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| [ Senate Amendment 001 ] |
91_SB0641
LRB9105770PTpk
1 AN ACT relating to tax credits for expenditures for
2 projects and products to enhance energy efficiency.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Renewable Energy, Energy Efficiency, and
6 Coal Resources Development Law of 1997 is amended by changing
7 Section 6-6 as follows:
8 (20 ILCS 687/6-6)
9 (Section scheduled to be repealed on December 16, 2007)
10 Sec. 6-6. Energy efficiency program.
11 (a) For the year beginning January 1, 1998, and
12 thereafter as provided in this Section, each electric utility
13 as defined in Section 3-105 of the Public Utilities Act and
14 each alternative retail electric supplier as defined in
15 Section 16-102 of the Public Utilities Act supplying electric
16 power and energy to retail customers located in the State of
17 Illinois shall contribute annually a pro rata share of a
18 total amount of $30,000,000 $3,000,000 based upon the number
19 of kilowatt-hours sold by each such entity in the 12 months
20 preceding the year of contribution. On or before May 1 of
21 each year, the Illinois Commerce Commission shall determine
22 and notify the Department of Commerce and Community Affairs
23 of the pro rata share owed by each electric utility and each
24 alternative retail electric supplier based upon information
25 supplied annually to the Illinois Commerce Commission. On or
26 before June 1 of each year, the Department of Commerce and
27 Community Affairs shall send written notification to each
28 electric utility and each alternative retail electric
29 supplier of the amount of pro rata share they owe. These
30 contributions shall be remitted to the Department of Revenue
31 on or before June 30 of each year the contribution is due on
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1 a return prescribed and furnished by the Department of
2 Revenue showing such information as the Department of Revenue
3 may reasonably require. The funds received pursuant to this
4 Section shall be subject to the appropriation of funds by the
5 General Assembly. The Department of Revenue shall place the
6 funds remitted under this Section in a trust fund, that is
7 hereby created in the State Treasury, called the Energy
8 Efficiency Trust Fund. If an electric utility or alternative
9 retail electric supplier does not remit its pro rata share to
10 the Department of Revenue, the Department of Revenue must
11 inform the Illinois Commerce Commission of such failure. The
12 Illinois Commerce Commission may then revoke the
13 certification of that electric utility or alternative retail
14 electric supplier. The Illinois Commerce Commission may not
15 renew the certification of any electric utility or
16 alternative retail electric supplier that is delinquent in
17 paying its pro rata share.
18 (b) The Department of Commerce and Community Affairs
19 shall disburse the moneys as they become available in the
20 Energy Efficiency Trust Fund to residential electric
21 customers to fund projects and purchases of products that
22 which the Department of Commerce and Community Affairs has
23 determined will promote energy efficiency in the State of
24 Illinois. The Department of Commerce and Community Affairs
25 shall establish a list of projects and products eligible for
26 grants and other financial incentives from the Energy
27 Efficiency Trust Fund including, but not limited to,
28 supporting energy efficiency efforts for low-income
29 households, replacing energy inefficient windows with more
30 efficient windows, replacing energy inefficient appliances
31 with more efficient appliances, replacing energy inefficient
32 lighting with more efficient lighting, insulating dwellings
33 and buildings, and such other projects and products that
34 which will increase energy efficiency in homes and rental
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1 properties.
2 (c) The Department of Commerce and Community Affairs
3 shall establish criteria and an application process for this
4 grant program of grants and other financial incentives by no
5 later than January 1, 2000.
6 (d) The Department of Commerce and Community Affairs
7 shall conduct a study of other possible energy efficiency
8 improvements and evaluate methods for promoting energy
9 efficiency and conservation, especially for the benefit of
10 low-income customers.
11 (d-5) The Department of Commerce and Community Affairs
12 shall establish criteria before January 1, 2000 for projects
13 and purchases of products that are eligible for the income
14 tax credit under Section 206.1 of the Illinois Income Tax Act
15 and the exemptions under Section 3-5 of the Use Tax Act,
16 Section 3-5 of the Service Use Tax Act, Section 3-5 of the
17 Service Occupation Tax Act, and Section 2-5 of the Retailers'
18 Occupation Tax Act.
19 (e) The Department of Commerce and Community Affairs
20 shall submit an annual report to the General Assembly
21 evaluating the effectiveness of the projects and programs
22 provided in this Section, and recommending further
23 legislation which will encourage additional development and
24 implementation of energy efficiency projects and programs in
25 Illinois and other actions that help to meet the goals of
26 this Section.
27 (Source: P.A. 90-561, eff. 12-16-97; 90-624, eff. 7-10-98.)
28 Section 10. The State Finance Act is amended by changing
29 Sections 6z-18 and 6z-20 as follows:
30 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
31 Sec. 6z-18. Distributions from Local Government Tax
32 Fund. A portion of the money paid into the Local Government
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1 Tax Fund from sales of food for human consumption which is to
2 be consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks and food which has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances and
6 insulin, urine testing materials, syringes and needles used
7 by diabetics, which occurred in municipalities, shall be
8 distributed to each municipality based upon the sales which
9 occurred in that municipality. The remainder shall be
10 distributed to each county based upon the sales which
11 occurred in the unincorporated area of that county.
12 A portion of the money paid into the Local Government Tax
13 Fund from the 6.25% or 4.25% general use tax rate, as
14 applicable, on the selling price of tangible personal
15 property which is purchased outside Illinois at retail from a
16 retailer and which is titled or registered by any agency of
17 this State's government shall be distributed to
18 municipalities as provided in this paragraph. Each
19 municipality shall receive the amount attributable to sales
20 for which Illinois addresses for titling or registration
21 purposes are given as being in such municipality. The
22 remainder of the money paid into the Local Government Tax
23 Fund from such sales shall be distributed to counties. Each
24 county shall receive the amount attributable to sales for
25 which Illinois addresses for titling or registration purposes
26 are given as being located in the unincorporated area of such
27 county.
28 A portion of the money paid into the Local Government Tax
29 Fund from the 6.25% or 4.25% general rate, as applicable, on
30 sales subject to taxation under the Retailers' Occupation Tax
31 Act and the Service Occupation Tax Act, which occurred in
32 municipalities, shall be distributed to each municipality,
33 based upon the sales which occurred in that municipality. The
34 remainder shall be distributed to each county, based upon the
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1 sales which occurred in the unincorporated area of such
2 county.
3 For the purpose of determining allocation to the local
4 government unit, a retail sale by a producer of coal or other
5 mineral mined in Illinois is a sale at retail at the place
6 where the coal or other mineral mined in Illinois is
7 extracted from the earth. This paragraph does not apply to
8 coal or other mineral when it is delivered or shipped by the
9 seller to the purchaser at a point outside Illinois so that
10 the sale is exempt under the United States Constitution as a
11 sale in interstate or foreign commerce.
12 Whenever the Department determines that a refund of money
13 paid into the Local Government Tax Fund should be made to a
14 claimant instead of issuing a credit memorandum, the
15 Department shall notify the State Comptroller, who shall
16 cause the order to be drawn for the amount specified, and to
17 the person named, in such notification from the Department.
18 Such refund shall be paid by the State Treasurer out of the
19 Local Government Tax Fund.
20 On or before the 25th day of each calendar month, the
21 Department shall prepare and certify to the Comptroller the
22 disbursement of stated sums of money to named municipalities
23 and counties, the municipalities and counties to be those
24 entitled to distribution of taxes or penalties paid to the
25 Department during the second preceding calendar month. The
26 amount to be paid to each municipality or county shall be the
27 amount (not including credit memoranda) collected during the
28 second preceding calendar month by the Department and paid
29 into the Local Government Tax Fund, plus an amount the
30 Department determines is necessary to offset any amounts
31 which were erroneously paid to a different taxing body, and
32 not including an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department,
34 and not including any amount which the Department determines
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1 is necessary to offset any amounts which are payable to a
2 different taxing body but were erroneously paid to the
3 municipality or county. Within 10 days after receipt, by the
4 Comptroller, of the disbursement certification to the
5 municipalities and counties, provided for in this Section to
6 be given to the Comptroller by the Department, the
7 Comptroller shall cause the orders to be drawn for the
8 respective amounts in accordance with the directions
9 contained in such certification.
10 When certifying the amount of monthly disbursement to a
11 municipality or county under this Section, the Department
12 shall increase or decrease that amount by an amount necessary
13 to offset any misallocation of previous disbursements. The
14 offset amount shall be the amount erroneously disbursed
15 within the 6 months preceding the time a misallocation is
16 discovered.
17 The provisions directing the distributions from the
18 special fund in the State Treasury provided for in this
19 Section shall constitute an irrevocable and continuing
20 appropriation of all amounts as provided herein. The State
21 Treasurer and State Comptroller are hereby authorized to make
22 distributions as provided in this Section.
23 In construing any development, redevelopment, annexation,
24 preannexation or other lawful agreement in effect prior to
25 September 1, 1990, which describes or refers to receipts from
26 a county or municipal retailers' occupation tax, use tax or
27 service occupation tax which now cannot be imposed, such
28 description or reference shall be deemed to include the
29 replacement revenue for such abolished taxes, distributed
30 from the Local Government Tax Fund.
31 (Source: P.A. 90-491, eff. 1-1-98.)
32 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
33 Sec. 6z-20. Distributions from County and Mass Transit
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1 District Fund. Of the money received from the 6.25% or 4.25%
2 general rate, as applicable, on sales subject to taxation
3 under the Retailers' Occupation Tax Act and Service
4 Occupation Tax Act and paid into the County and Mass Transit
5 District Fund, distribution to the Regional Transportation
6 Authority tax fund, created pursuant to Section 4.03 of the
7 Regional Transportation Authority Act, for deposit therein
8 shall be made based upon the retail sales occurring in a
9 county having more than 3,000,000 inhabitants. The remainder
10 shall be distributed to each county having 3,000,000 or fewer
11 inhabitants based upon the retail sales occurring in each
12 such county.
13 For the purpose of determining allocation to the local
14 government unit, a retail sale by a producer of coal or other
15 mineral mined in Illinois is a sale at retail at the place
16 where the coal or other mineral mined in Illinois is
17 extracted from the earth. This paragraph does not apply to
18 coal or other mineral when it is delivered or shipped by the
19 seller to the purchaser at a point outside Illinois so that
20 the sale is exempt under the United States Constitution as a
21 sale in interstate or foreign commerce.
22 Of the money received from the 6.25% or 4.25% general use
23 tax rate, as applicable, on tangible personal property which
24 is purchased outside Illinois at retail from a retailer and
25 which is titled or registered by any agency of this State's
26 government and paid into the County and Mass Transit District
27 Fund, the amount for which Illinois addresses for titling or
28 registration purposes are given as being in each county
29 having more than 3,000,000 inhabitants shall be distributed
30 into the Regional Transportation Authority tax fund, created
31 pursuant to Section 4.03 of the Regional Transportation
32 Authority Act. The remainder of the money paid from such
33 sales shall be distributed to each county based on sales for
34 which Illinois addresses for titling or registration purposes
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1 are given as being located in the county. Any money paid
2 into the Regional Transportation Authority Occupation and Use
3 Tax Replacement Fund from the County and Mass Transit
4 District Fund prior to January 14, 1991, which has not been
5 paid to the Authority prior to that date, shall be
6 transferred to the Regional Transportation Authority tax
7 fund.
8 Whenever the Department determines that a refund of money
9 paid into the County and Mass Transit District Fund should be
10 made to a claimant instead of issuing a credit memorandum,
11 the Department shall notify the State Comptroller, who shall
12 cause the order to be drawn for the amount specified, and to
13 the person named, in such notification from the Department.
14 Such refund shall be paid by the State Treasurer out of the
15 County and Mass Transit District Fund.
16 On or before the 25th day of each calendar month, the
17 Department shall prepare and certify to the Comptroller the
18 disbursement of stated sums of money to the Regional
19 Transportation Authority and to named counties, the counties
20 to be those entitled to distribution, as hereinabove
21 provided, of taxes or penalties paid to the Department during
22 the second preceding calendar month. The amount to be paid
23 to the Regional Transportation Authority and each county
24 having 3,000,000 or fewer inhabitants shall be the amount
25 (not including credit memoranda) collected during the second
26 preceding calendar month by the Department and paid into the
27 County and Mass Transit District Fund, plus an amount the
28 Department determines is necessary to offset any amounts
29 which were erroneously paid to a different taxing body, and
30 not including an amount equal to the amount of refunds made
31 during the second preceding calendar month by the Department,
32 and not including any amount which the Department determines
33 is necessary to offset any amounts which were payable to a
34 different taxing body but were erroneously paid to the
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1 Regional Transportation Authority or county. Within 10 days
2 after receipt, by the Comptroller, of the disbursement
3 certification to the Regional Transportation Authority and
4 counties, provided for in this Section to be given to the
5 Comptroller by the Department, the Comptroller shall cause
6 the orders to be drawn for the respective amounts in
7 accordance with the directions contained in such
8 certification.
9 When certifying the amount of a monthly disbursement to
10 the Regional Transportation Authority or to a county under
11 this Section, the Department shall increase or decrease that
12 amount by an amount necessary to offset any misallocation of
13 previous disbursements. The offset amount shall be the
14 amount erroneously disbursed within the 6 months preceding
15 the time a misallocation is discovered.
16 The provisions directing the distributions from the
17 special fund in the State Treasury provided for in this
18 Section and from the Regional Transportation Authority tax
19 fund created by Section 4.03 of the Regional Transportation
20 Authority Act shall constitute an irrevocable and continuing
21 appropriation of all amounts as provided herein. The State
22 Treasurer and State Comptroller are hereby authorized to make
23 distributions as provided in this Section.
24 In construing any development, redevelopment, annexation,
25 preannexation or other lawful agreement in effect prior to
26 September 1, 1990, which describes or refers to receipts from
27 a county or municipal retailers' occupation tax, use tax or
28 service occupation tax which now cannot be imposed, such
29 description or reference shall be deemed to include the
30 replacement revenue for such abolished taxes, distributed
31 from the County and Mass Transit District Fund or Local
32 Government Distributive Fund, as the case may be.
33 (Source: P.A. 90-491, eff. 1-1-98.)
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1 Section 15. The Illinois Income Tax Act is amended by
2 adding Section 206.1 as follows:
3 (35 ILCS 5/206.1 new)
4 Sec. 206.1. Energy efficiency tax credit. For taxable
5 years beginning on or after January 1, 2000 and ending on or
6 before December 31, 2004, a homeowner, renter, or landlord
7 subject to this Act shall be entitled to a credit against the
8 tax imposed by subsections (a) and (b) of Section 201 in an
9 amount not to exceed the lesser of $500 or 25% of the amount
10 spent by the homeowner, renter, or landlord on projects and
11 products that are designed to promote energy efficiency and
12 deemed eligible for a credit by the Department of Commerce
13 and Community Affairs pursuant to Section 6-6 of the
14 Renewable Energy, Energy Efficiency, and Coal Resources
15 Development Law of 1997.
16 Section 20. The Use Tax Act is amended by changing
17 Sections 3-10, 3-85, and 9 as follows:
18 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
19 Sec. 3-10. Rate of tax. Unless otherwise provided in
20 this Section, the tax imposed by this Act is at the rate of
21 6.25% of either the selling price or the fair market value,
22 if any, of the tangible personal property. In all cases
23 where property functionally used or consumed is the same as
24 the property that was purchased at retail, then the tax is
25 imposed on the selling price of the property. In all cases
26 where property functionally used or consumed is a by-product
27 or waste product that has been refined, manufactured, or
28 produced from property purchased at retail, then the tax is
29 imposed on the lower of the fair market value, if any, of the
30 specific property so used in this State or on the selling
31 price of the property purchased at retail. For purposes of
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1 this Section "fair market value" means the price at which
2 property would change hands between a willing buyer and a
3 willing seller, neither being under any compulsion to buy or
4 sell and both having reasonable knowledge of the relevant
5 facts. The fair market value shall be established by Illinois
6 sales by the taxpayer of the same property as that
7 functionally used or consumed, or if there are no such sales
8 by the taxpayer, then comparable sales or purchases of
9 property of like kind and character in Illinois.
10 For January 1, 2000 through December 31, 2004, the tax
11 imposed by this Act is at the rate of 4.25% of either the
12 selling price or the fair market value, if any, of tangible
13 personal property designed to promote energy efficiency and
14 deemed eligible for this rate by the Department of Commerce
15 and Community Affairs pursuant to Section 6-6 of the
16 Renewable Energy, Energy Efficiency, and Coal Resources
17 Development Law of 1997.
18 With respect to gasohol, the tax imposed by this Act
19 applies to 70% of the proceeds of sales made on or after
20 January 1, 1990, and before July 1, 2003, and to 100% of the
21 proceeds of sales made thereafter.
22 With respect to food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption) and prescription and
26 nonprescription medicines, drugs, medical appliances,
27 modifications to a motor vehicle for the purpose of rendering
28 it usable by a disabled person, and insulin, urine testing
29 materials, syringes, and needles used by diabetics, for human
30 use, the tax is imposed at the rate of 1%. For the purposes
31 of this Section, the term "soft drinks" means any complete,
32 finished, ready-to-use, non-alcoholic drink, whether
33 carbonated or not, including but not limited to soda water,
34 cola, fruit juice, vegetable juice, carbonated water, and all
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1 other preparations commonly known as soft drinks of whatever
2 kind or description that are contained in any closed or
3 sealed bottle, can, carton, or container, regardless of size.
