxpayer to the Department or be assigned by
15 the taxpayer to a similar taxpayer under this Act, the
16 Retailers' Occupation Tax Act, the Service Occupation Tax Act
17 or the Service Use Tax Act, in accordance with reasonable
18 rules and regulations to be prescribed by the Department,
19 except that if such excess payment is shown on an original
20 monthly return and is made after December 31, 1986, no credit
21 memorandum shall be issued, unless requested by the taxpayer.
22 If no such request is made, the taxpayer may credit such
23 excess payment against tax liability subsequently to be
24 remitted by the taxpayer to the Department under this Act,
25 the Retailers' Occupation Tax Act, the Service Occupation Tax
26 Act or the Service Use Tax Act, in accordance with reasonable
27 rules and regulations prescribed by the Department. If the
28 Department subsequently determines that all or any part of
29 the credit taken was not actually due to the taxpayer, the
30 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
31 by 2.1% or 1.75% of the difference between the credit taken
32 and that actually due, and the taxpayer shall be liable for
33 penalties and interest on such difference.
34 If the retailer is otherwise required to file a monthly
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1 return and if the retailer's average monthly tax liability to
2 the Department does not exceed $200, the Department may
3 authorize his returns to be filed on a quarter annual basis,
4 with the return for January, February, and March of a given
5 year being due by April 20 of such year; with the return for
6 April, May and June of a given year being due by July 20 of
7 such year; with the return for July, August and September of
8 a given year being due by October 20 of such year, and with
9 the return for October, November and December of a given year
10 being due by January 20 of the following year.
11 If the retailer is otherwise required to file a monthly
12 or quarterly return and if the retailer's average monthly tax
13 liability to the Department does not exceed $50, the
14 Department may authorize his returns to be filed on an annual
15 basis, with the return for a given year being due by January
16 20 of the following year.
17 Such quarter annual and annual returns, as to form and
18 substance, shall be subject to the same requirements as
19 monthly returns.
20 Notwithstanding any other provision in this Act
21 concerning the time within which a retailer may file his
22 return, in the case of any retailer who ceases to engage in a
23 kind of business which makes him responsible for filing
24 returns under this Act, such retailer shall file a final
25 return under this Act with the Department not more than one
26 month after discontinuing such business.
27 In addition, with respect to motor vehicles, watercraft,
28 aircraft, and trailers that are required to be registered
29 with an agency of this State, every retailer selling this
30 kind of tangible personal property shall file, with the
31 Department, upon a form to be prescribed and supplied by the
32 Department, a separate return for each such item of tangible
33 personal property which the retailer sells, except that
34 where, in the same transaction, a retailer of aircraft,
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1 watercraft, motor vehicles or trailers transfers more than
2 one aircraft, watercraft, motor vehicle or trailer to another
3 aircraft, watercraft, motor vehicle or trailer retailer for
4 the purpose of resale, that seller for resale may report the
5 transfer of all the aircraft, watercraft, motor vehicles or
6 trailers involved in that transaction to the Department on
7 the same uniform invoice-transaction reporting return form.
8 For purposes of this Section, "watercraft" means a Class 2,
9 Class 3, or Class 4 watercraft as defined in Section 3-2 of
10 the Boat Registration and Safety Act, a personal watercraft,
11 or any boat equipped with an inboard motor.
12 The transaction reporting return in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of the Illinois
16 Vehicle Code and must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 2 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale; a sufficient identification of
30 the property sold; such other information as is required in
31 Section 5-402 of the Illinois Vehicle Code, and such other
32 information as the Department may reasonably require.
33 The transaction reporting return in the case of
34 watercraft and aircraft must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 2 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale, a sufficient identification of
14 the property sold, and such other information as the
15 Department may reasonably require.
16 Such transaction reporting return shall be filed not
17 later than 20 days after the date of delivery of the item
18 that is being sold, but may be filed by the retailer at any
19 time sooner than that if he chooses to do so. The
20 transaction reporting return and tax remittance or proof of
21 exemption from the tax that is imposed by this Act may be
22 transmitted to the Department by way of the State agency with
23 which, or State officer with whom, the tangible personal
24 property must be titled or registered (if titling or
25 registration is required) if the Department and such agency
26 or State officer determine that this procedure will expedite
27 the processing of applications for title or registration.
28 With each such transaction reporting return, the retailer
29 shall remit the proper amount of tax due (or shall submit
30 satisfactory evidence that the sale is not taxable if that is
31 the case), to the Department or its agents, whereupon the
32 Department shall issue, in the purchaser's name, a tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
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1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title or registration (if titling or registration
11 is required) upon satisfying the Department that such user
12 has paid the proper tax (if tax is due) to the retailer. The
13 Department shall adopt appropriate rules to carry out the
14 mandate of this paragraph.
15 If the user who would otherwise pay tax to the retailer
16 wants the transaction reporting return filed and the payment
17 of tax or proof of exemption made to the Department before
18 the retailer is willing to take these actions and such user
19 has not paid the tax to the retailer, such user may certify
20 to the fact of such delay by the retailer, and may (upon the
21 Department being satisfied of the truth of such
22 certification) transmit the information required by the
23 transaction reporting return and the remittance for tax or
24 proof of exemption directly to the Department and obtain his
25 tax receipt or exemption determination, in which event the
26 transaction reporting return and tax remittance (if a tax
27 payment was required) shall be credited by the Department to
28 the proper retailer's account with the Department, but
29 without the 2.1% or 1.75% discount provided for in this
30 Section being allowed. When the user pays the tax directly
31 to the Department, he shall pay the tax in the same amount
32 and in the same form in which it would be remitted if the tax
33 had been remitted to the Department by the retailer.
34 Where a retailer collects the tax with respect to the
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1 selling price of tangible personal property which he sells
2 and the purchaser thereafter returns such tangible personal
3 property and the retailer refunds the selling price thereof
4 to the purchaser, such retailer shall also refund, to the
5 purchaser, the tax so collected from the purchaser. When
6 filing his return for the period in which he refunds such tax
7 to the purchaser, the retailer may deduct the amount of the
8 tax so refunded by him to the purchaser from any other use
9 tax which such retailer may be required to pay or remit to
10 the Department, as shown by such return, if the amount of the
11 tax to be deducted was previously remitted to the Department
12 by such retailer. If the retailer has not previously
13 remitted the amount of such tax to the Department, he is
14 entitled to no deduction under this Act upon refunding such
15 tax to the purchaser.
16 Any retailer filing a return under this Section shall
17 also include (for the purpose of paying tax thereon) the
18 total tax covered by such return upon the selling price of
19 tangible personal property purchased by him at retail from a
20 retailer, but as to which the tax imposed by this Act was not
21 collected from the retailer filing such return, and such
22 retailer shall remit the amount of such tax to the Department
23 when filing such return.
24 If experience indicates such action to be practicable,
25 the Department may prescribe and furnish a combination or
26 joint return which will enable retailers, who are required to
27 file returns hereunder and also under the Retailers'
28 Occupation Tax Act, to furnish all the return information
29 required by both Acts on the one form.
30 Where the retailer has more than one business registered
31 with the Department under separate registration under this
32 Act, such retailer may not file each return that is due as a
33 single return covering all such registered businesses, but
34 shall file separate returns for each such registered
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1 business.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the State and Local Sales Tax Reform Fund, a
4 special fund in the State Treasury which is hereby created,
5 the net revenue realized for the preceding month from the 1%
6 tax on sales of food for human consumption which is to be
7 consumed off the premises where it is sold (other than
8 alcoholic beverages, soft drinks and food which has been
9 prepared for immediate consumption) and prescription and
10 nonprescription medicines, drugs, medical appliances and
11 insulin, urine testing materials, syringes and needles used
12 by diabetics.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the County and Mass Transit District Fund 4%
15 of the net revenue realized for the preceding month from the
16 6.25% 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 Beginning January 1, 1990, each month the Department
21 shall pay into the State and Local Sales Tax Reform Fund, a
22 special fund in the State Treasury, 20% of the net revenue
23 realized for the preceding month from the 6.25% general rate
24 on the selling price of tangible personal property, other
25 than tangible personal property which is purchased outside
26 Illinois at retail from a retailer and which is titled or
27 registered by an agency of this State's government.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the Local Government Tax Fund 16% of the net
30 revenue realized for the preceding month from the 6.25%
31 general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
34 this State's government.
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1 Beginning on January 1, 2000, each month the Department
2 shall pay to the Northeastern Illinois Planning Commission
3 20% of the net revenue realized for the preceding month from
4 the 6.25% general rate collected in Lake, Cook, Will, DuPage,
5 Kane, and McHenry Counties on the selling price of tangible
6 personal property which is purchased outside of Illinois at
7 retail from a retailer and which is titled or registered by
8 an agency of this State's government.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act, (a) 1.75% thereof shall be paid into
11 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
12 and on and after July 1, 1989, 3.8% thereof shall be paid
13 into the Build Illinois Fund; provided, however, that if in
14 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
15 as the case may be, of the moneys received by the Department
16 and required to be paid into the Build Illinois Fund pursuant
17 to Section 3 of the Retailers' Occupation Tax Act, Section 9
18 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
19 Section 9 of the Service Occupation Tax Act, such Acts being
20 hereinafter called the "Tax Acts" and such aggregate of 2.2%
21 or 3.8%, as the case may be, of moneys being hereinafter
22 called the "Tax Act Amount", and (2) the amount transferred
23 to the Build Illinois Fund from the State and Local Sales Tax
24 Reform Fund shall be less than the Annual Specified Amount
25 (as defined in Section 3 of the Retailers' Occupation Tax
26 Act), an amount equal to the difference shall be immediately
27 paid into the Build Illinois Fund from other moneys received
28 by the Department pursuant to the Tax Acts; and further
29 provided, that if on the last business day of any month the
30 sum of (1) the Tax Act Amount required to be deposited into
31 the Build Illinois Bond Account in the Build Illinois Fund
32 during such month and (2) the amount transferred during such
33 month to the Build Illinois Fund from the State and Local
34 Sales Tax Reform Fund shall have been less than 1/12 of the
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1 Annual Specified Amount, an amount equal to the difference
2 shall be immediately paid into the Build Illinois Fund from
3 other moneys received by the Department pursuant to the Tax
4 Acts; and, further provided, that in no event shall the
5 payments required under the preceding proviso result in
6 aggregate payments into the Build Illinois Fund pursuant to
7 this clause (b) for any fiscal year in excess of the greater
8 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
9 for such fiscal year; and, further provided, that the amounts
10 payable into the Build Illinois Fund under this clause (b)
11 shall be payable only until such time as the aggregate amount
12 on deposit under each trust indenture securing Bonds issued
13 and outstanding pursuant to the Build Illinois Bond Act is
14 sufficient, taking into account any future investment income,
15 to fully provide, in accordance with such indenture, for the
16 defeasance of or the payment of the principal of, premium, if
17 any, and interest on the Bonds secured by such indenture and
18 on any Bonds expected to be issued thereafter and all fees
19 and costs payable with respect thereto, all as certified by
20 the Director of the Bureau of the Budget. If on the last
21 business day of any month in which Bonds are outstanding
22 pursuant to the Build Illinois Bond Act, the aggregate of the
23 moneys deposited in the Build Illinois Bond Account in the
24 Build Illinois Fund in such month shall be less than the
25 amount required to be transferred in such month from the
26 Build Illinois Bond Account to the Build Illinois Bond
27 Retirement and Interest Fund pursuant to Section 13 of the
28 Build Illinois Bond Act, an amount equal to such deficiency
29 shall be immediately paid from other moneys received by the
30 Department pursuant to the Tax Acts to the Build Illinois
31 Fund; provided, however, that any amounts paid to the Build
32 Illinois Fund in any fiscal year pursuant to this sentence
33 shall be deemed to constitute payments pursuant to clause (b)
34 of the preceding sentence and shall reduce the amount
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1 otherwise payable for such fiscal year pursuant to clause (b)
2 of the preceding sentence. The moneys received by the
3 Department pursuant to this Act and required to be deposited
4 into the Build Illinois Fund are subject to the pledge, claim
5 and charge set forth in Section 12 of the Build Illinois Bond
6 Act.
7 Subject to payment of amounts into the Build Illinois
8 Fund as provided in the preceding paragraph or in any
9 amendment thereto hereafter enacted, the following specified
10 monthly installment of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority provided under Section 8.25f of the
13 State Finance Act, but not in excess of the sums designated
14 as "Total Deposit", shall be deposited in the aggregate from
15 collections under Section 9 of the Use Tax Act, Section 9 of
16 the Service Use Tax Act, Section 9 of the Service Occupation
17 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
18 into the McCormick Place Expansion Project Fund in the
19 specified fiscal years.
