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91_SB0666eng SB666 Engrossed LRB9104001PTpk 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Qualified Technological Equipment Leasing Occupation and Use 6 Tax Act. 7 Section 5. Definitions. As used in this Act, the 8 following terms have the following meanings: 9 "Computer" means a programmable electronically activated 10 device that: 11 (a) is capable of accepting information, applying 12 prescribed processes as to the information, and supplying the 13 results of these processes with or without human 14 intervention, and 15 (b) consists of a central processing unit containing 16 extensive storage, logic, arithmetic, and control 17 capabilities. 18 "Computer or peripheral equipment" means: 19 (a) any computer, and 20 (b) any related peripheral equipment, however 21 (c) the term "computer or peripheral equipment" does not 22 include: 23 (i) any equipment that is an integral part of other 24 property that is not a computer, 25 (ii) typewriters, calculators, adding and 26 accounting machines, copiers, duplicating equipment, and 27 similar equipment, and 28 (iii) equipment of a kind used primarily for 29 amusement or entertainment of the user. 30 "Department" means the Department of Revenue. 31 "High technology medical equipment" means any electronic, SB666 Engrossed -2- LRB9104001PTpk 1 electromechanical, or computer-based high technology 2 equipment used in the screening, monitoring, observation, 3 diagnosis, or treatment of patients in a laboratory, medical, 4 or hospital environment. 5 "Person" means any natural individual, limited liability 6 company, firm, partnership, association, joint stock company, 7 joint venture, public or private corporation, or a receiver, 8 executor, trustee, conservator, or other representatives 9 appointed by order of any court. 10 "Leasing" means any transfer of the possession or right 11 to possession of qualified technological equipment to a user 12 for valuable consideration, for the purpose of use and not 13 for the purpose of re-lease or sublease. 14 "Lessor" means any person engaged in the business of 15 leasing qualified technological equipment to users. For this 16 purpose, the objective of making a profit is not necessary to 17 make the leasing activity a business. 18 "Lessee" means any user to whom the possession, or the 19 right to possession, of qualified technological equipment is 20 transferred for a valuable consideration that is paid by such 21 "lessee" or by someone else. 22 "Gross receipts" means the total leasing price for the 23 lease of qualified technological equipment. In the case of 24 lease transactions in which the consideration is paid to the 25 lessor on an installment basis, the amounts of such payments 26 shall be included by the lessor in gross receipts only as and 27 when payments are received by the lessor. 28 "Leasing price" means the consideration for leasing 29 qualified technological equipment valued in money, whether 30 received in money or otherwise, including cash, credits, 31 property, and services, and shall be determined without any 32 deduction on account of the cost of the property leased, the 33 cost of materials used, labor or service cost, or any other 34 expense whatsoever, but does not include charges that are SB666 Engrossed -3- LRB9104001PTpk 1 added by lessors on account of the lessor's tax liability 2 under this Act, or on account of the lessor's duty to 3 collect, from the lessee, the tax that is imposed by Section 4 20 of this Act. 5 "Maintaining a place of business in this State" means 6 having or maintaining within this State, directly or by a 7 subsidiary, an office, repair facilities, distribution house, 8 sales house, warehouse, or other place of business, or any 9 agent, or other representative, operating within this State, 10 irrespective of whether the place of business or agent or 11 other representative is located here permanently or 12 temporarily. 13 "Qualified technological equipment" for purposes of this 14 Act means the following: 15 (a) any computer or peripheral equipment, provided that 16 computers owned by, used by, leased by, or leased to a 17 telecommunications company are not subject to this Act; and 18 (b) any high technology medical equipment. 19 "Related peripheral equipment" means any auxiliary 20 machine (whether on-line or off-line) that is designed to be 21 placed under the control of the central processing unit of a 22 computer. 23 "Telecommunications company" means any entity, whether a 24 corporation, limited liability company, or partnership, that 25 is treated as a telecommunications company by the Federal 26 Communications Commission and under this treatment is subject 27 to the jurisdiction of the Federal Communications Commission 28 under the federal Telecommunications Act of 1996, 47 U.S.C. 29 151 et seq. 30 Section 10. Imposition of occupation tax. Beginning with 31 leases for periods of one year or more entered into on and 32 after July 1, 1999, a tax is imposed upon persons engaged in 33 this State in the business of leasing qualified technological SB666 Engrossed -4- LRB9104001PTpk 1 equipment in Illinois at the rate of 8.25% of the gross 2 receipts received from the business. 3 The Department shall have full power to administer and 4 enforce this Section, to collect all taxes and penalties due 5 hereunder, to dispose of taxes and penalties so collected in 6 the manner hereinafter provided, and to determine all rights 7 to credit memoranda, arising on account of the erroneous 8 payment of tax or penalty hereunder. In the administration 9 of, and compliance with, this Section, the Department and 10 persons who are subject to this Section shall have the same 11 rights, remedies, privileges, immunities, powers and duties, 12 and be subject to the same conditions, restrictions, 13 limitations, penalties, and definitions of terms, and employ 14 the same modes of procedure, as are prescribed in Sections 1, 15 la, 2 through 2-65 (except as to the rate of tax), 2a, 2b, 16 2c, 3 (except provisions relating to transaction returns and 17 quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 18 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the 19 Retailers' Occupation Tax Act that are not inconsistent with 20 this Act and all Sections of the Uniform Penalty and Interest 21 Act as fully as if those provisions were set forth herein. 22 For purposes of this Section, references in such incorporated 23 Sections of the Retailers' Occupation Tax Act to retailers, 24 sellers, or persons engaged in the business of selling 25 tangible personal property means persons engaged in the 26 leasing of qualified technological equipment under leases 27 subject to this Act. 28 Each month the Department shall pay into the Local 29 Government Distributive Fund 20% of the net revenue realized 30 for the preceding month from the 8.25% tax imposed in this 31 Section. These amounts shall be distributed in the manner 32 provided in Section 2 of the State Revenue Sharing Act. The 33 remaining 80% of the revenue shall be paid as provided for in 34 Section 3 of the Retailers' Occupation Tax Act. SB666 Engrossed -5- LRB9104001PTpk 1 Section 15. Registration. Every person engaged in this 2 State in the business of leasing qualified technological 3 equipment shall apply to the Department (upon a form 4 prescribed and furnished by the Department) for a certificate 5 of registration under this Act. The certificate of 6 registration that is issued by the Department to a retailer 7 under the Retailers' Occupation Tax Act shall permit the 8 lessor to engage in a business that is taxable under this 9 Section without registering separately with the Department. 10 Section 20. Imposition of use tax. Beginning with leases 11 for periods of one year or more entered into on and after 12 July 1, 1999, a tax is imposed upon the privilege of using in 13 this State qualified technological equipment that is leased 14 from a lessor. The tax is at the rate of 8.25% of the leasing 15 price of the qualified technological equipment paid to the 16 lessor under any lease agreement. 17 The Department shall have full power to administer and 18 enforce this Section; to collect all taxes, penalties, and 19 interest due hereunder; to dispose of taxes, penalties, and 20 interest so collected in the manner hereinafter provided; and 21 to determine all rights to credit memoranda or refunds 22 arising on account of the erroneous payment of tax, penalty, 23 or interest hereunder. In the administration of, and 24 compliance with, this Section, the Department and persons who 25 are subject to this Section shall have the same rights, 26 remedies, privileges, immunities, powers, and duties, and be 27 subject to the same conditions, restrictions, limitations, 28 penalties, and definitions of terms, and employ the same 29 modes of procedure, as are prescribed in Sections 2, 3 30 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9 31 (except provisions relating to transaction returns and 32 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 33 19, 20, 21 and 22 of the Use Tax Act that are not SB666 Engrossed -6- LRB9104001PTpk 1 inconsistent with this Act as fully as if those provisions 2 were set forth herein. For purposes of this Section, 3 references in such incorporated Sections of the Use Tax Act 4 to users or purchasers means lessees of qualified 5 technological equipment under leases subject to this Act. 6 Each month the Department shall pay into the Local 7 Government Distributive Fund 20% of the net revenue realized 8 for the preceding month from the 8.25% tax imposed in this 9 Section. These amounts shall be distributed in the manner 10 provided in Section 2 of the State Revenue Sharing Act. The 11 remaining 80% of the revenue shall be paid as provided for in 12 Section 9 of the Use Tax Act. 13 Section 25. Exemption due to prior taxation. The taxes 14 imposed under Sections 10 and 20 of this Act do not apply to 15 leases of qualified technological equipment as defined in 16 this Act if the lessor had properly paid, prior to July 1, 17 1999, Illinois use tax or service use tax to a retailer or 18 directly to the Department on the purchase or use of such 19 leased property. 20 Section 30. Use tax collected. The use tax imposed by 21 Section 20 shall be collected from the lessee and remitted to 22 the Department by a lessor maintaining a place of business in 23 this State. 24 The use tax imposed by Section 20 and not paid to a 25 lessor pursuant to the preceding paragraph of this Section 26 shall be paid to the Department directly by any person using 27 the leased qualified technological equipment within this 28 State. 