4 "Soft drinks" does not include coffee, tea, non-carbonated
5 water, infant formula, milk or milk products as defined in
6 the Grade A Pasteurized Milk and Milk Products Act, or drinks
7 containing 50% or more natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Act, "food
9 for human consumption that is to be consumed off the premises
10 where it is sold" includes all food sold through a vending
11 machine, except soft drinks and food products that are
12 dispensed hot from a vending machine, regardless of the
13 location of the vending machine.
14 If the property that is purchased at retail from a
15 retailer is acquired outside Illinois and used outside
16 Illinois before being brought to Illinois for use here and is
17 taxable under this Act, the "selling price" on which the tax
18 is computed shall be reduced by an amount that represents a
19 reasonable allowance for depreciation for the period of prior
20 out-of-state use.
21 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
22 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
23 6-30-98; 90-606, eff. 6-30-98.)
24 (35 ILCS 105/3-85)
25 Sec. 3-85. Manufacturer's Purchase Credit. For purchases
26 of machinery and equipment made on and after January 1, 1995,
27 a purchaser of manufacturing machinery and equipment that
28 qualifies for the exemption provided by paragraph (18) of
29 Section 3-5 of this Act earns a credit in an amount equal to
30 a fixed percentage of the tax which would have been incurred
31 under this Act on those purchases. For purchases of graphic
32 arts machinery and equipment made on or after July 1, 1996, a
33 purchaser of graphic arts machinery and equipment that
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1 qualifies for the exemption provided by paragraph (6) of
2 Section 3-5 of this Act earns a credit in an amount equal to
3 a fixed percentage of the tax that would have been incurred
4 under this Act on those purchases. The credit earned for
5 purchases of manufacturing machinery and equipment or graphic
6 arts machinery and equipment shall be referred to as the
7 Manufacturer's Purchase Credit. A graphic arts producer is a
8 person engaged in graphic arts production as defined in
9 Section 2-30 of the Retailers' Occupation Tax Act. Beginning
10 July 1, 1996, all references in this Section to manufacturers
11 or manufacturing shall also be deemed to refer to graphic
12 arts producers or graphic arts production.
13 The amount of credit shall be a percentage of the tax
14 that would have been incurred on the purchase of
15 manufacturing machinery and equipment or graphic arts
16 machinery and equipment if the exemptions provided by
17 paragraph (6) or paragraph (18) of Section 3-5 of this Act
18 had not been applicable. The percentage shall be as follows:
19 (1) 15% for purchases made on or before June 30,
20 1995.
21 (2) 25% for purchases made after June 30, 1995, and
22 on or before June 30, 1996.
23 (3) 40% for purchases made after June 30, 1996, and
24 on or before June 30, 1997.
25 (4) 50% for purchases made on or after July 1,
26 1997.
27 A purchaser of production related tangible personal
28 property desiring to use the Manufacturer's Purchase Credit
29 shall certify to the seller that the purchaser is satisfying
30 all or part of the liability under the Use Tax Act or the
31 Service Use Tax Act that is due on the purchase of the
32 production related tangible personal property by use of
33 Manufacturer's Purchase Credit. The Manufacturer's Purchase
34 Credit certification must be dated and shall include the name
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1 and address of the purchaser, the purchaser's registration
2 number, if registered, the credit being applied, and a
3 statement that the State Use Tax or Service Use Tax liability
4 is being satisfied with the manufacturer's or graphic arts
5 producer's accumulated purchase credit. Certification may be
6 incorporated into the manufacturer's or graphic arts
7 producer's purchase order. Manufacturer's Purchase Credit
8 certification by the manufacturer or graphic arts producer
9 may be used to satisfy the retailer's or serviceman's
10 liability under the Retailers' Occupation Tax Act or Service
11 Occupation Tax Act for the credit claimed, not to exceed the
12 applicable tax rate imposed on 6.25% of the receipts subject
13 to tax from a qualifying purchase, but only if the retailer
14 or serviceman reports the Manufacturer's Purchase Credit
15 claimed as required by the Department. The Manufacturer's
16 Purchase Credit earned by purchase of exempt manufacturing
17 machinery and equipment or graphic arts machinery and
18 equipment is a non-transferable credit. A manufacturer or
19 graphic arts producer that enters into a contract involving
20 the installation of tangible personal property into real
21 estate within a manufacturing or graphic arts production
22 facility may authorize a construction contractor to utilize
23 credit accumulated by the manufacturer or graphic arts
24 producer to purchase the tangible personal property. A
25 manufacturer or graphic arts producer intending to use
26 accumulated credit to purchase such tangible personal
27 property shall execute a written contract authorizing the
28 contractor to utilize a specified dollar amount of credit.
29 The contractor shall furnish the supplier with the
30 manufacturer's or graphic arts producer's name, registration
31 or resale number, and a statement that a specific amount of
32 the Use Tax or Service Use Tax liability, not to exceed the
33 applicable tax rate imposed on 6.25% of the selling price, is
34 being satisfied with the credit. The manufacturer or graphic
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1 arts producer shall remain liable to timely report all
2 information required by the annual Report of Manufacturer's
3 Purchase Credit Used for all credit utilized by a
4 construction contractor.
5 The Manufacturer's Purchase Credit may be used to satisfy
6 liability under the Use Tax Act or the Service Use Tax Act
7 due on the purchase of production related tangible personal
8 property (including purchases by a manufacturer, by a graphic
9 arts producer, or by a lessor who rents or leases the use of
10 the property to a manufacturer or graphic arts producer) that
11 does not otherwise qualify for the manufacturing machinery
12 and equipment exemption or the graphic arts machinery and
13 equipment exemption. "Production related tangible personal
14 property" means (i) all tangible personal property used or
15 consumed by the purchaser in a manufacturing facility in
16 which a manufacturing process described in Section 2-45 of
17 the Retailers' Occupation Tax Act takes place, including
18 tangible personal property purchased for incorporation into
19 real estate within a manufacturing facility and including,
20 but not limited to, tangible personal property used or
21 consumed in activities such as preproduction material
22 handling, receiving, quality control, inventory control,
23 storage, staging, and packaging for shipping and
24 transportation purposes; (ii) all tangible personal property
25 used or consumed by the purchaser in a graphic arts facility
26 in which graphic arts production as described in Section 2-30
27 of the Retailers' Occupation Tax Act takes place, including
28 tangible personal property purchased for incorporation into
29 real estate within a graphic arts facility and including, but
30 not limited to, all tangible personal property used or
31 consumed in activities such as graphic arts preliminary or
32 pre-press production, pre-production material handling,
33 receiving, quality control, inventory control, storage,
34 staging, sorting, labeling, mailing, tying, wrapping, and
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1 packaging; and (iii) all tangible personal property used or
2 consumed by the purchaser for research and development.
3 "Production related tangible personal property" does not
4 include (i) tangible personal property used, within or
5 without a manufacturing facility, in sales, purchasing,
6 accounting, fiscal management, marketing, personnel
7 recruitment or selection, or landscaping or (ii) tangible
8 personal property required to be titled or registered with a
9 department, agency, or unit of federal, state, or local
10 government. The Manufacturer's Purchase Credit may be used
11 to satisfy the tax arising either from the purchase of
12 machinery and equipment on or after January 1, 1995 for which
13 the exemption provided by paragraph (18) of Section 3-5 of
14 this Act was erroneously claimed, or the purchase of
15 machinery and equipment on or after July 1, 1996 for which
16 the exemption provided by paragraph (6) of Section 3-5 of
17 this Act was erroneously claimed, but not in satisfaction of
18 penalty, if any, and interest for failure to pay the tax when
19 due. A purchaser of production related tangible personal
20 property who is required to pay Illinois Use Tax or Service
21 Use Tax on the purchase directly to the Department may
22 utilize the Manufacturer's Purchase Credit in satisfaction of
23 the tax arising from that purchase, but not in satisfaction
24 of penalty and interest. A purchaser who uses the
25 Manufacturer's Purchase Credit to purchase property which is
26 later determined not to be production related tangible
27 personal property may be liable for tax, penalty, and
28 interest on the purchase of that property as of the date of
29 purchase but shall be entitled to use the disallowed
30 Manufacturer's Purchase Credit, so long as it has not
31 expired, on qualifying purchases of production related
32 tangible personal property not previously subject to credit
33 usage. The Manufacturer's Purchase Credit earned by a
34 manufacturer or graphic arts producer expires the last day of
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1 the second calendar year following the calendar year in which
2 the credit arose.
3 A purchaser earning Manufacturer's Purchase Credit shall
4 sign and file an annual Report of Manufacturer's Purchase
5 Credit Earned for each calendar year no later than the last
6 day of the sixth month following the calendar year in which a
7 Manufacturer's Purchase Credit is earned. A Report of
8 Manufacturer's Purchase Credit Earned shall be filed on forms
9 as prescribed or approved by the Department and shall state,
10 for each month of the calendar year: (i) the total purchase
11 price of all purchases of exempt manufacturing or graphic
12 arts machinery on which the credit was earned; (ii) the total
13 State Use Tax or Service Use Tax which would have been due on
14 those items; (iii) the percentage used to calculate the
15 amount of credit earned; (iv) the amount of credit earned;
16 and (v) such other information as the Department may
17 reasonably require. A purchaser earning Manufacturer's
18 Purchase Credit shall maintain records which identify, as to
19 each purchase of manufacturing or graphic arts machinery and
20 equipment on which the purchaser earned Manufacturer's
21 Purchase Credit, the vendor (including, if applicable, either
22 the vendor's registration number or Federal Employer
23 Identification Number), the purchase price, and the amount of
24 Manufacturer's Purchase Credit earned on each purchase.
25 A purchaser using Manufacturer's Purchase Credit shall
26 sign and file an annual Report of Manufacturer's Purchase
27 Credit Used for each calendar year no later than the last day
28 of the sixth month following the calendar year in which a
29 Manufacturer's Purchase Credit is used. A Report of
30 Manufacturer's Purchase Credit Used shall be filed on forms
31 as prescribed or approved by the Department and shall state,
32 for each month of the calendar year: (i) the total purchase
33 price of production related tangible personal property
34 purchased from Illinois suppliers; (ii) the total purchase
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1 price of production related tangible personal property
2 purchased from out-of-state suppliers; (iii) the total amount
3 of credit used during such month; and (iv) such other
4 information as the Department may reasonably require. A
5 purchaser using Manufacturer's Purchase Credit shall maintain
6 records that identify, as to each purchase of production
7 related tangible personal property on which the purchaser
8 used Manufacturer's Purchase Credit, the vendor (including,
9 if applicable, either the vendor's registration number or
10 Federal Employer Identification Number), the purchase price,
11 and the amount of Manufacturer's Purchase Credit used on each
12 purchase.
13 No annual report shall be filed before May 1, 1996. A
14 purchaser that fails to file an annual Report of
15 Manufacturer's Purchase Credit Earned or an annual Report of
16 Manufacturer's Purchase Credit Used by the last day of the
17 sixth month following the end of the calendar year shall
18 forfeit all Manufacturer's Purchase Credit for that calendar
19 year unless it establishes that its failure to file was due
20 to reasonable cause. Manufacturer's Purchase Credit reports
21 may be amended to report and claim credit on qualifying
22 purchases not previously reported at any time before the
23 credit would have expired, unless both the Department and the
24 purchaser have agreed to an extension of the statute of
25 limitations for the issuance of a notice of tax liability as
26 provided in Section 4 of the Retailers' Occupation Tax Act.
27 If the time for assessment or refund has been extended, then
28 amended reports for a calendar year may be filed at any time
29 prior to the date to which the statute of limitations for the
30 calendar year or portion thereof has been extended. No
31 Manufacturer's Purchase Credit report filed with the
32 Department for periods prior to January 1, 1995 shall be
33 approved. Manufacturer's Purchase Credit claimed on an
34 amended report may be used to satisfy tax liability under the
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1 Use Tax Act or the Service Use Tax Act (i) on qualifying
2 purchases of production related tangible personal property
3 made after the date the amended report is filed or (ii)
4 assessed by the Department on qualifying purchases of
5 production related tangible personal property made in the
6 case of manufacturers on or after January 1, 1995, or in the
7 case of graphic arts producers on or after July 1, 1996.
8 If the purchaser is not the manufacturer or a graphic
9 arts producer, but rents or leases the use of the property to
10 a manufacturer or graphic arts producer, the purchaser may
11 earn, report, and use Manufacturer's Purchase Credit in the
12 same manner as a manufacturer or graphic arts producer.
13 A purchaser shall not be entitled to any Manufacturer's
14 Purchase Credit for a purchase that is required to be
15 reported and is not timely reported as provided in this
16 Section. A purchaser remains liable for (i) any tax that was
17 satisfied by use of a Manufacturer's Purchase Credit, as of
18 the date of purchase, if that use is not timely reported as
19 required in this Section and (ii) for any applicable
20 penalties and interest for failing to pay the tax when due.
21 (Source: P.A. 88-547, eff. 6-30-94; 89-89, eff. 6-30-95;
22 89-235, eff. 8-4-95; 89-531, eff. 7-19-96.)
23 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
24 Sec. 9. Except as to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, each retailer required or
27 authorized to collect the tax imposed by this Act shall pay
28 to the Department the amount of such tax (except as otherwise
29 provided) at the time when he is required to file his return
30 for the period during which such tax was collected, less a
31 discount of 2.1% prior to January 1, 1990, and 1.75% on and
32 after January 1, 1990, or $5 per calendar year, whichever is
33 greater, which is allowed to reimburse the retailer for
-20- LRB9105770PTpk
1 expenses incurred in collecting the tax, keeping records,
2 preparing and filing returns, remitting the tax and supplying
3 data to the Department on request. In the case of retailers
4 who report and pay the tax on a transaction by transaction
5 basis, as provided in this Section, such discount shall be
6 taken with each such tax remittance instead of when such
7 retailer files his periodic return. A retailer need not
8 remit that part of any tax collected by him to the extent
9 that he is required to remit and does remit the tax imposed
10 by the Retailers' Occupation Tax Act, with respect to the
11 sale of the same property.
12 Where such tangible personal property is sold under a
13 conditional sales contract, or under any other form of sale
14 wherein the payment of the principal sum, or a part thereof,
15 is extended beyond the close of the period for which the
16 return is filed, the retailer, in collecting the tax (except
17 as to motor vehicles, watercraft, aircraft, and trailers that
18 are required to be registered with an agency of this State),
19 may collect for each tax return period, only the tax
20 applicable to that part of the selling price actually
21 received during such tax return period.
22 Except as provided in this Section, on or before the
23 twentieth day of each calendar month, such retailer shall
24 file a return for the preceding calendar month. Such return
25 shall be filed on forms prescribed by the Department and
26 shall furnish such information as the Department may
27 reasonably require.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
34 before the twentieth day of the following calendar month,
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1 stating:
2 1. The name of the seller;
3 2. The address of the principal place of business
4 from which he engages in the business of selling tangible
5 personal property at retail in this State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month from sales of
8 tangible personal property by him during such preceding
9 calendar month, including receipts from charge and time
10 sales, but less all deductions allowed by law;
11 4. The amount of credit provided in Section 2d of
12 this Act;
13 5. The amount of tax due;
14 5-5. The signature of the taxpayer; and
15 6. Such other reasonable information as the
16 Department may require.
17 If a taxpayer fails to sign a return within 30 days after
18 the proper notice and demand for signature by the Department,
19 the return shall be considered valid and any amount shown to
20 be due on the return shall be deemed assessed.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who has
25 an average monthly tax liability of $100,000 or more shall
26 make all payments required by rules of the Department by
27 electronic funds transfer. Beginning October 1, 1995, a
28 taxpayer who has an average monthly tax liability of $50,000
29 or more shall make all payments required by rules of the
30 Department by electronic funds transfer. The term "average
31 monthly tax liability" means the sum of the taxpayer's
32 liabilities under this Act, and under all other State and
33 local occupation and use tax laws administered by the
34 Department, for the immediately preceding calendar year
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1 divided by 12.
2 Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers required
5 to make payments by electronic funds transfer shall make
6 those payments for a minimum of one year beginning on October
7 1.
8 Any taxpayer not required to make payments by electronic
9 funds transfer may make payments by electronic funds transfer
10 with the permission of the Department.
11 All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 The Department shall adopt such rules as are necessary to
16 effectuate a program of electronic funds transfer and the
17 requirements of this Section.
18 If the taxpayer's average monthly tax liability to the
19 Department under this Act, the Retailers' Occupation Tax Act,
20 the Service Occupation Tax Act, the Service Use Tax Act was
21 $10,000 or more during the preceding 4 complete calendar
22 quarters, he shall file a return with the Department each
23 month by the 20th day of the month next following the month
24 during which such tax liability is incurred and shall make
25 payments to the Department on or before the 7th, 15th, 22nd
26 and last day of the month during which such liability is
27 incurred. If the month during which such tax liability is
28 incurred began prior to January 1, 1985, each payment shall
29 be in an amount equal to 1/4 of the taxpayer's actual
30 liability for the month or an amount set by the Department
31 not to exceed 1/4 of the average monthly liability of the
32 taxpayer to the Department for the preceding 4 complete
33 calendar quarters (excluding the month of highest liability
34 and the month of lowest liability in such 4 quarter period).