20 Fiscal Year Total Deposit
21 1993 $0
22 1994 53,000,000
23 1995 58,000,000
24 1996 61,000,000
25 1997 64,000,000
26 1998 68,000,000
27 1999 71,000,000
28 2000 75,000,000
29 2001 80,000,000
30 2002 84,000,000
31 2003 89,000,000
32 2004 93,000,000
33 2005 97,000,000
34 2006 102,000,000
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1 2007 and 106,000,000
2 each fiscal year
3 thereafter that bonds
4 are outstanding under
5 Section 13.2 of the
6 Metropolitan Pier and
7 Exposition Authority
8 Act, but not after fiscal year 2029.
9 Beginning July 20, 1993 and in each month of each fiscal
10 year thereafter, one-eighth of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority for that fiscal year, less the amount
13 deposited into the McCormick Place Expansion Project Fund by
14 the State Treasurer in the respective month under subsection
15 (g) of Section 13 of the Metropolitan Pier and Exposition
16 Authority Act, plus cumulative deficiencies in the deposits
17 required under this Section for previous months and years,
18 shall be deposited into the McCormick Place Expansion Project
19 Fund, until the full amount requested for the fiscal year,
20 but not in excess of the amount specified above as "Total
21 Deposit", has been deposited.
22 Subject to payment of amounts into the Build Illinois
23 Fund and the McCormick Place Expansion Project Fund pursuant
24 to the preceding paragraphs or in any amendment thereto
25 hereafter enacted, each month the Department shall pay into
26 the Local Government Distributive Fund .4% of the net revenue
27 realized for the preceding month from the 5% general rate, or
28 .4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments or
33 distributions pursuant to this paragraph shall be made if the
34 tax imposed by this Act on photoprocessing products is
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1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to the preceding
6 paragraphs or in any amendments thereto hereafter enacted,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
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1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
4 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
5 Section 10. The Service Use Tax Act is amended by
6 changing Section 9 as follows:
7 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
8 Sec. 9. Each serviceman required or authorized to
9 collect the tax herein imposed shall pay to the Department
10 the amount of such tax (except as otherwise provided) at the
11 time when he is required to file his return for the period
12 during which such tax was collected, less a discount of 2.1%
13 prior to January 1, 1990 and 1.75% on and after January 1,
14 1990, or $5 per calendar year, whichever is greater, which is
15 allowed to reimburse the serviceman for expenses incurred in
16 collecting the tax, keeping records, preparing and filing
17 returns, remitting the tax and supplying data to the
18 Department on request. A serviceman need not remit that part
19 of any tax collected by him to the extent that he is required
20 to pay and does pay the tax imposed by the Service Occupation
21 Tax Act with respect to his sale of service involving the
22 incidental transfer by him of the same property.
23 Except as provided hereinafter in this Section, on or
24 before the twentieth day of each calendar month, such
25 serviceman shall file a return for the preceding calendar
26 month in accordance with reasonable Rules and Regulations to
27 be promulgated by the Department. Such return shall be filed
28 on a form prescribed by the Department and shall contain such
29 information as the Department may reasonably require.
30 The Department may require returns to be filed on a
31 quarterly basis. If so required, a return for each calendar
32 quarter shall be filed on or before the twentieth day of the
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1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in business as a serviceman in this
9 State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month, including
12 receipts from charge and time sales, but less all
13 deductions allowed by law;
14 4. The amount of credit provided in Section 2d of
15 this Act;
16 5. The amount of tax due;
17 5-5. The signature of the taxpayer; and
18 6. Such other reasonable information as the
19 Department may require.
20 If a taxpayer fails to sign a return within 30 days after
21 the proper notice and demand for signature by the Department,
22 the return shall be considered valid and any amount shown to
23 be due on the return shall be deemed assessed.
24 Beginning October 1, 1993, a taxpayer who has an average
25 monthly tax liability of $150,000 or more shall make all
26 payments required by rules of the Department by electronic
27 funds transfer. Beginning October 1, 1994, a taxpayer who
28 has an average monthly tax liability of $100,000 or more
29 shall make all payments required by rules of the Department
30 by electronic funds transfer. Beginning October 1, 1995, a
31 taxpayer who has an average monthly tax liability of $50,000
32 or more shall make all payments required by rules of the
33 Department by electronic funds transfer. The term "average
34 monthly tax liability" means the sum of the taxpayer's
-20- LRB9102707MWgc
1 liabilities under this Act, and under all other State and
2 local occupation and use tax laws administered by the
3 Department, for the immediately preceding calendar year
4 divided by 12.
5 Before August 1 of each year beginning in 1993, the
6 Department shall notify all taxpayers required to make
7 payments by electronic funds transfer. All taxpayers required
8 to make payments by electronic funds transfer shall make
9 those payments for a minimum of one year beginning on October
10 1.
11 Any taxpayer not required to make payments by electronic
12 funds transfer may make payments by electronic funds transfer
13 with the permission of the Department.
14 All taxpayers required to make payment by electronic
15 funds transfer and any taxpayers authorized to voluntarily
16 make payments by electronic funds transfer shall make those
17 payments in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to
19 effectuate a program of electronic funds transfer and the
20 requirements of this Section.
21 If the serviceman is otherwise required to file a monthly
22 return and if the serviceman's average monthly tax liability
23 to the Department does not exceed $200, the Department may
24 authorize his returns to be filed on a quarter annual basis,
25 with the return for January, February and March of a given
26 year being due by April 20 of such year; with the return for
27 April, May and June of a given year being due by July 20 of
28 such year; with the return for July, August and September of
29 a given year being due by October 20 of such year, and with
30 the return for October, November and December of a given year
31 being due by January 20 of the following year.
32 If the serviceman is otherwise required to file a monthly
33 or quarterly return and if the serviceman's average monthly
34 tax liability to the Department does not exceed $50, the
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1 Department may authorize his returns to be filed on an annual
2 basis, with the return for a given year being due by January
3 20 of the following year.
4 Such quarter annual and annual returns, as to form and
5 substance, shall be subject to the same requirements as
6 monthly returns.
7 Notwithstanding any other provision in this Act
8 concerning the time within which a serviceman may file his
9 return, in the case of any serviceman who ceases to engage in
10 a kind of business which makes him responsible for filing
11 returns under this Act, such serviceman shall file a final
12 return under this Act with the Department not more than 1
13 month after discontinuing such business.
14 Where a serviceman collects the tax with respect to the
15 selling price of property which he sells and the purchaser
16 thereafter returns such property and the serviceman refunds
17 the selling price thereof to the purchaser, such serviceman
18 shall also refund, to the purchaser, the tax so collected
19 from the purchaser. When filing his return for the period in
20 which he refunds such tax to the purchaser, the serviceman
21 may deduct the amount of the tax so refunded by him to the
22 purchaser from any other Service Use Tax, Service Occupation
23 Tax, retailers' occupation tax or use tax which such
24 serviceman may be required to pay or remit to the Department,
25 as shown by such return, provided that the amount of the tax
26 to be deducted shall previously have been remitted to the
27 Department by such serviceman. If the serviceman shall not
28 previously have remitted the amount of such tax to the
29 Department, he shall be entitled to no deduction hereunder
30 upon refunding such tax to the purchaser.
31 Any serviceman filing a return hereunder shall also
32 include the total tax upon the selling price of tangible
33 personal property purchased for use by him as an incident to
34 a sale of service, and such serviceman shall remit the amount
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1 of such tax to the Department when filing such return.
2 If experience indicates such action to be practicable,
3 the Department may prescribe and furnish a combination or
4 joint return which will enable servicemen, who are required
5 to file returns hereunder and also under the Service
6 Occupation Tax Act, to furnish all the return information
7 required by both Acts on the one form.
8 Where the serviceman has more than one business
9 registered with the Department under separate registration
10 hereunder, such serviceman shall not file each return that is
11 due as a single return covering all such registered
12 businesses, but shall file separate returns for each such
13 registered business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the State and Local Tax Reform Fund, a special
16 fund in the State Treasury, the net revenue realized for the
17 preceding month from the 1% tax on sales of food for human
18 consumption which is to be consumed off the premises where it
19 is sold (other than alcoholic beverages, soft drinks and food
20 which has been prepared for immediate consumption) and
21 prescription and nonprescription medicines, drugs, medical
22 appliances and insulin, urine testing materials, syringes and
23 needles used by diabetics.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the State and Local Sales Tax Reform Fund 20%
26 of the net revenue realized for the preceding month from the
27 6.25% general rate on transfers of tangible personal
28 property, other than tangible personal property which is
29 purchased outside Illinois at retail from a retailer and
30 which is titled or registered by an agency of this State's
31 government.