29 Lessors shall collect the tax from lessees by adding the 30 tax to the leasing price of the qualified technological 31 equipment in the manner prescribed by the Department. The 32 Department shall have the power to adopt and promulgate SB666 Engrossed -7- LRB9104001PTpk 1 reasonable rules and regulations for the adding of the tax by 2 lessors to leasing prices by prescribing bracket systems for 3 the purpose of enabling the lessors to add and collect, as 4 far as practicable, the amount of the tax. 5 The tax imposed by this Act shall, when collected, be 6 stated as a distinct item on the customer's bill, separate 7 and apart from the leasing price of the qualified 8 technological equipment. 9 Section 35. Severability clause. If any clause, sentence, 10 Section, provision, or part thereof of this Act or the 11 application thereof to any person or circumstance shall be 12 adjudged to be unconstitutional, the remainder of this Act or 13 its application to persons or circumstances other than those 14 to which it is held invalid, shall not be affected thereby. 15 In particular, if any provision that exempts or has the 16 effect of exempting some class of users or some kind of use 17 from the tax imposed by this Act should be held to constitute 18 or to result in an invalid classification or to be 19 unconstitutional for some other reason, that provision shall 20 be deemed to be severable, with the remainder of this Act 21 without the provision being held constitutional. 22 Section 105. The State Revenue Sharing Act is amended by 23 changing Section 1 as follows: 24 (30 ILCS 115/1) (from Ch. 85, par. 611) 25 Sec. 1. Local Government Distributive Fund. Through June 26 30, 1994, as soon as may be after the first day of each month 27 the Department of Revenue shall certify to the Treasurer an 28 amount equal to 1/12 of the net revenue realized from the tax 29 imposed by subsections (a) and (b) of Section 201 of the 30 Illinois Income Tax Act during the preceding month. 31 Beginning July 1, 1994, and continuing through June 30, 1995, SB666 Engrossed -8- LRB9104001PTpk 1 as soon as may be after the first day of each month, the 2 Department of Revenue shall certify to the Treasurer an 3 amount equal to 1/11 of the net revenue realized from the tax 4 imposed by subsections (a) and (b) of Section 201 of the 5 Illinois Income Tax Act during the preceding month. Beginning 6 July 1, 1995, as soon as may be after the first day of each 7 month, the Department of Revenue shall certify to the 8 Treasurer an amount equal to 1/10 of the net revenue realized 9 from the tax imposed by subsections (a) and (b) of Section 10 201 of the Illinois Income Tax Act during the preceding 11 month. Net revenue realized for a month shall be defined as 12 the revenue from the tax imposed by subsections (a) and (b) 13 of Section 201 of the Illinois Income Tax Act which is 14 deposited in the General Revenue Fund, the Education 15 Assistance Fund and the Income Tax Surcharge Local Government 16 Distributive Fund during the month minus the amount paid out 17 of the General Revenue Fund in State warrants during that 18 same month as refunds to taxpayers for overpayment of 19 liability under the tax imposed by subsections (a) and (b) of 20 Section 201 of the Illinois Income Tax Act. In addition, 21 beginning July 1, 1999, as soon as may be after the first day 22 of each month, the Department shall certify to the Treasurer 23 an amount equal to 1/5 of the net revenue realized under the 24 Qualified Technological Equipment Leasing Occupation and Use 25 Tax Act. Upon receipt of such certification, the Treasurer 26 shall transfer from the General Revenue Fund to a special 27 fund in the State treasury, to be known as the "Local 28 Government Distributive Fund", the amount shown on such 29 certification. 30 All amounts paid into the Local Government Distributive 31 Fund in accordance with this Section and allocated pursuant 32 to this Act are appropriated on a continuing basis. 33 (Source: P.A. 88-89.) SB666 Engrossed -9- LRB9104001PTpk 1 Section 110. The Use Tax Act is amended by changing 2 Sections 3-5 and 9 and adding Section 9.5 as follows: 3 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 4 Sec. 3-5. Exemptions. Use of the following tangible 5 personal property is exempt from the tax imposed by this Act: 6 (1) Personal property purchased from a corporation, 7 society, association, foundation, institution, or 8 organization, other than a limited liability company, that is 9 organized and operated as a not-for-profit service enterprise 10 for the benefit of persons 65 years of age or older if the 11 personal property was not purchased by the enterprise for the 12 purpose of resale by the enterprise. 13 (2) Personal property purchased by a not-for-profit 14 Illinois county fair association for use in conducting, 15 operating, or promoting the county fair. 16 (3) Personal property purchased by a not-for-profit 17 music or dramatic arts organization that establishes, by 18 proof required by the Department by rule, that it has 19 received an exemption under Section 501(c)(3) of the Internal 20 Revenue Code and that is organized and operated for the 21 presentation of live public performances of musical or 22 theatrical works on a regular basis. 23 (4) Personal property purchased by a governmental body, 24 by a corporation, society, association, foundation, or 25 institution organized and operated exclusively for 26 charitable, religious, or educational purposes, or by a 27 not-for-profit corporation, society, association, foundation, 28 institution, or organization that has no compensated officers 29 or employees and that is organized and operated primarily for 30 the recreation of persons 55 years of age or older. A limited 31 liability company may qualify for the exemption under this 32 paragraph only if the limited liability company is organized 33 and operated exclusively for educational purposes. On and SB666 Engrossed -10- LRB9104001PTpk 1 after July 1, 1987, however, no entity otherwise eligible for 2 this exemption shall make tax-free purchases unless it has an 3 active exemption identification number issued by the 4 Department. 5 (5) A passenger car that is a replacement vehicle to the 6 extent that the purchase price of the car is subject to the 7 Replacement Vehicle Tax. 8 (6) Graphic arts machinery and equipment, including 9 repair and replacement parts, both new and used, and 10 including that manufactured on special order, certified by 11 the purchaser to be used primarily for graphic arts 12 production, and including machinery and equipment purchased 13 for lease. 14 (7) Farm chemicals. 15 (8) Legal tender, currency, medallions, or gold or 16 silver coinage issued by the State of Illinois, the 17 government of the United States of America, or the government 18 of any foreign country, and bullion. 19 (9) Personal property purchased from a teacher-sponsored 20 student organization affiliated with an elementary or 21 secondary school located in Illinois. 22 (10) A motor vehicle of the first division, a motor 23 vehicle of the second division that is a self-contained motor 24 vehicle designed or permanently converted to provide living 25 quarters for recreational, camping, or travel use, with 26 direct walk through to the living quarters from the driver's 27 seat, or a motor vehicle of the second division that is of 28 the van configuration designed for the transportation of not 29 less than 7 nor more than 16 passengers, as defined in 30 Section 1-146 of the Illinois Vehicle Code, that is used for 31 automobile renting, as defined in the Automobile Renting 32 Occupation and Use Tax Act. 33 (11) Farm machinery and equipment, both new and used, 34 including that manufactured on special order, certified by SB666 Engrossed -11- LRB9104001PTpk 1 the purchaser to be used primarily for production agriculture 2 or State or federal agricultural programs, including 3 individual replacement parts for the machinery and equipment, 4 including machinery and equipment purchased for lease, and 5 including implements of husbandry defined in Section 1-130 of 6 the Illinois Vehicle Code, farm machinery and agricultural 7 chemical and fertilizer spreaders, and nurse wagons required 8 to be registered under Section 3-809 of the Illinois Vehicle 9 Code, but excluding other motor vehicles required to be 10 registered under the Illinois Vehicle Code. Horticultural 11 polyhouses or hoop houses used for propagating, growing, or 12 overwintering plants shall be considered farm machinery and 13 equipment under this item (11). Agricultural chemical tender 14 tanks and dry boxes shall include units sold separately from 15 a motor vehicle required to be licensed and units sold 16 mounted on a motor vehicle required to be licensed if the 17 selling price of the tender is separately stated. 18 Farm machinery and equipment shall include precision 19 farming equipment that is installed or purchased to be 20 installed on farm machinery and equipment including, but not 21 limited to, tractors, harvesters, sprayers, planters, 22 seeders, or spreaders. Precision farming equipment includes, 23 but is not limited to, soil testing sensors, computers, 24 monitors, software, global positioning and mapping systems, 25 and other such equipment. 26 Farm machinery and equipment also includes computers, 27 sensors, software, and related equipment used primarily in 28 the computer-assisted operation of production agriculture 29 facilities, equipment, and activities such as, but not 30 limited to, the collection, monitoring, and correlation of 31 animal and crop data for the purpose of formulating animal 32 diets and agricultural chemicals. This item (11) is exempt 33 from the provisions of Section 3-90. 34 (12) Fuel and petroleum products sold to or used by an SB666 Engrossed -12- LRB9104001PTpk 1 air common carrier, certified by the carrier to be used for 2 consumption, shipment, or storage in the conduct of its 3 business as an air common carrier, for a flight destined for 4 or returning from a location or locations outside the United 5 States without regard to previous or subsequent domestic 6 stopovers. 7 (13) Proceeds of mandatory service charges separately 8 stated on customers' bills for the purchase and consumption 9 of food and beverages purchased at retail from a retailer, to 10 the extent that the proceeds of the service charge are in 11 fact turned over as tips or as a substitute for tips to the 12 employees who participate directly in preparing, serving, 13 hosting or cleaning up the food or beverage function with 14 respect to which the service charge is imposed. 15 (14) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (15) Photoprocessing machinery and equipment, including 25 repair and replacement parts, both new and used, including 26 that manufactured on special order, certified by the 27 purchaser to be used primarily for photoprocessing, and 28 including photoprocessing machinery and equipment purchased 29 for lease. 