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91_HB4754
LRB9114940SMcd
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by changing
5 Sections 6z-18 and 6z-20 as follows:
6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
7 Sec. 6z-18. A portion of the money paid into the Local
8 Government Tax Fund from sales of food for human consumption
9 which is to be consumed off the premises where it is sold
10 (other than alcoholic beverages, soft drinks and food which
11 has been prepared for immediate consumption) and prescription
12 and nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used
14 by diabetics, which occurred in municipalities, shall be
15 distributed to each municipality based upon the sales which
16 occurred in that municipality. The remainder shall be
17 distributed to each county based upon the sales which
18 occurred in the unincorporated area of that county.
19 A portion of the money paid into the Local Government Tax
20 Fund from the 6.25% general use tax rate on the selling price
21 of tangible personal property which is purchased outside
22 Illinois at retail from a retailer and which is titled or
23 registered by any agency of this State's government shall be
24 distributed to municipalities as provided in this paragraph.
25 Each municipality shall receive the amount attributable to
26 sales for which Illinois addresses for titling or
27 registration purposes are given as being in such
28 municipality. The remainder of the money paid into the Local
29 Government Tax Fund from such sales shall be distributed to
30 counties. Each county shall receive the amount attributable
31 to sales for which Illinois addresses for titling or
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1 registration purposes are given as being located in the
2 unincorporated area of such county.
3 A portion of the money paid into the Local Government Tax
4 Fund from the 6.25% general rate (and, beginning July 1, 2000
5 and through December 31, 2000, the 1.25% rate on motor fuel
6 and gasohol and, beginning December 1, 2000 and through May
7 31, 2001, the 1.25% rate on propane and home heating oil) on
8 sales subject to taxation under the Retailers' Occupation Tax
9 Act and the Service Occupation Tax Act, which occurred in
10 municipalities, shall be distributed to each municipality,
11 based upon the sales which occurred in that municipality. The
12 remainder shall be distributed to each county, based upon the
13 sales which occurred in the unincorporated area of such
14 county.
15 For the purpose of determining allocation to the local
16 government unit, a retail sale by a producer of coal or other
17 mineral mined in Illinois is a sale at retail at the place
18 where the coal or other mineral mined in Illinois is
19 extracted from the earth. This paragraph does not apply to
20 coal or other mineral when it is delivered or shipped by the
21 seller to the purchaser at a point outside Illinois so that
22 the sale is exempt under the United States Constitution as a
23 sale in interstate or foreign commerce.
24 Whenever the Department determines that a refund of money
25 paid into the Local Government Tax Fund should be made to a
26 claimant instead of issuing a credit memorandum, the
27 Department shall notify the State Comptroller, who shall
28 cause the order to be drawn for the amount specified, and to
29 the person named, in such notification from the Department.
30 Such refund shall be paid by the State Treasurer out of the
31 Local Government Tax Fund.
32 On or before the 25th day of each calendar month, the
33 Department shall prepare and certify to the Comptroller the
34 disbursement of stated sums of money to named municipalities
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1 and counties, the municipalities and counties to be those
2 entitled to distribution of taxes or penalties paid to the
3 Department during the second preceding calendar month. The
4 amount to be paid to each municipality or county shall be the
5 amount (not including credit memoranda) collected during the
6 second preceding calendar month by the Department and paid
7 into the Local Government Tax Fund, plus an amount the
8 Department determines is necessary to offset any amounts
9 which were erroneously paid to a different taxing body, and
10 not including an amount equal to the amount of refunds made
11 during the second preceding calendar month by the Department,
12 and not including any amount which the Department determines
13 is necessary to offset any amounts which are payable to a
14 different taxing body but were erroneously paid to the
15 municipality or county. Within 10 days after receipt, by the
16 Comptroller, of the disbursement certification to the
17 municipalities and counties, provided for in this Section to
18 be given to the Comptroller by the Department, the
19 Comptroller shall cause the orders to be drawn for the
20 respective amounts in accordance with the directions
21 contained in such certification.
22 When certifying the amount of monthly disbursement to a
23 municipality or county under this Section, the Department
24 shall increase or decrease that amount by an amount necessary
25 to offset any misallocation of previous disbursements. The
26 offset amount shall be the amount erroneously disbursed
27 within the 6 months preceding the time a misallocation is
28 discovered.
29 The provisions directing the distributions from the
30 special fund in the State Treasury provided for in this
31 Section shall constitute an irrevocable and continuing
32 appropriation of all amounts as provided herein. The State
33 Treasurer and State Comptroller are hereby authorized to make
34 distributions as provided in this Section.
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1 In construing any development, redevelopment, annexation,
2 preannexation or other lawful agreement in effect prior to
3 September 1, 1990, which describes or refers to receipts from
4 a county or municipal retailers' occupation tax, use tax or
5 service occupation tax which now cannot be imposed, such
6 description or reference shall be deemed to include the
7 replacement revenue for such abolished taxes, distributed
8 from the Local Government Tax Fund.
9 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99;
10 91-872, eff. 7-1-00.)
11 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
12 Sec. 6z-20. Of the money received from the 6.25% general
13 rate (and, beginning July 1, 2000 and through December 31,
14 2000, the 1.25% rate on motor fuel and gasohol and, beginning
15 December 1, 2000 and through May 31, 2001, the 1.25% rate on
16 propane and home heating oil) on sales subject to taxation
17 under the Retailers' Occupation Tax Act and Service
18 Occupation Tax Act and paid into the County and Mass Transit
19 District Fund, distribution to the Regional Transportation
20 Authority tax fund, created pursuant to Section 4.03 of the
21 Regional Transportation Authority Act, for deposit therein
22 shall be made based upon the retail sales occurring in a
23 county having more than 3,000,000 inhabitants. The remainder
24 shall be distributed to each county having 3,000,000 or fewer
25 inhabitants based upon the retail sales occurring in each
26 such county.
27 For the purpose of determining allocation to the local
28 government unit, a retail sale by a producer of coal or other
29 mineral mined in Illinois is a sale at retail at the place
30 where the coal or other mineral mined in Illinois is
31 extracted from the earth. This paragraph does not apply to
32 coal or other mineral when it is delivered or shipped by the
33 seller to the purchaser at a point outside Illinois so that
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1 the sale is exempt under the United States Constitution as a
2 sale in interstate or foreign commerce.
3 Of the money received from the 6.25% general use tax rate
4 on tangible personal property which is purchased outside
5 Illinois at retail from a retailer and which is titled or
6 registered by any agency of this State's government and paid
7 into the County and Mass Transit District Fund, the amount
8 for which Illinois addresses for titling or registration
9 purposes are given as being in each county having more than
10 3,000,000 inhabitants shall be distributed into the Regional
11 Transportation Authority tax fund, created pursuant to
12 Section 4.03 of the Regional Transportation Authority Act.
13 The remainder of the money paid from such sales shall be
14 distributed to each county based on sales for which Illinois
15 addresses for titling or registration purposes are given as
16 being located in the county. Any money paid into the
17 Regional Transportation Authority Occupation and Use Tax
18 Replacement Fund from the County and Mass Transit District
19 Fund prior to January 14, 1991, which has not been paid to
20 the Authority prior to that date, shall be transferred to the
21 Regional Transportation Authority tax fund.
22 Whenever the Department determines that a refund of money
23 paid into the County and Mass Transit District Fund should be
24 made to a claimant instead of issuing a credit memorandum,
25 the Department shall notify the State Comptroller, who shall
26 cause the order to be drawn for the amount specified, and to
27 the person named, in such notification from the Department.
28 Such refund shall be paid by the State Treasurer out of the
29 County and Mass Transit District Fund.
30 On or before the 25th day of each calendar month, the
31 Department shall prepare and certify to the Comptroller the
32 disbursement of stated sums of money to the Regional
33 Transportation Authority and to named counties, the counties
34 to be those entitled to distribution, as hereinabove
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1 provided, of taxes or penalties paid to the Department during
2 the second preceding calendar month. The amount to be paid
3 to the Regional Transportation Authority and each county
4 having 3,000,000 or fewer inhabitants shall be the amount
5 (not including credit memoranda) collected during the second
6 preceding calendar month by the Department and paid into the
7 County and Mass Transit District Fund, plus an amount the
8 Department determines is necessary to offset any amounts
9 which were erroneously paid to a different taxing body, and
10 not including an amount equal to the amount of refunds made
11 during the second preceding calendar month by the Department,
12 and not including any amount which the Department determines
13 is necessary to offset any amounts which were payable to a
14 different taxing body but were erroneously paid to the
15 Regional Transportation Authority or county. Within 10 days
16 after receipt, by the Comptroller, of the disbursement
17 certification to the Regional Transportation Authority and
18 counties, provided for in this Section to be given to the
19 Comptroller by the Department, the Comptroller shall cause
20 the orders to be drawn for the respective amounts in
21 accordance with the directions contained in such
22 certification.
23 When certifying the amount of a monthly disbursement to
24 the Regional Transportation Authority or to a county under
25 this Section, the Department shall increase or decrease that
26 amount by an amount necessary to offset any misallocation of
27 previous disbursements. The offset amount shall be the
28 amount erroneously disbursed within the 6 months preceding
29 the time a misallocation is discovered.
30 The provisions directing the distributions from the
31 special fund in the State Treasury provided for in this
32 Section and from the Regional Transportation Authority tax
33 fund created by Section 4.03 of the Regional Transportation
34 Authority Act shall constitute an irrevocable and continuing
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1 appropriation of all amounts as provided herein. The State
2 Treasurer and State Comptroller are hereby authorized to make
3 distributions as provided in this Section.
4 In construing any development, redevelopment, annexation,
5 preannexation or other lawful agreement in effect prior to
6 September 1, 1990, which describes or refers to receipts from
7 a county or municipal retailers' occupation tax, use tax or
8 service occupation tax which now cannot be imposed, such
9 description or reference shall be deemed to include the
10 replacement revenue for such abolished taxes, distributed
11 from the County and Mass Transit District Fund or Local
12 Government Distributive Fund, as the case may be.
13 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
14 Section 10. The Use Tax Act is amended by changing
15 Sections 3-10 and 9 as follows:
16 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
17 Sec. 3-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of either the selling price or the fair market value,
20 if any, of the tangible personal property. In all cases
21 where property functionally used or consumed is the same as
22 the property that was purchased at retail, then the tax is
23 imposed on the selling price of the property. In all cases
24 where property functionally used or consumed is a by-product
25 or waste product that has been refined, manufactured, or
26 produced from property purchased at retail, then the tax is
27 imposed on the lower of the fair market value, if any, of the
28 specific property so used in this State or on the selling
29 price of the property purchased at retail. For purposes of
30 this Section "fair market value" means the price at which
31 property would change hands between a willing buyer and a
32 willing seller, neither being under any compulsion to buy or
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1 sell and both having reasonable knowledge of the relevant
2 facts. The fair market value shall be established by Illinois
3 sales by the taxpayer of the same property as that
4 functionally used or consumed, or if there are no such sales
5 by the taxpayer, then comparable sales or purchases of
6 property of like kind and character in Illinois.
7 Beginning on July 1, 2000 and through December 31, 2000,
8 with respect to motor fuel, as defined in Section 1.1 of the
9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
10 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 With respect to gasohol, the tax imposed by this Act
12 applies to 70% of the proceeds of sales made on or after
13 January 1, 1990, and before July 1, 2003, and to 100% of the
14 proceeds of sales made thereafter.
15 Beginning on December 1, 2000 and through May 31, 2001,
16 with respect to propane and home heating oil, the tax is
17 imposed at the rate of 1.25%.
18 With respect to food for human consumption that is to be
19 consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks, and food that has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances,
23 modifications to a motor vehicle for the purpose of rendering
24 it usable by a disabled person, and insulin, urine testing
25 materials, syringes, and needles used by diabetics, for human
26 use, the tax is imposed at the rate of 1%. For the purposes
27 of this Section, the term "soft drinks" means any complete,
28 finished, ready-to-use, non-alcoholic drink, whether
29 carbonated or not, including but not limited to soda water,
30 cola, fruit juice, vegetable juice, carbonated water, and all
31 other preparations commonly known as soft drinks of whatever
32 kind or description that are contained in any closed or
33 sealed bottle, can, carton, or container, regardless of size.
34 "Soft drinks" does not include coffee, tea, non-carbonated
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1 water, infant formula, milk or milk products as defined in
2 the Grade A Pasteurized Milk and Milk Products Act, or drinks
3 containing 50% or more natural fruit or vegetable juice.
4 Notwithstanding any other provisions of this Act, "food
5 for human consumption that is to be consumed off the premises
6 where it is sold" includes all food sold through a vending
7 machine, except soft drinks and food products that are
8 dispensed hot from a vending machine, regardless of the
9 location of the vending machine.
10 If the property that is purchased at retail from a
11 retailer is acquired outside Illinois and used outside
12 Illinois before being brought to Illinois for use here and is
13 taxable under this Act, the "selling price" on which the tax
14 is computed shall be reduced by an amount that represents a
15 reasonable allowance for depreciation for the period of prior
16 out-of-state use.
17 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
18 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
19 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
20 Sec. 9. Except as to motor vehicles, watercraft,
21 aircraft, and trailers that are required to be registered
22 with an agency of this State, each retailer required or
23 authorized to collect the tax imposed by this Act shall pay
24 to the Department the amount of such tax (except as otherwise
25 provided) at the time when he is required to file his return
26 for the period during which such tax was collected, less a
27 discount of 2.1% prior to January 1, 1990, and 1.75% on and
28 after January 1, 1990, or $5 per calendar year, whichever is
29 greater, which is allowed to reimburse the retailer for
30 expenses incurred in collecting the tax, keeping records,
31 preparing and filing returns, remitting the tax and supplying
32 data to the Department on request. In the case of retailers
33 who report and pay the tax on a transaction by transaction
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1 basis, as provided in this Section, such discount shall be
2 taken with each such tax remittance instead of when such
3 retailer files his periodic return. A retailer need not
4 remit that part of any tax collected by him to the extent
5 that he is required to remit and does remit the tax imposed
6 by the Retailers' Occupation Tax Act, with respect to the
7 sale of the same property.