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1 If the month during which such tax liability is incurred
2 begins on or after January 1, 1985, and prior to January 1,
3 1987, each payment shall be in an amount equal to 22.5% of
4 the taxpayer's actual liability for the month or 27.5% of the
5 taxpayer's liability for the same calendar month of the
6 preceding year. If the month during which such tax liability
7 is incurred begins on or after January 1, 1987, and prior to
8 January 1, 1988, each payment shall be in an amount equal to
9 22.5% of the taxpayer's actual liability for the month or
10 26.25% of the taxpayer's liability for the same calendar
11 month of the preceding year. If the month during which such
12 tax liability is incurred begins on or after January 1, 1988,
13 and prior to January 1, 1989, or begins on or after January
14 1, 1996, each payment shall be in an amount equal to 22.5% of
15 the taxpayer's actual liability for the month or 25% of the
16 taxpayer's liability for the same calendar month of the
17 preceding year. If the month during which such tax liability
18 is incurred begins on or after January 1, 1989, and prior to
19 January 1, 1996, each payment shall be in an amount equal to
20 22.5% of the taxpayer's actual liability for the month or 25%
21 of the taxpayer's liability for the same calendar month of
22 the preceding year or 100% of the taxpayer's actual liability
23 for the quarter monthly reporting period. The amount of such
24 quarter monthly payments shall be credited against the final
25 tax liability of the taxpayer's return for that month. Once
26 applicable, the requirement of the making of quarter monthly
27 payments to the Department shall continue until such
28 taxpayer's average monthly liability to the Department during
29 the preceding 4 complete calendar quarters (excluding the
30 month of highest liability and the month of lowest liability)
31 is less than $9,000, or until such taxpayer's average monthly
32 liability to the Department as computed for each calendar
33 quarter of the 4 preceding complete calendar quarter period
34 is less than $10,000. However, if a taxpayer can show the
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1 Department that a substantial change in the taxpayer's
2 business has occurred which causes the taxpayer to anticipate
3 that his average monthly tax liability for the reasonably
4 foreseeable future will fall below $10,000, then such
5 taxpayer may petition the Department for change in such
6 taxpayer's reporting status. The Department shall change
7 such taxpayer's reporting status unless it finds that such
8 change is seasonal in nature and not likely to be long term.
9 If any such quarter monthly payment is not paid at the time
10 or in the amount required by this Section, then the taxpayer
11 shall be liable for penalties and interest on the difference
12 between the minimum amount due and the amount of such quarter
13 monthly payment actually and timely paid, except insofar as
14 the taxpayer has previously made payments for that month to
15 the Department in excess of the minimum payments previously
16 due as provided in this Section. The Department shall make
17 reasonable rules and regulations to govern the quarter
18 monthly payment amount and quarter monthly payment dates for
19 taxpayers who file on other than a calendar monthly basis.
20 If any such payment provided for in this Section exceeds
21 the taxpayer's liabilities under this Act, the Retailers'
22 Occupation Tax Act, the Service Occupation Tax Act and the
23 Service Use Tax Act, as shown by an original monthly return,
24 the Department shall issue to the taxpayer a credit
25 memorandum no later than 30 days after the date of payment,
26 which memorandum may be submitted by the taxpayer to the
27 Department in payment of tax liability subsequently to be
28 remitted by the taxpayer to the Department or be assigned by
29 the taxpayer to a similar taxpayer under this Act, the
30 Retailers' Occupation Tax Act, the Service Occupation Tax Act
31 or the Service Use Tax Act, in accordance with reasonable
32 rules and regulations to be prescribed by the Department,
33 except that if such excess payment is shown on an original
34 monthly return and is made after December 31, 1986, no credit
-25- LRB9105770PTpk
1 memorandum shall be issued, unless requested by the taxpayer.
2 If no such request is made, the taxpayer may credit such
3 excess payment against tax liability subsequently to be
4 remitted by the taxpayer to the Department under this Act,
5 the Retailers' Occupation Tax Act, the Service Occupation Tax
6 Act or the Service Use Tax Act, in accordance with reasonable
7 rules and regulations prescribed by the Department. If the
8 Department subsequently determines that all or any part of
9 the credit taken was not actually due to the taxpayer, the
10 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
11 by 2.1% or 1.75% of the difference between the credit taken
12 and that actually due, and the taxpayer shall be liable for
13 penalties and interest on such difference.
14 If the retailer is otherwise required to file a monthly
15 return and if the retailer's average monthly tax liability to
16 the Department does not exceed $200, the Department may
17 authorize his returns to be filed on a quarter annual basis,
18 with the return for January, February, and March of a given
19 year being due by April 20 of such year; with the return for
20 April, May and June of a given year being due by July 20 of
21 such year; with the return for July, August and September of
22 a given year being due by October 20 of such year, and with
23 the return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the retailer is otherwise required to file a monthly
26 or quarterly return and if the retailer's average monthly tax
27 liability to the Department does not exceed $50, the
28 Department may authorize his returns to be filed on an annual
29 basis, with the return for a given year being due by January
30 20 of the following year.
31 Such quarter annual and annual returns, as to form and
32 substance, shall be subject to the same requirements as
33 monthly returns.
34 Notwithstanding any other provision in this Act
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1 concerning the time within which a retailer may file his
2 return, in the case of any retailer who ceases to engage in a
3 kind of business which makes him responsible for filing
4 returns under this Act, such retailer shall file a final
5 return under this Act with the Department not more than one
6 month after discontinuing such business.
7 In addition, with respect to motor vehicles, watercraft,
8 aircraft, and trailers that are required to be registered
9 with an agency of this State, every retailer selling this
10 kind of tangible personal property shall file, with the
11 Department, upon a form to be prescribed and supplied by the
12 Department, a separate return for each such item of tangible
13 personal property which the retailer sells, except that
14 where, in the same transaction, a retailer of aircraft,
15 watercraft, motor vehicles or trailers transfers more than
16 one aircraft, watercraft, motor vehicle or trailer to another
17 aircraft, watercraft, motor vehicle or trailer retailer for
18 the purpose of resale, that seller for resale may report the
19 transfer of all the aircraft, watercraft, motor vehicles or
20 trailers involved in that transaction to the Department on
21 the same uniform invoice-transaction reporting return form.
22 For purposes of this Section, "watercraft" means a Class 2,
23 Class 3, or Class 4 watercraft as defined in Section 3-2 of
24 the Boat Registration and Safety Act, a personal watercraft,
25 or any boat equipped with an inboard motor.
26 The transaction reporting return in the case of motor
27 vehicles or trailers that are required to be registered with
28 an agency of this State, shall be the same document as the
29 Uniform Invoice referred to in Section 5-402 of the Illinois
30 Vehicle Code and must show the name and address of the
31 seller; the name and address of the purchaser; the amount of
32 the selling price including the amount allowed by the
33 retailer for traded-in property, if any; the amount allowed
34 by the retailer for the traded-in tangible personal property,
-27- LRB9105770PTpk
1 if any, to the extent to which Section 2 of this Act allows
2 an exemption for the value of traded-in property; the balance
3 payable after deducting such trade-in allowance from the
4 total selling price; the amount of tax due from the retailer
5 with respect to such transaction; the amount of tax collected
6 from the purchaser by the retailer on such transaction (or
7 satisfactory evidence that such tax is not due in that
8 particular instance, if that is claimed to be the fact); the
9 place and date of the sale; a sufficient identification of
10 the property sold; such other information as is required in
11 Section 5-402 of the Illinois Vehicle Code, and such other
12 information as the Department may reasonably require.
13 The transaction reporting return in the case of
14 watercraft and aircraft must show the name and address of the
15 seller; the name and address of the purchaser; the amount of
16 the selling price including the amount allowed by the
17 retailer for traded-in property, if any; the amount allowed
18 by the retailer for the traded-in tangible personal property,
19 if any, to the extent to which Section 2 of this Act allows
20 an exemption for the value of traded-in property; the balance
21 payable after deducting such trade-in allowance from the
22 total selling price; the amount of tax due from the retailer
23 with respect to such transaction; the amount of tax collected
24 from the purchaser by the retailer on such transaction (or
25 satisfactory evidence that such tax is not due in that
26 particular instance, if that is claimed to be the fact); the
27 place and date of the sale, a sufficient identification of
28 the property sold, and such other information as the
29 Department may reasonably require.
30 Such transaction reporting return shall be filed not
31 later than 20 days after the date of delivery of the item
32 that is being sold, but may be filed by the retailer at any
33 time sooner than that if he chooses to do so. The
34 transaction reporting return and tax remittance or proof of
-28- LRB9105770PTpk
1 exemption from the tax that is imposed by this Act may be
2 transmitted to the Department by way of the State agency with
3 which, or State officer with whom, the tangible personal
4 property must be titled or registered (if titling or
5 registration is required) if the Department and such agency
6 or State officer determine that this procedure will expedite
7 the processing of applications for title or registration.
8 With each such transaction reporting return, the retailer
9 shall remit the proper amount of tax due (or shall submit
10 satisfactory evidence that the sale is not taxable if that is
11 the case), to the Department or its agents, whereupon the
12 Department shall issue, in the purchaser's name, a tax
13 receipt (or a certificate of exemption if the Department is
14 satisfied that the particular sale is tax exempt) which such
15 purchaser may submit to the agency with which, or State
16 officer with whom, he must title or register the tangible
17 personal property that is involved (if titling or
18 registration is required) in support of such purchaser's
19 application for an Illinois certificate or other evidence of
20 title or registration to such tangible personal property.
21 No retailer's failure or refusal to remit tax under this
22 Act precludes a user, who has paid the proper tax to the
23 retailer, from obtaining his certificate of title or other
24 evidence of title or registration (if titling or registration
25 is required) upon satisfying the Department that such user
26 has paid the proper tax (if tax is due) to the retailer. The
27 Department shall adopt appropriate rules to carry out the
28 mandate of this paragraph.
29 If the user who would otherwise pay tax to the retailer
30 wants the transaction reporting return filed and the payment
31 of tax or proof of exemption made to the Department before
32 the retailer is willing to take these actions and such user
33 has not paid the tax to the retailer, such user may certify
34 to the fact of such delay by the retailer, and may (upon the
-29- LRB9105770PTpk
1 Department being satisfied of the truth of such
2 certification) transmit the information required by the
3 transaction reporting return and the remittance for tax or
4 proof of exemption directly to the Department and obtain his
5 tax receipt or exemption determination, in which event the
6 transaction reporting return and tax remittance (if a tax
7 payment was required) shall be credited by the Department to
8 the proper retailer's account with the Department, but
9 without the 2.1% or 1.75% discount provided for in this
10 Section being allowed. When the user pays the tax directly
11 to the Department, he shall pay the tax in the same amount
12 and in the same form in which it would be remitted if the tax
13 had been remitted to the Department by the retailer.
14 Where a retailer collects the tax with respect to the
15 selling price of tangible personal property which he sells
16 and the purchaser thereafter returns such tangible personal
17 property and the retailer refunds the selling price thereof
18 to the purchaser, such retailer shall also refund, to the
19 purchaser, the tax so collected from the purchaser. When
20 filing his return for the period in which he refunds such tax
21 to the purchaser, the retailer may deduct the amount of the
22 tax so refunded by him to the purchaser from any other use
23 tax which such retailer may be required to pay or remit to
24 the Department, as shown by such return, if the amount of the
25 tax to be deducted was previously remitted to the Department
26 by such retailer. If the retailer has not previously
27 remitted the amount of such tax to the Department, he is
28 entitled to no deduction under this Act upon refunding such
29 tax to the purchaser.
30 Any retailer filing a return under this Section shall
31 also include (for the purpose of paying tax thereon) the
32 total tax covered by such return upon the selling price of
33 tangible personal property purchased by him at retail from a
34 retailer, but as to which the tax imposed by this Act was not
-30- LRB9105770PTpk
1 collected from the retailer filing such return, and such
2 retailer shall remit the amount of such tax to the Department
3 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 retailers, who are required to
7 file returns hereunder and also under the Retailers'
8 Occupation Tax Act, to furnish all the return information
9 required by both Acts on the one form.
10 Where the retailer has more than one business registered
11 with the Department under separate registration under this
12 Act, such retailer may not file each return that is due as a
13 single return covering all such registered businesses, but
14 shall file separate returns for each such registered
15 business.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the State and Local Sales Tax Reform Fund, a
18 special fund in the State Treasury which is hereby created,
19 the net revenue realized for the preceding month from the 1%
20 tax on sales of food for human consumption which is to be
21 consumed off the premises where it is sold (other than
22 alcoholic beverages, soft drinks and food which has been
23 prepared for immediate consumption) and prescription and
24 nonprescription medicines, drugs, medical appliances and
25 insulin, urine testing materials, syringes and needles used
26 by diabetics.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the County and Mass Transit District Fund 4%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on the selling price of tangible personal
31 property which is purchased outside Illinois at retail from a
32 retailer and which is titled or registered by an agency of
33 this State's government.
34 Beginning January 1, 1990, each month the Department
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1 shall pay into the State and Local Sales Tax Reform Fund, a
2 special fund in the State Treasury, 20% of the net revenue
3 realized for the preceding month from the 6.25% general rate
4 on the selling price of tangible personal property, other
5 than tangible personal property which is purchased outside
6 Illinois at retail from a retailer and which is titled or
7 registered by an agency of this State's government.
8 For January 1, 2000 through December 31, 2004, each month
9 the Department shall pay into the County and Mass Transit
10 District Fund 4% of the net revenue realized for the
11 preceding month from the 4.25% rate on the selling price or
12 the fair market value, if any, of tangible personal property
13 designed to promote energy efficiency and deemed eligible for
14 this rate by the Department of Commerce and Community Affairs
15 pursuant to Section 6-6 of the Renewable Energy, Energy
16 Efficiency, and Coal Resources Development Law of 1997.
17 For January 1, 2000 through December 31, 2004, each month
18 the Department shall pay into the State and Local Sales Tax
19 Reform Fund 20% of the net revenue realized for the preceding
20 month from the 4.25% rate on the selling price or the fair
21 market value, if any, of tangible personal property designed
22 to promote energy efficiency and deemed eligible for this
23 rate by the Department of Commerce and Community Affairs
24 pursuant to Section 6-6 of the Renewable Energy, Energy
25 Efficiency, and Coal Resources Development Law of 1997.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the Local Government Tax Fund 16% of the net
28 revenue realized for the preceding month from the 6.25%
29 general rate on the selling price of tangible personal
30 property which is purchased outside Illinois at retail from a
31 retailer and which is titled or registered by an agency of
32 this State's government.
33 For January 1, 2000 through December 31, 2004, each month
34 the Department shall pay into the Local Government Tax Fund
-32- LRB9105770PTpk
1 16% of the net revenue realized for the preceding month from
2 the 4.25% rate on the selling price or the fair market value,
3 if any, of tangible personal property designed to promote
4 energy efficiency and deemed eligible for this rate by the
5 Department of Commerce and Community Affairs pursuant to
6 Section 6-6 of the Renewable Energy, Energy Efficiency, and
7 Coal Resources Development Law of 1997.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, (a) 1.75% thereof shall be paid into
10 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
11 and on and after July 1, 1989, 3.8% thereof shall be paid
12 into the Build Illinois Fund; provided, however, that if in
13 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
14 as the case may be, of the moneys received by the Department
15 and required to be paid into the Build Illinois Fund pursuant
16 to Section 3 of the Retailers' Occupation Tax Act, Section 9
17 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
18 Section 9 of the Service Occupation Tax Act, such Acts being
19 hereinafter called the "Tax Acts" and such aggregate of 2.2%
20 or 3.8%, as the case may be, of moneys being hereinafter
21 called the "Tax Act Amount", and (2) the amount transferred
22 to the Build Illinois Fund from the State and Local Sales Tax
23 Reform Fund shall be less than the Annual Specified Amount
24 (as defined in Section 3 of the Retailers' Occupation Tax
25 Act), an amount equal to the difference shall be immediately
26 paid into the Build Illinois Fund from other moneys received
27 by the Department pursuant to the Tax Acts; and further
28 provided, that if on the last business day of any month the
29 sum of (1) the Tax Act Amount required to be deposited into
30 the Build Illinois Bond Account in the Build Illinois Fund
31 during such month and (2) the amount transferred during such
32 month to the Build Illinois Fund from the State and Local
33 Sales Tax Reform Fund shall have been less than 1/12 of the
34 Annual Specified Amount, an amount equal to the difference
-33- LRB9105770PTpk
1 shall be immediately paid into the Build Illinois Fund from
2 other moneys received by the Department pursuant to the Tax
3 Acts; and, further provided, that in no event shall the
4 payments required under the preceding proviso result in
5 aggregate payments into the Build Illinois Fund pursuant to
6 this clause (b) for any fiscal year in excess of the greater
7 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
8 for such fiscal year; and, further provided, that the amounts
9 payable into the Build Illinois Fund under this clause (b)
10 shall be payable only until such time as the aggregate amount
11 on deposit under each trust indenture securing Bonds issued
12 and outstanding pursuant to the Build Illinois Bond Act is
13 sufficient, taking into account any future investment income,
14 to fully provide, in accordance with such indenture, for the
15 defeasance of or the payment of the principal of, premium, if
16 any, and interest on the Bonds secured by such indenture and
17 on any Bonds expected to be issued thereafter and all fees
18 and costs payable with respect thereto, all as certified by
19 the Director of the Bureau of the Budget. If on the last
20 business day of any month in which Bonds are outstanding
21 pursuant to the Build Illinois Bond Act, the aggregate of the
22 moneys deposited in the Build Illinois Bond Account in the
23 Build Illinois Fund in such month shall be less than the
24 amount required to be transferred in such month from the
25 Build Illinois Bond Account to the Build Illinois Bond
26 Retirement and Interest Fund pursuant to Section 13 of the
27 Build Illinois Bond Act, an amount equal to such deficiency
28 shall be immediately paid from other moneys received by the
29 Department pursuant to the Tax Acts to the Build Illinois
30 Fund; provided, however, that any amounts paid to the Build
31 Illinois Fund in any fiscal year pursuant to this sentence
32 shall be deemed to constitute payments pursuant to clause (b)
33 of the preceding sentence and shall reduce the amount
34 otherwise payable for such fiscal year pursuant to clause (b)
-34- LRB9105770PTpk
1 of the preceding sentence. The moneys received by the
2 Department pursuant to this Act and required to be deposited
3 into the Build Illinois Fund are subject to the pledge, claim
4 and charge set forth in Section 12 of the Build Illinois Bond
5 Act.
6 Subject to payment of amounts into the Build Illinois
7 Fund as provided in the preceding paragraph or in any
8 amendment thereto hereafter enacted, the following specified
9 monthly installment of the amount requested in the
10 certificate of the Chairman of the Metropolitan Pier and
11 Exposition Authority provided under Section 8.25f of the
12 State Finance Act, but not in excess of the sums designated
13 as "Total Deposit", shall be deposited in the aggregate from
14 collections under Section 9 of the Use Tax Act, Section 9 of
15 the Service Use Tax Act, Section 9 of the Service Occupation
16 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
17 into the McCormick Place Expansion Project Fund in the
18 specified fiscal years.