30 (16) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB666 Engrossed -13- LRB9104001PTpk 1 (17) Distillation machinery and equipment, sold as a 2 unit or kit, assembled or installed by the retailer, 3 certified by the user to be used only for the production of 4 ethyl alcohol that will be used for consumption as motor fuel 5 or as a component of motor fuel for the personal use of the 6 user, and not subject to sale or resale. 7 (18) Manufacturing and assembling machinery and 8 equipment used primarily in the process of manufacturing or 9 assembling tangible personal property for wholesale or retail 10 sale or lease, whether that sale or lease is made directly by 11 the manufacturer or by some other person, whether the 12 materials used in the process are owned by the manufacturer 13 or some other person, or whether that sale or lease is made 14 apart from or as an incident to the seller's engaging in the 15 service occupation of producing machines, tools, dies, jigs, 16 patterns, gauges, or other similar items of no commercial 17 value on special order for a particular purchaser. 18 (19) Personal property delivered to a purchaser or 19 purchaser's donee inside Illinois when the purchase order for 20 that personal property was received by a florist located 21 outside Illinois who has a florist located inside Illinois 22 deliver the personal property. 23 (20) Semen used for artificial insemination of livestock 24 for direct agricultural production. 25 (21) Horses, or interests in horses, registered with and 26 meeting the requirements of any of the Arabian Horse Club 27 Registry of America, Appaloosa Horse Club, American Quarter 28 Horse Association, United States Trotting Association, or 29 Jockey Club, as appropriate, used for purposes of breeding or 30 racing for prizes. 31 (22) Computers and communications equipment utilized for 32 any hospital purpose and equipment used in the diagnosis, 33 analysis, or treatment of hospital patients purchased by a 34 lessor who leases the equipment, under a lease of one year or SB666 Engrossed -14- LRB9104001PTpk 1 longer executed or in effect at the time the lessor would 2 otherwise be subject to the tax imposed by this Act, to a 3 hospital that has been issued an active tax exemption 4 identification number by the Department under Section 1g of 5 the Retailers' Occupation Tax Act. If the equipment is 6 leased in a manner that does not qualify for this exemption 7 or is used in any other non-exempt manner, the lessor shall 8 be liable for the tax imposed under this Act or the Service 9 Use Tax Act, as the case may be, based on the fair market 10 value of the property at the time the non-qualifying use 11 occurs. No lessor shall collect or attempt to collect an 12 amount (however designated) that purports to reimburse that 13 lessor for the tax imposed by this Act or the Service Use Tax 14 Act, as the case may be, if the tax has not been paid by the 15 lessor. If a lessor improperly collects any such amount from 16 the lessee, the lessee shall have a legal right to claim a 17 refund of that amount from the lessor. If, however, that 18 amount is not refunded to the lessee for any reason, the 19 lessor is liable to pay that amount to the Department. This 20 paragraph is exempt from the provisions of Section 3-90. 21 (23) Personal property purchased by a lessor who leases 22 the property, under a lease of one year or longer executed 23 or in effect at the time the lessor would otherwise be 24 subject to the tax imposed by this Act, to a governmental 25 body that has been issued an active sales tax exemption 26 identification number by the Department under Section 1g of 27 the Retailers' Occupation Tax Act. If the property is leased 28 in a manner that does not qualify for this exemption or used 29 in any other non-exempt manner, the lessor shall be liable 30 for the tax imposed under this Act or the Service Use Tax 31 Act, as the case may be, based on the fair market value of 32 the property at the time the non-qualifying use occurs. No 33 lessor shall collect or attempt to collect an amount (however 34 designated) that purports to reimburse that lessor for the SB666 Engrossed -15- LRB9104001PTpk 1 tax imposed by this Act or the Service Use Tax Act, as the 2 case may be, if the tax has not been paid by the lessor. If 3 a lessor improperly collects any such amount from the lessee, 4 the lessee shall have a legal right to claim a refund of that 5 amount from the lessor. If, however, that amount is not 6 refunded to the lessee for any reason, the lessor is liable 7 to pay that amount to the Department. This paragraph is 8 exempt from the provisions of Section 3-90. 9 (24) Beginning with taxable years ending on or after 10 December 31, 1995 and ending with taxable years ending on or 11 before December 31, 2004, personal property that is donated 12 for disaster relief to be used in a State or federally 13 declared disaster area in Illinois or bordering Illinois by a 14 manufacturer or retailer that is registered in this State to 15 a corporation, society, association, foundation, or 16 institution that has been issued a sales tax exemption 17 identification number by the Department that assists victims 18 of the disaster who reside within the declared disaster area. 19 (25) Beginning with taxable years ending on or after 20 December 31, 1995 and ending with taxable years ending on or 21 before December 31, 2004, personal property that is used in 22 the performance of infrastructure repairs in this State, 23 including but not limited to municipal roads and streets, 24 access roads, bridges, sidewalks, waste disposal systems, 25 water and sewer line extensions, water distribution and 26 purification facilities, storm water drainage and retention 27 facilities, and sewage treatment facilities, resulting from a 28 State or federally declared disaster in Illinois or bordering 29 Illinois when such repairs are initiated on facilities 30 located in the declared disaster area within 6 months after 31 the disaster. 32 (26) Beginning July 1, 1999, qualified technological 33 equipment purchased for lease by lessors under leases subject 34 to the Qualified Technological Equipment Leasing Occupation SB666 Engrossed -16- LRB9104001PTpk 1 and Use Tax Act. However, this exemption will last only as 2 long as the property continues to be leased by the lessor. 3 When the property is no longer used for lease and the 4 property reverts to the lessor, the property is subject to 5 the tax imposed by this Act upon the fair market value of the 6 property on the date of the reversion. The property will not 7 be considered to revert to the lessor as long as the lessor 8 holds the property in his or her lease inventory and does not 9 otherwise use the property, except for demonstration 10 purposes. In addition, property held in the lessor's lease 11 inventory that is subsequently leased for a period of less 12 than one year will not be considered to revert to the lessor 13 if the property is returned to lease inventory at the 14 termination of the lease. This paragraph is exempt from the 15 provisions of Section 3-90. 16 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 17 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 18 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 19 eff. 12-12-97; 90-605, eff. 6-30-98.) 20 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 21 Sec. 9. Except as to motor vehicles, watercraft, 22 aircraft, and trailers that are required to be registered 23 with an agency of this State, each retailer required or 24 authorized to collect the tax imposed by this Act shall pay 25 to the Department the amount of such tax (except as otherwise 26 provided) at the time when he is required to file his return 27 for the period during which such tax was collected, less a 28 discount of 2.1% prior to January 1, 1990, and 1.75% on and 29 after January 1, 1990, or $5 per calendar year, whichever is 30 greater, which is allowed to reimburse the retailer for 31 expenses incurred in collecting the tax, keeping records, 32 preparing and filing returns, remitting the tax and supplying 33 data to the Department on request. In the case of retailers SB666 Engrossed -17- LRB9104001PTpk 1 who report and pay the tax on a transaction by transaction 2 basis, as provided in this Section, such discount shall be 3 taken with each such tax remittance instead of when such 4 retailer files his periodic return. A retailer need not 5 remit that part of any tax collected by him to the extent 6 that he is required to remit and does remit the tax imposed 7 by the Retailers' Occupation Tax Act, with respect to the 8 sale of the same property. 9 Where such tangible personal property is sold under a 10 conditional sales contract, or under any other form of sale 11 wherein the payment of the principal sum, or a part thereof, 12 is extended beyond the close of the period for which the 13 return is filed, the retailer, in collecting the tax (except 14 as to motor vehicles, watercraft, aircraft, and trailers that 15 are required to be registered with an agency of this State), 16 may collect for each tax return period, only the tax 17 applicable to that part of the selling price actually 18 received during such tax return period. 19 Except as provided in this Section, on or before the 20 twentieth day of each calendar month, such retailer shall 21 file a return for the preceding calendar month. Such return 22 shall be filed on forms prescribed by the Department and 23 shall furnish such information as the Department may 24 reasonably require. 25 The Department may require returns to be filed on a 26 quarterly basis. If so required, a return for each calendar 27 quarter shall be filed on or before the twentieth day of the 28 calendar month following the end of such calendar quarter. 29 The taxpayer shall also file a return with the Department for 30 each of the first two months of each calendar quarter, on or 31 before the twentieth day of the following calendar month, 32 stating: 33 1. The name of the seller; 34 2. The address of the principal place of business SB666 Engrossed -18- LRB9104001PTpk 1 from which he engages in the business of selling tangible 2 personal property at retail in this State; 3 3. The total amount of taxable receipts received by 4 him during the preceding calendar month from sales of 5 tangible personal property by him during such preceding 6 calendar month, including receipts from charge and time 7 sales, but less all deductions allowed by law; 8 4. The amount of credit provided in Section 2d of 9 this Act; 10 5. The amount of tax due; 11 5-5. The signature of the taxpayer; and 12 6. Such other reasonable information as the 13 Department may require. 