8 Where such tangible personal property is sold under a
9 conditional sales contract, or under any other form of sale
10 wherein the payment of the principal sum, or a part thereof,
11 is extended beyond the close of the period for which the
12 return is filed, the retailer, in collecting the tax (except
13 as to motor vehicles, watercraft, aircraft, and trailers that
14 are required to be registered with an agency of this State),
15 may collect for each tax return period, only the tax
16 applicable to that part of the selling price actually
17 received during such tax return period.
18 Except as provided in this Section, on or before the
19 twentieth day of each calendar month, such retailer shall
20 file a return for the preceding calendar month. Such return
21 shall be filed on forms prescribed by the Department and
22 shall furnish such information as the Department may
23 reasonably require.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in the business of selling tangible
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1 personal property at retail in this State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month from sales of
4 tangible personal property by him during such preceding
5 calendar month, including receipts from charge and time
6 sales, but less all deductions allowed by law;
7 4. The amount of credit provided in Section 2d of
8 this Act;
9 5. The amount of tax due;
10 5-5. The signature of the taxpayer; and
11 6. Such other reasonable information as the
12 Department may require.
13 If a taxpayer fails to sign a return within 30 days after
14 the proper notice and demand for signature by the Department,
15 the return shall be considered valid and any amount shown to
16 be due on the return shall be deemed assessed.
17 Beginning October 1, 1993, a taxpayer who has an average
18 monthly tax liability of $150,000 or more shall make all
19 payments required by rules of the Department by electronic
20 funds transfer. Beginning October 1, 1994, a taxpayer who has
21 an average monthly tax liability of $100,000 or more shall
22 make all payments required by rules of the Department by
23 electronic funds transfer. Beginning October 1, 1995, a
24 taxpayer who has an average monthly tax liability of $50,000
25 or more shall make all payments required by rules of the
26 Department by electronic funds transfer. Beginning October 1,
27 2000, a taxpayer who has an annual tax liability of $200,000
28 or more shall make all payments required by rules of the
29 Department by electronic funds transfer. The term "annual
30 tax liability" shall be the sum of the taxpayer's liabilities
31 under this Act, and under all other State and local
32 occupation and use tax laws administered by the Department,
33 for the immediately preceding calendar year. The term
34 "average monthly tax liability" means the sum of the
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1 taxpayer's liabilities under this Act, and under all other
2 State and local occupation and use tax laws administered by
3 the 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 Before October 1, 2000, if the taxpayer's average monthly
22 tax liability to the Department under this Act, the
23 Retailers' Occupation Tax Act, the Service Occupation Tax
24 Act, the Service Use Tax Act was $10,000 or more during the
25 preceding 4 complete calendar quarters, he shall file a
26 return with the Department each month by the 20th day of the
27 month next following the month during which such tax
28 liability is incurred and shall make payments to the
29 Department on or before the 7th, 15th, 22nd and last day of
30 the month during which such liability is incurred. On and
31 after October 1, 2000, if the taxpayer's average monthly tax
32 liability to the Department under this Act, the Retailers'
33 Occupation Tax Act, the Service Occupation Tax Act, and the
34 Service Use Tax Act was $20,000 or more during the preceding
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1 4 complete calendar quarters, he shall file a return with the
2 Department each month by the 20th day of the month next
3 following the month during which such tax liability is
4 incurred and shall make payment to the Department on or
5 before the 7th, 15th, 22nd and last day of the month during
6 which such liability is incurred. If the month during which
7 such tax liability is incurred began prior to January 1,
8 1985, each payment shall be in an amount equal to 1/4 of the
9 taxpayer's actual liability for the month or an amount set by
10 the Department not to exceed 1/4 of the average monthly
11 liability of the taxpayer to the Department for the preceding
12 4 complete calendar quarters (excluding the month of highest
13 liability and the month of lowest liability in such 4 quarter
14 period). If the month during which such tax liability is
15 incurred begins on or after January 1, 1985, and prior to
16 January 1, 1987, each payment shall be in an amount equal to
17 22.5% of the taxpayer's actual liability for the month or
18 27.5% of the taxpayer's liability for the same calendar month
19 of the preceding year. If the month during which such tax
20 liability is incurred begins on or after January 1, 1987, and
21 prior to January 1, 1988, each payment shall be in an amount
22 equal to 22.5% of the taxpayer's actual liability for the
23 month or 26.25% of the taxpayer's liability for the same
24 calendar month of the preceding year. If the month during
25 which such tax liability is incurred begins on or after
26 January 1, 1988, and prior to January 1, 1989, or begins on
27 or after January 1, 1996, each payment shall be in an amount
28 equal to 22.5% of the taxpayer's actual liability for the
29 month or 25% of the taxpayer's liability for the same
30 calendar month of the preceding year. If the month during
31 which such tax liability is incurred begins on or after
32 January 1, 1989, and prior to January 1, 1996, each payment
33 shall be in an amount equal to 22.5% of the taxpayer's actual
34 liability for the month or 25% of the taxpayer's liability
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1 for the same calendar month of the preceding year or 100% of
2 the taxpayer's actual liability for the quarter monthly
3 reporting period. The amount of such quarter monthly
4 payments shall be credited against the final tax liability of
5 the taxpayer's return for that month. Before October 1,
6 2000, once applicable, the requirement of the making of
7 quarter monthly payments to the Department shall continue
8 until such taxpayer's average monthly liability to the
9 Department during the preceding 4 complete calendar quarters
10 (excluding the month of highest liability and the month of
11 lowest liability) is less than $9,000, or until such
12 taxpayer's average monthly liability to the Department as
13 computed for each calendar quarter of the 4 preceding
14 complete calendar quarter period is less than $10,000.
15 However, if a taxpayer can show the Department that a
16 substantial change in the taxpayer's business has occurred
17 which causes the taxpayer to anticipate that his average
18 monthly tax liability for the reasonably foreseeable future
19 will fall below the $10,000 threshold stated above, then such
20 taxpayer may petition the Department for change in such
21 taxpayer's reporting status. On and after October 1, 2000,
22 once applicable, the requirement of the making of quarter
23 monthly payments to the Department shall continue until such
24 taxpayer's average monthly liability to the Department during
25 the preceding 4 complete calendar quarters (excluding the
26 month of highest liability and the month of lowest liability)
27 is less than $19,000 or until such taxpayer's average monthly
28 liability to the Department as computed for each calendar
29 quarter of the 4 preceding complete calendar quarter period
30 is less than $20,000. However, if a taxpayer can show the
31 Department that a substantial change in the taxpayer's
32 business has occurred which causes the taxpayer to anticipate
33 that his average monthly tax liability for the reasonably
34 foreseeable future will fall below the $20,000 threshold
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1 stated above, then such taxpayer may petition the Department
2 for a change in such taxpayer's reporting status. The
3 Department shall change such taxpayer's reporting status
4 unless it finds that such change is seasonal in nature and
5 not likely to be long term. If any such quarter monthly
6 payment is not paid at the time or in the amount required by
7 this Section, then the taxpayer shall be liable for penalties
8 and interest on the difference between the minimum amount due
9 and the amount of such quarter monthly payment actually and
10 timely paid, except insofar as the taxpayer has previously
11 made payments for that month to the Department in excess of
12 the minimum payments previously due as provided in this
13 Section. The Department shall make reasonable rules and
14 regulations to govern the quarter monthly payment amount and
15 quarter monthly payment dates for taxpayers who file on other
16 than a calendar monthly basis.
17 If any such payment provided for in this Section exceeds
18 the taxpayer's liabilities under this Act, the Retailers'
19 Occupation Tax Act, the Service Occupation Tax Act and the
20 Service Use Tax Act, as shown by an original monthly return,
21 the Department shall issue to the taxpayer a credit
22 memorandum no later than 30 days after the date of payment,
23 which memorandum may be submitted by the taxpayer to the
24 Department in payment of tax liability subsequently to be
25 remitted by the taxpayer to the Department or be assigned by
26 the taxpayer to a similar taxpayer under this Act, the
27 Retailers' Occupation Tax Act, the Service Occupation Tax Act
28 or the Service Use Tax Act, in accordance with reasonable
29 rules and regulations to be prescribed by the Department,
30 except that if such excess payment is shown on an original
31 monthly return and is made after December 31, 1986, no credit
32 memorandum shall be issued, unless requested by the taxpayer.
33 If no such request is made, the taxpayer may credit such
34 excess payment against tax liability subsequently to be
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1 remitted by the taxpayer to the Department under this Act,
2 the Retailers' Occupation Tax Act, the Service Occupation Tax
3 Act or the Service Use Tax Act, in accordance with reasonable
4 rules and regulations prescribed by the Department. If the
5 Department subsequently determines that all or any part of
6 the credit taken was not actually due to the taxpayer, the
7 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
8 by 2.1% or 1.75% of the difference between the credit taken
9 and that actually due, and the taxpayer shall be liable for
10 penalties and interest on such difference.
11 If the retailer is otherwise required to file a monthly
12 return and if the retailer's average monthly tax liability to
13 the Department does not exceed $200, the Department may
14 authorize his returns to be filed on a quarter annual basis,
15 with the return for January, February, and March of a given
16 year being due by April 20 of such year; with the return for
17 April, May and June of a given year being due by July 20 of
18 such year; with the return for July, August and September of
19 a given year being due by October 20 of such year, and with
20 the return for October, November and December of a given year
21 being due by January 20 of the following year.
22 If the retailer is otherwise required to file a monthly
23 or quarterly return and if the retailer's average monthly tax
24 liability to the Department does not exceed $50, the
25 Department may authorize his returns to be filed on an annual
26 basis, with the return for a given year being due by January
27 20 of the following year.
28 Such quarter annual and annual returns, as to form and
29 substance, shall be subject to the same requirements as
30 monthly returns.
31 Notwithstanding any other provision in this Act
32 concerning the time within which a retailer may file his
33 return, in the case of any retailer who ceases to engage in a
34 kind of business which makes him responsible for filing
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1 returns under this Act, such retailer shall file a final
2 return under this Act with the Department not more than one
3 month after discontinuing such business.
4 In addition, with respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that if,
11 in the same transaction, (i) a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle or trailer retailer for
15 the purpose of resale or (ii) a retailer of aircraft,
16 watercraft, motor vehicles, or trailers transfers more than
17 one aircraft, watercraft, motor vehicle, or trailer to a
18 purchaser for use as a qualifying rolling stock as provided
19 in Section 3-55 of this Act, then that seller may report the
20 transfer of all the aircraft, watercraft, motor vehicles or
21 trailers involved in that transaction to the Department on
22 the same uniform invoice-transaction reporting return form.
23 For purposes of this Section, "watercraft" means a Class 2,
24 Class 3, or Class 4 watercraft as defined in Section 3-2 of
25 the Boat Registration and Safety Act, a personal watercraft,
26 or any boat equipped with an inboard motor.
27 The transaction reporting return in the case of motor
28 vehicles or trailers that are required to be registered with
29 an agency of this State, shall be the same document as the
30 Uniform Invoice referred to in Section 5-402 of the Illinois
31 Vehicle Code and must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
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1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale; a sufficient identification of
11 the property sold; such other information as is required in
12 Section 5-402 of the Illinois Vehicle Code, and such other
13 information as the Department may reasonably require.
14 The transaction reporting return in the case of
15 watercraft and aircraft must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 2 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale, a sufficient identification of
29 the property sold, and such other information as the
30 Department may reasonably require.
31 Such transaction reporting return shall be filed not
32 later than 20 days after the date of delivery of the item
33 that is being sold, but may be filed by the retailer at any
34 time sooner than that if he chooses to do so. The
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1 transaction reporting return and tax remittance or proof of
2 exemption from the tax that is imposed by this Act may be
3 transmitted to the Department by way of the State agency with
4 which, or State officer with whom, the tangible personal
5 property must be titled or registered (if titling or
6 registration is required) if the Department and such agency
7 or State officer determine that this procedure will expedite
8 the processing of applications for title or registration.
9 With each such transaction reporting return, the retailer
10 shall remit the proper amount of tax due (or shall submit
11 satisfactory evidence that the sale is not taxable if that is
12 the case), to the Department or its agents, whereupon the
13 Department shall issue, in the purchaser's name, a tax
14 receipt (or a certificate of exemption if the Department is
15 satisfied that the particular sale is tax exempt) which such
16 purchaser may submit to the agency with which, or State
17 officer with whom, he must title or register the tangible
18 personal property that is involved (if titling or
19 registration is required) in support of such purchaser's
20 application for an Illinois certificate or other evidence of
21 title or registration to such tangible personal property.
22 No retailer's failure or refusal to remit tax under this
23 Act precludes a user, who has paid the proper tax to the
24 retailer, from obtaining his certificate of title or other
25 evidence of title or registration (if titling or registration
26 is required) upon satisfying the Department that such user
27 has paid the proper tax (if tax is due) to the retailer. The
28 Department shall adopt appropriate rules to carry out the
29 mandate of this paragraph.
30 If the user who would otherwise pay tax to the retailer
31 wants the transaction reporting return filed and the payment
32 of tax or proof of exemption made to the Department before
33 the retailer is willing to take these actions and such user
34 has not paid the tax to the retailer, such user may certify
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1 to the fact of such delay by the retailer, and may (upon the
2 Department being satisfied of the truth of such
3 certification) transmit the information required by the
4 transaction reporting return and the remittance for tax or
5 proof of exemption directly to the Department and obtain his
6 tax receipt or exemption determination, in which event the
7 transaction reporting return and tax remittance (if a tax
8 payment was required) shall be credited by the Department to
9 the proper retailer's account with the Department, but
10 without the 2.1% or 1.75% discount provided for in this
11 Section being allowed. When the user pays the tax directly
12 to the Department, he shall pay the tax in the same amount
13 and in the same form in which it would be remitted if the tax
14 had been remitted to the Department by the retailer.