19 Fiscal Year Total Deposit
20 1993 $0
21 1994 53,000,000
22 1995 58,000,000
23 1996 61,000,000
24 1997 64,000,000
25 1998 68,000,000
26 1999 71,000,000
27 2000 75,000,000
28 2001 80,000,000
29 2002 84,000,000
30 2003 89,000,000
31 2004 93,000,000
32 2005 97,000,000
33 2006 102,000,000
34 2007 and 106,000,000
-35- LRB9105770PTpk
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 .4% of the net revenue
26 realized for the preceding month from the 5% general rate, or
27 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% or
10 4.25% general rate, as the case may be, on the selling price
11 of tangible personal property.
12 Of the remainder of the moneys received by the Department
13 pursuant to this Act, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, manufacturers,
31 importers and wholesalers whose products are sold at retail
32 in Illinois by numerous retailers, and who wish to do so, may
33 assume the responsibility for accounting and paying to the
34 Department all tax accruing under this Act with respect to
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1 such sales, if the retailers who are affected do not make
2 written objection to the Department to this arrangement.
3 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
4 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
5 Section 25. The Service Use Tax Act is amended by
6 changing Sections 3-10, 3-70, and 9 as follows:
7 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
8 Sec. 3-10. Rate of tax. Unless otherwise provided in
9 this Section, the tax imposed by this Act is at the rate of
10 6.25% of the selling price of tangible personal property
11 transferred as an incident to the sale of service, but, for
12 the purpose of computing this tax, in no event shall the
13 selling price be less than the cost price of the property to
14 the serviceman.
15 For January 1, 2000 through December 31, 2004, the tax
16 imposed by this Act is at the rate of 4.25% of the selling
17 price of tangible personal property designed to promote
18 energy efficiency transferred as an incident to the sale of
19 service and deemed eligible for this rate by the Department
20 of Commerce and Community Affairs pursuant to Section 6-6 of
21 the Renewable Energy, Energy Efficiency, and Coal Resources
22 Development Law of 1997.
23 With respect to gasohol, as defined in the Use Tax Act,
24 the tax imposed by this Act applies to 70% of the selling
25 price of property transferred as an incident to the sale of
26 service on or after January 1, 1990, and before July 1, 2003,
27 and to 100% of the selling price thereafter.
28 At the election of any registered serviceman made for
29 each fiscal year, sales of service in which the aggregate
30 annual cost price of tangible personal property transferred
31 as an incident to the sales of service is less than 35%, or
32 75% in the case of servicemen transferring prescription drugs
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1 or servicemen engaged in graphic arts production, of the
2 aggregate annual total gross receipts from all sales of
3 service, the tax imposed by this Act shall be based on the
4 serviceman's cost price of the tangible personal property
5 transferred as an incident to the sale of those services.
6 The tax shall be imposed at the rate of 1% on food
7 prepared for immediate consumption and transferred incident
8 to a sale of service subject to this Act or the Service
9 Occupation Tax Act by an entity licensed under the Hospital
10 Licensing Act or the Nursing Home Care Act. The tax shall
11 also be imposed at the rate of 1% on food for human
12 consumption that is to be consumed off the premises where it
13 is sold (other than alcoholic beverages, soft drinks, and
14 food that has been prepared for immediate consumption and is
15 not otherwise included in this paragraph) and prescription
16 and nonprescription medicines, drugs, medical appliances,
17 modifications to a motor vehicle for the purpose of rendering
18 it usable by a disabled person, and insulin, urine testing
19 materials, syringes, and needles used by diabetics, for human
20 use. For the purposes of this Section, the term "soft drinks"
21 means any complete, finished, ready-to-use, non-alcoholic
22 drink, whether carbonated or not, including but not limited
23 to soda water, cola, fruit juice, vegetable juice, carbonated
24 water, and all other preparations commonly known as soft
25 drinks of whatever kind or description that are contained in
26 any closed or sealed bottle, can, carton, or container,
27 regardless of size. "Soft drinks" does not include coffee,
28 tea, non-carbonated water, infant formula, milk or milk
29 products as defined in the Grade A Pasteurized Milk and Milk
30 Products Act, or drinks containing 50% or more natural fruit
31 or vegetable juice.
32 Notwithstanding any other provisions of this Act, "food
33 for human consumption that is to be consumed off the premises
34 where it is sold" includes all food sold through a vending
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1 machine, except soft drinks and food products that are
2 dispensed hot from a vending machine, regardless of the
3 location of the vending machine.
4 If the property that is acquired from a serviceman is
5 acquired outside Illinois and used outside Illinois before
6 being brought to Illinois for use here and is taxable under
7 this Act, the "selling price" on which the tax is computed
8 shall be reduced by an amount that represents a reasonable
9 allowance for depreciation for the period of prior
10 out-of-state use.
11 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
12 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
13 6-30-98; 90-606, eff. 6-30-98.)
14 (35 ILCS 110/3-70)
15 Sec. 3-70. Manufacturer's Purchase Credit. For purchases
16 of machinery and equipment made on and after January 1, 1995,
17 a purchaser of manufacturing machinery and equipment that
18 qualifies for the exemption provided by Section 2 of this Act
19 earns a credit in an amount equal to a fixed percentage of
20 the tax which would have been incurred under this Act on
21 those purchases. For purchases of graphic arts machinery and
22 equipment made on or after July 1, 1996, a purchase of
23 graphic arts machinery and equipment that qualifies for the
24 exemption provided by paragraph (5) of Section 3-5 of this
25 Act earns a credit in an amount equal to a fixed percentage
26 of the tax that would have been incurred under this Act on
27 those purchases. The credit earned for the purchase of
28 manufacturing machinery and equipment and graphic arts
29 machinery and equipment shall be referred to as the
30 Manufacturer's Purchase Credit. A graphic arts producer is a
31 person engaged in graphic arts production as defined in
32 Section 3-30 of the Service Occupation Tax Act. Beginning
33 July 1, 1996, all references in this Section to manufacturers
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1 or manufacturing shall also refer to graphic arts producers
2 or graphic arts production.
3 The amount of credit shall be a percentage of the tax
4 that would have been incurred on the purchase of the
5 manufacturing machinery and equipment or graphic arts
6 machinery and equipment if the exemptions provided by Section
7 2 or paragraph (5) of Section 3-5 of this Act had not been
8 applicable.
9 All purchases of manufacturing machinery and equipment
10 and graphic arts machinery and equipment that qualify for the
11 exemptions provided by paragraph (5) of Section 2 or
12 paragraph (5) of Section 3-5 of this Act qualify for the
13 credit without regard to whether the serviceman elected, or
14 could have elected, under paragraph (7) of Section 2 of this
15 Act to exclude the transaction from this Act. If the
16 serviceman's billing to the service customer separately
17 states a selling price for the exempt manufacturing machinery
18 or equipment or the exempt graphic arts machinery and
19 equipment, the credit shall be calculated, as otherwise
20 provided herein, based on that selling price. If the
21 serviceman's billing does not separately state a selling
22 price for the exempt manufacturing machinery and equipment or
23 the exempt graphic arts machinery and equipment, the credit
24 shall be calculated, as otherwise provided herein, based on
25 50% of the entire billing. If the serviceman contracts to
26 design, develop, and produce special order manufacturing
27 machinery and equipment or special order graphic arts
28 machinery and equipment, and the billing does not separately
29 state a selling price for such special order machinery and
30 equipment, the credit shall be calculated, as otherwise
31 provided herein, based on 50% of the entire billing. The
32 provisions of this paragraph are effective for purchases made
33 on or after January 1, 1995.
34 The percentage shall be as follows:
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1 (1) 15% for purchases made on or before June 30,
2 1995.
3 (2) 25% for purchases made after June 30, 1995, and
4 on or before June 30, 1996.
5 (3) 40% for purchases made after June 30, 1996, and
6 on or before June 30, 1997.
7 (4) 50% for purchases made on or after July 1,
8 1997.
9 A purchaser of production related tangible personal
10 property desiring to use the Manufacturer's Purchase Credit
11 shall certify to the seller that the purchaser is satisfying
12 all or part of the liability under the Use Tax Act or the
13 Service Use Tax Act that is due on the purchase of the
14 production related tangible personal property by use of a
15 Manufacturer's Purchase Credit. The Manufacturer's Purchase
16 Credit certification must be dated and shall include the name
17 and address of the purchaser, the purchaser's registration
18 number, if registered, the credit being applied, and a
19 statement that the State Use Tax or Service Use Tax liability
20 is being satisfied with the manufacturer's or graphic arts
21 producer's accumulated purchase credit. Certification may be
22 incorporated into the manufacturer's or graphic arts
23 producer's purchase order. Manufacturer's Purchase Credit
24 certification by the manufacturer or graphic arts producer
25 may be used to satisfy the retailer's or serviceman's
26 liability under the Retailers' Occupation Tax Act or Service
27 Occupation Tax Act for the credit claimed, not to exceed the
28 applicable tax rate imposed on 6.25% of the receipts subject
29 to tax from a qualifying purchase, but only if the retailer
30 or serviceman reports the Manufacturer's Purchase Credit
31 claimed as required by the Department. The Manufacturer's
32 Purchase Credit earned by purchase of exempt manufacturing
33 machinery and equipment or graphic arts machinery and
34 equipment is a non-transferable credit. A manufacturer or
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1 graphic arts producer that enters into a contract involving
2 the installation of tangible personal property into real
3 estate within a manufacturing or graphic arts production
4 facility may authorize a construction contractor to utilize
5 credit accumulated by the manufacturer or graphic arts
6 producer to purchase the tangible personal property. A
7 manufacturer or graphic arts producer intending to use
8 accumulated credit to purchase such tangible personal
9 property shall execute a written contract authorizing the
10 contractor to utilize a specified dollar amount of credit.
11 The contractor shall furnish the supplier with the
12 manufacturer's or graphic arts producer's name, registration
13 or resale number, and a statement that a specific amount of
14 the Use Tax or Service Use Tax liability, not to exceed the
15 applicable tax rate imposed on 6.25% of the selling price, is
16 being satisfied with the credit. The manufacturer or graphic
17 arts producer shall remain liable to timely report all
18 information required by the annual Report of Manufacturer's
19 Purchase Credit Used for credit utilized by a construction
20 contractor.
21 The Manufacturer's Purchase Credit may be used to satisfy
22 liability under the Use Tax Act or the Service Use Tax Act
23 due on the purchase of production related tangible personal
24 property (including purchases by a manufacturer, by a graphic
25 arts producer, or a lessor who rents or leases the use of the
26 property to a manufacturer or graphic arts producer) that
27 does not otherwise qualify for the manufacturing machinery
28 and equipment exemption or the graphic arts machinery and
29 equipment exemption. "Production related tangible personal
30 property" means (i) all tangible personal property used or
31 consumed by the purchaser in a manufacturing facility in
32 which a manufacturing process described in Section 2-45 of
33 the Retailers' Occupation Tax Act takes place, including
34 tangible personal property purchased for incorporation into
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1 real estate within a manufacturing facility and including,
2 but not limited to, tangible personal property used or
3 consumed in activities such as pre-production material
4 handling, receiving, quality control, inventory control,
5 storage, staging, and packaging for shipping and
6 transportation purposes; (ii) all tangible personal property
7 used or consumed by the purchaser in a graphic arts facility
8 in which graphic arts production as described in Section 2-30
9 of the Retailers' Occupation Tax Act takes place, including
10 tangible personal property purchased for incorporation into
11 real estate within a graphic arts facility and including, but
12 not limited to, all tangible personal property used or
13 consumed in activities such as graphic arts preliminary or
14 pre-press production, pre-production material handling,
15 receiving, quality control, inventory control, storage,
16 staging, sorting, labeling, mailing, tying, wrapping, and
17 packaging; and (iii) all tangible personal property used or
18 consumed by the purchaser for research and development.
19 "Production related tangible personal property" does not
20 include (i) tangible personal property used, within or
21 without a manufacturing or graphic arts facility, in sales,
22 purchasing, accounting, fiscal management, marketing,
23 personnel recruitment or selection, or landscaping or (ii)
24 tangible personal property required to be titled or
25 registered with a department, agency, or unit of federal,
26 state, or local government. The Manufacturer's Purchase
27 Credit may be used to satisfy the tax arising either from the
28 purchase of machinery and equipment on or after January 1,
29 1995 for which the manufacturing machinery and equipment
30 exemption provided by Section 2 of this Act was erroneously
31 claimed, or the purchase of machinery and equipment on or
32 after July 1, 1996 for which the exemption provided by
33 paragraph (5) of Section 3-5 of this Act was erroneously
34 claimed, but not in satisfaction of penalty, if any, and
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1 interest for failure to pay the tax when due. A purchaser of
2 production related tangible personal property who is required
3 to pay Illinois Use Tax or Service Use Tax on the purchase
4 directly to the Department may utilize the Manufacturer's
5 Purchase Credit in satisfaction of the tax arising from that
6 purchase, but not in satisfaction of penalty and interest. A
7 purchaser who uses the Manufacturer's Purchase Credit to
8 purchase property which is later determined not to be
9 production related tangible personal property may be liable
10 for tax, penalty, and interest on the purchase of that
11 property as of the date of purchase but shall be entitled to
12 use the disallowed Manufacturer's Purchase Credit, so long as
13 it has not expired, on qualifying purchases of production
14 related tangible personal property not previously subject to
15 credit usage. The Manufacturer's Purchase Credit earned by a
16 manufacturer or graphic arts producer expires the last day of
17 the second calendar year following the calendar year in which
18 the credit arose.
19 A purchaser earning Manufacturer's Purchase Credit shall
20 sign and file an annual Report of Manufacturer's Purchase
21 Credit Earned for each calendar year no later than the last
22 day of the sixth month following the calendar year in which a
23 Manufacturer's Purchase Credit is earned. A Report of
24 Manufacturer's Purchase Credit Earned shall be filed on forms
25 as prescribed or approved by the Department and shall state,
26 for each month of the calendar year: (i) the total purchase
27 price of all purchases of exempt manufacturing or graphic
28 arts machinery on which the credit was earned; (ii) the total
29 State Use Tax or Service Use Tax which would have been due on
30 those items; (iii) the percentage used to calculate the
31 amount of credit earned; (iv) the amount of credit earned;
32 and (v) such other information as the Department may
33 reasonably require. A purchaser earning Manufacturer's
34 Purchase Credit shall maintain records which identify, as to
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1 each purchase of manufacturing or graphic arts machinery and
2 equipment on which the purchaser earned Manufacturer's
3 Purchase Credit, the vendor (including, if applicable, either
4 the vendor's registration number or Federal Employer
5 Identification Number), the purchase price, and the amount of
6 Manufacturer's Purchase Credit earned on each purchase.
7 A purchaser using Manufacturer's Purchase Credit shall
8 sign and file an annual Report of Manufacturer's Purchase
9 Credit Used for each calendar year no later than the last day
10 of the sixth month following the calendar year in which a
11 Manufacturer's Purchase Credit is used. A Report of
12 Manufacturer's Purchase Credit Used shall be filed on forms
13 as prescribed or approved by the Department and shall state,
14 for each month of the calendar year: (i) the total purchase
15 price of production related tangible personal property
16 purchased from Illinois suppliers; (ii) the total purchase
17 price of production related tangible personal property
18 purchased from out-of-state suppliers; (iii) the total amount
19 of credit used during such month; and (iv) such other
20 information as the Department may reasonably require. A
21 purchaser using Manufacturer's Purchase Credit shall maintain
22 records that identify, as to each purchase of production
23 related tangible personal property on which the purchaser
24 used Manufacturer's Purchase Credit, the vendor (including,
25 if applicable, either the vendor's registration number or
26 Federal Employer Identification Number), the purchase price,
27 and the amount of Manufacturer's Purchase Credit used on each
28 purchase.