14 If a taxpayer fails to sign a return within 30 days after 15 the proper notice and demand for signature by the Department, 16 the return shall be considered valid and any amount shown to 17 be due on the return shall be deemed assessed. 18 Beginning October 1, 1993, a taxpayer who has an average 19 monthly tax liability of $150,000 or more shall make all 20 payments required by rules of the Department by electronic 21 funds transfer. Beginning October 1, 1994, a taxpayer who has 22 an average monthly tax liability of $100,000 or more shall 23 make all payments required by rules of the Department by 24 electronic funds transfer. Beginning October 1, 1995, a 25 taxpayer who has an average monthly tax liability of $50,000 26 or more shall make all payments required by rules of the 27 Department by electronic funds transfer. The term "average 28 monthly tax liability" means the sum of the taxpayer's 29 liabilities under this Act, and under all other State and 30 local occupation and use tax laws administered by the 31 Department, for the immediately preceding calendar year 32 divided by 12. 33 Before August 1 of each year beginning in 1993, the 34 Department shall notify all taxpayers required to make SB666 Engrossed -19- LRB9104001PTpk 1 payments by electronic funds transfer. All taxpayers required 2 to make payments by electronic funds transfer shall make 3 those payments for a minimum of one year beginning on October 4 1. 5 Any taxpayer not required to make payments by electronic 6 funds transfer may make payments by electronic funds transfer 7 with the permission of the Department. 8 All taxpayers required to make payment by electronic 9 funds transfer and any taxpayers authorized to voluntarily 10 make payments by electronic funds transfer shall make those 11 payments in the manner authorized by the Department. 12 The Department shall adopt such rules as are necessary to 13 effectuate a program of electronic funds transfer and the 14 requirements of this Section. 15 If the taxpayer's average monthly tax liability to the 16 Department under this Act, the Retailers' Occupation Tax Act, 17 the Service Occupation Tax Act, the Service Use Tax Act was 18 $10,000 or more during the preceding 4 complete calendar 19 quarters, he shall file a return with the Department each 20 month by the 20th day of the month next following the month 21 during which such tax liability is incurred and shall make 22 payments to the Department on or before the 7th, 15th, 22nd 23 and last day of the month during which such liability is 24 incurred. If the month during which such tax liability is 25 incurred began prior to January 1, 1985, each payment shall 26 be in an amount equal to 1/4 of the taxpayer's actual 27 liability for the month or an amount set by the Department 28 not to exceed 1/4 of the average monthly liability of the 29 taxpayer to the Department for the preceding 4 complete 30 calendar quarters (excluding the month of highest liability 31 and the month of lowest liability in such 4 quarter period). 32 If the month during which such tax liability is incurred 33 begins on or after January 1, 1985, and prior to January 1, 34 1987, each payment shall be in an amount equal to 22.5% of SB666 Engrossed -20- LRB9104001PTpk 1 the taxpayer's actual liability for the month or 27.5% of the 2 taxpayer's liability for the same calendar month of the 3 preceding year. If the month during which such tax liability 4 is incurred begins on or after January 1, 1987, and prior to 5 January 1, 1988, each payment shall be in an amount equal to 6 22.5% of the taxpayer's actual liability for the month or 7 26.25% of the taxpayer's liability for the same calendar 8 month of the preceding year. If the month during which such 9 tax liability is incurred begins on or after January 1, 1988, 10 and prior to January 1, 1989, or begins on or after January 11 1, 1996, each payment shall be in an amount equal to 22.5% of 12 the taxpayer's actual liability for the month or 25% of the 13 taxpayer's liability for the same calendar month of the 14 preceding year. If the month during which such tax liability 15 is incurred begins on or after January 1, 1989, and prior to 16 January 1, 1996, each payment shall be in an amount equal to 17 22.5% of the taxpayer's actual liability for the month or 25% 18 of the taxpayer's liability for the same calendar month of 19 the preceding year or 100% of the taxpayer's actual liability 20 for the quarter monthly reporting period. The amount of such 21 quarter monthly payments shall be credited against the final 22 tax liability of the taxpayer's return for that month. Once 23 applicable, the requirement of the making of quarter monthly 24 payments to the Department shall continue until such 25 taxpayer's average monthly liability to the Department during 26 the preceding 4 complete calendar quarters (excluding the 27 month of highest liability and the month of lowest liability) 28 is less than $9,000, or until such taxpayer's average monthly 29 liability to the Department as computed for each calendar 30 quarter of the 4 preceding complete calendar quarter period 31 is less than $10,000. However, if a taxpayer can show the 32 Department that a substantial change in the taxpayer's 33 business has occurred which causes the taxpayer to anticipate 34 that his average monthly tax liability for the reasonably SB666 Engrossed -21- LRB9104001PTpk 1 foreseeable future will fall below $10,000, then such 2 taxpayer may petition the Department for change in such 3 taxpayer's reporting status. The Department shall change 4 such taxpayer's reporting status unless it finds that such 5 change is seasonal in nature and not likely to be long term. 6 If any such quarter monthly payment is not paid at the time 7 or in the amount required by this Section, then the taxpayer 8 shall be liable for penalties and interest on the difference 9 between the minimum amount due and the amount of such quarter 10 monthly payment actually and timely paid, except insofar as 11 the taxpayer has previously made payments for that month to 12 the Department in excess of the minimum payments previously 13 due as provided in this Section. The Department shall make 14 reasonable rules and regulations to govern the quarter 15 monthly payment amount and quarter monthly payment dates for 16 taxpayers who file on other than a calendar monthly basis. 17 If any such payment provided for in this Section exceeds 18 the taxpayer's liabilities under this Act, the Retailers' 19 Occupation Tax Act, the Service Occupation Tax Act and the 20 Service Use Tax Act, as shown by an original monthly return, 21 the Department shall issue to the taxpayer a credit 22 memorandum no later than 30 days after the date of payment, 23 which memorandum may be submitted by the taxpayer to the 24 Department in payment of tax liability subsequently to be 25 remitted by the taxpayer to the Department or be assigned by 26 the taxpayer to a similar taxpayer under this Act, the 27 Retailers' Occupation Tax Act, the Service Occupation Tax Act 28 or the Service Use Tax Act, in accordance with reasonable 29 rules and regulations to be prescribed by the Department, 30 except that if such excess payment is shown on an original 31 monthly return and is made after December 31, 1986, no credit 32 memorandum shall be issued, unless requested by the taxpayer. 33 If no such request is made, the taxpayer may credit such 34 excess payment against tax liability subsequently to be SB666 Engrossed -22- LRB9104001PTpk 1 remitted by the taxpayer to the Department under this Act, 2 the Retailers' Occupation Tax Act, the Service Occupation Tax 3 Act or the Service Use Tax Act, in accordance with reasonable 4 rules and regulations prescribed by the Department. If the 5 Department subsequently determines that all or any part of 6 the credit taken was not actually due to the taxpayer, the 7 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 8 by 2.1% or 1.75% of the difference between the credit taken 9 and that actually due, and the taxpayer shall be liable for 10 penalties and interest on such difference. 11 If the retailer is otherwise required to file a monthly 12 return and if the retailer's average monthly tax liability to 13 the Department does not exceed $200, the Department may 14 authorize his returns to be filed on a quarter annual basis, 15 with the return for January, February, and March of a given 16 year being due by April 20 of such year; with the return for 17 April, May and June of a given year being due by July 20 of 18 such year; with the return for July, August and September of 19 a given year being due by October 20 of such year, and with 20 the return for October, November and December of a given year 21 being due by January 20 of the following year. 22 If the retailer is otherwise required to file a monthly 23 or quarterly return and if the retailer's average monthly tax 24 liability to the Department does not exceed $50, the 25 Department may authorize his returns to be filed on an annual 26 basis, with the return for a given year being due by January 27 20 of the following year. 28 Such quarter annual and annual returns, as to form and 29 substance, shall be subject to the same requirements as 30 monthly returns. 31 Notwithstanding any other provision in this Act 32 concerning the time within which a retailer may file his 33 return, in the case of any retailer who ceases to engage in a 34 kind of business which makes him responsible for filing SB666 Engrossed -23- LRB9104001PTpk 1 returns under this Act, such retailer shall file a final 2 return under this Act with the Department not more than one 3 month after discontinuing such business. 4 In addition, with respect to motor vehicles, watercraft, 5 aircraft, and trailers that are required to be registered 6 with an agency of this State, every retailer selling this 7 kind of tangible personal property shall file, with the 8 Department, upon a form to be prescribed and supplied by the 9 Department, a separate return for each such item of tangible 10 personal property which the retailer sells, except that 11 where, in the same transaction, a retailer of aircraft, 12 watercraft, motor vehicles or trailers transfers more than 13 one aircraft, watercraft, motor vehicle or trailer to another 14 aircraft, watercraft, motor vehicle or trailer retailer for 15 the purpose of resale, that seller for resale may report the 16 transfer of all the aircraft, watercraft, motor vehicles or 17 trailers involved in that transaction to the Department on 18 the same uniform invoice-transaction reporting return form. 19 For purposes of this Section, "watercraft" means a Class 2, 20 Class 3, or Class 4 watercraft as defined in Section 3-2 of 21 the Boat Registration and Safety Act, a personal watercraft, 22 or any boat equipped with an inboard motor. 