15 Where a retailer collects the tax with respect to the
16 selling price of tangible personal property which he sells
17 and the purchaser thereafter returns such tangible personal
18 property and the retailer refunds the selling price thereof
19 to the purchaser, such retailer shall also refund, to the
20 purchaser, the tax so collected from the purchaser. When
21 filing his return for the period in which he refunds such tax
22 to the purchaser, the retailer may deduct the amount of the
23 tax so refunded by him to the purchaser from any other use
24 tax which such retailer may be required to pay or remit to
25 the Department, as shown by such return, if the amount of the
26 tax to be deducted was previously remitted to the Department
27 by such retailer. If the retailer has not previously
28 remitted the amount of such tax to the Department, he is
29 entitled to no deduction under this Act upon refunding such
30 tax to the purchaser.
31 Any retailer filing a return under this Section shall
32 also include (for the purpose of paying tax thereon) the
33 total tax covered by such return upon the selling price of
34 tangible personal property purchased by him at retail from a
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1 retailer, but as to which the tax imposed by this Act was not
2 collected from the retailer filing such return, and such
3 retailer shall remit the amount of such tax to the Department
4 when filing such return.
5 If experience indicates such action to be practicable,
6 the Department may prescribe and furnish a combination or
7 joint return which will enable retailers, who are required to
8 file returns hereunder and also under the Retailers'
9 Occupation Tax Act, to furnish all the return information
10 required by both Acts on the one form.
11 Where the retailer has more than one business registered
12 with the Department under separate registration under this
13 Act, such retailer may not file each return that is due as a
14 single return covering all such registered businesses, but
15 shall file separate returns for each such registered
16 business.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury which is hereby created,
20 the net revenue realized for the preceding month from the 1%
21 tax on sales of food for human consumption which is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks and food which has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes and needles used
27 by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% 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 January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury, 20% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property, other
6 than tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government.
9 Beginning August 1, 2000, each month the Department shall
10 pay into the State and Local Sales Tax Reform Fund 100% of
11 the net revenue realized for the preceding month from the
12 1.25% rate on the selling price of motor fuel and gasohol.
13 Beginning January 1, 2001, each month the Department
14 shall pay into the State and Local Sales Tax Reform Fund 100%
15 of the net revenue realized for the preceding month from the
16 1.25% rate on the selling price of propane and home heating
17 oil.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the Local Government Tax Fund 16% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property which is purchased outside Illinois at retail from a
23 retailer and which is titled or registered by an agency of
24 this State's government.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, (a) 1.75% thereof shall be paid into
27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
28 and on and after July 1, 1989, 3.8% thereof shall be paid
29 into the Build Illinois Fund; provided, however, that if in
30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31 as the case may be, of the moneys received by the Department
32 and required to be paid into the Build Illinois Fund pursuant
33 to Section 3 of the Retailers' Occupation Tax Act, Section 9
34 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
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1 Section 9 of the Service Occupation Tax Act, such Acts being
2 hereinafter called the "Tax Acts" and such aggregate of 2.2%
3 or 3.8%, as the case may be, of moneys being hereinafter
4 called the "Tax Act Amount", and (2) the amount transferred
5 to the Build Illinois Fund from the State and Local Sales Tax
6 Reform Fund shall be less than the Annual Specified Amount
7 (as defined in Section 3 of the Retailers' Occupation Tax
8 Act), an amount equal to the difference shall be immediately
9 paid into the Build Illinois Fund from other moneys received
10 by the Department pursuant to the Tax Acts; and further
11 provided, that if on the last business day of any month the
12 sum of (1) the Tax Act Amount required to be deposited into
13 the Build Illinois Bond Account in the Build Illinois Fund
14 during such month and (2) the amount transferred during such
15 month to the Build Illinois Fund from the State and Local
16 Sales Tax Reform Fund shall have been less than 1/12 of the
17 Annual Specified Amount, an amount equal to the difference
18 shall be immediately paid into the Build Illinois Fund from
19 other moneys received by the Department pursuant to the Tax
20 Acts; and, further provided, that in no event shall the
21 payments required under the preceding proviso result in
22 aggregate payments into the Build Illinois Fund pursuant to
23 this clause (b) for any fiscal year in excess of the greater
24 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
25 for such fiscal year; and, further provided, that the amounts
26 payable into the Build Illinois Fund under this clause (b)
27 shall be payable only until such time as the aggregate amount
28 on deposit under each trust indenture securing Bonds issued
29 and outstanding pursuant to the Build Illinois Bond Act is
30 sufficient, taking into account any future investment income,
31 to fully provide, in accordance with such indenture, for the
32 defeasance of or the payment of the principal of, premium, if
33 any, and interest on the Bonds secured by such indenture and
34 on any Bonds expected to be issued thereafter and all fees
-24- LRB9114940SMcd
1 and costs payable with respect thereto, all as certified by
2 the Director of the Bureau of the Budget. If on the last
3 business day of any month in which Bonds are outstanding
4 pursuant to the Build Illinois Bond Act, the aggregate of the
5 moneys deposited in the Build Illinois Bond Account in the
6 Build Illinois Fund in such month shall be less than the
7 amount required to be transferred in such month from the
8 Build Illinois Bond Account to the Build Illinois Bond
9 Retirement and Interest Fund pursuant to Section 13 of the
10 Build Illinois Bond Act, an amount equal to such deficiency
11 shall be immediately paid from other moneys received by the
12 Department pursuant to the Tax Acts to the Build Illinois
13 Fund; provided, however, that any amounts paid to the Build
14 Illinois Fund in any fiscal year pursuant to this sentence
15 shall be deemed to constitute payments pursuant to clause (b)
16 of the preceding sentence and shall reduce the amount
17 otherwise payable for such fiscal year pursuant to clause (b)
18 of the preceding sentence. The moneys received by the
19 Department pursuant to this Act and required to be deposited
20 into the Build Illinois Fund are subject to the pledge, claim
21 and charge set forth in Section 12 of the Build Illinois Bond
22 Act.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in the preceding paragraph or in any
25 amendment thereto hereafter enacted, the following specified
26 monthly installment of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority provided under Section 8.25f of the
29 State Finance Act, but not in excess of the sums designated
30 as "Total Deposit", shall be deposited in the aggregate from
31 collections under Section 9 of the Use Tax Act, Section 9 of
32 the Service Use Tax Act, Section 9 of the Service Occupation
33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
34 into the McCormick Place Expansion Project Fund in the
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1 specified fiscal years.
2 Fiscal Year Total Deposit
3 1993 $0
4 1994 53,000,000
5 1995 58,000,000
6 1996 61,000,000
7 1997 64,000,000
8 1998 68,000,000
9 1999 71,000,000
10 2000 75,000,000
11 2001 80,000,000
12 2002 84,000,000
13 2003 89,000,000
14 2004 93,000,000
15 2005 97,000,000
16 2006 102,000,000
17 2007 108,000,000
18 2008 115,000,000
19 2009 120,000,000
20 2010 126,000,000
21 2011 132,000,000
22 2012 138,000,000
23 2013 and 145,000,000
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
27 Section 13.2 of the
28 Metropolitan Pier and
29 Exposition Authority
30 Act, but not after fiscal year 2029.
31 Beginning July 20, 1993 and in each month of each fiscal
32 year thereafter, one-eighth of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority for that fiscal year, less the amount
-26- LRB9114940SMcd
1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year,
8 but not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to the preceding paragraphs or in any amendment thereto
13 hereafter enacted, each month the Department shall pay into
14 the Local Government Distributive Fund .4% of the net revenue
15 realized for the preceding month from the 5% general rate, or
16 .4% of 80% of the net revenue realized for the preceding
17 month from the 6.25% general rate, as the case may be, on the
18 selling price of tangible personal property which amount
19 shall, subject to appropriation, be distributed as provided
20 in Section 2 of the State Revenue Sharing Act. No payments or
21 distributions pursuant to this paragraph shall be made if the
22 tax imposed by this Act on photoprocessing products is
23 declared unconstitutional, or if the proceeds from such tax
24 are unavailable for distribution because of litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund, the McCormick Place Expansion Project Fund, and the
27 Local Government Distributive Fund pursuant to the preceding
28 paragraphs or in any amendments thereto hereafter enacted,
29 beginning July 1, 1993, the Department shall each month pay
30 into the Illinois Tax Increment Fund 0.27% of 80% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property.
34 Of the remainder of the moneys received by the Department
-27- LRB9114940SMcd
1 pursuant to this Act, 75% thereof shall be paid into the
2 State Treasury and 25% shall be reserved in a special account
3 and used only for the transfer to the Common School Fund as
4 part of the monthly transfer from the General Revenue Fund in
5 accordance with Section 8a of the State Finance Act.
6 As soon as possible after the first day of each month,
7 upon certification of the Department of Revenue, the
8 Comptroller shall order transferred and the Treasurer shall
9 transfer from the General Revenue Fund to the Motor Fuel Tax
10 Fund an amount equal to 1.7% of 80% of the net revenue
11 realized under this Act for the second preceding month.
12 Beginning April 1, 2000, this transfer is no longer required
13 and shall not be made.
14 Net revenue realized for a month shall be the revenue
15 collected by the State pursuant to this Act, less the amount
16 paid out during that month as refunds to taxpayers for
17 overpayment of liability.
18 For greater simplicity of administration, manufacturers,
19 importers and wholesalers whose products are sold at retail
20 in Illinois by numerous retailers, and who wish to do so, may
21 assume the responsibility for accounting and paying to the
22 Department all tax accruing under this Act with respect to
23 such sales, if the retailers who are affected do not make
24 written objection to the Department to this arrangement.
25 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
26 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
27 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
28 eff. 1-1-01; revised 8-30-00.)
29 Section 15. The Service Use Tax Act is amended by
30 changing Sections 3-10 and 9 as follows:
31 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
32 Sec. 3-10. Rate of tax. Unless otherwise provided in
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1 this Section, the tax imposed by this Act is at the rate of
2 6.25% of the selling price of tangible personal property
3 transferred as an incident to the sale of service, but, for
4 the purpose of computing this tax, in no event shall the
5 selling price be less than the cost price of the property to
6 the serviceman.
7 Beginning on July 1, 2000 and through December 31, 2000,
8 with respect to motor fuel, as defined in Section 1.1 of the
9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
10 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
11 Beginning on December 1, 2000 and through May 31, 2001,
12 with respect to propane and home heating oil, the tax is
13 imposed at the rate of 1.25%.
14 With respect to gasohol, as defined in the Use Tax Act,
15 the tax imposed by this Act applies to 70% of the selling
16 price of property transferred as an incident to the sale of
17 service on or after January 1, 1990, and before July 1, 2003,
18 and to 100% of the selling price thereafter.
19 At the election of any registered serviceman made for
20 each fiscal year, sales of service in which the aggregate
21 annual cost price of tangible personal property transferred
22 as an incident to the sales of service is less than 35%, or
23 75% in the case of servicemen transferring prescription drugs
24 or servicemen engaged in graphic arts production, of the
25 aggregate annual total gross receipts from all sales of
26 service, the tax imposed by this Act shall be based on the
27 serviceman's cost price of the tangible personal property
28 transferred as an incident to the sale of those services.
29 The tax shall be imposed at the rate of 1% on food
30 prepared for immediate consumption and transferred incident
31 to a sale of service subject to this Act or the Service
32 Occupation Tax Act by an entity licensed under the Hospital
33 Licensing Act, the Nursing Home Care Act, or the Child Care
34 Act of 1969. The tax shall also be imposed at the rate of 1%
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1 on food for human consumption that is to be consumed off the
2 premises where it is sold (other than alcoholic beverages,
3 soft drinks, and food that has been prepared for immediate
4 consumption and is not otherwise included in this paragraph)
5 and prescription and nonprescription medicines, drugs,
6 medical appliances, modifications to a motor vehicle for the
7 purpose of rendering it usable by a disabled person, and
8 insulin, urine testing materials, syringes, and needles used
9 by diabetics, for human use. For the purposes of this
10 Section, the term "soft drinks" means any complete, finished,
11 ready-to-use, non-alcoholic drink, whether carbonated or not,
12 including but not limited to soda water, cola, fruit juice,
13 vegetable juice, carbonated water, and all other preparations
14 commonly known as soft drinks of whatever kind or description
15 that are contained in any closed or sealed bottle, can,
16 carton, or container, regardless of size. "Soft drinks" does
17 not include coffee, tea, non-carbonated water, infant
18 formula, milk or milk products as defined in the Grade A
19 Pasteurized Milk and Milk Products Act, or drinks containing
20 50% or more natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Act, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 If the property that is acquired from a serviceman is
28 acquired outside Illinois and used outside Illinois before
29 being brought to Illinois for use here and is taxable under
30 this Act, the "selling price" on which the tax is computed
31 shall be reduced by an amount that represents a reasonable
32 allowance for depreciation for the period of prior
33 out-of-state use.
34 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
-30- LRB9114940SMcd
1 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff.
2 7-1-00.)
3 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
4 Sec. 9. Each serviceman required or authorized to
5 collect the tax herein imposed shall pay to the Department
6 the amount of such tax (except as otherwise provided) at the
7 time when he is required to file his return for the period
8 during which such tax was collected, less a discount of 2.1%
9 prior to January 1, 1990 and 1.75% on and after January 1,
10 1990, or $5 per calendar year, whichever is greater, which is
11 allowed to reimburse the serviceman for expenses incurred in
12 collecting the tax, keeping records, preparing and filing
13 returns, remitting the tax and supplying data to the
14 Department on request. A serviceman need not remit that part
15 of any tax collected by him to the extent that he is required
16 to pay and does pay the tax imposed by the Service Occupation
17 Tax Act with respect to his sale of service involving the
18 incidental transfer by him of the same property.