32 Beginning on January 1, 2000, each month the Department
33 shall pay to the Northeastern Illinois Planning Commission
34 20% of the net revenue realized for the preceding month from
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1 the 6.25% general rate collected in Lake, Cook, Will, DuPage,
2 Kane, and McHenry Counties on transfers of tangible personal
3 property, other than tangible person property which is
4 purchased outside Illinois at retail from a retailer and
5 which is titled or registered by an agency of this State's
6 government.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into
9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
10 and on and after July 1, 1989, 3.8% thereof shall be paid
11 into the Build Illinois Fund; provided, however, that if in
12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13 as the case may be, of the moneys received by the Department
14 and required to be paid into the Build Illinois Fund pursuant
15 to Section 3 of the Retailers' Occupation Tax Act, Section 9
16 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
17 Section 9 of the Service Occupation Tax Act, such Acts being
18 hereinafter called the "Tax Acts" and such aggregate of 2.2%
19 or 3.8%, as the case may be, of moneys being hereinafter
20 called the "Tax Act Amount", and (2) the amount transferred
21 to the Build Illinois Fund from the State and Local Sales Tax
22 Reform Fund shall be less than the Annual Specified Amount
23 (as defined in Section 3 of the Retailers' Occupation Tax
24 Act), an amount equal to the difference shall be immediately
25 paid into the Build Illinois Fund from other moneys received
26 by the Department pursuant to the Tax Acts; and further
27 provided, that if on the last business day of any month the
28 sum of (1) the Tax Act Amount required to be deposited into
29 the Build Illinois Bond Account in the Build Illinois Fund
30 during such month and (2) the amount transferred during such
31 month to the Build Illinois Fund from the State and Local
32 Sales Tax Reform Fund shall have been less than 1/12 of the
33 Annual Specified Amount, an amount equal to the difference
34 shall be immediately paid into the Build Illinois Fund from
-24- LRB9102707MWgc
1 other moneys received by the Department pursuant to the Tax
2 Acts; and, further provided, that in no event shall the
3 payments required under the preceding proviso result in
4 aggregate payments into the Build Illinois Fund pursuant to
5 this clause (b) for any fiscal year in excess of the greater
6 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
7 for such fiscal year; and, further provided, that the amounts
8 payable into the Build Illinois Fund under this clause (b)
9 shall be payable only until such time as the aggregate amount
10 on deposit under each trust indenture securing Bonds issued
11 and outstanding pursuant to the Build Illinois Bond Act is
12 sufficient, taking into account any future investment income,
13 to fully provide, in accordance with such indenture, for the
14 defeasance of or the payment of the principal of, premium, if
15 any, and interest on the Bonds secured by such indenture and
16 on any Bonds expected to be issued thereafter and all fees
17 and costs payable with respect thereto, all as certified by
18 the Director of the Bureau of the Budget. If on the last
19 business day of any month in which Bonds are outstanding
20 pursuant to the Build Illinois Bond Act, the aggregate of the
21 moneys deposited in the Build Illinois Bond Account in the
22 Build Illinois Fund in such month shall be less than the
23 amount required to be transferred in such month from the
24 Build Illinois Bond Account to the Build Illinois Bond
25 Retirement and Interest Fund pursuant to Section 13 of the
26 Build Illinois Bond Act, an amount equal to such deficiency
27 shall be immediately paid from other moneys received by the
28 Department pursuant to the Tax Acts to the Build Illinois
29 Fund; provided, however, that any amounts paid to the Build
30 Illinois Fund in any fiscal year pursuant to this sentence
31 shall be deemed to constitute payments pursuant to clause (b)
32 of the preceding sentence and shall reduce the amount
33 otherwise payable for such fiscal year pursuant to clause (b)
34 of the preceding sentence. The moneys received by the
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1 Department pursuant to this Act and required to be deposited
2 into the Build Illinois Fund are subject to the pledge, claim
3 and charge set forth in Section 12 of the Build Illinois Bond
4 Act.
5 Subject to payment of amounts into the Build Illinois
6 Fund as provided in the preceding paragraph or in any
7 amendment thereto hereafter enacted, the following specified
8 monthly installment of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority provided under Section 8.25f of the
11 State Finance Act, but not in excess of the sums designated
12 as "Total Deposit", shall be deposited in the aggregate from
13 collections under Section 9 of the Use Tax Act, Section 9 of
14 the Service Use Tax Act, Section 9 of the Service Occupation
15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
16 into the McCormick Place Expansion Project Fund in the
17 specified fiscal years.
18 Fiscal Year Total Deposit
19 1993 $0
20 1994 53,000,000
21 1995 58,000,000
22 1996 61,000,000
23 1997 64,000,000
24 1998 68,000,000
25 1999 71,000,000
26 2000 75,000,000
27 2001 80,000,000
28 2002 84,000,000
29 2003 89,000,000
30 2004 93,000,000
31 2005 97,000,000
32 2006 102,000,000
33 2007 and 106,000,000
34 each fiscal year
-26- LRB9102707MWgc
1 thereafter that bonds
2 are outstanding under
3 Section 13.2 of the
4 Metropolitan Pier and
5 Exposition Authority Act,
6 but not after fiscal year 2029.
7 Beginning July 20, 1993 and in each month of each fiscal
8 year thereafter, one-eighth of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority for that fiscal year, less the amount
11 deposited into the McCormick Place Expansion Project Fund by
12 the State Treasurer in the respective month under subsection
13 (g) of Section 13 of the Metropolitan Pier and Exposition
14 Authority Act, plus cumulative deficiencies in the deposits
15 required under this Section for previous months and years,
16 shall be deposited into the McCormick Place Expansion Project
17 Fund, until the full amount requested for the fiscal year,
18 but not in excess of the amount specified above as "Total
19 Deposit", has been deposited.
20 Subject to payment of amounts into the Build Illinois
21 Fund and the McCormick Place Expansion Project Fund pursuant
22 to the preceding paragraphs or in any amendment thereto
23 hereafter enacted, each month the Department shall pay into
24 the Local Government Distributive Fund 0.4% of the net
25 revenue realized for the preceding month from the 5% general
26 rate or 0.4% of 80% of the net revenue realized for the
27 preceding month from the 6.25% general rate, as the case may
28 be, on the selling price of tangible personal property which
29 amount shall, subject to appropriation, be distributed as
30 provided in Section 2 of the State Revenue Sharing Act. No
31 payments or distributions pursuant to this paragraph shall be
32 made if the tax imposed by this Act on photo processing
33 products is declared unconstitutional, or if the proceeds
34 from such tax are unavailable for distribution because of
-27- LRB9102707MWgc
1 litigation.
2 Subject to payment of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project Fund, and the
4 Local Government Distributive Fund pursuant to the preceding
5 paragraphs or in any amendments thereto hereafter enacted,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 All remaining moneys received by the Department pursuant
12 to this Act shall be paid into the General Revenue Fund of
13 the State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Act for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June, 1992.
22 Net revenue realized for a month shall be the revenue
23 collected by the State pursuant to this Act, less the amount
24 paid out during that month as refunds to taxpayers for
25 overpayment of liability.
26 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
27 Section 15. The Service Occupation Tax Act is amended by
28 changing Section 9 as follows:
29 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
30 Sec. 9. Each serviceman required or authorized to
31 collect the tax herein imposed shall pay to the Department
32 the amount of such tax at the time when he is required to
-28- LRB9102707MWgc
1 file his return for the period during which such tax was
2 collectible, less a discount of 2.1% prior to January 1,
3 1990, and 1.75% on and after January 1, 1990, or $5 per
4 calendar year, whichever is greater, which is allowed to
5 reimburse the serviceman for expenses incurred in collecting
6 the tax, keeping records, preparing and filing returns,
7 remitting the tax and supplying data to the Department on
8 request.
9 Where such tangible personal property is sold under a
10 conditional sales contract, or under any other form of sale
11 wherein the payment of the principal sum, or a part thereof,
12 is extended beyond the close of the period for which the
13 return is filed, the serviceman, in collecting the tax may
14 collect, for each tax return period, only the tax applicable
15 to the part of the selling price actually received during
16 such tax return period.
17 Except as provided hereinafter in this Section, on or
18 before the twentieth day of each calendar month, such
19 serviceman shall file a return for the preceding calendar
20 month in accordance with reasonable rules and regulations to
21 be promulgated by the Department of Revenue. Such return
22 shall be filed on a form prescribed by the Department and
23 shall contain such information as the Department may
24 reasonably require.
25 The Department may require returns to be filed on a
26 quarterly basis. If so required, a return for each calendar
27 quarter shall be filed on or before the twentieth day of the
28 calendar month following the end of such calendar quarter.
29 The taxpayer shall also file a return with the Department for
30 each of the first two months of each calendar quarter, on or
31 before the twentieth day of the following calendar month,
32 stating:
33 1. The name of the seller;
34 2. The address of the principal place of business
-29- LRB9102707MWgc
1 from which he engages in business as a serviceman in this
2 State;
3 3. The total amount of taxable receipts received by
4 him during the preceding calendar month, including
5 receipts from charge and time sales, but less all
6 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 A serviceman may accept a Manufacturer's Purchase Credit
18 certification from a purchaser in satisfaction of Service Use
19 Tax as provided in Section 3-70 of the Service Use Tax Act if
20 the purchaser provides the appropriate documentation as
21 required by Section 3-70 of the Service Use Tax Act. A
22 Manufacturer's Purchase Credit certification, accepted by a
23 serviceman as provided in Section 3-70 of the Service Use Tax
24 Act, may be used by that serviceman to satisfy Service
25 Occupation Tax liability in the amount claimed in the
26 certification, not to exceed 6.25% of the receipts subject to
27 tax from a qualifying purchase.
28 If the serviceman's average monthly tax liability to the
29 Department does not exceed $200, the Department may authorize
30 his returns to be filed on a quarter annual basis, with the
31 return for January, February and March of a given year being
32 due by April 20 of such year; with the return for April, May
33 and June of a given year being due by July 20 of such year;
34 with the return for July, August and September of a given
-30- LRB9102707MWgc
1 year being due by October 20 of such year, and with the
2 return for October, November and December of a given year
3 being due by January 20 of the following year.
4 If the serviceman's average monthly tax liability to the
5 Department does not exceed $50, the Department may authorize
6 his returns to be filed on an annual basis, with the return
7 for a given year being due by January 20 of the following
8 year.
9 Such quarter annual and annual returns, as to form and
10 substance, shall be subject to the same requirements as
11 monthly returns.
12 Notwithstanding any other provision in this Act
13 concerning the time within which a serviceman may file his
14 return, in the case of any serviceman who ceases to engage in
15 a kind of business which makes him responsible for filing
16 returns under this Act, such serviceman shall file a final
17 return under this Act with the Department not more than 1
18 month after discontinuing such business.
19 Beginning October 1, 1993, a taxpayer who has an average
20 monthly tax liability of $150,000 or more shall make all
21 payments required by rules of the Department by electronic
22 funds transfer. Beginning October 1, 1994, a taxpayer who
23 has an average monthly tax liability of $100,000 or more
24 shall make all payments required by rules of the Department
25 by electronic funds transfer. Beginning October 1, 1995, a
26 taxpayer who has an average monthly tax liability of $50,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "average
29 monthly tax liability" means the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year
33 divided by 12.
34 Before August 1 of each year beginning in 1993, the
-31- LRB9102707MWgc
1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers
3 required to make payments by electronic funds transfer shall
4 make those payments for a minimum of one year beginning on
5 October 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 Where a serviceman collects the tax with respect to the
17 selling price of tangible personal property which he sells
18 and the purchaser thereafter returns such tangible personal
19 property and the serviceman refunds the selling price thereof
20 to the purchaser, such serviceman shall also refund, to the
21 purchaser, the tax so collected from the purchaser. When
22 filing his return for the period in which he refunds such tax
23 to the purchaser, the serviceman may deduct the amount of the
24 tax so refunded by him to the purchaser from any other
25 Service Occupation Tax, Service Use Tax, Retailers'
26 Occupation Tax or Use Tax which such serviceman may be
27 required to pay or remit to the Department, as shown by such
28 return, provided that the amount of the tax to be deducted
29 shall previously have been remitted to the Department by such
30 serviceman. If the serviceman shall not previously have
31 remitted the amount of such tax to the Department, he shall
32 be entitled to no deduction hereunder upon refunding such tax
33 to the purchaser.