23 The transaction reporting return in the case of motor 24 vehicles or trailers that are required to be registered with 25 an agency of this State, shall be the same document as the 26 Uniform Invoice referred to in Section 5-402 of the Illinois 27 Vehicle Code and must show the name and address of the 28 seller; the name and address of the purchaser; the amount of 29 the selling price including the amount allowed by the 30 retailer for traded-in property, if any; the amount allowed 31 by the retailer for the traded-in tangible personal property, 32 if any, to the extent to which Section 2 of this Act allows 33 an exemption for the value of traded-in property; the balance 34 payable after deducting such trade-in allowance from the SB666 Engrossed -24- LRB9104001PTpk 1 total selling price; the amount of tax due from the retailer 2 with respect to such transaction; the amount of tax collected 3 from the purchaser by the retailer on such transaction (or 4 satisfactory evidence that such tax is not due in that 5 particular instance, if that is claimed to be the fact); the 6 place and date of the sale; a sufficient identification of 7 the property sold; such other information as is required in 8 Section 5-402 of the Illinois Vehicle Code, and such other 9 information as the Department may reasonably require. 10 The transaction reporting return in the case of 11 watercraft and aircraft must show the name and address of the 12 seller; the name and address of the purchaser; the amount of 13 the selling price including the amount allowed by the 14 retailer for traded-in property, if any; the amount allowed 15 by the retailer for the traded-in tangible personal property, 16 if any, to the extent to which Section 2 of this Act allows 17 an exemption for the value of traded-in property; the balance 18 payable after deducting such trade-in allowance from the 19 total selling price; the amount of tax due from the retailer 20 with respect to such transaction; the amount of tax collected 21 from the purchaser by the retailer on such transaction (or 22 satisfactory evidence that such tax is not due in that 23 particular instance, if that is claimed to be the fact); the 24 place and date of the sale, a sufficient identification of 25 the property sold, and such other information as the 26 Department may reasonably require. 27 Such transaction reporting return shall be filed not 28 later than 20 days after the date of delivery of the item 29 that is being sold, but may be filed by the retailer at any 30 time sooner than that if he chooses to do so. The 31 transaction reporting return and tax remittance or proof of 32 exemption from the tax that is imposed by this Act may be 33 transmitted to the Department by way of the State agency with 34 which, or State officer with whom, the tangible personal SB666 Engrossed -25- LRB9104001PTpk 1 property must be titled or registered (if titling or 2 registration is required) if the Department and such agency 3 or State officer determine that this procedure will expedite 4 the processing of applications for title or registration. 5 With each such transaction reporting return, the retailer 6 shall remit the proper amount of tax due (or shall submit 7 satisfactory evidence that the sale is not taxable if that is 8 the case), to the Department or its agents, whereupon the 9 Department shall issue, in the purchaser's name, a tax 10 receipt (or a certificate of exemption if the Department is 11 satisfied that the particular sale is tax exempt) which such 12 purchaser may submit to the agency with which, or State 13 officer with whom, he must title or register the tangible 14 personal property that is involved (if titling or 15 registration is required) in support of such purchaser's 16 application for an Illinois certificate or other evidence of 17 title or registration to such tangible personal property. 18 No retailer's failure or refusal to remit tax under this 19 Act precludes a user, who has paid the proper tax to the 20 retailer, from obtaining his certificate of title or other 21 evidence of title or registration (if titling or registration 22 is required) upon satisfying the Department that such user 23 has paid the proper tax (if tax is due) to the retailer. The 24 Department shall adopt appropriate rules to carry out the 25 mandate of this paragraph. 26 If the user who would otherwise pay tax to the retailer 27 wants the transaction reporting return filed and the payment 28 of tax or proof of exemption made to the Department before 29 the retailer is willing to take these actions and such user 30 has not paid the tax to the retailer, such user may certify 31 to the fact of such delay by the retailer, and may (upon the 32 Department being satisfied of the truth of such 33 certification) transmit the information required by the 34 transaction reporting return and the remittance for tax or SB666 Engrossed -26- LRB9104001PTpk 1 proof of exemption directly to the Department and obtain his 2 tax receipt or exemption determination, in which event the 3 transaction reporting return and tax remittance (if a tax 4 payment was required) shall be credited by the Department to 5 the proper retailer's account with the Department, but 6 without the 2.1% or 1.75% discount provided for in this 7 Section being allowed. When the user pays the tax directly 8 to the Department, he shall pay the tax in the same amount 9 and in the same form in which it would be remitted if the tax 10 had been remitted to the Department by the retailer. 11 Where a retailer collects the tax with respect to the 12 selling price of tangible personal property which he sells 13 and the purchaser thereafter returns such tangible personal 14 property and the retailer refunds the selling price thereof 15 to the purchaser, such retailer shall also refund, to the 16 purchaser, the tax so collected from the purchaser. When 17 filing his return for the period in which he refunds such tax 18 to the purchaser, the retailer may deduct the amount of the 19 tax so refunded by him to the purchaser from any other use 20 tax which such retailer may be required to pay or remit to 21 the Department, as shown by such return, if the amount of the 22 tax to be deducted was previously remitted to the Department 23 by such retailer. If the retailer has not previously 24 remitted the amount of such tax to the Department, he is 25 entitled to no deduction under this Act upon refunding such 26 tax to the purchaser. 27 Any retailer filing a return under this Section shall 28 also include (for the purpose of paying tax thereon) the 29 total tax covered by such return upon the selling price of 30 tangible personal property purchased by him at retail from a 31 retailer, but as to which the tax imposed by this Act was not 32 collected from the retailer filing such return, and such 33 retailer shall remit the amount of such tax to the Department 34 when filing such return. SB666 Engrossed -27- LRB9104001PTpk 1 If experience indicates such action to be practicable, 2 the Department may prescribe and furnish a combination or 3 joint return which will enable retailers, who are required to 4 file returns hereunder and also under the Retailers' 5 Occupation Tax Act, to furnish all the return information 6 required by both Acts on the one form. 7 Where the retailer has more than one business registered 8 with the Department under separate registration under this 9 Act, such retailer may not file each return that is due as a 10 single return covering all such registered businesses, but 11 shall file separate returns for each such registered 12 business. 13 Beginning January 1, 1990, each month the Department 14 shall pay into the State and Local Sales Tax Reform Fund, a 15 special fund in the State Treasury which is hereby created, 16 the net revenue realized for the preceding month from the 1% 17 tax on sales of food for human consumption which is to be 18 consumed off the premises where it is sold (other than 19 alcoholic beverages, soft drinks and food which has been 20 prepared for immediate consumption) and prescription and 21 nonprescription medicines, drugs, medical appliances and 22 insulin, urine testing materials, syringes and needles used 23 by diabetics. 24 Beginning January 1, 1990, each month the Department 25 shall pay into the County and Mass Transit District Fund 4% 26 of the net revenue realized for the preceding month from the 27 6.25% general rate on the selling price of tangible personal 28 property which is purchased outside Illinois at retail from a 29 retailer and which is titled or registered by an agency of 30 this State's government. 31 Beginning January 1, 1990, each month the Department 32 shall pay into the State and Local Sales Tax Reform Fund, a 33 special fund in the State Treasury, 20% of the net revenue 34 realized for the preceding month from the 6.25% general rate SB666 Engrossed -28- LRB9104001PTpk 1 on the selling price of tangible personal property, other 2 than tangible personal property which is purchased outside 3 Illinois at retail from a retailer and which is titled or 4 registered by an agency of this State's government. 5 Beginning January 1, 1990, each month the Department 6 shall pay into the Local Government Tax Fund 16% of the net 7 revenue realized for the preceding month from the 6.25% 8 general rate on the selling price of tangible personal 9 property which is purchased outside Illinois at retail from a 10 retailer and which is titled or registered by an agency of 11 this State's government. 