19 Except as provided hereinafter in this Section, on or
20 before the twentieth day of each calendar month, such
21 serviceman shall file a return for the preceding calendar
22 month in accordance with reasonable Rules and Regulations to
23 be promulgated by the Department. Such return shall be filed
24 on a form prescribed by the Department and shall contain such
25 information as the Department may reasonably require.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
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1 1. The name of the seller;
2 2. The address of the principal place of business
3 from which he engages in business as a serviceman in this
4 State;
5 3. The total amount of taxable receipts received by
6 him during the preceding calendar month, including
7 receipts from charge and time sales, but less all
8 deductions allowed by law;
9 4. The amount of credit provided in Section 2d of
10 this Act;
11 5. The amount of tax due;
12 5-5. The signature of the taxpayer; and
13 6. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16 the proper notice and demand for signature by the Department,
17 the return shall be considered valid and any amount shown to
18 be due on the return shall be deemed assessed.
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. Beginning October 1,
29 2000, a taxpayer who has an annual tax liability of $200,000
30 or more shall make all payments required by rules of the
31 Department by electronic funds transfer. The term "annual
32 tax liability" shall be the sum of the taxpayer's liabilities
33 under this Act, and under all other State and local
34 occupation and use tax laws administered by the Department,
-32- LRB9114940SMcd
1 for the immediately preceding calendar year. The term
2 "average monthly tax liability" means the sum of the
3 taxpayer's liabilities under this Act, and under all other
4 State and local occupation and use tax laws administered by
5 the Department, for the immediately preceding calendar year
6 divided by 12.
7 Before August 1 of each year beginning in 1993, the
8 Department shall notify all taxpayers required to make
9 payments by electronic funds transfer. All taxpayers required
10 to make payments by electronic funds transfer shall make
11 those payments for a minimum of one year beginning on October
12 1.
13 Any taxpayer not required to make payments by electronic
14 funds transfer may make payments by electronic funds transfer
15 with the permission of the Department.
16 All taxpayers required to make payment by electronic
17 funds transfer and any taxpayers authorized to voluntarily
18 make payments by electronic funds transfer shall make those
19 payments in the manner authorized by the Department.
20 The Department shall adopt such rules as are necessary to
21 effectuate a program of electronic funds transfer and the
22 requirements of this Section.
23 If the serviceman is otherwise required to file a monthly
24 return and if the serviceman's average monthly tax liability
25 to the Department does not exceed $200, the Department may
26 authorize his returns to be filed on a quarter annual basis,
27 with the return for January, February and March of a given
28 year being due by April 20 of such year; with the return for
29 April, May and June of a given year being due by July 20 of
30 such year; with the return for July, August and September of
31 a given year being due by October 20 of such year, and with
32 the return for October, November and December of a given year
33 being due by January 20 of the following year.
34 If the serviceman is otherwise required to file a monthly
-33- LRB9114940SMcd
1 or quarterly return and if the serviceman's average monthly
2 tax liability to the Department does not exceed $50, the
3 Department may authorize his returns to be filed on an annual
4 basis, with the return for a given year being due by January
5 20 of the following year.
6 Such quarter annual and annual returns, as to form and
7 substance, shall be subject to the same requirements as
8 monthly returns.
9 Notwithstanding any other provision in this Act
10 concerning the time within which a serviceman may file his
11 return, in the case of any serviceman who ceases to engage in
12 a kind of business which makes him responsible for filing
13 returns under this Act, such serviceman shall file a final
14 return under this Act with the Department not more than 1
15 month after discontinuing such business.
16 Where a serviceman collects the tax with respect to the
17 selling price of property which he sells and the purchaser
18 thereafter returns such property and the serviceman refunds
19 the selling price thereof to the purchaser, such serviceman
20 shall also refund, to the purchaser, the tax so collected
21 from the purchaser. When filing his return for the period in
22 which he refunds such tax to the purchaser, the serviceman
23 may deduct the amount of the tax so refunded by him to the
24 purchaser from any other Service Use Tax, Service Occupation
25 Tax, retailers' occupation tax or use tax which such
26 serviceman may be required to pay or remit to the Department,
27 as shown by such return, provided that the amount of the tax
28 to be deducted shall previously have been remitted to the
29 Department by such serviceman. If the serviceman shall not
30 previously have remitted the amount of such tax to the
31 Department, he shall be entitled to no deduction hereunder
32 upon refunding such tax to the purchaser.
33 Any serviceman filing a return hereunder shall also
34 include the total tax upon the selling price of tangible
-34- LRB9114940SMcd
1 personal property purchased for use by him as an incident to
2 a sale of service, and such serviceman shall remit the amount
3 of such tax to the Department when filing such return.
4 If experience indicates such action to be practicable,
5 the Department may prescribe and furnish a combination or
6 joint return which will enable servicemen, who are required
7 to file returns hereunder and also under the Service
8 Occupation Tax Act, to furnish all the return information
9 required by both Acts on the one form.
10 Where the serviceman has more than one business
11 registered with the Department under separate registration
12 hereunder, such serviceman shall not file each return that is
13 due as a single return covering all such registered
14 businesses, but shall file separate returns for each such
15 registered business.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the State and Local Tax Reform Fund, a special
18 fund in the State Treasury, the net revenue realized for the
19 preceding month from the 1% tax on sales of food for human
20 consumption which is to be consumed off the premises where it
21 is sold (other than alcoholic beverages, soft drinks and food
22 which has been prepared for immediate consumption) and
23 prescription and nonprescription medicines, drugs, medical
24 appliances and insulin, urine testing materials, syringes and
25 needles used by diabetics.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the State and Local Sales Tax Reform Fund 20%
28 of the net revenue realized for the preceding month from the
29 6.25% general rate on transfers of tangible personal
30 property, other than tangible personal property which is
31 purchased outside Illinois at retail from a retailer and
32 which is titled or registered by an agency of this State's
33 government.
34 Beginning August 1, 2000, each month the Department shall
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1 pay into the State and Local Sales Tax Reform Fund 100% of
2 the net revenue realized for the preceding month from the
3 1.25% rate on the selling price of motor fuel and gasohol.
4 Beginning January 1, 2001, each month the Department
5 shall pay into the State and Local Sales Tax Reform Fund 100%
6 of the net revenue realized for the preceding month from the
7 1.25% rate on the selling price of propane and home heating
8 oil.
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
-36- LRB9114940SMcd
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
-37- LRB9114940SMcd
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 108,000,000
2 2008 115,000,000
3 2009 120,000,000
4 2010 126,000,000
5 2011 132,000,000
6 2012 138,000,000
7 2013 and 145,000,000
8 each fiscal year
9 thereafter that bonds
10 are outstanding under
11 Section 13.2 of the
12 Metropolitan Pier and
13 Exposition Authority Act,
14 but not after fiscal year 2029.
15 Beginning July 20, 1993 and in each month of each fiscal
16 year thereafter, one-eighth of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority for that fiscal year, less the amount
19 deposited into the McCormick Place Expansion Project Fund by
20 the State Treasurer in the respective month under subsection
21 (g) of Section 13 of the Metropolitan Pier and Exposition
22 Authority Act, plus cumulative deficiencies in the deposits
23 required under this Section for previous months and years,
24 shall be deposited into the McCormick Place Expansion Project
25 Fund, until the full amount requested for the fiscal year,
26 but not in excess of the amount specified above as "Total
27 Deposit", has been deposited.
28 Subject to payment of amounts into the Build Illinois
29 Fund and the McCormick Place Expansion Project Fund pursuant
30 to the preceding paragraphs or in any amendment thereto
31 hereafter enacted, each month the Department shall pay into
32 the Local Government Distributive Fund 0.4% of the net
33 revenue realized for the preceding month from the 5% general
34 rate or 0.4% of 80% of the net revenue realized for the
-39- LRB9114940SMcd
1 preceding month from the 6.25% general rate, as the case may
2 be, on the selling price of tangible personal property which
3 amount shall, subject to appropriation, be distributed as
4 provided in Section 2 of the State Revenue Sharing Act. No
5 payments or distributions pursuant to this paragraph shall be
6 made if the tax imposed by this Act on photo processing
7 products is declared unconstitutional, or if the proceeds
8 from such tax are unavailable for distribution because of
9 litigation.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project Fund, and the
12 Local Government Distributive Fund pursuant to the preceding
13 paragraphs or in any amendments thereto hereafter enacted,
14 beginning July 1, 1993, the Department shall each month pay
15 into the Illinois Tax Increment Fund 0.27% of 80% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property.
19 All remaining moneys received by the Department pursuant
20 to this Act shall be paid into the General Revenue Fund of
21 the State Treasury.
22 As soon as possible after the first day of each month,
23 upon certification of the Department of Revenue, the
24 Comptroller shall order transferred and the Treasurer shall
25 transfer from the General Revenue Fund to the Motor Fuel Tax
26 Fund an amount equal to 1.7% of 80% of the net revenue
27 realized under this Act for the second preceding month.
28 Beginning April 1, 2000, this transfer is no longer required
29 and shall not be made.
30 Net revenue realized for a month shall be the revenue
31 collected by the State pursuant to this Act, less the amount
32 paid out during that month as refunds to taxpayers for
33 overpayment of liability.
34 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
-40- LRB9114940SMcd
1 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
2 91-872, eff. 7-1-00.)
3 Section 20. The Service Occupation Tax Act is amended by
4 changing Sections 3-10 and 9 as follows:
5 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
6 Sec. 3-10. Rate of tax. Unless otherwise provided in
7 this Section, the tax imposed by this Act is at the rate of
8 6.25% of the "selling price", as defined in Section 2 of the
9 Service Use Tax Act, of the tangible personal property. For
10 the purpose of computing this tax, in no event shall the
11 "selling price" be less than the cost price to the serviceman
12 of the tangible personal property transferred. The selling
13 price of each item of tangible personal property transferred
14 as an incident of a sale of service may be shown as a
15 distinct and separate item on the serviceman's billing to the
16 service customer. If the selling price is not so shown, the
17 selling price of the tangible personal property is deemed to
18 be 50% of the serviceman's entire billing to the service
19 customer. When, however, a serviceman contracts to design,
20 develop, and produce special order machinery or equipment,
21 the tax imposed by this Act shall be based on the
22 serviceman's cost price of the tangible personal property
23 transferred incident to the completion of the contract.
24 Beginning on July 1, 2000 and through December 31, 2000,
25 with respect to motor fuel, as defined in Section 1.1 of the
26 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
27 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
28 Beginning on December 1, 2000 and through May 31, 2001,
29 with respect to propane and home heating oil, the tax is
30 imposed at the rate of 1.25%.
31 With respect to gasohol, as defined in the Use Tax Act,
32 the tax imposed by this Act shall apply to 70% of the cost
-41- LRB9114940SMcd
1 price of property transferred as an incident to the sale of
2 service on or after January 1, 1990, and before July 1, 2003,
3 and to 100% of the cost price thereafter.
4 At the election of any registered serviceman made for
5 each fiscal year, sales of service in which the aggregate
6 annual cost price of tangible personal property transferred
7 as an incident to the sales of service is less than 35%, or
8 75% in the case of servicemen transferring prescription drugs
9 or servicemen engaged in graphic arts production, of the
10 aggregate annual total gross receipts from all sales of
11 service, the tax imposed by this Act shall be based on the
12 serviceman's cost price of the tangible personal property
13 transferred incident to the sale of those services.
14 The tax shall be imposed at the rate of 1% on food
15 prepared for immediate consumption and transferred incident
16 to a sale of service subject to this Act or the Service
17 Occupation Tax Act by an entity licensed under the Hospital
18 Licensing Act, the Nursing Home Care Act, or the Child Care
19 Act of 1969. The tax shall also be imposed at the rate of 1%
20 on food for human consumption that is to be consumed off the
21 premises where it is sold (other than alcoholic beverages,
22 soft drinks, and food that has been prepared for immediate
23 consumption and is not otherwise included in this paragraph)
24 and prescription and nonprescription medicines, drugs,
25 medical appliances, modifications to a motor vehicle for the
26 purpose of rendering it usable by a disabled person, and
27 insulin, urine testing materials, syringes, and needles used
28 by diabetics, for human use. For the purposes of this
29 Section, the term "soft drinks" means any complete, finished,
30 ready-to-use, non-alcoholic drink, whether carbonated or not,
31 including but not limited to soda water, cola, fruit juice,
32 vegetable juice, carbonated water, and all other preparations
33 commonly known as soft drinks of whatever kind or description
34 that are contained in any closed or sealed can, carton, or
-42- LRB9114940SMcd
1 container, regardless of size. "Soft drinks" does not
2 include coffee, tea, non-carbonated water, infant formula,
3 milk or milk products as defined in the Grade A Pasteurized
4 Milk and Milk Products Act, or drinks containing 50% or more
5 natural fruit or vegetable juice.
6 Notwithstanding any other provisions of this Act, "food
7 for human consumption that is to be consumed off the premises
8 where it is sold" includes all food sold through a vending
9 machine, except soft drinks and food products that are
10 dispensed hot from a vending machine, regardless of the
11 location of the vending machine.
12 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
13 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.)
14 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
15 Sec. 9. Each serviceman required or authorized to
16 collect the tax herein imposed shall pay to the Department
17 the amount of such tax at the time when he is required to
18 file his return for the period during which such tax was
19 collectible, less a discount of 2.1% prior to January 1,
20 1990, and 1.75% on and after January 1, 1990, or $5 per
21 calendar year, whichever is greater, which is allowed to
22 reimburse the serviceman for expenses incurred in collecting
23 the tax, keeping records, preparing and filing returns,
24 remitting the tax and supplying data to the Department on
25 request.