34 If experience indicates such action to be practicable,
-32- LRB9102707MWgc
1 the Department may prescribe and furnish a combination or
2 joint return which will enable servicemen, who are required
3 to file returns hereunder and also under the Retailers'
4 Occupation Tax Act, the Use Tax Act or the Service Use Tax
5 Act, to furnish all the return information required by all
6 said Acts on the one form.
7 Where the serviceman has more than one business
8 registered with the Department under separate registrations
9 hereunder, such serviceman shall file separate returns for
10 each registered business.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the Local Government Tax Fund the revenue
13 realized for the preceding month from the 1% tax on sales of
14 food for human consumption which is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 soft drinks and food which has been prepared for immediate
17 consumption) and prescription and nonprescription medicines,
18 drugs, medical appliances and insulin, urine testing
19 materials, syringes and needles used by diabetics.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the County and Mass Transit District Fund 4%
22 of the revenue realized for the preceding month from the
23 6.25% general rate.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the Local Government Tax Fund 16% of the
26 revenue realized for the preceding month from the 6.25%
27 general rate on transfers of tangible personal property.
28 Beginning on January 1, 2000, each month the Department
29 shall pay to the Northeastern Illinois Planning Commission
30 20% of the net revenue realized for the preceding month from
31 the 6.25% general rate collected in Lake, Cook, Will, DuPage,
32 Kane, and McHenry Counties on transfers of tangible personal
33 property.
34 Of the remainder of the moneys received by the Department
-33- LRB9102707MWgc
1 pursuant to this Act, (a) 1.75% thereof shall be paid into
2 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
3 and on and after July 1, 1989, 3.8% thereof shall be paid
4 into the Build Illinois Fund; provided, however, that if in
5 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
6 as the case may be, of the moneys received by the Department
7 and required to be paid into the Build Illinois Fund pursuant
8 to Section 3 of the Retailers' Occupation Tax Act, Section 9
9 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
10 Section 9 of the Service Occupation Tax Act, such Acts being
11 hereinafter called the "Tax Acts" and such aggregate of 2.2%
12 or 3.8%, as the case may be, of moneys being hereinafter
13 called the "Tax Act Amount", and (2) the amount transferred
14 to the Build Illinois Fund from the State and Local Sales Tax
15 Reform Fund shall be less than the Annual Specified Amount
16 (as defined in Section 3 of the Retailers' Occupation Tax
17 Act), an amount equal to the difference shall be immediately
18 paid into the Build Illinois Fund from other moneys received
19 by the Department pursuant to the Tax Acts; and further
20 provided, that if on the last business day of any month the
21 sum of (1) the Tax Act Amount required to be deposited into
22 the Build Illinois Account in the Build Illinois Fund during
23 such month and (2) the amount transferred during such month
24 to the Build Illinois Fund from the State and Local Sales Tax
25 Reform Fund shall have been less than 1/12 of the Annual
26 Specified Amount, an amount equal to the difference shall be
27 immediately paid into the Build Illinois Fund from other
28 moneys received by the Department pursuant to the Tax Acts;
29 and, further provided, that in no event shall the payments
30 required under the preceding proviso result in aggregate
31 payments into the Build Illinois Fund pursuant to this clause
32 (b) for any fiscal year in excess of the greater of (i) the
33 Tax Act Amount or (ii) the Annual Specified Amount for such
34 fiscal year; and, further provided, that the amounts payable
-34- LRB9102707MWgc
1 into the Build Illinois Fund under this clause (b) shall be
2 payable only until such time as the aggregate amount on
3 deposit under each trust indenture securing Bonds issued and
4 outstanding pursuant to the Build Illinois Bond Act is
5 sufficient, taking into account any future investment income,
6 to fully provide, in accordance with such indenture, for the
7 defeasance of or the payment of the principal of, premium, if
8 any, and interest on the Bonds secured by such indenture and
9 on any Bonds expected to be issued thereafter and all fees
10 and costs payable with respect thereto, all as certified by
11 the Director of the Bureau of the Budget. If on the last
12 business day of any month in which Bonds are outstanding
13 pursuant to the Build Illinois Bond Act, the aggregate of the
14 moneys deposited in the Build Illinois Bond Account in the
15 Build Illinois Fund in such month shall be less than the
16 amount required to be transferred in such month from the
17 Build Illinois Bond Account to the Build Illinois Bond
18 Retirement and Interest Fund pursuant to Section 13 of the
19 Build Illinois Bond Act, an amount equal to such deficiency
20 shall be immediately paid from other moneys received by the
21 Department pursuant to the Tax Acts to the Build Illinois
22 Fund; provided, however, that any amounts paid to the Build
23 Illinois Fund in any fiscal year pursuant to this sentence
24 shall be deemed to constitute payments pursuant to clause (b)
25 of the preceding sentence and shall reduce the amount
26 otherwise payable for such fiscal year pursuant to clause (b)
27 of the preceding sentence. The moneys received by the
28 Department pursuant to this Act and required to be deposited
29 into the Build Illinois Fund are subject to the pledge, claim
30 and charge set forth in Section 12 of the Build Illinois Bond
31 Act.
32 Subject to payment of amounts into the Build Illinois
33 Fund as provided in the preceding paragraph or in any
34 amendment thereto hereafter enacted, the following specified
-35- LRB9102707MWgc
1 monthly installment of the amount requested in the
2 certificate of the Chairman of the Metropolitan Pier and
3 Exposition Authority provided under Section 8.25f of the
4 State Finance Act, but not in excess of the sums designated
5 as "Total Deposit", shall be deposited in the aggregate from
6 collections under Section 9 of the Use Tax Act, Section 9 of
7 the Service Use Tax Act, Section 9 of the Service Occupation
8 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
9 into the McCormick Place Expansion Project Fund in the
10 specified fiscal years.
11 Fiscal Year Total Deposit
12 1993 $0
13 1994 53,000,000
14 1995 58,000,000
15 1996 61,000,000
16 1997 64,000,000
17 1998 68,000,000
18 1999 71,000,000
19 2000 75,000,000
20 2001 80,000,000
21 2002 84,000,000
22 2003 89,000,000
23 2004 93,000,000
24 2005 97,000,000
25 2006 102,000,000
26 2007 and 106,000,000
27 each fiscal year
28 thereafter that bonds
29 are outstanding under
30 Section 13.2 of the
31 Metropolitan Pier and
32 Exposition Authority
33 Act, but not after fiscal year 2029.
34 Beginning July 20, 1993 and in each month of each fiscal
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1 year thereafter, one-eighth of the amount requested in the
2 certificate of the Chairman of the Metropolitan Pier and
3 Exposition Authority for that fiscal year, less the amount
4 deposited into the McCormick Place Expansion Project Fund by
5 the State Treasurer in the respective month under subsection
6 (g) of Section 13 of the Metropolitan Pier and Exposition
7 Authority Act, plus cumulative deficiencies in the deposits
8 required under this Section for previous months and years,
9 shall be deposited into the McCormick Place Expansion Project
10 Fund, until the full amount requested for the fiscal year,
11 but not in excess of the amount specified above as "Total
12 Deposit", has been deposited.
13 Subject to payment of amounts into the Build Illinois
14 Fund and the McCormick Place Expansion Project Fund pursuant
15 to the preceding paragraphs or in any amendment thereto
16 hereafter enacted, each month the Department shall pay into
17 the Local Government Distributive Fund 0.4% of the net
18 revenue realized for the preceding month from the 5% general
19 rate or 0.4% of 80% of the net revenue realized for the
20 preceding month from the 6.25% general rate, as the case may
21 be, on the selling price of tangible personal property which
22 amount shall, subject to appropriation, be distributed as
23 provided in Section 2 of the State Revenue Sharing Act. No
24 payments or distributions pursuant to this paragraph shall be
25 made if the tax imposed by this Act on photoprocessing
26 products is declared unconstitutional, or if the proceeds
27 from such tax are unavailable for distribution because of
28 litigation.
29 Subject to payment of amounts into the Build Illinois
30 Fund, the McCormick Place Expansion Project Fund, and the
31 Local Government Distributive Fund pursuant to the preceding
32 paragraphs or in any amendments thereto hereafter enacted,
33 beginning July 1, 1993, the Department shall each month pay
34 into the Illinois Tax Increment Fund 0.27% of 80% of the net
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1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Remaining moneys received by the Department pursuant to
5 this Act shall be paid into the General Revenue Fund of the
6 State Treasury.
7 The Department may, upon separate written notice to a
8 taxpayer, require the taxpayer to prepare and file with the
9 Department on a form prescribed by the Department within not
10 less than 60 days after receipt of the notice an annual
11 information return for the tax year specified in the notice.
12 Such annual return to the Department shall include a
13 statement of gross receipts as shown by the taxpayer's last
14 Federal income tax return. If the total receipts of the
15 business as reported in the Federal income tax return do not
16 agree with the gross receipts reported to the Department of
17 Revenue for the same period, the taxpayer shall attach to his
18 annual return a schedule showing a reconciliation of the 2
19 amounts and the reasons for the difference. The taxpayer's
20 annual return to the Department shall also disclose the cost
21 of goods sold by the taxpayer during the year covered by such
22 return, opening and closing inventories of such goods for
23 such year, cost of goods used from stock or taken from stock
24 and given away by the taxpayer during such year, pay roll
25 information of the taxpayer's business during such year and
26 any additional reasonable information which the Department
27 deems would be helpful in determining the accuracy of the
28 monthly, quarterly or annual returns filed by such taxpayer
29 as hereinbefore provided for in this Section.
30 If the annual information return required by this Section
31 is not filed when and as required, the taxpayer shall be
32 liable as follows:
33 (i) Until January 1, 1994, the taxpayer shall be
34 liable for a penalty equal to 1/6 of 1% of the tax due
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1 from such taxpayer under this Act during the period to be
2 covered by the annual return for each month or fraction
3 of a month until such return is filed as required, the
4 penalty to be assessed and collected in the same manner
5 as any other penalty provided for in this Act.
6 (ii) On and after January 1, 1994, the taxpayer
7 shall be liable for a penalty as described in Section 3-4
8 of the Uniform Penalty and Interest Act.
9 The chief executive officer, proprietor, owner or highest
10 ranking manager shall sign the annual return to certify the
11 accuracy of the information contained therein. Any person
12 who willfully signs the annual return containing false or
13 inaccurate information shall be guilty of perjury and
14 punished accordingly. The annual return form prescribed by
15 the Department shall include a warning that the person
16 signing the return may be liable for perjury.
17 The foregoing portion of this Section concerning the
18 filing of an annual information return shall not apply to a
19 serviceman who is not required to file an income tax return
20 with the United States Government.