12 Of the remainder of the moneys received by the Department 13 pursuant to this Act, (a) 1.75% thereof shall be paid into 14 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 15 and on and after July 1, 1989, 3.8% thereof shall be paid 16 into the Build Illinois Fund; provided, however, that if in 17 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 18 as the case may be, of the moneys received by the Department 19 and required to be paid into the Build Illinois Fund pursuant 20 to Section 3 of the Retailers' Occupation Tax Act, Section 9 21 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 22 Section 9 of the Service Occupation Tax Act, such Acts being 23 hereinafter called the "Tax Acts" and such aggregate of 2.2% 24 or 3.8%, as the case may be, of moneys being hereinafter 25 called the "Tax Act Amount", and (2) the amount transferred 26 to the Build Illinois Fund from the State and Local Sales Tax 27 Reform Fund shall be less than the Annual Specified Amount 28 (as defined in Section 3 of the Retailers' Occupation Tax 29 Act), an amount equal to the difference shall be immediately 30 paid into the Build Illinois Fund from other moneys received 31 by the Department pursuant to the Tax Acts; and further 32 provided, that if on the last business day of any month the 33 sum of (1) the Tax Act Amount required to be deposited into 34 the Build Illinois Bond Account in the Build Illinois Fund SB666 Engrossed -29- LRB9104001PTpk 1 during such month and (2) the amount transferred during such 2 month to the Build Illinois Fund from the State and Local 3 Sales Tax Reform Fund shall have been less than 1/12 of the 4 Annual Specified Amount, an amount equal to the difference 5 shall be immediately paid into the Build Illinois Fund from 6 other moneys received by the Department pursuant to the Tax 7 Acts; and, further provided, that in no event shall the 8 payments required under the preceding proviso result in 9 aggregate payments into the Build Illinois Fund pursuant to 10 this clause (b) for any fiscal year in excess of the greater 11 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 12 for such fiscal year; and, further provided, that the amounts 13 payable into the Build Illinois Fund under this clause (b) 14 shall be payable only until such time as the aggregate amount 15 on deposit under each trust indenture securing Bonds issued 16 and outstanding pursuant to the Build Illinois Bond Act is 17 sufficient, taking into account any future investment income, 18 to fully provide, in accordance with such indenture, for the 19 defeasance of or the payment of the principal of, premium, if 20 any, and interest on the Bonds secured by such indenture and 21 on any Bonds expected to be issued thereafter and all fees 22 and costs payable with respect thereto, all as certified by 23 the Director of the Bureau of the Budget. If on the last 24 business day of any month in which Bonds are outstanding 25 pursuant to the Build Illinois Bond Act, the aggregate of the 26 moneys deposited in the Build Illinois Bond Account in the 27 Build Illinois Fund in such month shall be less than the 28 amount required to be transferred in such month from the 29 Build Illinois Bond Account to the Build Illinois Bond 30 Retirement and Interest Fund pursuant to Section 13 of the 31 Build Illinois Bond Act, an amount equal to such deficiency 32 shall be immediately paid from other moneys received by the 33 Department pursuant to the Tax Acts to the Build Illinois 34 Fund; provided, however, that any amounts paid to the Build SB666 Engrossed -30- LRB9104001PTpk 1 Illinois Fund in any fiscal year pursuant to this sentence 2 shall be deemed to constitute payments pursuant to clause (b) 3 of the preceding sentence and shall reduce the amount 4 otherwise payable for such fiscal year pursuant to clause (b) 5 of the preceding sentence. The moneys received by the 6 Department pursuant to this Act and required to be deposited 7 into the Build Illinois Fund are subject to the pledge, claim 8 and charge set forth in Section 12 of the Build Illinois Bond 9 Act. 10 Subject to payment of amounts into the Build Illinois 11 Fund as provided in the preceding paragraph or in any 12 amendment thereto hereafter enacted, the following specified 13 monthly installment of the amount requested in the 14 certificate of the Chairman of the Metropolitan Pier and 15 Exposition Authority provided under Section 8.25f of the 16 State Finance Act, but not in excess of the sums designated 17 as "Total Deposit", shall be deposited in the aggregate from 18 collections under Section 9 of the Use Tax Act, Section 9 of 19 the Service Use Tax Act, Section 9 of the Service Occupation 20 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 21 into the McCormick Place Expansion Project Fund in the 22 specified fiscal years. 23 Fiscal Year Total Deposit 24 1993 $0 25 1994 53,000,000 26 1995 58,000,000 27 1996 61,000,000 28 1997 64,000,000 29 1998 68,000,000 30 1999 71,000,000 31 2000 75,000,000 32 2001 80,000,000 33 2002 84,000,000 34 2003 89,000,000 SB666 Engrossed -31- LRB9104001PTpk 1 2004 93,000,000 2 2005 97,000,000 3 2006 102,000,000 4 2007 and 106,000,000 5 each fiscal year 6 thereafter that bonds 7 are outstanding under 8 Section 13.2 of the 9 Metropolitan Pier and 10 Exposition Authority 11 Act, but not after fiscal year 2029. 12 Beginning July 20, 1993 and in each month of each fiscal 13 year thereafter, one-eighth of the amount requested in the 14 certificate of the Chairman of the Metropolitan Pier and 15 Exposition Authority for that fiscal year, less the amount 16 deposited into the McCormick Place Expansion Project Fund by 17 the State Treasurer in the respective month under subsection 18 (g) of Section 13 of the Metropolitan Pier and Exposition 19 Authority Act, plus cumulative deficiencies in the deposits 20 required under this Section for previous months and years, 21 shall be deposited into the McCormick Place Expansion Project 22 Fund, until the full amount requested for the fiscal year, 23 but not in excess of the amount specified above as "Total 24 Deposit", has been deposited. 25 Subject to payment of amounts into the Build Illinois 26 Fund and the McCormick Place Expansion Project Fund pursuant 27 to the preceding paragraphs or in any amendment thereto 28 hereafter enacted, each month the Department shall pay into 29 the Local Government Distributive Fund .4% of the net revenue 30 realized for the preceding month from the 5% general rate, or 31 .4% of 80% of the net revenue realized for the preceding 32 month from the 6.25% general rate, as the case may be, on the 33 selling price of tangible personal property which amount 34 shall, subject to appropriation, be distributed as provided SB666 Engrossed -32- LRB9104001PTpk 1 in Section 2 of the State Revenue Sharing Act. No payments or 2 distributions pursuant to this paragraph shall be made if the 3 tax imposed by this Act on photoprocessing products is 4 declared unconstitutional, or if the proceeds from such tax 5 are unavailable for distribution because of litigation. 6 Subject to payment of amounts into the Build Illinois 7 Fund, the McCormick Place Expansion Project Fund, and the 8 Local Government Distributive Fund pursuant to the preceding 9 paragraphs or in any amendments thereto hereafter enacted, 10 beginning July 1, 1993, the Department shall each month pay 11 into the Illinois Tax Increment Fund 0.27% of 80% of the net 12 revenue realized for the preceding month from the 6.25% 13 general rate on the selling price of tangible personal 14 property. 15 Of the remainder of the moneys received by the Department 16 pursuant to this Act and the moneys received by the 17 Department from the 80% of the 8.25% rate of use tax imposed 18 in Section 20 of the Qualified Technological Equipment 19 Leasing Occupation and Use Tax Act, 75% thereof shall be paid 20 into the State Treasury and 25% shall be reserved in a 21 special account and used only for the transfer to the Common 22 School Fund as part of the monthly transfer from the General 23 Revenue Fund in accordance with Section 8a of the State 24 Finance Act. 25 As soon as possible after the first day of each month, 26 upon certification of the Department of Revenue, the 27 Comptroller shall order transferred and the Treasurer shall 28 transfer from the General Revenue Fund to the Motor Fuel Tax 29 Fund an amount equal to 1.7% of 80% of the net revenue 30 realized under this Act for the second preceding month; 31 except that this transfer shall not be made for the months 32 February through June of 1992. 33 Net revenue realized for a month shall be the revenue 34 collected by the State pursuant to this Act, less the amount SB666 Engrossed -33- LRB9104001PTpk 1 paid out during that month as refunds to taxpayers for 2 overpayment of liability. 3 For greater simplicity of administration, manufacturers, 4 importers and wholesalers whose products are sold at retail 5 in Illinois by numerous retailers, and who wish to do so, may 6 assume the responsibility for accounting and paying to the 7 Department all tax accruing under this Act with respect to 8 such sales, if the retailers who are affected do not make 9 written objection to the Department to this arrangement. 10 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 11 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.) 12 (35 ILCS 105/9.5 new) 13 Sec. 9.5. Refund; leaseback transaction. A purchaser of 14 qualified technological equipment, as defined in Section 5 of 15 the Qualified Technological Equipment Leasing Occupation and 16 Use Tax Act, may obtain a refund of all tax paid to a seller 17 under this Act or any other tax administered by the 18 Department if the purchaser sells the property to a rentor 19 under a bona fide sale and leaseback transaction (to such 20 purchaser) within 90 days of the first functional use of the 21 property. The purchaser shall request the refund from the 22 seller to whom he or she has paid the tax in the same manner 23 and subject to the same requirements as other refunds 24 provided in Section 9 of this Act. For purposes of this 25 Section, the first functional use of property shall be the 26 use for which the property is intended, which shall, in the 27 absence of other evidence, be presumed to be the date of 28 delivery of the property. 29 Section 115. The Service Use Tax Act is amended by 30 changing Section 3-5 as follows: 31 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) SB666 Engrossed -34- LRB9104001PTpk 1 Sec. 3-5. Exemptions. Use of the following tangible 2 personal property is exempt from the tax imposed by this Act: 3 (1) Personal property purchased from a corporation, 4 society, association, foundation, institution, or 5 organization, other than a limited liability company, that is 6 organized and operated as a not-for-profit service enterprise 7 for the benefit of persons 65 years of age or older if the 8 personal property was not purchased by the enterprise for the 9 purpose of resale by the enterprise. 10 (2) Personal property purchased by a non-profit Illinois 11 county fair association for use in conducting, operating, or 12 promoting the county fair. 13 (3) Personal property purchased by a not-for-profit 14 music or dramatic arts organization that establishes, by 15 proof required by the Department by rule, that it has 16 received an exemption under Section 501(c)(3) of the Internal 17 Revenue Code and that is organized and operated for the 18 presentation of live public performances of musical or 19 theatrical works on a regular basis. 20 (4) Legal tender, currency, medallions, or gold or 21 silver coinage issued by the State of Illinois, the 22 government of the United States of America, or the government 23 of any foreign country, and bullion. 