26 Where such tangible personal property is sold under a
27 conditional sales contract, or under any other form of sale
28 wherein the payment of the principal sum, or a part thereof,
29 is extended beyond the close of the period for which the
30 return is filed, the serviceman, in collecting the tax may
31 collect, for each tax return period, only the tax applicable
32 to the part of the selling price actually received during
33 such tax return period.
-43- LRB9114940SMcd
1 Except as provided hereinafter in this Section, on or
2 before the twentieth day of each calendar month, such
3 serviceman shall file a return for the preceding calendar
4 month in accordance with reasonable rules and regulations to
5 be promulgated by the Department of Revenue. Such return
6 shall be filed on a form prescribed by the Department and
7 shall contain such information as the Department may
8 reasonably require.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter.
13 The taxpayer shall also file a return with the Department for
14 each of the first two months of each calendar quarter, on or
15 before the twentieth day of the following calendar month,
16 stating:
17 1. The name of the seller;
18 2. The address of the principal place of business
19 from which he engages in business as a serviceman in this
20 State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month, including
23 receipts from charge and time sales, but less all
24 deductions allowed by law;
25 4. The amount of credit provided in Section 2d of
26 this Act;
27 5. The amount of tax due;
28 5-5. The signature of the taxpayer; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a taxpayer fails to sign a return within 30 days after
32 the proper notice and demand for signature by the Department,
33 the return shall be considered valid and any amount shown to
34 be due on the return shall be deemed assessed.
-44- LRB9114940SMcd
1 A serviceman may accept a Manufacturer's Purchase Credit
2 certification from a purchaser in satisfaction of Service Use
3 Tax as provided in Section 3-70 of the Service Use Tax Act if
4 the purchaser provides the appropriate documentation as
5 required by Section 3-70 of the Service Use Tax Act. A
6 Manufacturer's Purchase Credit certification, accepted by a
7 serviceman as provided in Section 3-70 of the Service Use Tax
8 Act, may be used by that serviceman to satisfy Service
9 Occupation Tax liability in the amount claimed in the
10 certification, not to exceed 6.25% of the receipts subject to
11 tax from a qualifying purchase.
12 If the serviceman's average monthly tax liability to the
13 Department does not exceed $200, the Department may authorize
14 his returns to be filed on a quarter annual basis, with the
15 return for January, February and March of a given year being
16 due by April 20 of such year; with the return for April, May
17 and June of a given year being due by July 20 of such year;
18 with the return for July, August and September of a given
19 year being due by October 20 of such year, and with the
20 return for October, November and December of a given year
21 being due by January 20 of the following year.
22 If the serviceman's average monthly tax liability to the
23 Department does not exceed $50, the Department may authorize
24 his returns to be filed on an annual basis, with the return
25 for a given year being due by January 20 of the following
26 year.
27 Such quarter annual and annual returns, as to form and
28 substance, shall be subject to the same requirements as
29 monthly returns.
30 Notwithstanding any other provision in this Act
31 concerning the time within which a serviceman may file his
32 return, in the case of any serviceman who ceases to engage in
33 a kind of business which makes him responsible for filing
34 returns under this Act, such serviceman shall file a final
-45- LRB9114940SMcd
1 return under this Act with the Department not more than 1
2 month after discontinuing such business.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who
7 has an average monthly tax liability of $100,000 or more
8 shall make all payments required by rules of the Department
9 by electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. Beginning October
13 1, 2000, a taxpayer who has an annual tax liability of
14 $200,000 or more shall make all payments required by rules of
15 the Department by electronic funds transfer. The term
16 "annual tax liability" shall be the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year. The
20 term "average monthly tax liability" means the sum of the
21 taxpayer's liabilities under this Act, and under all other
22 State and local occupation and use tax laws administered by
23 the Department, for the immediately preceding calendar year
24 divided by 12.
25 Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers
28 required to make payments by electronic funds transfer shall
29 make those payments for a minimum of one year beginning on
30 October 1.
31 Any taxpayer not required to make payments by electronic
32 funds transfer may make payments by electronic funds transfer
33 with the permission of the Department.
34 All taxpayers required to make payment by electronic
-46- LRB9114940SMcd
1 funds transfer and any taxpayers authorized to voluntarily
2 make payments by electronic funds transfer shall make those
3 payments in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5 effectuate a program of electronic funds transfer and the
6 requirements of this Section.
7 Where a serviceman collects the tax with respect to the
8 selling price of tangible personal property which he sells
9 and the purchaser thereafter returns such tangible personal
10 property and the serviceman refunds the selling price thereof
11 to the purchaser, such serviceman shall also refund, to the
12 purchaser, the tax so collected from the purchaser. When
13 filing his return for the period in which he refunds such tax
14 to the purchaser, the serviceman may deduct the amount of the
15 tax so refunded by him to the purchaser from any other
16 Service Occupation Tax, Service Use Tax, Retailers'
17 Occupation Tax or Use Tax which such serviceman may be
18 required to pay or remit to the Department, as shown by such
19 return, provided that the amount of the tax to be deducted
20 shall previously have been remitted to the Department by such
21 serviceman. If the serviceman shall not previously have
22 remitted the amount of such tax to the Department, he shall
23 be entitled to no deduction hereunder upon refunding such tax
24 to the purchaser.
25 If experience indicates such action to be practicable,
26 the Department may prescribe and furnish a combination or
27 joint return which will enable servicemen, who are required
28 to file returns hereunder and also under the Retailers'
29 Occupation Tax Act, the Use Tax Act or the Service Use Tax
30 Act, to furnish all the return information required by all
31 said Acts on the one form.
32 Where the serviceman has more than one business
33 registered with the Department under separate registrations
34 hereunder, such serviceman shall file separate returns for
-47- LRB9114940SMcd
1 each registered business.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the Local Government Tax Fund the revenue
4 realized for the preceding month from the 1% tax on sales of
5 food for human consumption which is to be consumed off the
6 premises where it is sold (other than alcoholic beverages,
7 soft drinks and food which has been prepared for immediate
8 consumption) and prescription and nonprescription medicines,
9 drugs, medical appliances and insulin, urine testing
10 materials, syringes and needles used by diabetics.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the County and Mass Transit District Fund 4%
13 of the revenue realized for the preceding month from the
14 6.25% general rate.
15 Beginning August 1, 2000, each month the Department shall
16 pay into the County and Mass Transit District Fund 20% of the
17 net revenue realized for the preceding month from the 1.25%
18 rate on the selling price of motor fuel and gasohol.
19 Beginning January 1, 2001, each month the Department
20 shall pay into the County and Mass Transit District Fund 20%
21 of the net revenue realized for the preceding month from the
22 1.25% rate on the selling price of propane and home heating
23 oil.
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 August 1, 2000, each month the Department shall
29 pay into the Local Government Tax Fund 80% of the net revenue
30 realized for the preceding month from the 1.25% rate on the
31 selling price of motor fuel and gasohol.
32 Beginning January 1, 2001, each month the Department
33 shall pay into the Local Government Tax Fund 80% of the net
34 revenue realized for the preceding month from the 1.25% rate
-48- LRB9114940SMcd
1 on the selling price of propane and home heating oil.
2 Of the remainder of the moneys received by the Department
3 pursuant to this Act, (a) 1.75% thereof shall be paid into
4 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
5 and on and after July 1, 1989, 3.8% thereof shall be paid
6 into the Build Illinois Fund; provided, however, that if in
7 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
8 as the case may be, of the moneys received by the Department
9 and required to be paid into the Build Illinois Fund pursuant
10 to Section 3 of the Retailers' Occupation Tax Act, Section 9
11 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
12 Section 9 of the Service Occupation Tax Act, such Acts being
13 hereinafter called the "Tax Acts" and such aggregate of 2.2%
14 or 3.8%, as the case may be, of moneys being hereinafter
15 called the "Tax Act Amount", and (2) the amount transferred
16 to the Build Illinois Fund from the State and Local Sales Tax
17 Reform Fund shall be less than the Annual Specified Amount
18 (as defined in Section 3 of the Retailers' Occupation Tax
19 Act), an amount equal to the difference shall be immediately
20 paid into the Build Illinois Fund from other moneys received
21 by the Department pursuant to the Tax Acts; and further
22 provided, that if on the last business day of any month the
23 sum of (1) the Tax Act Amount required to be deposited into
24 the Build Illinois Account in the Build Illinois Fund during
25 such month and (2) the amount transferred during such month
26 to the Build Illinois Fund from the State and Local Sales Tax
27 Reform Fund shall have been less than 1/12 of the Annual
28 Specified Amount, an amount equal to the difference shall be
29 immediately paid into the Build Illinois Fund from other
30 moneys received by the Department pursuant to the Tax Acts;
31 and, further provided, that in no event shall the payments
32 required under the preceding proviso result in aggregate
33 payments into the Build Illinois Fund pursuant to this clause
34 (b) for any fiscal year in excess of the greater of (i) the
-49- LRB9114940SMcd
1 Tax Act Amount or (ii) the Annual Specified Amount for such
2 fiscal year; and, further provided, that the amounts payable
3 into the Build Illinois Fund under this clause (b) shall be
4 payable only until such time as the aggregate amount on
5 deposit under each trust indenture securing Bonds issued and
6 outstanding pursuant to the Build Illinois Bond Act is
7 sufficient, taking into account any future investment income,
8 to fully provide, in accordance with such indenture, for the
9 defeasance of or the payment of the principal of, premium, if
10 any, and interest on the Bonds secured by such indenture and
11 on any Bonds expected to be issued thereafter and all fees
12 and costs payable with respect thereto, all as certified by
13 the Director of the Bureau of the Budget. If on the last
14 business day of any month in which Bonds are outstanding
15 pursuant to the Build Illinois Bond Act, the aggregate of the
16 moneys deposited in the Build Illinois Bond Account in the
17 Build Illinois Fund in such month shall be less than the
18 amount required to be transferred in such month from the
19 Build Illinois Bond Account to the Build Illinois Bond
20 Retirement and Interest Fund pursuant to Section 13 of the
21 Build Illinois Bond Act, an amount equal to such deficiency
22 shall be immediately paid from other moneys received by the
23 Department pursuant to the Tax Acts to the Build Illinois
24 Fund; provided, however, that any amounts paid to the Build
25 Illinois Fund in any fiscal year pursuant to this sentence
26 shall be deemed to constitute payments pursuant to clause (b)
27 of the preceding sentence and shall reduce the amount
28 otherwise payable for such fiscal year pursuant to clause (b)
29 of the preceding sentence. The moneys received by the
30 Department pursuant to this Act and required to be deposited
31 into the Build Illinois Fund are subject to the pledge, claim
32 and charge set forth in Section 12 of the Build Illinois Bond
33 Act.
34 Subject to payment of amounts into the Build Illinois
-50- LRB9114940SMcd
1 Fund as provided in the preceding paragraph or in any
2 amendment thereto hereafter enacted, the following specified
3 monthly installment of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority provided under Section 8.25f of the
6 State Finance Act, but not in excess of the sums designated
7 as "Total Deposit", shall be deposited in the aggregate from
8 collections under Section 9 of the Use Tax Act, Section 9 of
9 the Service Use Tax Act, Section 9 of the Service Occupation
10 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
11 into the McCormick Place Expansion Project Fund in the
12 specified fiscal years.
13 Fiscal Year Total Deposit
14 1993 $0
15 1994 53,000,000
16 1995 58,000,000
17 1996 61,000,000
18 1997 64,000,000
19 1998 68,000,000
20 1999 71,000,000
21 2000 75,000,000
22 2001 80,000,000
23 2002 84,000,000
24 2003 89,000,000
25 2004 93,000,000
26 2005 97,000,000
27 2006 102,000,000
28 2007 108,000,000
29 2008 115,000,000
30 2009 120,000,000
31 2010 126,000,000
32 2011 132,000,000
33 2012 138,000,000
34 2013 and 145,000,000
-51- LRB9114940SMcd
1 each fiscal year
2 thereafter that bonds
3 are outstanding under
4 Section 13.2 of the
5 Metropolitan Pier and
6 Exposition Authority
7 Act, but not after fiscal year 2029.
8 Beginning July 20, 1993 and in each month of each fiscal
9 year thereafter, one-eighth of the amount requested in the
10 certificate of the Chairman of the Metropolitan Pier and
11 Exposition Authority for that fiscal year, less the amount
12 deposited into the McCormick Place Expansion Project Fund by
13 the State Treasurer in the respective month under subsection
14 (g) of Section 13 of the Metropolitan Pier and Exposition
15 Authority Act, plus cumulative deficiencies in the deposits
16 required under this Section for previous months and years,
17 shall be deposited into the McCormick Place Expansion Project
18 Fund, until the full amount requested for the fiscal year,
19 but not in excess of the amount specified above as "Total
20 Deposit", has been deposited.
21 Subject to payment of amounts into the Build Illinois
22 Fund and the McCormick Place Expansion Project Fund pursuant
23 to the preceding paragraphs or in any amendment thereto
24 hereafter enacted, each month the Department shall pay into
25 the Local Government Distributive Fund 0.4% of the net
26 revenue realized for the preceding month from the 5% general
27 rate or 0.4% of 80% of the net revenue realized for the
28 preceding month from the 6.25% general rate, as the case may
29 be, on the selling price of tangible personal property which
30 amount shall, subject to appropriation, be distributed as
31 provided in Section 2 of the State Revenue Sharing Act. No
32 payments or distributions pursuant to this paragraph shall be
33 made if the tax imposed by this Act on photoprocessing
34 products is declared unconstitutional, or if the proceeds
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1 from such tax are unavailable for distribution because of
2 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 Remaining moneys received by the Department pursuant to
13 this Act shall be paid into the General Revenue Fund of the
14 State Treasury.
15 The Department may, upon separate written notice to a
16 taxpayer, require the taxpayer to prepare and file with the
17 Department on a form prescribed by the Department within not
18 less than 60 days after receipt of the notice an annual
19 information return for the tax year specified in the notice.