21 As soon as possible after the first day of each month,
22 upon certification of the Department of Revenue, the
23 Comptroller shall order transferred and the Treasurer shall
24 transfer from the General Revenue Fund to the Motor Fuel Tax
25 Fund an amount equal to 1.7% of 80% of the net revenue
26 realized under this Act for the second preceding month;
27 except that this transfer shall not be made for the months
28 February through June, 1992.
29 Net revenue realized for a month shall be the revenue
30 collected by the State pursuant to this Act, less the amount
31 paid out during that month as refunds to taxpayers for
32 overpayment of liability.
33 For greater simplicity of administration, it shall be
34 permissible for manufacturers, importers and wholesalers
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1 whose products are sold by numerous servicemen in Illinois,
2 and who wish to do so, to assume the responsibility for
3 accounting and paying to the Department all tax accruing
4 under this Act with respect to such sales, if the servicemen
5 who are affected do not make written objection to the
6 Department to this arrangement.
7 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
8 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
9 7-8-98.)
10 Section 20. The Retailers' Occupation Tax Act is amended
11 by changing Section 3 as follows:
12 (35 ILCS 120/3) (from Ch. 120, par. 442)
13 Sec. 3. Except as provided in this Section, on or before
14 the twentieth day of each calendar month, every person
15 engaged in the business of selling tangible personal property
16 at retail in this State during the preceding calendar month
17 shall file a return with the Department, stating:
18 1. The name of the seller;
19 2. His residence address and the address of his
20 principal place of business and the address of the
21 principal place of business (if that is a different
22 address) from which he engages in the business of selling
23 tangible personal property at retail in this State;
24 3. Total amount of receipts received by him during
25 the preceding calendar month or quarter, as the case may
26 be, from sales of tangible personal property, and from
27 services furnished, by him during such preceding calendar
28 month or quarter;
29 4. Total amount received by him during the
30 preceding calendar month or quarter on charge and time
31 sales of tangible personal property, and from services
32 furnished, by him prior to the month or quarter for which
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1 the return is filed;
2 5. Deductions allowed by law;
3 6. Gross receipts which were received by him during
4 the preceding calendar month or quarter and upon the
5 basis of which the tax is imposed;
6 7. The amount of credit provided in Section 2d of
7 this Act;
8 8. The amount of tax due;
9 9. The signature of the taxpayer; and
10 10. Such other reasonable information as the
11 Department may require.
12 If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to
15 be due on the return shall be deemed assessed.
16 Each return shall be accompanied by the statement of
17 prepaid tax issued pursuant to Section 2e for which credit is
18 claimed.
19 A retailer may accept a Manufacturer's Purchase Credit
20 certification from a purchaser in satisfaction of Use Tax as
21 provided in Section 3-85 of the Use Tax Act if the purchaser
22 provides the appropriate documentation as required by Section
23 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
24 certification, accepted by a retailer as provided in Section
25 3-85 of the Use Tax Act, may be used by that retailer to
26 satisfy Retailers' Occupation Tax liability in the amount
27 claimed in the certification, not to exceed 6.25% of the
28 receipts subject to tax from a qualifying purchase.
29 The Department may require returns to be filed on a
30 quarterly basis. If so required, a return for each calendar
31 quarter shall be filed on or before the twentieth day of the
32 calendar month following the end of such calendar quarter.
33 The taxpayer shall also file a return with the Department for
34 each of the first two months of each calendar quarter, on or
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1 before the twentieth day of the following calendar month,
2 stating:
3 1. The name of the seller;
4 2. The address of the principal place of business
5 from which he engages in the business of selling tangible
6 personal property at retail in this State;
7 3. The total amount of taxable receipts received by
8 him during the preceding calendar month from sales of
9 tangible personal property by him during such preceding
10 calendar month, including receipts from charge and time
11 sales, but less all deductions allowed by law;
12 4. The amount of credit provided in Section 2d of
13 this Act;
14 5. The amount of tax due; and
15 6. Such other reasonable information as the
16 Department may require.
17 If a total amount of less than $1 is payable, refundable
18 or creditable, such amount shall be disregarded if it is less
19 than 50 cents and shall be increased to $1 if it is 50 cents
20 or more.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who
25 has an average monthly tax liability of $100,000 or more
26 shall make all payments required by rules of the Department
27 by electronic funds transfer. Beginning October 1, 1995, a
28 taxpayer who has an average monthly tax liability of $50,000
29 or more shall make all payments required by rules of the
30 Department by electronic funds transfer. The term "average
31 monthly tax liability" shall be the sum of the taxpayer's
32 liabilities under this Act, and under all other State and
33 local occupation and use tax laws administered by the
34 Department, for the immediately preceding calendar year
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1 divided by 12.
2 Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers
5 required to make payments by electronic funds transfer shall
6 make those payments for a minimum of one year beginning on
7 October 1.
8 Any taxpayer not required to make payments by electronic
9 funds transfer may make payments by electronic funds transfer
10 with the permission of the Department.
11 All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 The Department shall adopt such rules as are necessary to
16 effectuate a program of electronic funds transfer and the
17 requirements of this Section.
18 Any amount which is required to be shown or reported on
19 any return or other document under this Act shall, if such
20 amount is not a whole-dollar amount, be increased to the
21 nearest whole-dollar amount in any case where the fractional
22 part of a dollar is 50 cents or more, and decreased to the
23 nearest whole-dollar amount where the fractional part of a
24 dollar is less than 50 cents.
25 If the retailer is otherwise required to file a monthly
26 return and if the retailer's average monthly tax liability to
27 the Department does not exceed $200, the Department may
28 authorize his returns to be filed on a quarter annual basis,
29 with the return for January, February and March of a given
30 year being due by April 20 of such year; with the return for
31 April, May and June of a given year being due by July 20 of
32 such year; with the return for July, August and September of
33 a given year being due by October 20 of such year, and with
34 the return for October, November and December of a given year
-43- LRB9102707MWgc
1 being due by January 20 of the following year.
2 If the retailer is otherwise required to file a monthly
3 or quarterly return and if the retailer's average monthly tax
4 liability with the Department does not exceed $50, the
5 Department may authorize his returns to be filed on an annual
6 basis, with the return for a given year being due by January
7 20 of the following year.
8 Such quarter annual and annual returns, as to form and
9 substance, shall be subject to the same requirements as
10 monthly returns.
11 Notwithstanding any other provision in this Act
12 concerning the time within which a retailer may file his
13 return, in the case of any retailer who ceases to engage in a
14 kind of business which makes him responsible for filing
15 returns under this Act, such retailer shall file a final
16 return under this Act with the Department not more than one
17 month after discontinuing such business.
18 Where the same person has more than one business
19 registered with the Department under separate registrations
20 under this Act, such person may not file each return that is
21 due as a single return covering all such registered
22 businesses, but shall file separate returns for each such
23 registered business.
24 In addition, with respect to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, every retailer selling this
27 kind of tangible personal property shall file, with the
28 Department, upon a form to be prescribed and supplied by the
29 Department, a separate return for each such item of tangible
30 personal property which the retailer sells, except that
31 where, in the same transaction, a retailer of aircraft,
32 watercraft, motor vehicles or trailers transfers more than
33 one aircraft, watercraft, motor vehicle or trailer to another
34 aircraft, watercraft, motor vehicle retailer or trailer
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1 retailer for the purpose of resale, that seller for resale
2 may report the transfer of all aircraft, watercraft, motor
3 vehicles or trailers involved in that transaction to the
4 Department on the same uniform invoice-transaction reporting
5 return form. For purposes of this Section, "watercraft"
6 means a Class 2, Class 3, or Class 4 watercraft as defined in
7 Section 3-2 of the Boat Registration and Safety Act, a
8 personal watercraft, or any boat equipped with an inboard
9 motor.
10 Any retailer who sells only motor vehicles, watercraft,
11 aircraft, or trailers that are required to be registered with
12 an agency of this State, so that all retailers' occupation
13 tax liability is required to be reported, and is reported, on
14 such transaction reporting returns and who is not otherwise
15 required to file monthly or quarterly returns, need not file
16 monthly or quarterly returns. However, those retailers shall
17 be required to file returns on an annual basis.
18 The transaction reporting return, in the case of motor
19 vehicles or trailers that are required to be registered with
20 an agency of this State, shall be the same document as the
21 Uniform Invoice referred to in Section 5-402 of The Illinois
22 Vehicle Code and must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 1 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale; a sufficient identification of
2 the property sold; such other information as is required in
3 Section 5-402 of The Illinois Vehicle Code, and such other
4 information as the Department may reasonably require.
5 The transaction reporting return in the case of
6 watercraft or aircraft must show the name and address of the
7 seller; the name and address of the purchaser; the amount of
8 the selling price including the amount allowed by the
9 retailer for traded-in property, if any; the amount allowed
10 by the retailer for the traded-in tangible personal property,
11 if any, to the extent to which Section 1 of this Act allows
12 an exemption for the value of traded-in property; the balance
13 payable after deducting such trade-in allowance from the
14 total selling price; the amount of tax due from the retailer
15 with respect to such transaction; the amount of tax collected
16 from the purchaser by the retailer on such transaction (or
17 satisfactory evidence that such tax is not due in that
18 particular instance, if that is claimed to be the fact); the
19 place and date of the sale, a sufficient identification of
20 the property sold, and such other information as the
21 Department may reasonably require.
22 Such transaction reporting return shall be filed not
23 later than 20 days after the day of delivery of the item that
24 is being sold, but may be filed by the retailer at any time
25 sooner than that if he chooses to do so. The transaction
26 reporting return and tax remittance or proof of exemption
27 from the Illinois use tax may be transmitted to the
28 Department by way of the State agency with which, or State
29 officer with whom the tangible personal property must be
30 titled or registered (if titling or registration is required)
31 if the Department and such agency or State officer determine
32 that this procedure will expedite the processing of
33 applications for title or registration.
34 With each such transaction reporting return, the retailer
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1 shall remit the proper amount of tax due (or shall submit
2 satisfactory evidence that the sale is not taxable if that is
3 the case), to the Department or its agents, whereupon the
4 Department shall issue, in the purchaser's name, a use tax
5 receipt (or a certificate of exemption if the Department is
6 satisfied that the particular sale is tax exempt) which such
7 purchaser may submit to the agency with which, or State
8 officer with whom, he must title or register the tangible
9 personal property that is involved (if titling or
10 registration is required) in support of such purchaser's
11 application for an Illinois certificate or other evidence of
12 title or registration to such tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14 Act precludes a user, who has paid the proper tax to the
15 retailer, from obtaining his certificate of title or other
16 evidence of title or registration (if titling or registration
17 is required) upon satisfying the Department that such user
18 has paid the proper tax (if tax is due) to the retailer. The
19 Department shall adopt appropriate rules to carry out the
20 mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22 wants the transaction reporting return filed and the payment
23 of the tax or proof of exemption made to the Department
24 before the retailer is willing to take these actions and such
25 user has not paid the tax to the retailer, such user may
26 certify to the fact of such delay by the retailer and may
27 (upon the Department being satisfied of the truth of such
28 certification) transmit the information required by the
29 transaction reporting return and the remittance for tax or
30 proof of exemption directly to the Department and obtain his
31 tax receipt or exemption determination, in which event the
32 transaction reporting return and tax remittance (if a tax
33 payment was required) shall be credited by the Department to
34 the proper retailer's account with the Department, but
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1 without the 2.1% or 1.75% discount provided for in this
2 Section being allowed. When the user pays the tax directly
3 to the Department, he shall pay the tax in the same amount
4 and in the same form in which it would be remitted if the tax
5 had been remitted to the Department by the retailer.