24 (5) Graphic arts machinery and equipment, including 25 repair and replacement parts, both new and used, and 26 including that manufactured on special order or purchased for 27 lease, certified by the purchaser to be used primarily for 28 graphic arts production. 29 (6) Personal property purchased from a teacher-sponsored 30 student organization affiliated with an elementary or 31 secondary school located in Illinois. 32 (7) Farm machinery and equipment, both new and used, 33 including that manufactured on special order, certified by 34 the purchaser to be used primarily for production agriculture SB666 Engrossed -35- LRB9104001PTpk 1 or State or federal agricultural programs, including 2 individual replacement parts for the machinery and equipment, 3 including machinery and equipment purchased for lease, and 4 including implements of husbandry defined in Section 1-130 of 5 the Illinois Vehicle Code, farm machinery and agricultural 6 chemical and fertilizer spreaders, and nurse wagons required 7 to be registered under Section 3-809 of the Illinois Vehicle 8 Code, but excluding other motor vehicles required to be 9 registered under the Illinois Vehicle Code. Horticultural 10 polyhouses or hoop houses used for propagating, growing, or 11 overwintering plants shall be considered farm machinery and 12 equipment under this item (7). Agricultural chemical tender 13 tanks and dry boxes shall include units sold separately from 14 a motor vehicle required to be licensed and units sold 15 mounted on a motor vehicle required to be licensed if the 16 selling price of the tender is separately stated. 17 Farm machinery and equipment shall include precision 18 farming equipment that is installed or purchased to be 19 installed on farm machinery and equipment including, but not 20 limited to, tractors, harvesters, sprayers, planters, 21 seeders, or spreaders. Precision farming equipment includes, 22 but is not limited to, soil testing sensors, computers, 23 monitors, software, global positioning and mapping systems, 24 and other such equipment. 25 Farm machinery and equipment also includes computers, 26 sensors, software, and related equipment used primarily in 27 the computer-assisted operation of production agriculture 28 facilities, equipment, and activities such as, but not 29 limited to, the collection, monitoring, and correlation of 30 animal and crop data for the purpose of formulating animal 31 diets and agricultural chemicals. This item (7) is exempt 32 from the provisions of Section 3-75. 33 (8) Fuel and petroleum products sold to or used by an 34 air common carrier, certified by the carrier to be used for SB666 Engrossed -36- LRB9104001PTpk 1 consumption, shipment, or storage in the conduct of its 2 business as an air common carrier, for a flight destined for 3 or returning from a location or locations outside the United 4 States without regard to previous or subsequent domestic 5 stopovers. 6 (9) Proceeds of mandatory service charges separately 7 stated on customers' bills for the purchase and consumption 8 of food and beverages acquired as an incident to the purchase 9 of a service from a serviceman, to the extent that the 10 proceeds of the service charge are in fact turned over as 11 tips or as a substitute for tips to the employees who 12 participate directly in preparing, serving, hosting or 13 cleaning up the food or beverage function with respect to 14 which the service charge is imposed. 15 (10) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (11) Proceeds from the sale of photoprocessing machinery 25 and equipment, including repair and replacement parts, both 26 new and used, including that manufactured on special order, 27 certified by the purchaser to be used primarily for 28 photoprocessing, and including photoprocessing machinery and 29 equipment purchased for lease. 30 (12) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB666 Engrossed -37- LRB9104001PTpk 1 (13) Semen used for artificial insemination of livestock 2 for direct agricultural production. 3 (14) Horses, or interests in horses, registered with and 4 meeting the requirements of any of the Arabian Horse Club 5 Registry of America, Appaloosa Horse Club, American Quarter 6 Horse Association, United States Trotting Association, or 7 Jockey Club, as appropriate, used for purposes of breeding or 8 racing for prizes. 9 (15) Computers and communications equipment utilized for 10 any hospital purpose and equipment used in the diagnosis, 11 analysis, or treatment of hospital patients purchased by a 12 lessor who leases the equipment, under a lease of one year or 13 longer executed or in effect at the time the lessor would 14 otherwise be subject to the tax imposed by this Act, to a 15 hospital that has been issued an active tax exemption 16 identification number by the Department under Section 1g of 17 the Retailers' Occupation Tax Act. If the equipment is leased 18 in a manner that does not qualify for this exemption or is 19 used in any other non-exempt manner, the lessor shall be 20 liable for the tax imposed under this Act or the Use Tax Act, 21 as the case may be, based on the fair market value of the 22 property at the time the non-qualifying use occurs. No 23 lessor shall collect or attempt to collect an amount (however 24 designated) that purports to reimburse that lessor for the 25 tax imposed by this Act or the Use Tax Act, as the case may 26 be, if the tax has not been paid by the lessor. If a lessor 27 improperly collects any such amount from the lessee, the 28 lessee shall have a legal right to claim a refund of that 29 amount from the lessor. If, however, that amount is not 30 refunded to the lessee for any reason, the lessor is liable 31 to pay that amount to the Department. This paragraph is 32 exempt from the provisions of Section 3-75. 33 (16) Personal property purchased by a lessor who leases 34 the property, under a lease of one year or longer executed or SB666 Engrossed -38- LRB9104001PTpk 1 in effect at the time the lessor would otherwise be subject 2 to the tax imposed by this Act, to a governmental body that 3 has been issued an active tax exemption identification number 4 by the Department under Section 1g of the Retailers' 5 Occupation Tax Act. If the property is leased in a manner 6 that does not qualify for this exemption or is used in any 7 other non-exempt manner, the lessor shall be liable for the 8 tax imposed under this Act or the Use Tax Act, as the case 9 may be, based on the fair market value of the property at the 10 time the non-qualifying use occurs. No lessor shall collect 11 or attempt to collect an amount (however designated) that 12 purports to reimburse that lessor for the tax imposed by this 13 Act or the Use Tax Act, as the case may be, if the tax has 14 not been paid by the lessor. If a lessor improperly collects 15 any such amount from the lessee, the lessee shall have a 16 legal right to claim a refund of that amount from the lessor. 17 If, however, that amount is not refunded to the lessee for 18 any reason, the lessor is liable to pay that amount to the 19 Department. This paragraph is exempt from the provisions of 20 Section 3-75. 21 (17) Beginning with taxable years ending on or after 22 December 31, 1995 and ending with taxable years ending on or 23 before December 31, 2004, personal property that is donated 24 for disaster relief to be used in a State or federally 25 declared disaster area in Illinois or bordering Illinois by a 26 manufacturer or retailer that is registered in this State to 27 a corporation, society, association, foundation, or 28 institution that has been issued a sales tax exemption 29 identification number by the Department that assists victims 30 of the disaster who reside within the declared disaster area. 31 (18) Beginning with taxable years ending on or after 32 December 31, 1995 and ending with taxable years ending on or 33 before December 31, 2004, personal property that is used in 34 the performance of infrastructure repairs in this State, SB666 Engrossed -39- LRB9104001PTpk 1 including but not limited to municipal roads and streets, 2 access roads, bridges, sidewalks, waste disposal systems, 3 water and sewer line extensions, water distribution and 4 purification facilities, storm water drainage and retention 5 facilities, and sewage treatment facilities, resulting from a 6 State or federally declared disaster in Illinois or bordering 7 Illinois when such repairs are initiated on facilities 8 located in the declared disaster area within 6 months after 9 the disaster. 10 (19) Beginning July 1, 1999, qualified technological 11 equipment purchased for lease by lessors under leases subject 12 to the Qualified Technological Equipment Leasing Occupation 13 and Use Tax Act. However, this exemption will last only as 14 long as the property continues to be leased by the lessor. 15 When the property is no longer used for lease and the 16 property reverts to the lessor, the property is subject to 17 the tax imposed by this Act upon the fair market value of the 18 property on the date of the reversion. The property will not 19 be considered to revert to the lessor as long as the lessor 20 holds the property in his or her lease inventory and does not 21 otherwise use the property, except for demonstration 22 purposes. In addition, property held in the lessor's lease 23 inventory that is subsequently leased for a period of less 24 than one year will not be considered to revert to the lessor 25 if the property is returned to lease inventory at the 26 termination of the lease. This paragraph is exempt from the 27 provisions of Section 3-75. 28 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 29 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 30 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 31 eff. 12-12-97; 90-605, eff. 6-30-98.) 32 Section 120. The Service Occupation Tax Act is amended 33 by changing Section 3-5 as follows: SB666 Engrossed -40- LRB9104001PTpk 1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 2 Sec. 3-5. Exemptions. The following tangible personal 3 property is exempt from the tax imposed by this Act: 4 (1) Personal property sold by a corporation, society, 5 association, foundation, institution, or organization, other 6 than a limited liability company, that is organized and 7 operated as a not-for-profit service enterprise for the 8 benefit of persons 65 years of age or older if the personal 9 property was not purchased by the enterprise for the purpose 10 of resale by the enterprise. 11 (2) Personal property purchased by a not-for-profit 12 Illinois county fair association for use in conducting, 13 operating, or promoting the county fair. 14 (3) Personal property purchased by any not-for-profit 15 music or dramatic arts organization that establishes, by 16 proof required by the Department by rule, that it has 17 received an exemption under Section 501(c)(3) of the 18 Internal Revenue Code and that is organized and operated for 19 the presentation of live public performances of musical or 20 theatrical works on a regular basis. 