20 Such annual return to the Department shall include a
21 statement of gross receipts as shown by the taxpayer's last
22 Federal income tax return. If the total receipts of the
23 business as reported in the Federal income tax return do not
24 agree with the gross receipts reported to the Department of
25 Revenue for the same period, the taxpayer shall attach to his
26 annual return a schedule showing a reconciliation of the 2
27 amounts and the reasons for the difference. The taxpayer's
28 annual return to the Department shall also disclose the cost
29 of goods sold by the taxpayer during the year covered by such
30 return, opening and closing inventories of such goods for
31 such year, cost of goods used from stock or taken from stock
32 and given away by the taxpayer during such year, pay roll
33 information of the taxpayer's business during such year and
34 any additional reasonable information which the Department
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1 deems would be helpful in determining the accuracy of the
2 monthly, quarterly or annual returns filed by such taxpayer
3 as hereinbefore provided for in this Section.
4 If the annual information return required by this Section
5 is not filed when and as required, the taxpayer shall be
6 liable as follows:
7 (i) Until January 1, 1994, the taxpayer shall be
8 liable for a penalty equal to 1/6 of 1% of the tax due
9 from such taxpayer under this Act during the period to be
10 covered by the annual return for each month or fraction
11 of a month until such return is filed as required, the
12 penalty to be assessed and collected in the same manner
13 as any other penalty provided for in this Act.
14 (ii) On and after January 1, 1994, the taxpayer
15 shall be liable for a penalty as described in Section 3-4
16 of the Uniform Penalty and Interest Act.
17 The chief executive officer, proprietor, owner or highest
18 ranking manager shall sign the annual return to certify the
19 accuracy of the information contained therein. Any person
20 who willfully signs the annual return containing false or
21 inaccurate information shall be guilty of perjury and
22 punished accordingly. The annual return form prescribed by
23 the Department shall include a warning that the person
24 signing the return may be liable for perjury.
25 The foregoing portion of this Section concerning the
26 filing of an annual information return shall not apply to a
27 serviceman who is not required to file an income tax return
28 with the United States Government.
29 As soon as possible after the first day of each month,
30 upon certification of the Department of Revenue, the
31 Comptroller shall order transferred and the Treasurer shall
32 transfer from the General Revenue Fund to the Motor Fuel Tax
33 Fund an amount equal to 1.7% of 80% of the net revenue
34 realized under this Act for the second preceding month.
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1 Beginning April 1, 2000, this transfer is no longer required
2 and shall not be made.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, it shall be
8 permissible for manufacturers, importers and wholesalers
9 whose products are sold by numerous servicemen in Illinois,
10 and who wish to do so, to assume the responsibility for
11 accounting and paying to the Department all tax accruing
12 under this Act with respect to such sales, if the servicemen
13 who are affected do not make written objection to the
14 Department to this arrangement.
15 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
16 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
17 91-872, eff. 7-1-00.)
18 Section 25. The Retailers' Occupation Tax Act is
19 amended by changing Sections 2-10 and 3 as follows:
20 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
21 Sec. 2-10. Rate of tax. Unless otherwise provided in
22 this Section, the tax imposed by this Act is at the rate of
23 6.25% of gross receipts from sales of tangible personal
24 property made in the course of business.
25 Beginning on July 1, 2000 and through December 31, 2000,
26 with respect to motor fuel, as defined in Section 1.1 of the
27 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40
28 of the Use Tax Act, the tax is imposed at the rate of 1.25%.
29 Within 14 days after the effective date of this
30 amendatory Act of the 91st General Assembly, each retailer of
31 motor fuel and gasohol shall cause the following notice to be
32 posted in a prominently visible place on each retail
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1 dispensing device that is used to dispense motor fuel or
2 gasohol in the State of Illinois: "As of July 1, 2000, the
3 State of Illinois has eliminated the State's share of sales
4 tax on motor fuel and gasohol through December 31, 2000. The
5 price on this pump should reflect the elimination of the
6 tax." The notice shall be printed in bold print on a sign
7 that is no smaller than 4 inches by 8 inches. The sign shall
8 be clearly visible to customers. Any retailer who fails to
9 post or maintain a required sign through December 31, 2000 is
10 guilty of a petty offense for which the fine shall be $500
11 per day per each retail premises where a violation occurs.
12 With respect to gasohol, as defined in the Use Tax Act,
13 the tax imposed by this Act applies to 70% of the proceeds of
14 sales made on or after January 1, 1990, and before July 1,
15 2003, and to 100% of the proceeds of sales made thereafter.
16 Beginning on December 1, 2000 and through May 31, 2001,
17 with respect to propane and home heating oil, the tax is
18 imposed at the rate of 1.25%.
19 A purchaser who paid taxes under this Act, the Use Tax
20 Act, the Service Use Tax Act, or the Service Occupation Tax
21 Act on propane or home heating oil on or after July 1, 2000
22 and before the effective date of this amendatory Act of the
23 91st General Assembly is eligible for a refund of 80% of the
24 tax paid during that period. The Department shall prepare
25 and distribute an application form for the refund. The
26 Department shall begin accepting completed application forms
27 for the refund on January 1, 2001. To be eligible for a
28 refund the purchaser must submit a completed application form
29 postmarked on or before March 1, 2001 along with proof that
30 the purchaser paid the tax under this Act, the Use Tax Act,
31 the Service Use Tax Act, or the Service Occupation Tax Act on
32 propane or home heating oil on or after July 1, 2000 and
33 before the effective date of this amendatory Act of the 91st
34 General Assembly and proof of the amount of tax paid. On or
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1 before April 30, 2001, the Department shall certify the names
2 of the purchasers eligible for the refund whose application
3 forms were postmarked on or before March 1, 2001 and the
4 refund amounts to the Comptroller. The Comptroller shall
5 mail refund warrants to those purchasers by May 1, 2001. The
6 Department may implement this refund of taxes paid on propane
7 and home heating oil through the use of emergency rules in
8 accordance with the provisions of Section 5-45 of the
9 Illinois Administrative Procedure Act. For purposes of the
10 Illinois Administrative Procedure Act, the adoption of rules
11 to implement these changes shall be deemed an emergency and
12 necessary for the public interest, safety, and welfare.
13 With respect to food for human consumption that is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks, and food that has been
16 prepared for immediate consumption) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use, the tax is imposed at the rate of 1%. For the purposes
22 of this Section, the term "soft drinks" means any complete,
23 finished, ready-to-use, non-alcoholic drink, whether
24 carbonated or not, including but not limited to soda water,
25 cola, fruit juice, vegetable juice, carbonated water, and all
26 other preparations commonly known as soft drinks of whatever
27 kind or description that are contained in any closed or
28 sealed bottle, can, carton, or container, regardless of size.
29 "Soft drinks" does not include coffee, tea, non-carbonated
30 water, infant formula, milk or milk products as defined in
31 the Grade A Pasteurized Milk and Milk Products Act, or drinks
32 containing 50% or more natural fruit or vegetable juice.
33 Notwithstanding any other provisions of this Act, "food
34 for human consumption that is to be consumed off the premises
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1 where it is sold" includes all food sold through a vending
2 machine, except soft =rinks and food products that are
3 dispensed hot from a vending machine, regardless of the
4 location of the vending machine.
5 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
6 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.)
7 (35 ILCS 120/3) (from Ch. 120, par. 442)
8 Sec. 3. Except as provided in this Section, on or before
9 the twentieth day of each calendar month, every person
10 engaged in the business of selling tangible personal property
11 at retail in this State during the preceding calendar month
12 shall file a return with the Department, stating:
13 1. The name of the seller;
14 2. His residence address and the address of his
15 principal place of business and the address of the
16 principal place of business (if that is a different
17 address) from which he engages in the business of selling
18 tangible personal property at retail in this State;
19 3. Total amount of receipts received by him during
20 the preceding calendar month or quarter, as the case may
21 be, from sales of tangible personal property, and from
22 services furnished, by him during such preceding calendar
23 month or quarter;
24 4. Total amount received by him during the
25 preceding calendar month or quarter on charge and time
26 sales of tangible personal property, and from services
27 furnished, by him prior to the month or quarter for which
28 the return is filed;
29 5. Deductions allowed by law;
30 6. Gross receipts which were received by him during
31 the preceding calendar month or quarter and upon the
32 basis of which the tax is imposed;
33 7. The amount of credit provided in Section 2d of
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1 this Act;
2 8. The amount of tax due;
3 9. The signature of the taxpayer; and
4 10. Such other reasonable information as the
5 Department may require.
6 If a taxpayer fails to sign a return within 30 days after
7 the proper notice and demand for signature by the Department,
8 the return shall be considered valid and any amount shown to
9 be due on the return shall be deemed assessed.
10 Each return shall be accompanied by the statement of
11 prepaid tax issued pursuant to Section 2e for which credit is
12 claimed.
13 A retailer may accept a Manufacturer's Purchase Credit
14 certification from a purchaser in satisfaction of Use Tax as
15 provided in Section 3-85 of the Use Tax Act if the purchaser
16 provides the appropriate documentation as required by Section
17 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18 certification, accepted by a retailer as provided in Section
19 3-85 of the Use Tax Act, may be used by that retailer to
20 satisfy Retailers' Occupation Tax liability in the amount
21 claimed in the certification, not to exceed 6.25% of the
22 receipts subject to tax from a qualifying purchase.
23 The Department may require returns to be filed on a
24 quarterly basis. If so required, a return for each calendar
25 quarter shall be filed on or before the twentieth day of the
26 calendar month following the end of such calendar quarter.
27 The taxpayer shall also file a return with the Department for
28 each of the first two months of each calendar quarter, on or
29 before the twentieth day of the following calendar month,
30 stating:
31 1. The name of the seller;
32 2. The address of the principal place of business
33 from which he engages in the business of selling tangible
34 personal property at retail in this State;
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1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month from sales of
3 tangible personal property by him during such preceding
4 calendar month, including receipts from charge and time
5 sales, but less all deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a total amount of less than $1 is payable, refundable
12 or creditable, such amount shall be disregarded if it is less
13 than 50 cents and shall be increased to $1 if it is 50 cents
14 or more.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who
19 has an average monthly tax liability of $100,000 or more
20 shall make all payments required by rules of the Department
21 by electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. Beginning October
25 1, 2000, a taxpayer who has an annual tax liability of
26 $200,000 or more shall make all payments required by rules of
27 the Department by electronic funds transfer. The term
28 "annual tax liability" shall be the sum of the taxpayer's
29 liabilities under this Act, and under all other State and
30 local occupation and use tax laws administered by the
31 Department, for the immediately preceding calendar year. The
32 term "average monthly tax liability" shall be the sum of the
33 taxpayer's liabilities under this Act, and under all other
34 State and local occupation and use tax laws administered by
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1 the Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers
6 required to make payments by electronic funds transfer shall
7 make those payments for a minimum of one year beginning on
8 October 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 Any amount which is required to be shown or reported on
20 any return or other document under this Act shall, if such
21 amount is not a whole-dollar amount, be increased to the
22 nearest whole-dollar amount in any case where the fractional
23 part of a dollar is 50 cents or more, and decreased to the
24 nearest whole-dollar amount where the fractional part of a
25 dollar is less than 50 cents.
26 If the retailer is otherwise required to file a monthly
27 return and if the retailer's average monthly tax liability to
28 the Department does not exceed $200, the Department may
29 authorize his returns to be filed on a quarter annual basis,
30 with the return for January, February and March of a given
31 year being due by April 20 of such year; with the return for
32 April, May and June of a given year being due by July 20 of
33 such year; with the return for July, August and September of
34 a given year being due by October 20 of such year, and with
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1 the return for October, November and December of a given year
2 being due by January 20 of the following year.
3 If the retailer is otherwise required to file a monthly
4 or quarterly return and if the retailer's average monthly tax
5 liability with the Department does not exceed $50, the
6 Department may authorize his returns to be filed on an annual
7 basis, with the return for a given year being due by January
8 20 of the following 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 retailer may file his
14 return, in the case of any retailer who ceases to engage in a
15 kind of business which makes him responsible for filing
16 returns under this Act, such retailer shall file a final
17 return under this Act with the Department not more than one
18 month after discontinuing such business.
19 Where the same person has more than one business
20 registered with the Department under separate registrations
21 under this Act, such person may not file each return that is
22 due as a single return covering all such registered
23 businesses, but shall file separate returns for each such
24 registered business.
25 In addition, with respect to motor vehicles, watercraft,
26 aircraft, and trailers that are required to be registered
27 with an agency of this State, every retailer selling this
28 kind of tangible personal property shall file, with the
29 Department, upon a form to be prescribed and supplied by the
30 Department, a separate return for each such item of tangible
31 personal property which the retailer sells, except that if,
32 in the same transaction, (i) a retailer of aircraft,
33 watercraft, motor vehicles or trailers transfers more than
34 one aircraft, watercraft, motor vehicle or trailer to another
-62- LRB9114940SMcd
1 aircraft, watercraft, motor vehicle retailer or trailer
2 retailer for the purpose of resale or (ii) a retailer of
3 aircraft, watercraft, motor vehicles, or trailers transfers
4 more than one aircraft, watercraft, motor vehicle, or trailer
5 to a purchaser for use as a qualifying rolling stock as
6 provided in Section 2-5 of this Act, then that seller may
7 report the transfer of all aircraft, watercraft, motor
8 vehicles or trailers involved in that transaction to the
9 Department on the same uniform invoice-transaction reporting
10 return form. For purposes of this Section, "watercraft"
11 means a Class 2, Class 3, or Class 4 watercraft as defined in
12 Section 3-2 of the Boat Registration and Safety Act, a
13 personal watercraft, or any boat equipped with an inboard
14 motor.