29 No annual report shall be filed before May 1, 1996. A
30 purchaser that fails to file an annual Report of
31 Manufacturer's Purchase Credit Earned or an annual Report of
32 Manufacturer's Purchase Credit Used by the last day of the
33 sixth month following the end of the calendar year shall
34 forfeit all Manufacturer's Purchase Credit for that calendar
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1 year unless it establishes that its failure to file was due
2 to reasonable cause. Manufacturer's Purchase Credit reports
3 may be amended to report and claim credit on qualifying
4 purchases not previously reported at any time before the
5 credit would have expired, unless both the Department and the
6 purchaser have agreed to an extension of the statute of
7 limitations for the issuance of a notice of tax liability as
8 provided in Section 4 of the Retailers' Occupation Tax Act.
9 If the time for assessment or refund has been extended, then
10 amended reports for a calendar year may be filed at any time
11 prior to the date to which the statute of limitations for the
12 calendar year or portion thereof has been extended. No
13 Manufacturer's Purchase Credit report filed with the
14 Department for periods prior to January 1, 1995 shall be
15 approved. Manufacturer's Purchase Credit claimed on an
16 amended report may be used to satisfy tax liability under the
17 Use Tax Act or the Service Use Tax Act (i) on qualifying
18 purchases of production related tangible personal property
19 made after the date the amended report is filed or (ii)
20 assessed by the Department on qualifying purchases of
21 production related tangible personal property made in the
22 case of manufacturers on or after January 1, 1995, or in the
23 case of graphic arts producers on or after July 1, 1996.
24 If the purchaser is not the manufacturer or a graphic
25 arts producer, but rents or leases the use of the property to
26 a manufacturer or a graphic arts producer, the purchaser may
27 earn, report, and use Manufacturer's Purchase Credit in the
28 same manner as a manufacturer or graphic arts producer.
29 A purchaser shall not be entitled to any Manufacturer's
30 Purchase Credit for a purchase that is required to be
31 reported and is not timely reported as provided in this
32 Section. A purchaser remains liable for (i) any tax that was
33 satisfied by use of a Manufacturer's Purchase Credit, as of
34 the date of purchase, if that use is not timely reported as
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1 required in this Section and (ii) for any applicable
2 penalties and interest for failing to pay the tax when due.
3 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
4 89-531, eff. 7-19-96; 90-166, eff. 7-23-97.)
5 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
6 Sec. 9. Each serviceman required or authorized to
7 collect the tax herein imposed shall pay to the Department
8 the amount of such tax (except as otherwise provided) at the
9 time when he is required to file his return for the period
10 during which such tax was collected, less a discount of 2.1%
11 prior to January 1, 1990 and 1.75% on and after January 1,
12 1990, or $5 per calendar year, whichever is greater, which is
13 allowed to reimburse the serviceman for expenses incurred in
14 collecting the tax, keeping records, preparing and filing
15 returns, remitting the tax and supplying data to the
16 Department on request. A serviceman need not remit that part
17 of any tax collected by him to the extent that he is required
18 to pay and does pay the tax imposed by the Service Occupation
19 Tax Act with respect to his sale of service involving the
20 incidental transfer by him of the same property.
21 Except as provided hereinafter in this Section, on or
22 before the twentieth day of each calendar month, such
23 serviceman shall file a return for the preceding calendar
24 month in accordance with reasonable Rules and Regulations to
25 be promulgated by the Department. Such return shall be filed
26 on a form prescribed by the Department and shall contain such
27 information as the Department may reasonably require.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
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1 before the twentieth day of the following calendar month,
2 stating:
3 1. The name of the seller;
4 2. The address of the principal place of business
5 from which he engages in business as a serviceman in this
6 State;
7 3. The total amount of taxable receipts received by
8 him during the preceding calendar month, including
9 receipts from charge and time sales, but less all
10 deductions allowed by law;
11 4. The amount of credit provided in Section 2d of
12 this Act;
13 5. The amount of tax due;
14 5-5. The signature of the taxpayer; and
15 6. Such other reasonable information as the
16 Department may require.
17 If a taxpayer fails to sign a return within 30 days after
18 the proper notice and demand for signature by the Department,
19 the return shall be considered valid and any amount shown to
20 be due on the return shall be deemed assessed.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who
25 has an average monthly tax liability of $100,000 or more
26 shall make all payments required by rules of the Department
27 by electronic funds transfer. Beginning October 1, 1995, a
28 taxpayer who has an average monthly tax liability of $50,000
29 or more shall make all payments required by rules of the
30 Department by electronic funds transfer. The term "average
31 monthly tax liability" means the sum of the taxpayer's
32 liabilities under this Act, and under all other State and
33 local occupation and use tax laws administered by the
34 Department, for the immediately preceding calendar year
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1 divided by 12.
2 Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers required
5 to make payments by electronic funds transfer shall make
6 those payments for a minimum of one year beginning on October
7 1.
8 Any taxpayer not required to make payments by electronic
9 funds transfer may make payments by electronic funds transfer
10 with the permission of the Department.
11 All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 The Department shall adopt such rules as are necessary to
16 effectuate a program of electronic funds transfer and the
17 requirements of this Section.
18 If the serviceman is otherwise required to file a monthly
19 return and if the serviceman's average monthly tax liability
20 to the Department does not exceed $200, the Department may
21 authorize his returns to be filed on a quarter annual basis,
22 with the return for January, February and March of a given
23 year being due by April 20 of such year; with the return for
24 April, May and June of a given year being due by July 20 of
25 such year; with the return for July, August and September of
26 a given year being due by October 20 of such year, and with
27 the return for October, November and December of a given year
28 being due by January 20 of the following year.
29 If the serviceman is otherwise required to file a monthly
30 or quarterly return and if the serviceman's average monthly
31 tax liability to the Department does not exceed $50, the
32 Department may authorize his returns to be filed on an annual
33 basis, with the return for a given year being due by January
34 20 of the following year.
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1 Such quarter annual and annual returns, as to form and
2 substance, shall be subject to the same requirements as
3 monthly returns.
4 Notwithstanding any other provision in this Act
5 concerning the time within which a serviceman may file his
6 return, in the case of any serviceman who ceases to engage in
7 a kind of business which makes him responsible for filing
8 returns under this Act, such serviceman shall file a final
9 return under this Act with the Department not more than 1
10 month after discontinuing such business.
11 Where a serviceman collects the tax with respect to the
12 selling price of property which he sells and the purchaser
13 thereafter returns such property and the serviceman refunds
14 the selling price thereof to the purchaser, such serviceman
15 shall also refund, to the purchaser, the tax so collected
16 from the purchaser. When filing his return for the period in
17 which he refunds such tax to the purchaser, the serviceman
18 may deduct the amount of the tax so refunded by him to the
19 purchaser from any other Service Use Tax, Service Occupation
20 Tax, retailers' occupation tax or use tax which such
21 serviceman may be required to pay or remit to the Department,
22 as shown by such return, provided that the amount of the tax
23 to be deducted shall previously have been remitted to the
24 Department by such serviceman. If the serviceman shall not
25 previously have remitted the amount of such tax to the
26 Department, he shall be entitled to no deduction hereunder
27 upon refunding such tax to the purchaser.
28 Any serviceman filing a return hereunder shall also
29 include the total tax upon the selling price of tangible
30 personal property purchased for use by him as an incident to
31 a sale of service, and such serviceman shall remit the amount
32 of such tax to the Department when filing such return.
33 If experience indicates such action to be practicable,
34 the Department may prescribe and furnish a combination or
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1 joint return which will enable servicemen, who are required
2 to file returns hereunder and also under the Service
3 Occupation Tax Act, to furnish all the return information
4 required by both Acts on the one form.
5 Where the serviceman has more than one business
6 registered with the Department under separate registration
7 hereunder, such serviceman shall not file each return that is
8 due as a single return covering all such registered
9 businesses, but shall file separate returns for each such
10 registered business.
11 Beginning January 1, 1990, each month the Department
12 shall pay into the State and Local Tax Reform Fund, a special
13 fund in the State Treasury, the net revenue realized for the
14 preceding month from the 1% tax on sales of food for human
15 consumption which is to be consumed off the premises where it
16 is sold (other than alcoholic beverages, soft drinks and food
17 which has been prepared for immediate consumption) and
18 prescription and nonprescription medicines, drugs, medical
19 appliances and insulin, urine testing materials, syringes and
20 needles used by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund 20%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on transfers of tangible personal
25 property, other than tangible personal property which is
26 purchased outside Illinois at retail from a retailer and
27 which is titled or registered by an agency of this State's
28 government.
29 For January 1, 2000 through December 31, 2004, each month
30 the Department shall pay into the State and Local Sales Tax
31 Reform Fund 20% of the net revenue realized for the preceding
32 month from the 4.25% rate on the selling price of tangible
33 personal property designed to promote energy efficiency and
34 deemed eligible for this rate by the Department of Commerce
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1 and Community Affairs pursuant to Section 6-6 of the
2 Renewable Energy, Energy Efficiency, and Coal Resources
3 Development Law of 1997.
4 Of the remainder of the moneys received by the Department
5 pursuant to this Act, (a) 1.75% thereof shall be paid into
6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
7 and on and after July 1, 1989, 3.8% thereof shall be paid
8 into the Build Illinois Fund; provided, however, that if in
9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10 as the case may be, of the moneys received by the Department
11 and required to be paid into the Build Illinois Fund pursuant
12 to Section 3 of the Retailers' Occupation Tax Act, Section 9
13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14 Section 9 of the Service Occupation Tax Act, such Acts being
15 hereinafter called the "Tax Acts" and such aggregate of 2.2%
16 or 3.8%, as the case may be, of moneys being hereinafter
17 called the "Tax Act Amount", and (2) the amount transferred
18 to the Build Illinois Fund from the State and Local Sales Tax
19 Reform Fund shall be less than the Annual Specified Amount
20 (as defined in Section 3 of the Retailers' Occupation Tax
21 Act), an amount equal to the difference shall be immediately
22 paid into the Build Illinois Fund from other moneys received
23 by the Department pursuant to the Tax Acts; and further
24 provided, that if on the last business day of any month the
25 sum of (1) the Tax Act Amount required to be deposited into
26 the Build Illinois Bond Account in the Build Illinois Fund
27 during such month and (2) the amount transferred during such
28 month to the Build Illinois Fund from the State and Local
29 Sales Tax Reform Fund shall have been less than 1/12 of the
30 Annual Specified Amount, an amount equal to the difference
31 shall be immediately paid into the Build Illinois Fund from
32 other moneys received by the Department pursuant to the Tax
33 Acts; and, further provided, that in no event shall the
34 payments required under the preceding proviso result in
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1 aggregate payments into the Build Illinois Fund pursuant to
2 this clause (b) for any fiscal year in excess of the greater
3 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
4 for such fiscal year; and, further provided, that the amounts
5 payable into the Build Illinois Fund under this clause (b)
6 shall be payable only until such time as the aggregate amount
7 on deposit under each trust indenture securing Bonds issued
8 and outstanding pursuant to the Build Illinois Bond Act is
9 sufficient, taking into account any future investment income,
10 to fully provide, in accordance with such indenture, for the
11 defeasance of or the payment of the principal of, premium, if
12 any, and interest on the Bonds secured by such indenture and
13 on any Bonds expected to be issued thereafter and all fees
14 and costs payable with respect thereto, all as certified by
15 the Director of the Bureau of the Budget. If on the last
16 business day of any month in which Bonds are outstanding
17 pursuant to the Build Illinois Bond Act, the aggregate of the
18 moneys deposited in the Build Illinois Bond Account in the
19 Build Illinois Fund in such month shall be less than the
20 amount required to be transferred in such month from the
21 Build Illinois Bond Account to the Build Illinois Bond
22 Retirement and Interest Fund pursuant to Section 13 of the
23 Build Illinois Bond Act, an amount equal to such deficiency
24 shall be immediately paid from other moneys received by the
25 Department pursuant to the Tax Acts to the Build Illinois
26 Fund; provided, however, that any amounts paid to the Build
27 Illinois Fund in any fiscal year pursuant to this sentence
28 shall be deemed to constitute payments pursuant to clause (b)
29 of the preceding sentence and shall reduce the amount
30 otherwise payable for such fiscal year pursuant to clause (b)
31 of the preceding sentence. The moneys received by the
32 Department pursuant to this Act and required to be deposited
33 into the Build Illinois Fund are subject to the pledge, claim
34 and charge set forth in Section 12 of the Build Illinois Bond
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1 Act.
2 Subject to payment of amounts into the Build Illinois
3 Fund as provided in the preceding paragraph or in any
4 amendment thereto hereafter enacted, the following specified
5 monthly installment of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority provided under Section 8.25f of the
8 State Finance Act, but not in excess of the sums designated
9 as "Total Deposit", shall be deposited in the aggregate from
10 collections under Section 9 of the Use Tax Act, Section 9 of
11 the Service Use Tax Act, Section 9 of the Service Occupation
12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
13 into the McCormick Place Expansion Project Fund in the
14 specified fiscal years.
15 Fiscal Year Total Deposit
16 1993 $0
17 1994 53,000,000
18 1995 58,000,000
19 1996 61,000,000
20 1997 64,000,000
21 1998 68,000,000
22 1999 71,000,000
23 2000 75,000,000
24 2001 80,000,000
25 2002 84,000,000
26 2003 89,000,000
27 2004 93,000,000
28 2005 97,000,000
29 2006 102,000,000
30 2007 and 106,000,000
31 each fiscal year
32 thereafter that bonds
33 are outstanding under
34 Section 13.2 of the
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1 Metropolitan Pier and
2 Exposition Authority Act,
3 but not after fiscal year 2029.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year,
15 but not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Build Illinois
18 Fund and the McCormick Place Expansion Project Fund pursuant
19 to the preceding paragraphs or in any amendment thereto
20 hereafter enacted, each month the Department shall pay into
21 the Local Government Distributive Fund 0.4% of the net
22 revenue realized for the preceding month from the 5% general
23 rate or 0.4% of 80% of the net revenue realized for the
24 preceding month from the 6.25% or 4.25% general rate, as the
25 case may be, on the selling price of tangible personal
26 property which amount shall, subject to appropriation, be
27 distributed as provided in Section 2 of the State Revenue
28 Sharing Act. No payments or distributions pursuant to this
29 paragraph shall be made if the tax imposed by this Act on
30 photo processing products is declared unconstitutional, or if
31 the proceeds from such tax are unavailable for distribution
32 because of litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project Fund, and the
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1 Local Government Distributive Fund pursuant to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25% or
6 4.25% general rate, as the case may be, on the selling price
7 of tangible personal property.
8 All remaining moneys received by the Department pursuant
9 to this Act shall be paid into the General Revenue Fund of
10 the State Treasury.
11 As soon as possible after the first day of each month,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Motor Fuel Tax
15 Fund an amount equal to 1.7% of 80% of the net revenue
16 realized under this Act for the second preceding month;
17 except that this transfer shall not be made for the months
18 February through June, 1992.
19 Net revenue realized for a month shall be the revenue
20 collected by the State pursuant to this Act, less the amount
21 paid out during that month as refunds to taxpayers for
22 overpayment of liability.
23 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
24 Section 30. The Service Occupation Tax Act is amended by
25 changing Sections 3-10 and 9 as follows:
26 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
27 Sec. 3-10. Rate of tax. Unless otherwise provided in
28 this Section, the tax imposed by this Act is at the rate of
29 6.25% of the "selling price", as defined in Section 2 of the
30 Service Use Tax Act, of the tangible personal property. For
31 the purpose of computing this tax, in no event shall the
32 "selling price" be less than the cost price to the serviceman
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1 of the tangible personal property transferred. The selling
2 price of each item of tangible personal property transferred
3 as an incident of a sale of service may be shown as a
4 distinct and separate item on the serviceman's billing to the
5 service customer. If the selling price is not so shown, the
6 selling price of the tangible personal property is deemed to
7 be 50% of the serviceman's entire billing to the service
8 customer. When, however, a serviceman contracts to design,
9 develop, and produce special order machinery or equipment,
10 the tax imposed by this Act shall be based on the
11 serviceman's cost price of the tangible personal property
12 transferred incident to the completion of the contract.
13 For January 1, 2000 through December 31, 2004, the tax
14 imposed by this Act is at the rate of 4.25% of the "selling
15 price", as defined in Section 2 of the Service Use Tax Act,
16 of tangible personal property designed to promote energy
17 efficiency and deemed eligible for this rate by the
18 Department of Commerce and Community Affairs pursuant to
19 Section 6-6 of the Renewable Energy, Energy Efficiency, and
20 Coal Resources Development Law of 1997.
21 With respect to gasohol, as defined in the Use Tax Act,
22 the tax imposed by this Act shall apply to 70% of the cost
23 price of property transferred as an incident to the sale of
24 service on or after January 1, 1990, and before July 1, 2003,
25 and to 100% of the cost price thereafter.