6 Refunds made by the seller during the preceding return
7 period to purchasers, on account of tangible personal
8 property returned to the seller, shall be allowed as a
9 deduction under subdivision 5 of his monthly or quarterly
10 return, as the case may be, in case the seller had
11 theretofore included the receipts from the sale of such
12 tangible personal property in a return filed by him and had
13 paid the tax imposed by this Act with respect to such
14 receipts.
15 Where the seller is a corporation, the return filed on
16 behalf of such corporation shall be signed by the president,
17 vice-president, secretary or treasurer or by the properly
18 accredited agent of such corporation.
19 Where the seller is a limited liability company, the
20 return filed on behalf of the limited liability company shall
21 be signed by a manager, member, or properly accredited agent
22 of the limited liability company.
23 Except as provided in this Section, the retailer filing
24 the return under this Section shall, at the time of filing
25 such return, pay to the Department the amount of tax imposed
26 by this Act less a discount of 2.1% prior to January 1, 1990
27 and 1.75% on and after January 1, 1990, or $5 per calendar
28 year, whichever is greater, which is allowed to reimburse the
29 retailer for the expenses incurred in keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. Any prepayment made
32 pursuant to Section 2d of this Act shall be included in the
33 amount on which such 2.1% or 1.75% discount is computed. In
34 the case of retailers who report and pay the tax on a
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1 transaction by transaction basis, as provided in this
2 Section, such discount shall be taken with each such tax
3 remittance instead of when such retailer files his periodic
4 return.
5 If the taxpayer's average monthly tax liability to the
6 Department under this Act, the Use Tax Act, the Service
7 Occupation Tax Act, and the Service Use Tax Act, excluding
8 any liability for prepaid sales tax to be remitted in
9 accordance with Section 2d of this Act, was $10,000 or more
10 during the preceding 4 complete calendar quarters, he shall
11 file a return with the Department each month by the 20th day
12 of the month next following the month during which such tax
13 liability is incurred and shall make payments to the
14 Department on or before the 7th, 15th, 22nd and last day of
15 the month during which such liability is incurred. If the
16 month during which such tax liability is incurred began prior
17 to January 1, 1985, each payment shall be in an amount equal
18 to 1/4 of the taxpayer's actual liability for the month or an
19 amount set by the Department not to exceed 1/4 of the average
20 monthly liability of the taxpayer to the Department for the
21 preceding 4 complete calendar quarters (excluding the month
22 of highest liability and the month of lowest liability in
23 such 4 quarter period). If the month during which such tax
24 liability is incurred begins on or after January 1, 1985 and
25 prior to January 1, 1987, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 27.5% of the taxpayer's liability for the same
28 calendar month of the preceding year. If the month during
29 which such tax liability is incurred begins on or after
30 January 1, 1987 and prior to January 1, 1988, each payment
31 shall be in an amount equal to 22.5% of the taxpayer's actual
32 liability for the month or 26.25% of the taxpayer's liability
33 for the same calendar month of the preceding year. If the
34 month during which such tax liability is incurred begins on
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1 or after January 1, 1988, and prior to January 1, 1989, or
2 begins on or after January 1, 1996, each payment shall be in
3 an amount equal to 22.5% of the taxpayer's actual liability
4 for the month or 25% of the taxpayer's liability for the same
5 calendar month of the preceding year. If the month during
6 which such tax liability is incurred begins on or after
7 January 1, 1989, and prior to January 1, 1996, each payment
8 shall be in an amount equal to 22.5% of the taxpayer's actual
9 liability for the month or 25% of the taxpayer's liability
10 for the same calendar month of the preceding year or 100% of
11 the taxpayer's actual liability for the quarter monthly
12 reporting period. The amount of such quarter monthly
13 payments shall be credited against the final tax liability of
14 the taxpayer's return for that month. Once applicable, the
15 requirement of the making of quarter monthly payments to the
16 Department by taxpayers having an average monthly tax
17 liability of $10,000 or more as determined in the manner
18 provided above shall continue until such taxpayer's average
19 monthly liability to the Department during the preceding 4
20 complete calendar quarters (excluding the month of highest
21 liability and the month of lowest liability) is less than
22 $9,000, or until such taxpayer's average monthly liability to
23 the Department as computed for each calendar quarter of the 4
24 preceding complete calendar quarter period is less than
25 $10,000. However, if a taxpayer can show the Department that
26 a substantial change in the taxpayer's business has occurred
27 which causes the taxpayer to anticipate that his average
28 monthly tax liability for the reasonably foreseeable future
29 will fall below $10,000, then such taxpayer may petition the
30 Department for a change in such taxpayer's reporting status.
31 The Department shall change such taxpayer's reporting status
32 unless it finds that such change is seasonal in nature and
33 not likely to be long term. If any such quarter monthly
34 payment is not paid at the time or in the amount required by
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1 this Section, then the taxpayer shall be liable for penalties
2 and interest on the difference between the minimum amount due
3 as a payment and the amount of such quarter monthly payment
4 actually and timely paid, except insofar as the taxpayer has
5 previously made payments for that month to the Department in
6 excess of the minimum payments previously due as provided in
7 this Section. The Department shall make reasonable rules and
8 regulations to govern the quarter monthly payment amount and
9 quarter monthly payment dates for taxpayers who file on other
10 than a calendar monthly basis.
11 Without regard to whether a taxpayer is required to make
12 quarter monthly payments as specified above, any taxpayer who
13 is required by Section 2d of this Act to collect and remit
14 prepaid taxes and has collected prepaid taxes which average
15 in excess of $25,000 per month during the preceding 2
16 complete calendar quarters, shall file a return with the
17 Department as required by Section 2f and shall make payments
18 to the Department on or before the 7th, 15th, 22nd and last
19 day of the month during which such liability is incurred. If
20 the month during which such tax liability is incurred began
21 prior to the effective date of this amendatory Act of 1985,
22 each payment shall be in an amount not less than 22.5% of the
23 taxpayer's actual liability under Section 2d. If the month
24 during which such tax liability is incurred begins on or
25 after January 1, 1986, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 27.5% of the taxpayer's liability for the same
28 calendar month of the preceding calendar year. If the month
29 during which such tax liability is incurred begins on or
30 after January 1, 1987, each payment shall be in an amount
31 equal to 22.5% of the taxpayer's actual liability for the
32 month or 26.25% of the taxpayer's liability for the same
33 calendar month of the preceding year. The amount of such
34 quarter monthly payments shall be credited against the final
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1 tax liability of the taxpayer's return for that month filed
2 under this Section or Section 2f, as the case may be. Once
3 applicable, the requirement of the making of quarter monthly
4 payments to the Department pursuant to this paragraph shall
5 continue until such taxpayer's average monthly prepaid tax
6 collections during the preceding 2 complete calendar quarters
7 is $25,000 or less. If any such quarter monthly payment is
8 not paid at the time or in the amount required, the taxpayer
9 shall be liable for penalties and interest on such
10 difference, except insofar as the taxpayer has previously
11 made payments for that month in excess of the minimum
12 payments previously due.
13 If any payment provided for in this Section exceeds the
14 taxpayer's liabilities under this Act, the Use Tax Act, the
15 Service Occupation Tax Act and the Service Use Tax Act, as
16 shown on an original monthly return, the Department shall, if
17 requested by the taxpayer, issue to the taxpayer a credit
18 memorandum no later than 30 days after the date of payment.
19 The credit evidenced by such credit memorandum may be
20 assigned by the taxpayer to a similar taxpayer under this
21 Act, the Use Tax Act, the Service Occupation Tax Act or the
22 Service Use Tax Act, in accordance with reasonable rules and
23 regulations to be prescribed by the Department. If no such
24 request is made, the taxpayer may credit such excess payment
25 against tax liability subsequently to be remitted to the
26 Department under this Act, the Use Tax Act, the Service
27 Occupation Tax Act or the Service Use Tax Act, in accordance
28 with reasonable rules and regulations prescribed by the
29 Department. If the Department subsequently determined that
30 all or any part of the credit taken was not actually due to
31 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
32 shall be reduced by 2.1% or 1.75% of the difference between
33 the credit taken and that actually due, and that taxpayer
34 shall be liable for penalties and interest on such
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1 difference.
2 If a retailer of motor fuel is entitled to a credit under
3 Section 2d of this Act which exceeds the taxpayer's liability
4 to the Department under this Act for the month which the
5 taxpayer is filing a return, the Department shall issue the
6 taxpayer a credit memorandum for the excess.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the Local Government Tax Fund, a special fund
9 in the State treasury which is hereby created, the net
10 revenue realized for the preceding month from the 1% tax on
11 sales of food for human consumption which is to be consumed
12 off the premises where it is sold (other than alcoholic
13 beverages, soft drinks and food which has been prepared for
14 immediate consumption) and prescription and nonprescription
15 medicines, drugs, medical appliances and insulin, urine
16 testing materials, syringes and needles used by diabetics.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the County and Mass Transit District Fund, a
19 special fund in the State treasury which is hereby created,
20 4% of the net revenue realized for the preceding month from
21 the 6.25% general rate.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property.