15 Any retailer who sells only motor vehicles, watercraft,
16 aircraft, or trailers that are required to be registered with
17 an agency of this State, so that all retailers' occupation
18 tax liability is required to be reported, and is reported, on
19 such transaction reporting returns and who is not otherwise
20 required to file monthly or quarterly returns, need not file
21 monthly or quarterly returns. However, those retailers shall
22 be required to file returns on an annual basis.
23 The transaction reporting return, in the case of motor
24 vehicles or trailers that are required to be registered with
25 an agency of this State, shall be the same document as the
26 Uniform Invoice referred to in Section 5-402 of The Illinois
27 Vehicle Code and must show the name and address of the
28 seller; the name and address of the purchaser; the amount of
29 the selling price including the amount allowed by the
30 retailer for traded-in property, if any; the amount allowed
31 by the retailer for the traded-in tangible personal property,
32 if any, to the extent to which Section 1 of this Act allows
33 an exemption for the value of traded-in property; the balance
34 payable after deducting such trade-in allowance from the
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1 total selling price; the amount of tax due from the retailer
2 with respect to such transaction; the amount of tax collected
3 from the purchaser by the retailer on such transaction (or
4 satisfactory evidence that such tax is not due in that
5 particular instance, if that is claimed to be the fact); the
6 place and date of the sale; a sufficient identification of
7 the property sold; such other information as is required in
8 Section 5-402 of The Illinois Vehicle Code, and such other
9 information as the Department may reasonably require.
10 The transaction reporting return in the case of
11 watercraft or aircraft must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 1 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale, a sufficient identification of
25 the property sold, and such other information as the
26 Department may reasonably require.
27 Such transaction reporting return shall be filed not
28 later than 20 days after the day of delivery of the item that
29 is being sold, but may be filed by the retailer at any time
30 sooner than that if he chooses to do so. The transaction
31 reporting return and tax remittance or proof of exemption
32 from the Illinois use tax may be transmitted to the
33 Department by way of the State agency with which, or State
34 officer with whom the tangible personal property must be
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1 titled or registered (if titling or registration is required)
2 if the Department and such agency or State officer determine
3 that this procedure will expedite the processing of
4 applications for title or registration.
5 With each such transaction reporting return, the retailer
6 shall remit the proper amount of tax due (or shall submit
7 satisfactory evidence that the sale is not taxable if that is
8 the case), to the Department or its agents, whereupon the
9 Department shall issue, in the purchaser's name, a use tax
10 receipt (or a certificate of exemption if the Department is
11 satisfied that the particular sale is tax exempt) which such
12 purchaser may submit to the agency with which, or State
13 officer with whom, he must title or register the tangible
14 personal property that is involved (if titling or
15 registration is required) in support of such purchaser's
16 application for an Illinois certificate or other evidence of
17 title or registration to such tangible personal property.
18 No retailer's failure or refusal to remit tax under this
19 Act precludes a user, who has paid the proper tax to the
20 retailer, from obtaining his certificate of title or other
21 evidence of title or registration (if titling or registration
22 is required) upon satisfying the Department that such user
23 has paid the proper tax (if tax is due) to the retailer. The
24 Department shall adopt appropriate rules to carry out the
25 mandate of this paragraph.
26 If the user who would otherwise pay tax to the retailer
27 wants the transaction reporting return filed and the payment
28 of the tax or proof of exemption made to the Department
29 before the retailer is willing to take these actions and such
30 user has not paid the tax to the retailer, such user may
31 certify to the fact of such delay by the retailer and may
32 (upon the Department being satisfied of the truth of such
33 certification) transmit the information required by the
34 transaction reporting return and the remittance for tax or
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1 proof of exemption directly to the Department and obtain his
2 tax receipt or exemption determination, in which event the
3 transaction reporting return and tax remittance (if a tax
4 payment was required) shall be credited by the Department to
5 the proper retailer's account with the Department, but
6 without the 2.1% or 1.75% discount provided for in this
7 Section being allowed. When the user pays the tax directly
8 to the Department, he shall pay the tax in the same amount
9 and in the same form in which it would be remitted if the tax
10 had been remitted to the Department by the retailer.
11 Refunds made by the seller during the preceding return
12 period to purchasers, on account of tangible personal
13 property returned to the seller, shall be allowed as a
14 deduction under subdivision 5 of his monthly or quarterly
15 return, as the case may be, in case the seller had
16 theretofore included the receipts from the sale of such
17 tangible personal property in a return filed by him and had
18 paid the tax imposed by this Act with respect to such
19 receipts.
20 Where the seller is a corporation, the return filed on
21 behalf of such corporation shall be signed by the president,
22 vice-president, secretary or treasurer or by the properly
23 accredited agent of such corporation.
24 Where the seller is a limited liability company, the
25 return filed on behalf of the limited liability company shall
26 be signed by a manager, member, or properly accredited agent
27 of the limited liability company.
28 Except as provided in this Section, the retailer filing
29 the return under this Section shall, at the time of filing
30 such return, pay to the Department the amount of tax imposed
31 by this Act less a discount of 2.1% prior to January 1, 1990
32 and 1.75% on and after January 1, 1990, or $5 per calendar
33 year, whichever is greater, which is allowed to reimburse the
34 retailer for the expenses incurred in keeping records,
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1 preparing and filing returns, remitting the tax and supplying
2 data to the Department on request. Any prepayment made
3 pursuant to Section 2d of this Act shall be included in the
4 amount on which such 2.1% or 1.75% discount is computed. In
5 the case of retailers who report and pay the tax on a
6 transaction by transaction basis, as provided in this
7 Section, such discount shall be taken with each such tax
8 remittance instead of when such retailer files his periodic
9 return.
10 Before October 1, 2000, if the taxpayer's average monthly
11 tax liability to the Department under this Act, the Use Tax
12 Act, the Service Occupation Tax Act, and the Service Use Tax
13 Act, excluding any liability for prepaid sales tax to be
14 remitted in accordance with Section 2d of this Act, was
15 $10,000 or more during the preceding 4 complete calendar
16 quarters, he shall file a return with the Department each
17 month by the 20th day of the month next following the month
18 during which such tax liability is incurred and shall make
19 payments to the Department on or before the 7th, 15th, 22nd
20 and last day of the month during which such liability is
21 incurred. On and after October 1, 2000, if the taxpayer's
22 average monthly tax liability to the Department under this
23 Act, the Use Tax Act, the Service Occupation Tax Act, and the
24 Service Use Tax Act, excluding any liability for prepaid
25 sales tax to be remitted in accordance with Section 2d of
26 this Act, was $20,000 or more during the preceding 4 complete
27 calendar quarters, he shall file a return with the Department
28 each month by the 20th day of the month next following the
29 month during which such tax liability is incurred and shall
30 make payment to the Department on or before the 7th, 15th,
31 22nd and last day of the month during which such liability is
32 incurred. If the month during which such tax liability is
33 incurred began prior to January 1, 1985, each payment shall
34 be in an amount equal to 1/4 of the taxpayer's actual
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1 liability for the month or an amount set by the Department
2 not to exceed 1/4 of the average monthly liability of the
3 taxpayer to the Department for the preceding 4 complete
4 calendar quarters (excluding the month of highest liability
5 and the month of lowest liability in such 4 quarter period).
6 If the month during which such tax liability is incurred
7 begins on or after January 1, 1985 and prior to January 1,
8 1987, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 27.5% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1987 and prior to
13 January 1, 1988, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or
15 26.25% of the taxpayer's liability for the same calendar
16 month of the preceding year. If the month during which such
17 tax liability is incurred begins on or after January 1, 1988,
18 and prior to January 1, 1989, or begins on or after January
19 1, 1996, each payment shall be in an amount equal to 22.5% of
20 the taxpayer's actual liability for the month or 25% of the
21 taxpayer's liability for the same calendar month of the
22 preceding year. If the month during which such tax liability
23 is incurred begins on or after January 1, 1989, and prior to
24 January 1, 1996, each payment shall be in an amount equal to
25 22.5% of the taxpayer's actual liability for the month or 25%
26 of the taxpayer's liability for the same calendar month of
27 the preceding year or 100% of the taxpayer's actual liability
28 for the quarter monthly reporting period. The amount of such
29 quarter monthly payments shall be credited against the final
30 tax liability of the taxpayer's return for that month.
31 Before October 1, 2000, once applicable, the requirement of
32 the making of quarter monthly payments to the Department by
33 taxpayers having an average monthly tax liability of $10,000
34 or more as determined in the manner provided above shall
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1 continue until such taxpayer's average monthly liability to
2 the Department during the preceding 4 complete calendar
3 quarters (excluding the month of highest liability and the
4 month of lowest liability) is less than $9,000, or until such
5 taxpayer's average monthly liability to the Department as
6 computed for each calendar quarter of the 4 preceding
7 complete calendar quarter period is less than $10,000.
8 However, if a taxpayer can show the Department that a
9 substantial change in the taxpayer's business has occurred
10 which causes the taxpayer to anticipate that his average
11 monthly tax liability for the reasonably foreseeable future
12 will fall below the $10,000 threshold stated above, then such
13 taxpayer may petition the Department for a change in such
14 taxpayer's reporting status. On and after October 1, 2000,
15 once applicable, the requirement of the making of quarter
16 monthly payments to the Department by taxpayers having an
17 average monthly tax liability of $20,000 or more as
18 determined in the manner provided above shall continue until
19 such taxpayer's average monthly liability to the Department
20 during the preceding 4 complete calendar quarters (excluding
21 the month of highest liability and the month of lowest
22 liability) is less than $19,000 or until such taxpayer's
23 average monthly liability to the Department as computed for
24 each calendar quarter of the 4 preceding complete calendar
25 quarter period is less than $20,000. However, if a taxpayer
26 can show the Department that a substantial change in the
27 taxpayer's business has occurred which causes the taxpayer to
28 anticipate that his average monthly tax liability for the
29 reasonably foreseeable future will fall below the $20,000
30 threshold stated above, then such taxpayer may petition the
31 Department for a change in such taxpayer's reporting status.
32 The Department shall change such taxpayer's reporting status
33 unless it finds that such change is seasonal in nature and
34 not likely to be long term. If any such quarter monthly
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1 payment is not paid at the time or in the amount required by
2 this Section, then the taxpayer shall be liable for penalties
3 and interest on the difference between the minimum amount due
4 as a payment and the amount of such quarter monthly payment
5 actually and timely paid, except insofar as the taxpayer has
6 previously made payments for that month to the Department in
7 excess of the minimum payments previously due as provided in
8 this Section. The Department shall make reasonable rules and
9 regulations to govern the quarter monthly payment amount and
10 quarter monthly payment dates for taxpayers who file on other
11 than a calendar monthly basis.
12 Without regard to whether a taxpayer is required to make
13 quarter monthly payments as specified above, any taxpayer who
14 is required by Section 2d of this Act to collect and remit
15 prepaid taxes and has collected prepaid taxes which average
16 in excess of $25,000 per month during the preceding 2
17 complete calendar quarters, shall file a return with the
18 Department as required by Section 2f and shall make payments
19 to the Department on or before the 7th, 15th, 22nd and last
20 day of the month during which such liability is incurred. If
21 the month during which such tax liability is incurred began
22 prior to the effective date of this amendatory Act of 1985,
23 each payment shall be in an amount not less than 22.5% of the
24 taxpayer's actual liability under Section 2d. If the month
25 during which such tax liability is incurred begins on or
26 after January 1, 1986, each payment shall be in an amount
27 equal to 22.5% of the taxpayer's actual liability for the
28 month or 27.5% of the taxpayer's liability for the same
29 calendar month of the preceding calendar year. If the month
30 during which such tax liability is incurred begins on or
31 after January 1, 1987, each payment shall be in an amount
32 equal to 22.5% of the taxpayer's actual liability for the
33 month or 26.25% of the taxpayer's liability for the same
34 calendar month of the preceding year. The amount of such
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1 quarter monthly payments shall be credited against the final
2 tax liability of the taxpayer's return for that month filed
3 under this Section or Section 2f, as the case may be. Once
4 applicable, the requirement of the making of quarter monthly
5 payments to the Department pursuant to this paragraph shall
6 continue until such taxpayer's average monthly prepaid tax
7 collections during the preceding 2 complete calendar quarters
8 is $25,000 or less. If any such quarter monthly payment is
9 not paid at the time or in the amount required, the taxpayer
10 shall be liable for penalties and interest on such
11 difference, except insofar as the taxpayer has previously
12 made payments for that month in excess of the minimum
13 payments previously due.
14 If any payment provided for in this Section exceeds the
15 taxpayer's liabilities under this Act, the Use Tax Act, the
16 Service Occupation Tax Act and the Service Use Tax Act, as
17 shown on an original monthly return, the Department shall, if
18 requested by the taxpayer, issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment.
20 The credit evidenced by such credit memorandum may be
21 assigned by the taxpayer to a similar taxpayer under this
22 Act, the Use Tax Act, the Service Occupation Tax Act or the
23 Service Use Tax Act, in accordance with reasonable rules and
24 regulations to be prescribed by the Department. If no such
25 request is made, the taxpayer may credit such excess payment
26 against tax liability subsequently to be remitted to the
27 Department under this Act, the Use Tax Act, the Service
28 Occupation Tax Act or the Service Use Tax Act, in accordance
29 with reasonable rules and regulations prescribed by the
30 Department. If the Department subsequently determined that
31 all or any part of the credit taken was not actually due to
32 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
33 shall be reduced by 2.1% or 1.75% of the difference between
34 the credit taken and that actually due, and that taxpayer
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1 shall be liable for penalties and interest on such
2 difference.