26 At the election of any registered serviceman made for
27 each fiscal year, sales of service in which the aggregate
28 annual cost price of tangible personal property transferred
29 as an incident to the sales of service is less than 35%, or
30 75% in the case of servicemen transferring prescription drugs
31 or servicemen engaged in graphic arts production, of the
32 aggregate annual total gross receipts from all sales of
33 service, the tax imposed by this Act shall be based on the
34 serviceman's cost price of the tangible personal property
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1 transferred incident to the sale of those services.
2 The tax shall be imposed at the rate of 1% on food
3 prepared for immediate consumption and transferred incident
4 to a sale of service subject to this Act or the Service
5 Occupation Tax Act by an entity licensed under the Hospital
6 Licensing Act or the Nursing Home Care Act. The tax shall
7 also be imposed at the rate of 1% on food for human
8 consumption that is to be consumed off the premises where it
9 is sold (other than alcoholic beverages, soft drinks, and
10 food that has been prepared for immediate consumption and is
11 not otherwise included in this paragraph) and prescription
12 and nonprescription medicines, drugs, medical appliances,
13 modifications to a motor vehicle for the purpose of rendering
14 it usable by a disabled person, and insulin, urine testing
15 materials, syringes, and needles used by diabetics, for human
16 use. For the purposes of this Section, the term "soft
17 drinks" means any complete, finished, ready-to-use,
18 non-alcoholic drink, whether carbonated or not, including but
19 not limited to soda water, cola, fruit juice, vegetable
20 juice, carbonated water, and all other preparations commonly
21 known as soft drinks of whatever kind or description that are
22 contained in any closed or sealed can, carton, or container,
23 regardless of size. "Soft drinks" does not include coffee,
24 tea, non-carbonated water, infant formula, milk or milk
25 products as defined in the Grade A Pasteurized Milk and Milk
26 Products Act, or drinks containing 50% or more natural fruit
27 or vegetable juice.
28 Notwithstanding any other provisions of this Act, "food
29 for human consumption that is to be consumed off the premises
30 where it is sold" includes all food sold through a vending
31 machine, except soft drinks and food products that are
32 dispensed hot from a vending machine, regardless of the
33 location of the vending machine.
34 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
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1 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
2 6-30-98; 90-606, eff. 6-30-98.)
3 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
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 at the time when he is required to
7 file his return for the period during which such tax was
8 collectible, less a discount of 2.1% prior to January 1,
9 1990, and 1.75% on and after January 1, 1990, or $5 per
10 calendar year, whichever is greater, which is allowed to
11 reimburse the serviceman for expenses incurred in collecting
12 the tax, keeping records, preparing and filing returns,
13 remitting the tax and supplying data to the Department on
14 request.
15 Where such tangible personal property is sold under a
16 conditional sales contract, or under any other form of sale
17 wherein the payment of the principal sum, or a part thereof,
18 is extended beyond the close of the period for which the
19 return is filed, the serviceman, in collecting the tax may
20 collect, for each tax return period, only the tax applicable
21 to the part of the selling price actually received during
22 such tax return period.
23 Except as provided hereinafter in this Section, on or
24 before the twentieth day of each calendar month, such
25 serviceman shall file a return for the preceding calendar
26 month in accordance with reasonable rules and regulations to
27 be promulgated by the Department of Revenue. Such return
28 shall be filed on a form prescribed by the Department and
29 shall contain such information as the Department may
30 reasonably require.
31 The Department may require returns to be filed on a
32 quarterly basis. If so required, a return for each calendar
33 quarter shall be filed on or before the twentieth day of the
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1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in business as a serviceman in this
9 State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month, including
12 receipts from charge and time sales, but less all
13 deductions allowed by law;
14 4. The amount of credit provided in Section 2d of
15 this Act;
16 5. The amount of tax due;
17 5-5. The signature of the taxpayer; and
18 6. Such other reasonable information as the
19 Department may require.
20 If a taxpayer fails to sign a return within 30 days after
21 the proper notice and demand for signature by the Department,
22 the return shall be considered valid and any amount shown to
23 be due on the return shall be deemed assessed.
24 A serviceman may accept a Manufacturer's Purchase Credit
25 certification from a purchaser in satisfaction of Service Use
26 Tax as provided in Section 3-70 of the Service Use Tax Act if
27 the purchaser provides the appropriate documentation as
28 required by Section 3-70 of the Service Use Tax Act. A
29 Manufacturer's Purchase Credit certification, accepted by a
30 serviceman as provided in Section 3-70 of the Service Use Tax
31 Act, may be used by that serviceman to satisfy Service
32 Occupation Tax liability in the amount claimed in the
33 certification, not to exceed the applicable tax rate imposed
34 on 6.25% of the receipts subject to tax from a qualifying
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1 purchase.
2 If the serviceman's average monthly tax liability to the
3 Department does not exceed $200, the Department may authorize
4 his returns to be filed on a quarter annual basis, with the
5 return for January, February and March of a given year being
6 due by April 20 of such year; with the return for April, May
7 and June of a given year being due by July 20 of such year;
8 with the return for July, August and September of a given
9 year being due by October 20 of such year, and with the
10 return for October, November and December of a given year
11 being due by January 20 of the following year.
12 If the serviceman's average monthly tax liability to the
13 Department does not exceed $50, the Department may authorize
14 his returns to be filed on an annual basis, with the return
15 for a given year being due by January 20 of the following
16 year.
17 Such quarter annual and annual returns, as to form and
18 substance, shall be subject to the same requirements as
19 monthly returns.
20 Notwithstanding any other provision in this Act
21 concerning the time within which a serviceman may file his
22 return, in the case of any serviceman who ceases to engage in
23 a kind of business which makes him responsible for filing
24 returns under this Act, such serviceman shall file a final
25 return under this Act with the Department not more than 1
26 month after discontinuing such business.
27 Beginning October 1, 1993, a taxpayer who has an average
28 monthly tax liability of $150,000 or more shall make all
29 payments required by rules of the Department by electronic
30 funds transfer. Beginning October 1, 1994, a taxpayer who
31 has an average monthly tax liability of $100,000 or more
32 shall make all payments required by rules of the Department
33 by electronic funds transfer. Beginning October 1, 1995, a
34 taxpayer who has an average monthly tax liability of $50,000
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1 or more shall make all payments required by rules of the
2 Department by electronic funds transfer. The term "average
3 monthly tax liability" means the sum of the taxpayer's
4 liabilities under this Act, and under all other State and
5 local occupation and use tax laws administered by the
6 Department, for the immediately preceding calendar year
7 divided by 12.
8 Before August 1 of each year beginning in 1993, the
9 Department shall notify all taxpayers required to make
10 payments by electronic funds transfer. All taxpayers
11 required to make payments by electronic funds transfer shall
12 make those payments for a minimum of one year beginning on
13 October 1.
14 Any taxpayer not required to make payments by electronic
15 funds transfer may make payments by electronic funds transfer
16 with the permission of the Department.
17 All taxpayers required to make payment by electronic
18 funds transfer and any taxpayers authorized to voluntarily
19 make payments by electronic funds transfer shall make those
20 payments in the manner authorized by the Department.
21 The Department shall adopt such rules as are necessary to
22 effectuate a program of electronic funds transfer and the
23 requirements of this Section.
24 Where a serviceman collects the tax with respect to the
25 selling price of tangible personal property which he sells
26 and the purchaser thereafter returns such tangible personal
27 property and the serviceman refunds the selling price thereof
28 to the purchaser, such serviceman shall also refund, to the
29 purchaser, the tax so collected from the purchaser. When
30 filing his return for the period in which he refunds such tax
31 to the purchaser, the serviceman may deduct the amount of the
32 tax so refunded by him to the purchaser from any other
33 Service Occupation Tax, Service Use Tax, Retailers'
34 Occupation Tax or Use Tax which such serviceman may be
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1 required to pay or remit to the Department, as shown by such
2 return, provided that the amount of the tax to be deducted
3 shall previously have been remitted to the Department by such
4 serviceman. If the serviceman shall not previously have
5 remitted the amount of such tax to the Department, he shall
6 be entitled to no deduction hereunder upon refunding such tax
7 to the purchaser.
8 If experience indicates such action to be practicable,
9 the Department may prescribe and furnish a combination or
10 joint return which will enable servicemen, who are required
11 to file returns hereunder and also under the Retailers'
12 Occupation Tax Act, the Use Tax Act or the Service Use Tax
13 Act, to furnish all the return information required by all
14 said Acts on the one form.
15 Where the serviceman has more than one business
16 registered with the Department under separate registrations
17 hereunder, such serviceman shall file separate returns for
18 each registered business.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the Local Government Tax Fund the revenue
21 realized for the preceding month from the 1% tax on sales of
22 food for human consumption which is to be consumed off the
23 premises where it is sold (other than alcoholic beverages,
24 soft drinks and food which has been prepared for immediate
25 consumption) and prescription and nonprescription medicines,
26 drugs, medical appliances and insulin, urine testing
27 materials, syringes and needles used 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 revenue realized for the preceding month from the
31 6.25% general rate.
32 For January 1, 2000 through December 31, 2004, each month
33 the Department shall pay into the County and Mass Transit
34 District Fund 4% of the net revenue realized for the
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1 preceding month from the 4.25% rate on the "selling price",
2 as defined in Section 2 of the Service Use Tax Act, of
3 tangible personal property designed to promote energy
4 efficiency and deemed eligible for this rate by the
5 Department of Commerce and Community Affairs pursuant to
6 Section 6-6 of the Renewable Energy, Energy Efficiency, and
7 Coal Resources Development Law of 1997.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the Local Government Tax Fund 16% of the
10 revenue realized for the preceding month from the 6.25%
11 general rate on transfers of tangible personal property.
12 For January 1, 2000 through December 31, 2004, each month
13 the Department shall pay into the Local Government Tax Fund
14 16% of the net revenue realized for the preceding month from
15 the 4.25% rate on the "selling price", as defined in Section
16 2 of the Service Use Tax Act, of tangible personal property
17 designed to promote energy efficiency and deemed eligible for
18 this rate by the Department of Commerce and Community Affairs
19 pursuant to Section 6-6 of the Renewable Energy, Energy
20 Efficiency, and Coal Resources Development Law of 1997.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act, (a) 1.75% thereof shall be paid into
23 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
24 and on and after July 1, 1989, 3.8% thereof shall be paid
25 into the Build Illinois Fund; provided, however, that if in
26 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
27 as the case may be, of the moneys received by the Department
28 and required to be paid into the Build Illinois Fund pursuant
29 to Section 3 of the Retailers' Occupation Tax Act, Section 9
30 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
31 Section 9 of the Service Occupation Tax Act, such Acts being
32 hereinafter called the "Tax Acts" and such aggregate of 2.2%
33 or 3.8%, as the case may be, of moneys being hereinafter
34 called the "Tax Act Amount", and (2) the amount transferred
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1 to the Build Illinois Fund from the State and Local Sales Tax
2 Reform Fund shall be less than the Annual Specified Amount
3 (as defined in Section 3 of the Retailers' Occupation Tax
4 Act), an amount equal to the difference shall be immediately
5 paid into the Build Illinois Fund from other moneys received
6 by the Department pursuant to the Tax Acts; and further
7 provided, that if on the last business day of any month the
8 sum of (1) the Tax Act Amount required to be deposited into
9 the Build Illinois Account in the Build Illinois Fund during
10 such month and (2) the amount transferred during such month
11 to the Build Illinois Fund from the State and Local Sales Tax
12 Reform Fund shall have been less than 1/12 of the Annual
13 Specified Amount, an amount equal to the difference shall be
14 immediately paid into the Build Illinois Fund from other
15 moneys received by the Department pursuant to the Tax Acts;
16 and, further provided, that in no event shall the payments
17 required under the preceding proviso result in aggregate
18 payments into the Build Illinois Fund pursuant to this clause
19 (b) for any fiscal year in excess of the greater of (i) the
20 Tax Act Amount or (ii) the Annual Specified Amount for such
21 fiscal year; and, further provided, that the amounts payable
22 into the Build Illinois Fund under this clause (b) shall be
23 payable only until such time as the aggregate amount on
24 deposit under each trust indenture securing Bonds issued and
25 outstanding pursuant to the Build Illinois Bond Act is
26 sufficient, taking into account any future investment income,
27 to fully provide, in accordance with such indenture, for the
28 defeasance of or the payment of the principal of, premium, if
29 any, and interest on the Bonds secured by such indenture and
30 on any Bonds expected to be issued thereafter and all fees
31 and costs payable with respect thereto, all as certified by
32 the Director of the Bureau of the Budget. If on the last
33 business day of any month in which Bonds are outstanding
34 pursuant to the Build Illinois Bond Act, the aggregate of the
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1 moneys deposited in the Build Illinois Bond Account in the
2 Build Illinois Fund in such month shall be less than the
3 amount required to be transferred in such month from the
4 Build Illinois Bond Account to the Build Illinois Bond
5 Retirement and Interest Fund pursuant to Section 13 of the
6 Build Illinois Bond Act, an amount equal to such deficiency
7 shall be immediately paid from other moneys received by the
8 Department pursuant to the Tax Acts to the Build Illinois
9 Fund; provided, however, that any amounts paid to the Build
10 Illinois Fund in any fiscal year pursuant to this sentence
11 shall be deemed to constitute payments pursuant to clause (b)
12 of the preceding sentence and shall reduce the amount
13 otherwise payable for such fiscal year pursuant to clause (b)
14 of the preceding sentence. The moneys received by the
15 Department pursuant to this Act and required to be deposited
16 into the Build Illinois Fund are subject to the pledge, claim
17 and charge set forth in Section 12 of the Build Illinois Bond
18 Act.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in the preceding paragraph or in any
21 amendment thereto hereafter enacted, the following specified
22 monthly installment of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority provided under Section 8.25f of the
25 State Finance Act, but not in excess of the sums designated
26 as "Total Deposit", shall be deposited in the aggregate from
27 collections under Section 9 of the Use Tax Act, Section 9 of
28 the Service Use Tax Act, Section 9 of the Service Occupation
29 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
30 into the McCormick Place Expansion Project Fund in the
31 specified fiscal years.
32 Fiscal Year Total Deposit
33 1993 $0
34 1994 53,000,000
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1 1995 58,000,000
2 1996 61,000,000
3 1997 64,000,000
4 1998 68,000,000
5 1999 71,000,000
6 2000 75,000,000
7 2001 80,000,000
8 2002 84,000,000
9 2003 89,000,000
10 2004 93,000,000
11 2005 97,000,000
12 2006 102,000,000
13 2007 and 106,000,000
14 each fiscal year
15 thereafter that bonds
16 are outstanding under
17 Section 13.2 of the
18 Metropolitan Pier and
19 Exposition Authority
20 Act, but not after fiscal year 2029.
21 Beginning July 20, 1993 and in each month of each fiscal
22 year thereafter, one-eighth of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority for that fiscal year, less the amount
25 deposited into the McCormick Place Expansion Project Fund by
26 the State Treasurer in the respective month under subsection
27 (g) of Section 13 of the Metropolitan Pier and Exposition
28 Authority Act, plus cumulative deficiencies in the deposits
29 required under this Section for previous months and years,
30 shall be deposited into the McCormick Place Expansion Project
31 Fund, until the full amount requested for the fiscal year,
32 but not in excess of the amount specified above as "Total
33 Deposit", has been deposited.
34 Subject to payment of amounts into the Build Illinois
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1 Fund and the McCormick Place Expansion Project Fund pursuant
2 to the preceding paragraphs or in any amendment thereto
3 hereafter enacted, each month the Department shall pay into
4 the Local Government Distributive Fund 0.4% of the net
5 revenue realized for the preceding month from the 5% general
6 rate or 0.4% of 80% of the net revenue realized for the
7 preceding month from the 6.25% or 4.25% general rate, as the
8 case may be, on the selling price of tangible personal
9 property which amount shall, subject to appropriation, be
10 distributed as provided in Section 2 of the State Revenue
11 Sharing Act. No payments or distributions pursuant to this
12 paragraph shall be made if the tax imposed by this Act on
13 photoprocessing products is declared unconstitutional, or if
14 the proceeds from such tax are unavailable for distribution
15 because of litigation.
16 Subject to payment of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project Fund, and the
18 Local Government Distributive Fund pursuant to the preceding
19 paragraphs or in any amendments thereto hereafter enacted,
20 beginning July 1, 1993, the Department shall each month pay
21 into the Illinois Tax Increment Fund 0.27% of 80% of the net
22 revenue realized for the preceding month from the 6.25% or
23 4.25% general rate, as the case may be, on the selling price
24 of tangible personal property.
25 Remaining moneys received by the Department pursuant to
26 this Act shall be paid into the General Revenue Fund of the
27 State Treasury.
28 The Department may, upon separate written notice to a
29 taxpayer, require the taxpayer to prepare and file with the
30 Department on a form prescribed by the Department within not
31 less than 60 days after receipt of the notice an annual
32 information return for the tax year specified in the notice.