27 Beginning on January 1, 2000, each month the Department
28 shall pay to the Northeastern Illinois Planning Commission
29 20% of the net revenue realized for the preceding month from
30 the 6.25% general rate in Lake, Cook, Will, DuPage, Kane, and
31 McHenry Counties on the selling price of tangible personal
32 property.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, (a) 1.75% thereof shall be paid into
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1 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
2 and on and after July 1, 1989, 3.8% thereof shall be paid
3 into the Build Illinois Fund; provided, however, that if in
4 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
5 as the case may be, of the moneys received by the Department
6 and required to be paid into the Build Illinois Fund pursuant
7 to this Act, Section 9 of the Use Tax Act, Section 9 of the
8 Service Use Tax Act, and Section 9 of the Service Occupation
9 Tax Act, such Acts being hereinafter called the "Tax Acts"
10 and such aggregate of 2.2% or 3.8%, as the case may be, of
11 moneys being hereinafter called the "Tax Act Amount", and (2)
12 the amount transferred to the Build Illinois Fund from the
13 State and Local Sales Tax Reform Fund shall be less than the
14 Annual Specified Amount (as hereinafter defined), an amount
15 equal to the difference shall be immediately paid into the
16 Build Illinois Fund from other moneys received by the
17 Department pursuant to the Tax Acts; the "Annual Specified
18 Amount" means the amounts specified below for fiscal years
19 1986 through 1993:
20 Fiscal Year Annual Specified Amount
21 1986 $54,800,000
22 1987 $76,650,000
23 1988 $80,480,000
24 1989 $88,510,000
25 1990 $115,330,000
26 1991 $145,470,000
27 1992 $182,730,000
28 1993 $206,520,000;
29 and means the Certified Annual Debt Service Requirement (as
30 defined in Section 13 of the Build Illinois Bond Act) or the
31 Tax Act Amount, whichever is greater, for fiscal year 1994
32 and each fiscal year thereafter; and further provided, that
33 if on the last business day of any month the sum of (1) the
34 Tax Act Amount required to be deposited into the Build
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1 Illinois Bond Account in the Build Illinois Fund during such
2 month and (2) the amount transferred to the Build Illinois
3 Fund from the State and Local Sales Tax Reform Fund shall
4 have been less than 1/12 of the Annual Specified Amount, an
5 amount equal to the difference shall be immediately paid into
6 the Build Illinois Fund from other moneys received by the
7 Department pursuant to the Tax Acts; and, further provided,
8 that in no event shall the payments required under the
9 preceding proviso result in aggregate payments into the Build
10 Illinois Fund pursuant to this clause (b) for any fiscal year
11 in excess of the greater of (i) the Tax Act Amount or (ii)
12 the Annual Specified Amount for such fiscal year. The
13 amounts payable into the Build Illinois Fund under clause (b)
14 of the first sentence in this paragraph shall be payable only
15 until such time as the aggregate amount on deposit under each
16 trust indenture securing Bonds issued and outstanding
17 pursuant to the Build Illinois Bond Act is sufficient, taking
18 into account any future investment income, to fully provide,
19 in accordance with such indenture, for the defeasance of or
20 the payment of the principal of, premium, if any, and
21 interest on the Bonds secured by such indenture and on any
22 Bonds expected to be issued thereafter and all fees and costs
23 payable with respect thereto, all as certified by the
24 Director of the Bureau of the Budget. If on the last
25 business day of any month in which Bonds are outstanding
26 pursuant to the Build Illinois Bond Act, the aggregate of
27 moneys deposited in the Build Illinois Bond Account in the
28 Build Illinois Fund in such month shall be less than the
29 amount required to be transferred in such month from the
30 Build Illinois Bond Account to the Build Illinois Bond
31 Retirement and Interest Fund pursuant to Section 13 of the
32 Build Illinois Bond Act, an amount equal to such deficiency
33 shall be immediately paid from other moneys received by the
34 Department pursuant to the Tax Acts to the Build Illinois
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1 Fund; provided, however, that any amounts paid to the Build
2 Illinois Fund in any fiscal year pursuant to this sentence
3 shall be deemed to constitute payments pursuant to clause (b)
4 of the first sentence of this paragraph and shall reduce the
5 amount otherwise payable for such fiscal year pursuant to
6 that clause (b). The moneys received by the Department
7 pursuant to this Act and required to be deposited into the
8 Build Illinois Fund are subject to the pledge, claim and
9 charge set forth in Section 12 of the Build Illinois Bond
10 Act.
11 Subject to payment of amounts into the Build Illinois
12 Fund as provided in the preceding paragraph or in any
13 amendment thereto hereafter enacted, the following specified
14 monthly installment of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority provided under Section 8.25f of the
17 State Finance Act, but not in excess of sums designated as
18 "Total Deposit", shall be deposited in the aggregate from
19 collections under Section 9 of the Use Tax Act, Section 9 of
20 the Service Use Tax Act, Section 9 of the Service Occupation
21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
22 into the McCormick Place Expansion Project Fund in the
23 specified fiscal years.
24 Fiscal Year Total Deposit
25 1993 $0
26 1994 53,000,000
27 1995 58,000,000
28 1996 61,000,000
29 1997 64,000,000
30 1998 68,000,000
31 1999 71,000,000
32 2000 75,000,000
33 2001 80,000,000
34 2002 84,000,000
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1 2003 89,000,000
2 2004 93,000,000
3 2005 97,000,000
4 2006 102,000,000
5 2007 and 106,000,000
6 each fiscal year
7 thereafter that bonds
8 are outstanding under
9 Section 13.2 of the
10 Metropolitan Pier and
11 Exposition Authority
12 Act, but not after fiscal year 2029.
13 Beginning July 20, 1993 and in each month of each fiscal
14 year thereafter, one-eighth of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority for that fiscal year, less the amount
17 deposited into the McCormick Place Expansion Project Fund by
18 the State Treasurer in the respective month under subsection
19 (g) of Section 13 of the Metropolitan Pier and Exposition
20 Authority Act, plus cumulative deficiencies in the deposits
21 required under this Section for previous months and years,
22 shall be deposited into the McCormick Place Expansion Project
23 Fund, until the full amount requested for the fiscal year,
24 but not in excess of the amount specified above as "Total
25 Deposit", has been deposited.
26 Subject to payment of amounts into the Build Illinois
27 Fund and the McCormick Place Expansion Project Fund pursuant
28 to the preceding paragraphs or in any amendment thereto
29 hereafter enacted, each month the Department shall pay into
30 the Local Government Distributive Fund 0.4% of the net
31 revenue realized for the preceding month from the 5% general
32 rate or 0.4% of 80% of the net revenue realized for the
33 preceding month from the 6.25% general rate, as the case may
34 be, on the selling price of tangible personal property which
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1 amount shall, subject to appropriation, be distributed as
2 provided in Section 2 of the State Revenue Sharing Act. No
3 payments or distributions pursuant to this paragraph shall be
4 made if the tax imposed by this Act on photoprocessing
5 products is declared unconstitutional, or if the proceeds
6 from such tax are unavailable for distribution because of
7 litigation.
8 Subject to payment of amounts into the Build Illinois
9 Fund, the McCormick Place Expansion Project to the preceding
10 paragraphs or in any amendments thereto hereafter enacted,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 Of the remainder of the moneys received by the Department
17 pursuant to this Act, 75% thereof shall be paid into the
18 State Treasury and 25% shall be reserved in a special account
19 and used only for the transfer to the Common School Fund as
20 part of the monthly transfer from the General Revenue Fund in
21 accordance with Section 8a of the State Finance Act.
22 The Department may, upon separate written notice to a
23 taxpayer, require the taxpayer to prepare and file with the
24 Department on a form prescribed by the Department within not
25 less than 60 days after receipt of the notice an annual
26 information return for the tax year specified in the notice.
27 Such annual return to the Department shall include a
28 statement of gross receipts as shown by the retailer's last
29 Federal income tax return. If the total receipts of the
30 business as reported in the Federal income tax return do not
31 agree with the gross receipts reported to the Department of
32 Revenue for the same period, the retailer shall attach to his
33 annual return a schedule showing a reconciliation of the 2
34 amounts and the reasons for the difference. The retailer's
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1 annual return to the Department shall also disclose the cost
2 of goods sold by the retailer during the year covered by such
3 return, opening and closing inventories of such goods for
4 such year, costs of goods used from stock or taken from stock
5 and given away by the retailer during such year, payroll
6 information of the retailer's business during such year and
7 any additional reasonable information which the Department
8 deems would be helpful in determining the accuracy of the
9 monthly, quarterly or annual returns filed by such retailer
10 as provided for in this Section.
11 If the annual information return required by this Section
12 is not filed when and as required, the taxpayer shall be
13 liable as follows:
14 (i) Until January 1, 1994, the taxpayer shall be
15 liable for a penalty equal to 1/6 of 1% of the tax due
16 from such taxpayer under this Act during the period to be
17 covered by the annual return for each month or fraction
18 of a month until such return is filed as required, the
19 penalty to be assessed and collected in the same manner
20 as any other penalty provided for in this Act.
21 (ii) On and after January 1, 1994, the taxpayer
22 shall be liable for a penalty as described in Section 3-4
23 of the Uniform Penalty and Interest Act.
24 The chief executive officer, proprietor, owner or highest
25 ranking manager shall sign the annual return to certify the
26 accuracy of the information contained therein. Any person
27 who willfully signs the annual return containing false or
28 inaccurate information shall be guilty of perjury and
29 punished accordingly. The annual return form prescribed by
30 the Department shall include a warning that the person
31 signing the return may be liable for perjury.
32 The provisions of this Section concerning the filing of
33 an annual information return do not apply to a retailer who
34 is not required to file an income tax return with the United
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1 States Government.
2 As soon as possible after the first day of each month,
3 upon certification of the Department of Revenue, the
4 Comptroller shall order transferred and the Treasurer shall
5 transfer from the General Revenue Fund to the Motor Fuel Tax
6 Fund an amount equal to 1.7% of 80% of the net revenue
7 realized under this Act for the second preceding month;
8 except that this transfer shall not be made for the months
9 February through June, 1992.
10 Net revenue realized for a month shall be the revenue
11 collected by the State pursuant to this Act, less the amount
12 paid out during that month as refunds to taxpayers for
13 overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15 importers and wholesalers whose products are sold at retail
16 in Illinois by numerous retailers, and who wish to do so, may
17 assume the responsibility for accounting and paying to the
18 Department all tax accruing under this Act with respect to
19 such sales, if the retailers who are affected do not make
20 written objection to the Department to this arrangement.
21 Any person who promotes, organizes, provides retail
22 selling space for concessionaires or other types of sellers
23 at the Illinois State Fair, DuQuoin State Fair, county fairs,
24 local fairs, art shows, flea markets and similar exhibitions
25 or events, including any transient merchant as defined by
26 Section 2 of the Transient Merchant Act of 1987, is required
27 to file a report with the Department providing the name of
28 the merchant's business, the name of the person or persons
29 engaged in merchant's business, the permanent address and
30 Illinois Retailers Occupation Tax Registration Number of the
31 merchant, the dates and location of the event and other
32 reasonable information that the Department may require. The
33 report must be filed not later than the 20th day of the month
34 next following the month during which the event with retail
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1 sales was held. Any person who fails to file a report
2 required by this Section commits a business offense and is
3 subject to a fine not to exceed $250.
4 Any person engaged in the business of selling tangible
5 personal property at retail as a concessionaire or other type
6 of seller at the Illinois State Fair, county fairs, art
7 shows, flea markets and similar exhibitions or events, or any
8 transient merchants, as defined by Section 2 of the Transient
9 Merchant Act of 1987, may be required to make a daily report
10 of the amount of such sales to the Department and to make a
11 daily payment of the full amount of tax due. The Department
12 shall impose this requirement when it finds that there is a
13 significant risk of loss of revenue to the State at such an
14 exhibition or event. Such a finding shall be based on
15 evidence that a substantial number of concessionaires or
16 other sellers who are not residents of Illinois will be
17 engaging in the business of selling tangible personal
18 property at retail at the exhibition or event, or other
19 evidence of a significant risk of loss of revenue to the
20 State. The Department shall notify concessionaires and other
21 sellers affected by the imposition of this requirement. In
22 the absence of notification by the Department, the
23 concessionaires and other sellers shall file their returns as
24 otherwise required in this Section.
25 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
26 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
27 1-1-99; 90-612, eff. 7-8-98.)
28 Section 25. The Northeastern Illinois Planning Act is
29 amended by changing Section 14 and adding Sections 14.5 and
30 24.5 as follows:
31 (70 ILCS 1705/14) (from Ch. 85, par. 1114)
32 Sec. 14. All funds received for the use of the Commission
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1 shall be deposited in the name of the Commission, by the
2 treasurer, in a depository approved by the Commission and
3 shall be withdrawn or paid out only by check or draft upon
4 the depository signed by any two of such Commissioners or
5 Employes of the Commission as may be designated for this
6 purpose by the Commission, provided further that funds
7 appropriated to the Commission by the General Assembly shall
8 be expended in accordance with a formal planning program and
9 budget which has been reviewed by the Department of Commerce
10 and Community Affairs. All persons so designated shall
11 execute bonds with corporate sureties approved by the
12 Commission in the same manner and amount as required of the
13 treasurer.