3 If a retailer of motor fuel is entitled to a credit under
4 Section 2d of this Act which exceeds the taxpayer's liability
5 to the Department under this Act for the month which the
6 taxpayer is filing a return, the Department shall issue the
7 taxpayer a credit memorandum for the excess.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the Local Government Tax Fund, a special fund
10 in the State treasury which is hereby created, the net
11 revenue realized for the preceding month from the 1% tax on
12 sales of food for human consumption which is to be consumed
13 off the premises where it is sold (other than alcoholic
14 beverages, soft drinks and food which has been prepared for
15 immediate consumption) and prescription and nonprescription
16 medicines, drugs, medical appliances and insulin, urine
17 testing materials, syringes and needles used by diabetics.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the County and Mass Transit District Fund, a
20 special fund in the State treasury which is hereby created,
21 4% of the net revenue realized for the preceding month from
22 the 6.25% general rate.
23 Beginning August 1, 2000, each month the Department shall
24 pay into the County and Mass Transit District Fund 20% of the
25 net revenue realized for the preceding month from the 1.25%
26 rate on the selling price of motor fuel and gasohol.
27 Beginning January 1, 2001, each month the Department
28 shall pay into the County and Mass Transit District Fund 20%
29 of the net revenue realized for the preceding month from the
30 1.25% rate on the selling price of propane and home heating
31 oil.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the net
34 revenue realized for the preceding month from the 6.25%
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1 general rate on the selling price of tangible personal
2 property.
3 Beginning August 1, 2000, each month the Department shall
4 pay into the Local Government Tax Fund 80% of the net revenue
5 realized for the preceding month from the 1.25% rate on the
6 selling price of motor fuel and gasohol.
7 Beginning January 1, 2001, each month the Department
8 shall pay into the Local Government Tax Fund 80% of the net
9 revenue realized for the preceding month from the 1.25% rate
10 on the selling price of propane and home heating oil.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, (a) 1.75% thereof shall be paid into
13 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
14 and on and after July 1, 1989, 3.8% thereof shall be paid
15 into the Build Illinois Fund; provided, however, that if in
16 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
17 as the case may be, of the moneys received by the Department
18 and required to be paid into the Build Illinois Fund pursuant
19 to this Act, Section 9 of the Use Tax Act, Section 9 of the
20 Service Use Tax Act, and Section 9 of the Service Occupation
21 Tax Act, such Acts being hereinafter called the "Tax Acts"
22 and such aggregate of 2.2% or 3.8%, as the case may be, of
23 moneys being hereinafter called the "Tax Act Amount", and (2)
24 the amount transferred to the Build Illinois Fund from the
25 State and Local Sales Tax Reform Fund shall be less than the
26 Annual Specified Amount (as hereinafter defined), an amount
27 equal to the difference shall be immediately paid into the
28 Build Illinois Fund from other moneys received by the
29 Department pursuant to the Tax Acts; the "Annual Specified
30 Amount" means the amounts specified below for fiscal years
31 1986 through 1993:
32 Fiscal Year Annual Specified Amount
33 1986 $54,800,000
34 1987 $76,650,000
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1 1988 $80,480,000
2 1989 $88,510,000
3 1990 $115,330,000
4 1991 $145,470,000
5 1992 $182,730,000
6 1993 $206,520,000;
7 and means the Certified Annual Debt Service Requirement (as
8 defined in Section 13 of the Build Illinois Bond Act) or the
9 Tax Act Amount, whichever is greater, for fiscal year 1994
10 and each fiscal year thereafter; and further provided, that
11 if on the last business day of any month the sum of (1) the
12 Tax Act Amount required to be deposited into the Build
13 Illinois Bond Account in the Build Illinois Fund during such
14 month and (2) the amount transferred to the Build Illinois
15 Fund from the State and Local Sales Tax Reform Fund shall
16 have been less than 1/12 of the Annual Specified Amount, an
17 amount equal to the difference shall be immediately paid into
18 the Build Illinois Fund from other moneys received by the
19 Department pursuant to the Tax Acts; and, further provided,
20 that in no event shall the payments required under the
21 preceding proviso result in aggregate payments into the Build
22 Illinois Fund pursuant to this clause (b) for any fiscal year
23 in excess of the greater of (i) the Tax Act Amount or (ii)
24 the Annual Specified Amount for such fiscal year. The
25 amounts payable into the Build Illinois Fund under clause (b)
26 of the first sentence in this paragraph shall be payable only
27 until such time as the aggregate amount on deposit under each
28 trust indenture securing Bonds issued and outstanding
29 pursuant to the Build Illinois Bond Act is sufficient, taking
30 into account any future investment income, to fully provide,
31 in accordance with such indenture, for the defeasance of or
32 the payment of the principal of, premium, if any, and
33 interest on the Bonds secured by such indenture and on any
34 Bonds expected to be issued thereafter and all fees and costs
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1 payable with respect thereto, all as certified by the
2 Director of the Bureau of the Budget. If on the last
3 business day of any month in which Bonds are outstanding
4 pursuant to the Build Illinois Bond Act, the aggregate of
5 moneys deposited in the Build Illinois Bond Account in the
6 Build Illinois Fund in such month shall be less than the
7 amount required to be transferred in such month from the
8 Build Illinois Bond Account to the Build Illinois Bond
9 Retirement and Interest Fund pursuant to Section 13 of the
10 Build Illinois Bond Act, an amount equal to such deficiency
11 shall be immediately paid from other moneys received by the
12 Department pursuant to the Tax Acts to the Build Illinois
13 Fund; provided, however, that any amounts paid to the Build
14 Illinois Fund in any fiscal year pursuant to this sentence
15 shall be deemed to constitute payments pursuant to clause (b)
16 of the first sentence of this paragraph and shall reduce the
17 amount otherwise payable for such fiscal year pursuant to
18 that clause (b). The moneys received by the Department
19 pursuant to this Act and required to be deposited into the
20 Build Illinois Fund are subject to the pledge, claim and
21 charge set forth in Section 12 of the Build Illinois Bond
22 Act.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in the preceding paragraph or in any
25 amendment thereto hereafter enacted, the following specified
26 monthly installment of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority provided under Section 8.25f of the
29 State Finance Act, but not in excess of sums designated as
30 "Total Deposit", shall be deposited in the aggregate from
31 collections under Section 9 of the Use Tax Act, Section 9 of
32 the Service Use Tax Act, Section 9 of the Service Occupation
33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
34 into the McCormick Place Expansion Project Fund in the
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1 specified fiscal years.
2 Fiscal Year Total Deposit
3 1993 $0
4 1994 53,000,000
5 1995 58,000,000
6 1996 61,000,000
7 1997 64,000,000
8 1998 68,000,000
9 1999 71,000,000
10 2000 75,000,000
11 2001 80,000,000
12 2002 84,000,000
13 2003 89,000,000
14 2004 93,000,000
15 2005 97,000,000
16 2006 102,000,000
17 2007 108,000,000
18 2008 115,000,000
19 2009 120,000,000
20 2010 126,000,000
21 2011 132,000,000
22 2012 138,000,000
23 2013 and 145,000,000
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
27 Section 13.2 of the
28 Metropolitan Pier and
29 Exposition Authority
30 Act, but not after fiscal year 2029.
31 Beginning July 20, 1993 and in each month of each fiscal
32 year thereafter, one-eighth of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority for that fiscal year, less the amount
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1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year,
8 but not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to the preceding paragraphs or in any amendment thereto
13 hereafter enacted, each month the Department shall pay into
14 the Local Government Distributive Fund 0.4% of the net
15 revenue realized for the preceding month from the 5% general
16 rate or 0.4% of 80% of the net revenue realized for the
17 preceding month from the 6.25% general rate, as the case may
18 be, on the selling price of tangible personal property which
19 amount shall, subject to appropriation, be distributed as
20 provided in Section 2 of the State Revenue Sharing Act. No
21 payments or distributions pursuant to this paragraph shall be
22 made if the tax imposed by this Act on photoprocessing
23 products is declared unconstitutional, or if the proceeds
24 from such tax are unavailable for distribution because of
25 litigation.
26 Subject to payment of amounts into the Build Illinois
27 Fund, the McCormick Place Expansion Project to the preceding
28 paragraphs or in any amendments thereto hereafter enacted,
29 beginning July 1, 1993, the Department shall each month pay
30 into the Illinois Tax Increment Fund 0.27% of 80% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property.
34 Of the remainder of the moneys received by the Department
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1 pursuant to this Act, 75% thereof shall be paid into the
2 State Treasury and 25% shall be reserved in a special account
3 and used only for the transfer to the Common School Fund as
4 part of the monthly transfer from the General Revenue Fund in
5 accordance with Section 8a of the State Finance Act.
6 The Department may, upon separate written notice to a
7 taxpayer, require the taxpayer to prepare and file with the
8 Department on a form prescribed by the Department within not
9 less than 60 days after receipt of the notice an annual
10 information return for the tax year specified in the notice.
11 Such annual return to the Department shall include a
12 statement of gross receipts as shown by the retailer's last
13 Federal income tax return. If the total receipts of the
14 business as reported in the Federal income tax return do not
15 agree with the gross receipts reported to the Department of
16 Revenue for the same period, the retailer shall attach to his
17 annual return a schedule showing a reconciliation of the 2
18 amounts and the reasons for the difference. The retailer's
19 annual return to the Department shall also disclose the cost
20 of goods sold by the retailer during the year covered by such
21 return, opening and closing inventories of such goods for
22 such year, costs of goods used from stock or taken from stock
23 and given away by the retailer during such year, payroll
24 information of the retailer's business during such year and
25 any additional reasonable information which the Department
26 deems would be helpful in determining the accuracy of the
27 monthly, quarterly or annual returns filed by such retailer
28 as provided for in this Section.
29 If the annual information return required by this Section
30 is not filed when and as required, the taxpayer shall be
31 liable as follows:
32 (i) Until January 1, 1994, the taxpayer shall be
33 liable for a penalty equal to 1/6 of 1% of the tax due
34 from such taxpayer under this Act during the period to be
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1 covered by the annual return for each month or fraction
2 of a month until such return is filed as required, the
3 penalty to be assessed and collected in the same manner
4 as any other penalty provided for in this Act.
5 (ii) On and after January 1, 1994, the taxpayer
6 shall be liable for a penalty as described in Section 3-4
7 of the Uniform Penalty and Interest Act.
8 The chief executive officer, proprietor, owner or highest
9 ranking manager shall sign the annual return to certify the
10 accuracy of the information contained therein. Any person
11 who willfully signs the annual return containing false or
12 inaccurate information shall be guilty of perjury and
13 punished accordingly. The annual return form prescribed by
14 the Department shall include a warning that the person
15 signing the return may be liable for perjury.
16 The provisions of this Section concerning the filing of
17 an annual information return do not apply to a retailer who
18 is not required to file an income tax return with the United
19 States Government.
20 As soon as possible after the first day of each month,
21 upon certification of the Department of Revenue, the
22 Comptroller shall order transferred and the Treasurer shall
23 transfer from the General Revenue Fund to the Motor Fuel Tax
24 Fund an amount equal to 1.7% of 80% of the net revenue
25 realized under this Act for the second preceding month.
26 Beginning April 1, 2000, this transfer is no longer required
27 and shall not be made.
28 Net revenue realized for a month shall be the revenue
29 collected by the State pursuant to this Act, less the amount
30 paid out during that month as refunds to taxpayers for
31 overpayment of liability.
32 For greater simplicity of administration, manufacturers,
33 importers and wholesalers whose products are sold at retail
34 in Illinois by numerous retailers, and who wish to do so, may
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1 assume the responsibility for accounting and paying to the
2 Department all tax accruing under this Act with respect to
3 such sales, if the retailers who are affected do not make
4 written objection to the Department to this arrangement.
5 Any person who promotes, organizes, provides retail
6 selling space for concessionaires or other types of sellers
7 at the Illinois State Fair, DuQuoin State Fair, county fairs,
8 local fairs, art shows, flea markets and similar exhibitions
9 or events, including any transient merchant as defined by
10 Section 2 of the Transient Merchant Act of 1987, is required
11 to file a report with the Department providing the name of
12 the merchant's business, the name of the person or persons
13 engaged in merchant's business, the permanent address and
14 Illinois Retailers Occupation Tax Registration Number of the
15 merchant, the dates and location of the event and other
16 reasonable information that the Department may require. The
17 report must be filed not later than the 20th day of the month
18 next following the month during which the event with retail
19 sales was held. Any person who fails to file a report
20 required by this Section commits a business offense and is
21 subject to a fine not to exceed $250.
22 Any person engaged in the business of selling tangible
23 personal property at retail as a concessionaire or other type
24 of seller at the Illinois State Fair, county fairs, art
25 shows, flea markets and similar exhibitions or events, or any
26 transient merchants, as defined by Section 2 of the Transient
27 Merchant Act of 1987, may be required to make a daily report
28 of the amount of such sales to the Department and to make a
29 daily payment of the full amount of tax due. The Department
30 shall impose this requirement when it finds that there is a
31 significant risk of loss of revenue to the State at such an
32 exhibition or event. Such a finding shall be based on
33 evidence that a substantial number of concessionaires or
34 other sellers who are not residents of Illinois will be
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1 engaging in the business of selling tangible personal
2 property at retail at the exhibition or event, or other
3 evidence of a significant risk of loss of revenue to the
4 State. The Department shall notify concessionaires and other
5 sellers affected by the imposition of this requirement. In
6 the absence of notification by the Department, the
7 concessionaires and other sellers shall file their returns as
8 otherwise required in this Section.
9 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
10 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
11 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901,
12 eff. 1-1-01; revised 8-30-00.)
13 Section 99. Effective date. This Act takes effect on
14 December 1, 2000.