33 Such annual return to the Department shall include a
34 statement of gross receipts as shown by the taxpayer's last
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1 Federal income tax return. If the total receipts of the
2 business as reported in the Federal income tax return do not
3 agree with the gross receipts reported to the Department of
4 Revenue for the same period, the taxpayer shall attach to his
5 annual return a schedule showing a reconciliation of the 2
6 amounts and the reasons for the difference. The taxpayer's
7 annual return to the Department shall also disclose the cost
8 of goods sold by the taxpayer during the year covered by such
9 return, opening and closing inventories of such goods for
10 such year, cost of goods used from stock or taken from stock
11 and given away by the taxpayer during such year, pay roll
12 information of the taxpayer's business during such year and
13 any additional reasonable information which the Department
14 deems would be helpful in determining the accuracy of the
15 monthly, quarterly or annual returns filed by such taxpayer
16 as hereinbefore provided for in this Section.
17 If the annual information return required by this Section
18 is not filed when and as required, the taxpayer shall be
19 liable as follows:
20 (i) Until January 1, 1994, the taxpayer shall be
21 liable for a penalty equal to 1/6 of 1% of the tax due
22 from such taxpayer under this Act during the period to be
23 covered by the annual return for each month or fraction
24 of a month until such return is filed as required, the
25 penalty to be assessed and collected in the same manner
26 as any other penalty provided for in this Act.
27 (ii) On and after January 1, 1994, the taxpayer
28 shall be liable for a penalty as described in Section 3-4
29 of the Uniform Penalty and Interest Act.
30 The chief executive officer, proprietor, owner or highest
31 ranking manager shall sign the annual return to certify the
32 accuracy of the information contained therein. Any person
33 who willfully signs the annual return containing false or
34 inaccurate information shall be guilty of perjury and
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1 punished accordingly. The annual return form prescribed by
2 the Department shall include a warning that the person
3 signing the return may be liable for perjury.
4 The foregoing portion of this Section concerning the
5 filing of an annual information return shall not apply to a
6 serviceman who is not required to file an income tax return
7 with the United States Government.
8 As soon as possible after the first day of each month,
9 upon certification of the Department of Revenue, the
10 Comptroller shall order transferred and the Treasurer shall
11 transfer from the General Revenue Fund to the Motor Fuel Tax
12 Fund an amount equal to 1.7% of 80% of the net revenue
13 realized under this Act for the second preceding month;
14 except that this transfer shall not be made for the months
15 February through June, 1992.
16 Net revenue realized for a month shall be the revenue
17 collected by the State pursuant to this Act, less the amount
18 paid out during that month as refunds to taxpayers for
19 overpayment of liability.
20 For greater simplicity of administration, it shall be
21 permissible for manufacturers, importers and wholesalers
22 whose products are sold by numerous servicemen in Illinois,
23 and who wish to do so, to assume the responsibility for
24 accounting and paying to the Department all tax accruing
25 under this Act with respect to such sales, if the servicemen
26 who are affected do not make written objection to the
27 Department to this arrangement.
28 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
29 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
30 7-8-98.)
31 Section 35. The Retailers' Occupation Tax Act is amended
32 by changing Sections 2-10, 3, and 5l as follows:
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1 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
2 Sec. 2-10. Rate of tax. Unless otherwise provided in
3 this Section, the tax imposed by this Act is at the rate of
4 6.25% of gross receipts from sales of tangible personal
5 property made in the course of business.
6 For January 1, 2000 through December 31, 2004, the tax
7 imposed by this Act is at the rate of 4.25% of gross receipts
8 from sales of tangible personal property designed to promote
9 energy efficiency and deemed eligible for this rate by the
10 Department of Commerce and Community Affairs pursuant to
11 Section 6-6 of the Renewable Energy, Energy Efficiency, and
12 Coal Resources Development Law of 1997.
13 With respect to gasohol, as defined in the Use Tax Act,
14 the tax imposed by this Act applies to 70% of the proceeds of
15 sales made on or after January 1, 1990, and before July 1,
16 2003, and to 100% of the proceeds of sales made thereafter.
17 With respect to food for human consumption that is to be
18 consumed off the premises where it is sold (other than
19 alcoholic beverages, soft drinks, and food that has been
20 prepared for immediate consumption) and prescription and
21 nonprescription medicines, drugs, medical appliances,
22 modifications to a motor vehicle for the purpose of rendering
23 it usable by a disabled person, and insulin, urine testing
24 materials, syringes, and needles used by diabetics, for human
25 use, the tax is imposed at the rate of 1%. For the purposes
26 of this Section, the term "soft drinks" means any complete,
27 finished, ready-to-use, non-alcoholic drink, whether
28 carbonated or not, including but not limited to soda water,
29 cola, fruit juice, vegetable juice, carbonated water, and all
30 other preparations commonly known as soft drinks of whatever
31 kind or description that are contained in any closed or
32 sealed bottle, can, carton, or container, regardless of size.
33 "Soft drinks" does not include coffee, tea, non-carbonated
34 water, infant formula, milk or milk products as defined in
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1 the Grade A Pasteurized Milk and Milk Products Act, or drinks
2 containing 50% or more natural fruit or vegetable juice.
3 Notwithstanding any other provisions of this Act, "food
4 for human consumption that is to be consumed off the premises
5 where it is sold" includes all food sold through a vending
6 machine, except soft drinks and food products that are
7 dispensed hot from a vending machine, regardless of the
8 location of the vending machine.
9 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
10 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
11 6-30-98; 90-606, eff. 6-30-98.)
12 (35 ILCS 120/3) (from Ch. 120, par. 442)
13 Sec. 3. Except as provided in this Section, on or before
14 the twentieth day of each calendar month, every person
15 engaged in the business of selling tangible personal property
16 at retail in this State during the preceding calendar month
17 shall file a return with the Department, stating:
18 1. The name of the seller;
19 2. His residence address and the address of his
20 principal place of business and the address of the
21 principal place of business (if that is a different
22 address) from which he engages in the business of selling
23 tangible personal property at retail in this State;
24 3. Total amount of receipts received by him during
25 the preceding calendar month or quarter, as the case may
26 be, from sales of tangible personal property, and from
27 services furnished, by him during such preceding calendar
28 month or quarter;
29 4. Total amount received by him during the
30 preceding calendar month or quarter on charge and time
31 sales of tangible personal property, and from services
32 furnished, by him prior to the month or quarter for which
33 the return is filed;
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1 5. Deductions allowed by law;
2 6. Gross receipts which were received by him during
3 the preceding calendar month or quarter and upon the
4 basis of which the tax is imposed;
5 7. The amount of credit provided in Section 2d of
6 this Act;
7 8. The amount of tax due;
8 9. The signature of the taxpayer; and
9 10. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
15 Each return shall be accompanied by the statement of
16 prepaid tax issued pursuant to Section 2e for which credit is
17 claimed.
18 A retailer may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of Use Tax as
20 provided in Section 3-85 of the Use Tax Act if the purchaser
21 provides the appropriate documentation as required by Section
22 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
23 certification, accepted by a retailer as provided in Section
24 3-85 of the Use Tax Act, may be used by that retailer to
25 satisfy Retailers' Occupation Tax liability in the amount
26 claimed in the certification, not to exceed the applicable
27 tax rate imposed on 6.25% of the receipts subject to tax from
28 a qualifying purchase.
29 The Department may require returns to be filed on a
30 quarterly basis. If so required, a return for each calendar
31 quarter shall be filed on or before the twentieth day of the
32 calendar month following the end of such calendar quarter.
33 The taxpayer shall also file a return with the Department for
34 each of the first two months of each calendar quarter, on or
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1 before the twentieth day of the following calendar month,
2 stating:
3 1. The name of the seller;
4 2. The address of the principal place of business
5 from which he engages in the business of selling tangible
6 personal property at retail in this State;
7 3. The total amount of taxable receipts received by
8 him during the preceding calendar month from sales of
9 tangible personal property by him during such preceding
10 calendar month, including receipts from charge and time
11 sales, but less all deductions allowed by law;
12 4. The amount of credit provided in Section 2d of
13 this Act;
14 5. The amount of tax due; and
15 6. Such other reasonable information as the
16 Department may require.
17 If a total amount of less than $1 is payable, refundable
18 or creditable, such amount shall be disregarded if it is less
19 than 50 cents and shall be increased to $1 if it is 50 cents
20 or more.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who
25 has an average monthly tax liability of $100,000 or more
26 shall make all payments required by rules of the Department
27 by electronic funds transfer. Beginning October 1, 1995, a
28 taxpayer who has an average monthly tax liability of $50,000
29 or more shall make all payments required by rules of the
30 Department by electronic funds transfer. The term "average
31 monthly tax liability" shall be the sum of the taxpayer's
32 liabilities under this Act, and under all other State and
33 local occupation and use tax laws administered by the
34 Department, for the immediately preceding calendar year
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1 divided by 12.
2 Before August 1 of each year beginning in 1993, the
3 Department shall notify all taxpayers required to make
4 payments by electronic funds transfer. All taxpayers
5 required to make payments by electronic funds transfer shall
6 make those payments for a minimum of one year beginning on
7 October 1.
8 Any taxpayer not required to make payments by electronic
9 funds transfer may make payments by electronic funds transfer
10 with the permission of the Department.
11 All taxpayers required to make payment by electronic
12 funds transfer and any taxpayers authorized to voluntarily
13 make payments by electronic funds transfer shall make those
14 payments in the manner authorized by the Department.
15 The Department shall adopt such rules as are necessary to
16 effectuate a program of electronic funds transfer and the
17 requirements of this Section.
18 Any amount which is required to be shown or reported on
19 any return or other document under this Act shall, if such
20 amount is not a whole-dollar amount, be increased to the
21 nearest whole-dollar amount in any case where the fractional
22 part of a dollar is 50 cents or more, and decreased to the
23 nearest whole-dollar amount where the fractional part of a
24 dollar is less than 50 cents.
25 If the retailer is otherwise required to file a monthly
26 return and if the retailer's average monthly tax liability to
27 the Department does not exceed $200, the Department may
28 authorize his returns to be filed on a quarter annual basis,
29 with the return for January, February and March of a given
30 year being due by April 20 of such year; with the return for
31 April, May and June of a given year being due by July 20 of
32 such year; with the return for July, August and September of
33 a given year being due by October 20 of such year, and with
34 the return for October, November and December of a given year
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1 being due by January 20 of the following year.
2 If the retailer is otherwise required to file a monthly
3 or quarterly return and if the retailer's average monthly tax
4 liability with the Department does not exceed $50, the
5 Department may authorize his returns to be filed on an annual
6 basis, with the return for a given year being due by January
7 20 of the following year.
8 Such quarter annual and annual returns, as to form and
9 substance, shall be subject to the same requirements as
10 monthly returns.
11 Notwithstanding any other provision in this Act
12 concerning the time within which a retailer may file his
13 return, in the case of any retailer who ceases to engage in a
14 kind of business which makes him responsible for filing
15 returns under this Act, such retailer shall file a final
16 return under this Act with the Department not more than one
17 month after discontinuing such business.
18 Where the same person has more than one business
19 registered with the Department under separate registrations
20 under this Act, such person may not file each return that is
21 due as a single return covering all such registered
22 businesses, but shall file separate returns for each such
23 registered business.
24 In addition, with respect to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, every retailer selling this
27 kind of tangible personal property shall file, with the
28 Department, upon a form to be prescribed and supplied by the
29 Department, a separate return for each such item of tangible
30 personal property which the retailer sells, except that
31 where, in the same transaction, a retailer of aircraft,
32 watercraft, motor vehicles or trailers transfers more than
33 one aircraft, watercraft, motor vehicle or trailer to another
34 aircraft, watercraft, motor vehicle retailer or trailer
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1 retailer for the purpose of resale, that seller for resale
2 may report the transfer of all aircraft, watercraft, motor
3 vehicles or trailers involved in that transaction to the
4 Department on the same uniform invoice-transaction reporting
5 return form. For purposes of this Section, "watercraft"
6 means a Class 2, Class 3, or Class 4 watercraft as defined in
7 Section 3-2 of the Boat Registration and Safety Act, a
8 personal watercraft, or any boat equipped with an inboard
9 motor.
10 Any retailer who sells only motor vehicles, watercraft,
11 aircraft, or trailers that are required to be registered with
12 an agency of this State, so that all retailers' occupation
13 tax liability is required to be reported, and is reported, on
14 such transaction reporting returns and who is not otherwise
15 required to file monthly or quarterly returns, need not file
16 monthly or quarterly returns. However, those retailers shall
17 be required to file returns on an annual basis.
18 The transaction reporting return, in the case of motor
19 vehicles or trailers that are required to be registered with
20 an agency of this State, shall be the same document as the
21 Uniform Invoice referred to in Section 5-402 of The Illinois
22 Vehicle Code and must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 1 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale; a sufficient identification of
2 the property sold; such other information as is required in
3 Section 5-402 of The Illinois Vehicle Code, and such other
4 information as the Department may reasonably require.
5 The transaction reporting return in the case of
6 watercraft or aircraft must show the name and address of the
7 seller; the name and address of the purchaser; the amount of
8 the selling price including the amount allowed by the
9 retailer for traded-in property, if any; the amount allowed
10 by the retailer for the traded-in tangible personal property,
11 if any, to the extent to which Section 1 of this Act allows
12 an exemption for the value of traded-in property; the balance
13 payable after deducting such trade-in allowance from the
14 total selling price; the amount of tax due from the retailer
15 with respect to such transaction; the amount of tax collected
16 from the purchaser by the retailer on such transaction (or
17 satisfactory evidence that such tax is not due in that
18 particular instance, if that is claimed to be the fact); the
19 place and date of the sale, a sufficient identification of
20 the property sold, and such other information as the
21 Department may reasonably require.
22 Such transaction reporting return shall be filed not
23 later than 20 days after the day of delivery of the item that
24 is being sold, but may be filed by the retailer at any time
25 sooner than that if he chooses to do so. The transaction
26 reporting return and tax remittance or proof of exemption
27 from the Illinois use tax may be transmitted to the
28 Department by way of the State agency with which, or State
29 officer with whom the tangible personal property must be
30 titled or registered (if titling or registration is required)
31 if the Department and such agency or State officer determine
32 that this procedure will expedite the processing of
33 applications for title or registration.
34 With each such transaction reporting return, the retailer
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1 shall remit the proper amount of tax due (or shall submit
2 satisfactory evidence that the sale is not taxable if that is
3 the case), to the Department or its agents, whereupon the
4 Department shall issue, in the purchaser's name, a use tax
5 receipt (or a certificate of exemption if the Department is
6 satisfied that the particular sale is tax exempt) which such
7 purchaser may submit to the agency with which, or State
8 officer with whom, he must title or register the tangible
9 personal property that is involved (if titling or
10 registration is required) in support of such purchaser's
11 application for an Illinois certificate or other evidence of
12 title or registration to such tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14 Act precludes a user, who has paid the proper tax to the
15 retailer, from obtaining his certificate of title or other
16 evidence of title or registration (if titling or registration
17 is required) upon satisfying the Department that such user
18 has paid the proper tax (if tax is due) to the retailer. The
19 Department shall adopt appropriate rules to carry out the
20 mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22 wants the transaction reporting return filed and the payment
23 of the tax or proof of exemption made to the Department
24 before the retailer is willing to take these actions and such
25 user has not paid the tax to the retailer, such user may
26 certify to the fact of such delay by the retailer and may
27 (upon the Department being satisfied of the truth of such
28 certification) transmit the information required by the
29 transaction reporting return and the remittance for tax or
30 proof of exemption directly to the Department and obtain his
31 tax receipt or exemption determination, in which event the
32 transaction reporting return and tax remittance (if a tax
33 payment was required) shall be credited by the Department to
34 the proper retailer's account with the Department, but
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1 without the 2.1% or 1.75% discount provided for in this
2 Section being allowed. When the user pays the tax directly
3 to the Department, he shall pay the tax in the same amount
4 and in the same form in which it would be remitted if the tax
5 had been remitted to the Department by the retailer.
6 Refunds made by the seller during the preceding return
7 period to purchasers, on account of tangible personal
8 property returned to the seller, shall be allowed as a
9 deduction under subdivision 5 of his monthly or quarterly
10 return, as the case may be, in case the seller had
11 theretofore included the receipts from the sale of such
12 tangible personal property in a return filed by him and had
13 paid the tax imposed by this Act with respect to such
14 receipts.
15 Where the seller is a corporation, the return filed on
16 behalf of such corporation shall be signed by the president,
17 vice-president, secretary or treasurer or by the properly
18 accredited agent of such corporation.
19 Where the seller is a limited liability company, the
20 return filed on behalf of the limited liability company shall
21 be signed by a manager, member, or properly accredited agent
22 of the limited liability company.
23 Except as provided in this Section, the retailer filing
24 the return under this Section shall, at the time of filing
25 such return, pay to the Department the amount of tax imposed
26 by this Act less a discount of 2.1% prior to January 1, 1990
27 and 1.75% on and after January 1, 1990, or $5 per calendar
28 year, whichever is greater, which is allowed to reimburse the
29 retailer for the expenses incurred in keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. Any prepayment made
32 pursuant to Section 2d of this Act shall be included in the
33 amount on which such 2.1% or 1.75% discount is computed. In
34 the case of retailers who report and pay the tax on a
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1 transaction by transaction basis, as provided in this
2 Section, such discount shall be taken with each such tax
3 remittance instead of when such retailer files his periodic
4 return.