14 In case any person whose signature appears upon any check
15 or draft, issued pursuant to this Act, ceases (after
16 attaching his signature) to hold his office before the
17 delivery thereof to the payee, his signature nevertheless
18 shall be valid and sufficient for all purposes with the same
19 effect as if he had remained in office until delivery
20 thereof.
21 Funds received from the Department of Revenue as the
22 Commission's share of sales taxes in the area of operation
23 must be deposited into a special account and may be used only
24 to meet the Commission's regional planning goals under
25 Section 24.5 and to pay the principal and interest on bonds
26 issued by the Commission.
27 (Source: P.A. 81-1509.)
28 (70 ILCS 7105/14.5 new)
29 Sec. 14.5. Issuance and pledge of bonds and notes.
30 (a) The Authority shall have the continuing power to
31 borrow money and to issue its negotiable bonds or notes as
32 provided in this Section. Unless otherwise indicated in this
33 Section, the term "notes" also includes bond anticipation
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1 notes, which are notes which by their terms provide for their
2 payment from the proceeds of bonds thereafter to be issued.
3 Bonds or notes of the Commission may be issued for any or all
4 of the following purposes: to pay costs to the Commission of
5 constructing or acquiring any capital improvements under
6 Section 24.5; to repay advances to the Commission made for
7 such purposes; and to pay other expenses of the Commission
8 incident to or incurred in connection with such construction
9 or acquisition.
10 (b) The ordinance providing for the issuance of any such
11 bonds or notes shall fix the date or dates of maturity, the
12 dates on which interest is payable, any sinking fund account
13 or reserve fund account provisions and all other details of
14 such bonds or notes and may provide for such covenants or
15 agreements necessary or desirable with regard to the issue,
16 sale, and security of such bonds or notes. The rate or rates
17 of interest on its bonds or notes may be fixed or variable
18 and the Commission shall determine or provide for the
19 determination of the rate or rates of interest of its bonds
20 or notes issued under this Act in an ordinance adopted by the
21 Commission prior to the issuance thereof, none of which rates
22 of interest shall exceed that permitted in the Bond
23 Authorization Act. Interest may be payable annually or
24 semi-annually, or at such other times as provided for by the
25 Commission. Bonds and notes issued under this Section may be
26 issued as serial or term obligations, shall be of such
27 denomination or denominations and form, including interest
28 coupons to be attached thereto, be executed in such manner,
29 shall be payable at such place or places and bear such date
30 as the Commission shall fix by the ordinance authorizing such
31 bond or note and shall mature at such time or times, within a
32 period not to exceed 40 years from the date of issue, and may
33 be redeemable prior to maturity with or without premium, at
34 the option of the Commission, upon such terms and conditions
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1 as the Commission shall fix by the ordinance authorizing the
2 issuance of such bonds or notes. No bond anticipation note or
3 any renewal thereof shall mature at any time or times
4 exceeding 5 years from the date of the first issuance of such
5 note. The Commission may provide for the registration of
6 bonds or notes in the name of the owner as to the principal
7 alone or as to both principal and interest, upon such terms
8 and conditions as the Commission may determine. The ordinance
9 authorizing bonds or notes may provide for the exchange of
10 such bonds or notes which are fully registered, as to both
11 principal and interest, with bonds or notes which are
12 registerable as to principal only. All bonds or notes issued
13 under this Section by the Commission other than those issued
14 in exchange for property or for bonds or notes of the
15 Commission shall be sold at a price which may be at a premium
16 or discount but such that the interest cost (excluding any
17 redemption premium) to the Commission of the proceeds of an
18 issue of such bonds or notes, computed to stated maturity
19 according to standard tables of bond values, shall not exceed
20 that permitted in the Bond Authorization Act. The Commission
21 shall notify the Bureau of the Budget and the State
22 Comptroller 30 days before any bond sale and shall file with
23 the Bureau of the Budget and the State Comptroller a
24 certified copy of any ordinance authorizing the issuance of
25 bonds at or before the issuance of the bonds. Any such bonds
26 or notes shall be sold to the highest and best bidder on
27 sealed bids as the Commission shall deem. As such bonds or
28 notes are to be sold the Commission shall advertise for
29 proposals to purchase the bonds or notes which advertisement
30 shall be published at least once in a daily newspaper of
31 general circulation published in the counties area at least
32 10 days before the time set for the submission of bids. The
33 Commission shall have the right to reject any or all bids. In
34 case any officer whose signature appears on any bonds, notes
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1 or coupons authorized pursuant to this Section shall cease to
2 be such officer before delivery of such bonds or notes, such
3 signature shall nevertheless be valid and sufficient for all
4 purposes, the same as if such officer had remained in office
5 until such delivery. Neither the Commissioners nor any person
6 executing any bonds or notes thereof shall be liable
7 personally on any such bonds or notes or coupons by reason of
8 the issuance thereof.
9 (c) All bonds or notes of the Commission issued pursuant
10 to this Section shall be general obligations of the
11 Commission to which shall be pledged the full faith and
12 credit of the Commission, as provided in this Section. Such
13 bonds or notes shall be secured as provided in the
14 authorizing ordinance, which may, notwithstanding any other
15 provision of this Act, include in addition to any other
16 security, a specific pledge or assignment of and lien on or
17 security interest in any or all tax receipts of the
18 Commission and on any or all other revenues or moneys of the
19 Commission from whatever source which may by law be utilized
20 for debt service purposes and a specific pledge or assignment
21 of and lien on or security interest in any funds or accounts
22 established or provided for by the ordinance of the
23 Commission authorizing the issuance of such bonds or notes.
24 Any such pledge, assignment, lien or security interest for
25 the benefit of holders of bonds or notes of the Commission
26 shall be valid and binding from the time the bonds or notes
27 are issued without any physical delivery or further act, and
28 shall be valid and binding as against and prior to the claims
29 of all other parties having claims of any kind against the
30 Commission or any other person irrespective of whether such
31 other parties have notice of such pledge, assignment, lien or
32 security interest. The obligations of the Commission incurred
33 pursuant to this Section shall be superior to and have
34 priority over any other obligations of the Commission. The
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1 Commission may provide in the ordinance authorizing the
2 issuance of any bonds or notes issued pursuant to this
3 Section for the creation of, deposits in, and regulation and
4 disposition of sinking fund or reserve accounts relating to
5 such bonds or notes. The ordinance authorizing the issuance
6 of any bonds or notes pursuant to this Section may contain
7 provisions as part of the contract with the holders of the
8 bonds or notes, for the creation of a separate fund to
9 provide for the payment of principal and interest on such
10 bonds or notes and for the deposit in such fund from any or
11 all the tax receipts of the Commission and from any or all
12 such other moneys or revenues of the Commission from whatever
13 source which may by law be utilized for debt service
14 purposes, all as provided in such ordinance, of amounts to
15 meet the debt service requirements on such bonds or notes,
16 including principal and interest, and any sinking fund or
17 reserve fund account requirements as may be provided by such
18 ordinance, and all expenses incident to or in connection with
19 such fund and accounts or the payment of such bonds or notes.
20 Such ordinance may also provide limitations on the issuance
21 of additional bonds or notes of the Commission. No such
22 bonds or notes of the Commission shall constitute a debt of
23 the State of Illinois. Nothing in this Act shall be construed
24 to enable the Commission to impose any ad valorem tax on
25 property.
26 (d) The ordinance of the Commission authorizing the
27 issuance of any bonds or notes may provide additional
28 security for such bonds or notes by providing for appointment
29 of a corporate trustee (which may be any trust company or
30 bank having the powers of a trust company within the state)
31 with respect to such bonds or notes. The ordinance shall
32 prescribe the rights, duties and powers of the trustee to be
33 exercised for the benefit of the Commission and the
34 protection of the holders of such bonds or notes. The
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1 ordinance may provide for the trustee to hold in trust,
2 invest and use amounts in funds and accounts created as
3 provided by the ordinance with respect to the bonds or notes.
4 (e) Any bonds or notes of the Commission issued pursuant
5 to this Section shall constitute a contract between the
6 Commission and the holders from time to time of such bonds or
7 notes. In issuing any bond or note, the Commission may
8 include in the ordinance authorizing such issue a covenant as
9 part of the contract with the holders of the bonds or notes,
10 that as long as such obligations are outstanding, it shall
11 make such deposits, as provided in subsection (c) of this
12 Section. A certified copy of the ordinance authorizing the
13 issuance of any such obligations shall be filed at or prior
14 to the issuance of such obligations with the Comptroller of
15 the State of Illinois and the Illinois Department of Revenue.
16 (f) The State of Illinois pledges to and agrees with the
17 holders of the bonds and notes of the Commission issued
18 pursuant to this Section that the State will not limit or
19 alter the rights and powers vested in the Commission by this
20 Act so as to impair the terms of any contract made by the
21 Commission with such holders or in any way impair the rights
22 and remedies of such holders until such bonds and notes,
23 together with interest thereon, with interest on any unpaid
24 installments of interest, and all costs and expenses in
25 connection with any action or proceedings by or on behalf of
26 such holders, are fully met and discharged. In addition, the
27 State pledges to and agrees with the holders of the bonds and
28 notes of the Commission issued pursuant to this Section that
29 the State will not limit or alter the basis on which State
30 funds are to be paid to the Commission as provided in this
31 Act, or the use of such funds, so as to impair the terms of
32 any such contract. The Commission is authorized to include
33 these pledges and agreements of the State in any contract
34 with the holders of bonds or notes issued pursuant to this
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1 Section.
2 (g) The Authority shall not at any time issue, sell or
3 deliver any bonds or notes pursuant to this Section which
4 will cause it to have issued and outstanding at any time in
5 excess of $500,000,000 of such bonds and notes. Bonds or
6 notes which are being paid or retired by such issuance, sale
7 or delivery of bonds or notes, and bonds or notes for which
8 sufficient funds have been deposited with the paying agency
9 of such bonds or notes to provide for payment of principal
10 and interest thereon or to provide for the redemption
11 thereof, all pursuant to the ordinance authorizing the
12 issuance of such bonds or notes, shall not be considered to
13 be outstanding for the purposes of the first two sentences of
14 this subsection.
15 (h) The Commission, subject to the terms of any
16 agreements with noteholders or bond holders as may then
17 exist, shall have power, out of any funds available therefor,
18 to purchase notes or bonds of the Commission which shall
19 thereupon be cancelled.
20 (i) In addition to any other authority granted by law,
21 the State Treasurer may, with the approval of the Governor,
22 invest or reinvest, at a price not to exceed par, any State
23 money in the State Treasury which is not needed for current
24 expenditures due or about to become due in Working Cash
25 Notes.
26 (70 ILCS 1705/24.5 new)
27 Sec. 24.5. Regional goals. The Commission must adopt
28 regional planning goals for transportation, land use,
29 housing, waste water, storm water, and water supply and may
30 make capital improvements to meet those goals.