5 If the taxpayer's average monthly tax liability to the
6 Department under this Act, the Use Tax Act, the Service
7 Occupation Tax Act, and the Service Use Tax Act, excluding
8 any liability for prepaid sales tax to be remitted in
9 accordance with Section 2d of this Act, was $10,000 or more
10 during the preceding 4 complete calendar quarters, he shall
11 file a return with the Department each month by the 20th day
12 of the month next following the month during which such tax
13 liability is incurred and shall make payments to the
14 Department on or before the 7th, 15th, 22nd and last day of
15 the month during which such liability is incurred. If the
16 month during which such tax liability is incurred began prior
17 to January 1, 1985, each payment shall be in an amount equal
18 to 1/4 of the taxpayer's actual liability for the month or an
19 amount set by the Department not to exceed 1/4 of the average
20 monthly liability of the taxpayer to the Department for the
21 preceding 4 complete calendar quarters (excluding the month
22 of highest liability and the month of lowest liability in
23 such 4 quarter period). If the month during which such tax
24 liability is incurred begins on or after January 1, 1985 and
25 prior to January 1, 1987, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 27.5% of the taxpayer's liability for the same
28 calendar month of the preceding year. If the month during
29 which such tax liability is incurred begins on or after
30 January 1, 1987 and prior to January 1, 1988, each payment
31 shall be in an amount equal to 22.5% of the taxpayer's actual
32 liability for the month or 26.25% of the taxpayer's liability
33 for the same calendar month of the preceding year. If the
34 month during which such tax liability is incurred begins on
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1 or after January 1, 1988, and prior to January 1, 1989, or
2 begins on or after January 1, 1996, each payment shall be in
3 an amount equal to 22.5% of the taxpayer's actual liability
4 for the month or 25% of the taxpayer's liability for the same
5 calendar month of the preceding year. If the month during
6 which such tax liability is incurred begins on or after
7 January 1, 1989, and prior to January 1, 1996, each payment
8 shall be in an amount equal to 22.5% of the taxpayer's actual
9 liability for the month or 25% of the taxpayer's liability
10 for the same calendar month of the preceding year or 100% of
11 the taxpayer's actual liability for the quarter monthly
12 reporting period. The amount of such quarter monthly
13 payments shall be credited against the final tax liability of
14 the taxpayer's return for that month. Once applicable, the
15 requirement of the making of quarter monthly payments to the
16 Department by taxpayers having an average monthly tax
17 liability of $10,000 or more as determined in the manner
18 provided above shall continue until such taxpayer's average
19 monthly liability to the Department during the preceding 4
20 complete calendar quarters (excluding the month of highest
21 liability and the month of lowest liability) is less than
22 $9,000, or until such taxpayer's average monthly liability to
23 the Department as computed for each calendar quarter of the 4
24 preceding complete calendar quarter period is less than
25 $10,000. However, if a taxpayer can show the Department that
26 a substantial change in the taxpayer's business has occurred
27 which causes the taxpayer to anticipate that his average
28 monthly tax liability for the reasonably foreseeable future
29 will fall below $10,000, then such taxpayer may petition the
30 Department for a change in such taxpayer's reporting status.
31 The Department shall change such taxpayer's reporting status
32 unless it finds that such change is seasonal in nature and
33 not likely to be long term. If any such quarter monthly
34 payment is not paid at the time or in the amount required by
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1 this Section, then the taxpayer shall be liable for penalties
2 and interest on the difference between the minimum amount due
3 as a payment and the amount of such quarter monthly payment
4 actually and timely paid, except insofar as the taxpayer has
5 previously made payments for that month to the Department in
6 excess of the minimum payments previously due as provided in
7 this Section. The Department shall make reasonable rules and
8 regulations to govern the quarter monthly payment amount and
9 quarter monthly payment dates for taxpayers who file on other
10 than a calendar monthly basis.
11 Without regard to whether a taxpayer is required to make
12 quarter monthly payments as specified above, any taxpayer who
13 is required by Section 2d of this Act to collect and remit
14 prepaid taxes and has collected prepaid taxes which average
15 in excess of $25,000 per month during the preceding 2
16 complete calendar quarters, shall file a return with the
17 Department as required by Section 2f and shall make payments
18 to the Department on or before the 7th, 15th, 22nd and last
19 day of the month during which such liability is incurred. If
20 the month during which such tax liability is incurred began
21 prior to the effective date of this amendatory Act of 1985,
22 each payment shall be in an amount not less than 22.5% of the
23 taxpayer's actual liability under Section 2d. If the month
24 during which such tax liability is incurred begins on or
25 after January 1, 1986, each payment shall be in an amount
26 equal to 22.5% of the taxpayer's actual liability for the
27 month or 27.5% of the taxpayer's liability for the same
28 calendar month of the preceding calendar year. If the month
29 during which such tax liability is incurred begins on or
30 after January 1, 1987, each payment shall be in an amount
31 equal to 22.5% of the taxpayer's actual liability for the
32 month or 26.25% of the taxpayer's liability for the same
33 calendar month of the preceding year. The amount of such
34 quarter monthly payments shall be credited against the final
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1 tax liability of the taxpayer's return for that month filed
2 under this Section or Section 2f, as the case may be. Once
3 applicable, the requirement of the making of quarter monthly
4 payments to the Department pursuant to this paragraph shall
5 continue until such taxpayer's average monthly prepaid tax
6 collections during the preceding 2 complete calendar quarters
7 is $25,000 or less. If any such quarter monthly payment is
8 not paid at the time or in the amount required, the taxpayer
9 shall be liable for penalties and interest on such
10 difference, except insofar as the taxpayer has previously
11 made payments for that month in excess of the minimum
12 payments previously due.
13 If any payment provided for in this Section exceeds the
14 taxpayer's liabilities under this Act, the Use Tax Act, the
15 Service Occupation Tax Act and the Service Use Tax Act, as
16 shown on an original monthly return, the Department shall, if
17 requested by the taxpayer, issue to the taxpayer a credit
18 memorandum no later than 30 days after the date of payment.
19 The credit evidenced by such credit memorandum may be
20 assigned by the taxpayer to a similar taxpayer under this
21 Act, the Use Tax Act, the Service Occupation Tax Act or the
22 Service Use Tax Act, in accordance with reasonable rules and
23 regulations to be prescribed by the Department. If no such
24 request is made, the taxpayer may credit such excess payment
25 against tax liability subsequently to be remitted to the
26 Department under this Act, the Use Tax Act, the Service
27 Occupation Tax Act or the Service Use Tax Act, in accordance
28 with reasonable rules and regulations prescribed by the
29 Department. If the Department subsequently determined that
30 all or any part of the credit taken was not actually due to
31 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
32 shall be reduced by 2.1% or 1.75% of the difference between
33 the credit taken and that actually due, and that taxpayer
34 shall be liable for penalties and interest on such
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1 difference.
2 If a retailer of motor fuel is entitled to a credit under
3 Section 2d of this Act which exceeds the taxpayer's liability
4 to the Department under this Act for the month which the
5 taxpayer is filing a return, the Department shall issue the
6 taxpayer a credit memorandum for the excess.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the Local Government Tax Fund, a special fund
9 in the State treasury which is hereby created, the net
10 revenue realized for the preceding month from the 1% tax on
11 sales of food for human consumption which is to be consumed
12 off the premises where it is sold (other than alcoholic
13 beverages, soft drinks and food which has been prepared for
14 immediate consumption) and prescription and nonprescription
15 medicines, drugs, medical appliances and insulin, urine
16 testing materials, syringes and needles used by diabetics.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the County and Mass Transit District Fund, a
19 special fund in the State treasury which is hereby created,
20 4% of the net revenue realized for the preceding month from
21 the 6.25% general rate.
22 For January 1, 2000 through December 31, 2004, each month
23 the Department shall pay into the County and Mass Transit
24 District Fund 4% of the net revenue realized for the
25 preceding month from the 4.25% rate on the gross receipts
26 from sales of tangible personal property designed to promote
27 energy efficiency and deemed eligible for this rate by the
28 Department of Commerce and Community Affairs pursuant to
29 Section 6-6 of the Renewable Energy, Energy Efficiency, and
30 Coal Resources Development Law of 1997.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
33 revenue realized for the preceding month from the 6.25%
34 general rate on the selling price of tangible personal
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1 property.
2 For January 1, 2000 through December 31, 2004, each month
3 the Department shall pay into the Local Government Tax Fund
4 16% of the net revenue realized for the preceding month from
5 the 4.25% rate on the gross receipts from sales of tangible
6 personal property designed to promote energy efficiency and
7 deemed eligible for this rate by the Department of Commerce
8 and Community Affairs pursuant to Section 6-6 of the
9 Renewable Energy, Energy Efficiency, and Coal Resources
10 Development Law of 1997.
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 and 106,000,000
18 each fiscal year
19 thereafter that bonds
20 are outstanding under
21 Section 13.2 of the
22 Metropolitan Pier and
23 Exposition Authority
24 Act, but not after fiscal year 2029.
25 Beginning July 20, 1993 and in each month of each fiscal
26 year thereafter, one-eighth of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority for that fiscal year, less the amount
29 deposited into the McCormick Place Expansion Project Fund by
30 the State Treasurer in the respective month under subsection
31 (g) of Section 13 of the Metropolitan Pier and Exposition
32 Authority Act, plus cumulative deficiencies in the deposits
33 required under this Section for previous months and years,
34 shall be deposited into the McCormick Place Expansion Project
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1 Fund, until the full amount requested for the fiscal year,
2 but not in excess of the amount specified above as "Total
3 Deposit", has been deposited.
4 Subject to payment of amounts into the Build Illinois
5 Fund and the McCormick Place Expansion Project Fund pursuant
6 to the preceding paragraphs or in any amendment thereto
7 hereafter enacted, each month the Department shall pay into
8 the Local Government Distributive Fund 0.4% of the net
9 revenue realized for the preceding month from the 5% general
10 rate or 0.4% of 80% of the net revenue realized for the
11 preceding month from the 6.25% or 4.25% general rate, as the
12 case may be, on the selling price of tangible personal
13 property which amount shall, subject to appropriation, be
14 distributed as provided in Section 2 of the State Revenue
15 Sharing Act. No payments or distributions pursuant to this
16 paragraph shall be made if the tax imposed by this Act on
17 photoprocessing products is declared unconstitutional, or if
18 the proceeds from such tax are unavailable for distribution
19 because of litigation.
20 Subject to payment of amounts into the Build Illinois
21 Fund, the McCormick Place Expansion Project to the preceding
22 paragraphs or in any amendments thereto hereafter enacted,
23 beginning July 1, 1993, the Department shall each month pay
24 into the Illinois Tax Increment Fund 0.27% of 80% of the net
25 revenue realized for the preceding month from the 6.25% or
26 4.25% general rate, as the case may be, on the selling price
27 of tangible personal property.
28 Of the remainder of the moneys received by the Department
29 pursuant to this Act, 75% thereof shall be paid into the
30 State Treasury and 25% shall be reserved in a special account
31 and used only for the transfer to the Common School Fund as
32 part of the monthly transfer from the General Revenue Fund in
33 accordance with Section 8a of the State Finance Act.
34 The Department may, upon separate written notice to a
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1 taxpayer, require the taxpayer to prepare and file with the
2 Department on a form prescribed by the Department within not
3 less than 60 days after receipt of the notice an annual
4 information return for the tax year specified in the notice.
5 Such annual return to the Department shall include a
6 statement of gross receipts as shown by the retailer's last
7 Federal income tax return. If the total receipts of the
8 business as reported in the Federal income tax return do not
9 agree with the gross receipts reported to the Department of
10 Revenue for the same period, the retailer shall attach to his
11 annual return a schedule showing a reconciliation of the 2
12 amounts and the reasons for the difference. The retailer's
13 annual return to the Department shall also disclose the cost
14 of goods sold by the retailer during the year covered by such
15 return, opening and closing inventories of such goods for
16 such year, costs of goods used from stock or taken from stock
17 and given away by the retailer during such year, payroll
18 information of the retailer's business during such year and
19 any additional reasonable information which the Department
20 deems would be helpful in determining the accuracy of the
21 monthly, quarterly or annual returns filed by such retailer
22 as provided for in this Section.
23 If the annual information return required by this Section
24 is not filed when and as required, the taxpayer shall be
25 liable as follows:
26 (i) Until January 1, 1994, the taxpayer shall be
27 liable for a penalty equal to 1/6 of 1% of the tax due
28 from such taxpayer under this Act during the period to be
29 covered by the annual return for each month or fraction
30 of a month until such return is filed as required, the
31 penalty to be assessed and collected in the same manner
32 as any other penalty provided for in this Act.
33 (ii) On and after January 1, 1994, the taxpayer
34 shall be liable for a penalty as described in Section 3-4
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1 of the Uniform Penalty and Interest Act.
2 The chief executive officer, proprietor, owner or highest
3 ranking manager shall sign the annual return to certify the
4 accuracy of the information contained therein. Any person
5 who willfully signs the annual return containing false or
6 inaccurate information shall be guilty of perjury and
7 punished accordingly. The annual return form prescribed by
8 the Department shall include a warning that the person
9 signing the return may be liable for perjury.
10 The provisions of this Section concerning the filing of
11 an annual information return do not apply to a retailer who
12 is not required to file an income tax return with the United
13 States Government.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Act for the second preceding month;
20 except that this transfer shall not be made for the months
21 February through June, 1992.
22 Net revenue realized for a month shall be the revenue
23 collected by the State pursuant to this Act, less the amount
24 paid out during that month as refunds to taxpayers for
25 overpayment of liability.
26 For greater simplicity of administration, manufacturers,
27 importers and wholesalers whose products are sold at retail
28 in Illinois by numerous retailers, and who wish to do so, may
29 assume the responsibility for accounting and paying to the
30 Department all tax accruing under this Act with respect to
31 such sales, if the retailers who are affected do not make
32 written objection to the Department to this arrangement.
33 Any person who promotes, organizes, provides retail
34 selling space for concessionaires or other types of sellers
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1 at the Illinois State Fair, DuQuoin State Fair, county fairs,
2 local fairs, art shows, flea markets and similar exhibitions
3 or events, including any transient merchant as defined by
4 Section 2 of the Transient Merchant Act of 1987, is required
5 to file a report with the Department providing the name of
6 the merchant's business, the name of the person or persons
7 engaged in merchant's business, the permanent address and
8 Illinois Retailers Occupation Tax Registration Number of the
9 merchant, the dates and location of the event and other
10 reasonable information that the Department may require. The
11 report must be filed not later than the 20th day of the month
12 next following the month during which the event with retail
13 sales was held. Any person who fails to file a report
14 required by this Section commits a business offense and is
15 subject to a fine not to exceed $250.
16 Any person engaged in the business of selling tangible
17 personal property at retail as a concessionaire or other type
18 of seller at the Illinois State Fair, county fairs, art
19 shows, flea markets and similar exhibitions or events, or any
20 transient merchants, as defined by Section 2 of the Transient
21 Merchant Act of 1987, may be required to make a daily report
22 of the amount of such sales to the Department and to make a
23 daily payment of the full amount of tax due. The Department
24 shall impose this requirement when it finds that there is a
25 significant risk of loss of revenue to the State at such an
26 exhibition or event. Such a finding shall be based on
27 evidence that a substantial number of concessionaires or
28 other sellers who are not residents of Illinois will be
29 engaging in the business of selling tangible personal
30 property at retail at the exhibition or event, or other
31 evidence of a significant risk of loss of revenue to the
32 State. The Department shall notify concessionaires and other
33 sellers affected by the imposition of this requirement. In
34 the absence of notification by the Department, the
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1 concessionaires and other sellers shall file their returns as
2 otherwise required in this Section.
3 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
4 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
5 1-1-99; 90-612, eff. 7-8-98.)
6 (35 ILCS 120/5l) (from Ch. 120, par. 444l)
7 Sec. 5l. High Impact Business location; building
8 materials. Beginning January 1, 1995, each retailer who makes
9 a sale of building materials that will be incorporated into a
10 High Impact Business location as designated by the Department
11 of Commerce and Community Affairs under Section 5.5 of the
12 Illinois Enterprise Zone Act may deduct receipts from such
13 sales when calculating only the 6.25% or 4.25% State rate of
14 tax, as applicable, imposed by this Act. Beginning on the
15 effective date of this amendatory Act of 1995, a retailer may
16 also deduct receipts from such sales when calculating any
17 applicable local taxes. However, until the effective date of
18 this amendatory Act of 1995, a retailer may file claims for
19 credit or refund to recover the amount of any applicable
20 local tax paid on such sales. No retailer who is eligible for
21 the deduction or credit under Section 5k of this Act for
22 making a sale of building materials to be incorporated into
23 real estate in an enterprise zone by rehabilitation,
24 remodeling or new construction shall be eligible for the
25 deduction or credit authorized under this Section.
26 (Source: P.A. 89-89, eff. 6-30-95.)
27 Section 90. The State Mandates Act is amended by adding
28 Section 8.23 as follows:
29 (30 ILCS 805/8.23 new)
30 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
31 and 8 of this Act, no reimbursement by the State is required
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1 for the implementation of any mandate created by this
2 amendatory Act of the 91st General Assembly.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.