21 (4) Legal tender, currency, medallions, or gold or 22 silver coinage issued by the State of Illinois, the 23 government of the United States of America, or the government 24 of any foreign country, and bullion. 25 (5) Graphic arts machinery and equipment, including 26 repair and replacement parts, both new and used, and 27 including that manufactured on special order or purchased for 28 lease, certified by the purchaser to be used primarily for 29 graphic arts production. 30 (6) Personal property sold by a teacher-sponsored 31 student organization affiliated with an elementary or 32 secondary school located in Illinois. 33 (7) Farm machinery and equipment, both new and used, 34 including that manufactured on special order, certified by SB666 Engrossed -41- LRB9104001PTpk 1 the purchaser to be used primarily for production agriculture 2 or State or federal agricultural programs, including 3 individual replacement parts for the machinery and equipment, 4 including machinery and equipment purchased for lease, and 5 including implements of husbandry defined in Section 1-130 of 6 the Illinois Vehicle Code, farm machinery and agricultural 7 chemical and fertilizer spreaders, and nurse wagons required 8 to be registered under Section 3-809 of the Illinois Vehicle 9 Code, but excluding other motor vehicles required to be 10 registered under the Illinois Vehicle Code. Horticultural 11 polyhouses or hoop houses used for propagating, growing, or 12 overwintering plants shall be considered farm machinery and 13 equipment under this item (7). Agricultural chemical tender 14 tanks and dry boxes shall include units sold separately from 15 a motor vehicle required to be licensed and units sold 16 mounted on a motor vehicle required to be licensed if the 17 selling price of the tender is separately stated. 18 Farm machinery and equipment shall include precision 19 farming equipment that is installed or purchased to be 20 installed on farm machinery and equipment including, but not 21 limited to, tractors, harvesters, sprayers, planters, 22 seeders, or spreaders. Precision farming equipment includes, 23 but is not limited to, soil testing sensors, computers, 24 monitors, software, global positioning and mapping systems, 25 and other such equipment. 26 Farm machinery and equipment also includes computers, 27 sensors, software, and related equipment used primarily in 28 the computer-assisted operation of production agriculture 29 facilities, equipment, and activities such as, but not 30 limited to, the collection, monitoring, and correlation of 31 animal and crop data for the purpose of formulating animal 32 diets and agricultural chemicals. This item (7) is exempt 33 from the provisions of Section 3-75. 34 (8) Fuel and petroleum products sold to or used by an SB666 Engrossed -42- LRB9104001PTpk 1 air common carrier, certified by the carrier to be used for 2 consumption, shipment, or storage in the conduct of its 3 business as an air common carrier, for a flight destined for 4 or returning from a location or locations outside the United 5 States without regard to previous or subsequent domestic 6 stopovers. 7 (9) Proceeds of mandatory service charges separately 8 stated on customers' bills for the purchase and consumption 9 of food and beverages, to the extent that the proceeds of the 10 service charge are in fact turned over as tips or as a 11 substitute for tips to the employees who participate directly 12 in preparing, serving, hosting or cleaning up the food or 13 beverage function with respect to which the service charge is 14 imposed. 15 (10) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (11) Photoprocessing machinery and equipment, including 25 repair and replacement parts, both new and used, including 26 that manufactured on special order, certified by the 27 purchaser to be used primarily for photoprocessing, and 28 including photoprocessing machinery and equipment purchased 29 for lease. 30 (12) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB666 Engrossed -43- LRB9104001PTpk 1 (13) Food for human consumption that is to be consumed 2 off the premises where it is sold (other than alcoholic 3 beverages, soft drinks and food that has been prepared for 4 immediate consumption) and prescription and non-prescription 5 medicines, drugs, medical appliances, and insulin, urine 6 testing materials, syringes, and needles used by diabetics, 7 for human use, when purchased for use by a person receiving 8 medical assistance under Article 5 of the Illinois Public Aid 9 Code who resides in a licensed long-term care facility, as 10 defined in the Nursing Home Care Act. 11 (14) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (15) Horses, or interests in horses, registered with and 14 meeting the requirements of any of the Arabian Horse Club 15 Registry of America, Appaloosa Horse Club, American Quarter 16 Horse Association, United States Trotting Association, or 17 Jockey Club, as appropriate, used for purposes of breeding or 18 racing for prizes. 19 (16) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients sold to a lessor 22 who leases the equipment, under a lease of one year or longer 23 executed or in effect at the time of the purchase, to a 24 hospital that has been issued an active tax exemption 25 identification number by the Department under Section 1g of 26 the Retailers' Occupation Tax Act. This paragraph is exempt 27 from the provisions of Section 3-55. 28 (17) Personal property sold to a lessor who leases the 29 property, under a lease of one year or longer executed or in 30 effect at the time of the purchase, to a governmental body 31 that has been issued an active tax exemption identification 32 number by the Department under Section 1g of the Retailers' 33 Occupation Tax Act. This paragraph is exempt from the 34 provisions of Section 3-55. SB666 Engrossed -44- LRB9104001PTpk 1 (18) Beginning with taxable years ending on or after 2 December 31, 1995 and ending with taxable years ending on or 3 before December 31, 2004, personal property that is donated 4 for disaster relief to be used in a State or federally 5 declared disaster area in Illinois or bordering Illinois by a 6 manufacturer or retailer that is registered in this State to 7 a corporation, society, association, foundation, or 8 institution that has been issued a sales tax exemption 9 identification number by the Department that assists victims 10 of the disaster who reside within the declared disaster area. 11 (19) Beginning with taxable years ending on or after 12 December 31, 1995 and ending with taxable years ending on or 13 before December 31, 2004, personal property that is used in 14 the performance of infrastructure repairs in this State, 15 including but not limited to municipal roads and streets, 16 access roads, bridges, sidewalks, waste disposal systems, 17 water and sewer line extensions, water distribution and 18 purification facilities, storm water drainage and retention 19 facilities, and sewage treatment facilities, resulting from a 20 State or federally declared disaster in Illinois or bordering 21 Illinois when such repairs are initiated on facilities 22 located in the declared disaster area within 6 months after 23 the disaster. 24 (20) Beginning July 1, 1999, qualified technological 25 equipment sold to lessors for lease under leases subject to 26 the Qualified Technological Equipment Leasing Occupation and 27 Use Tax Act. This paragraph is exempt from the provisions of 28 Section 3-55. 29 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 30 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 31 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552, 32 eff. 12-12-97; 90-605, eff. 6-30-98.) 33 Section 125. The Retailers' Occupation Tax Act is SB666 Engrossed -45- LRB9104001PTpk 1 amended by adding Sections 1c-5 and 3.5 and changing 2 Sections 2-5 and 3 as follows: 3 (35 ILCS 120/1c-5 new) 4 Sec. 1c-5. Sale of used qualified technological 5 equipment by lessors. A person who is engaged in the 6 business of leasing qualified technological equipment under 7 leases subject to the Qualified Technological Equipment 8 Leasing Occupation and Use Tax Act and who, in connection 9 with that business, sells the property to a purchaser for his 10 or her use and not for the purpose of resale, is a retailer 11 engaged in the business of selling tangible personal property 12 at retail under this Act to the extent of the value of the 13 property sold. 14 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 15 Sec. 2-5. Exemptions. Gross receipts from proceeds from 16 the sale of the following tangible personal property are 17 exempt from the tax imposed by this Act: 18 (1) Farm chemicals. 19 (2) Farm machinery and equipment, both new and used, 20 including that manufactured on special order, certified by 21 the purchaser to be used primarily for production agriculture 22 or State or federal agricultural programs, including 23 individual replacement parts for the machinery and equipment, 24 including machinery and equipment purchased for lease, and 25 including implements of husbandry defined in Section 1-130 of 26 the Illinois Vehicle Code, farm machinery and agricultural 27 chemical and fertilizer spreaders, and nurse wagons required 28 to be registered under Section 3-809 of the Illinois Vehicle 29 Code, but excluding other motor vehicles required to be 30 registered under the Illinois Vehicle Code. Horticultural 31 polyhouses or hoop houses used for propagating, growing, or 32 overwintering plants shall be considered farm machinery and SB666 Engrossed -46- LRB9104001PTpk 1 equipment under this item (2). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed, if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (7) is exempt 21 from the provisions of Section 3-75. 22 (3) Distillation machinery and equipment, sold as a unit 23 or kit, assembled or installed by the retailer, certified by 24 the user to be used only for the production of ethyl alcohol 25 that will be used for consumption as motor fuel or as a 26 component of motor fuel for the personal use of the user, and 27 not subject to sale or resale. 28 (4) Graphic arts machinery and equipment, including 29 repair and replacement parts, both new and used, and 30 including that manufactured on special order or purchased for 31 lease, certified by the purchaser to be used primarily for 32 graphic arts production. 33 (5) A motor vehicle of the first division, a motor 34 vehicle of the second division that is a self-contained motor SB666 Engrossed -47- LRB9104001PTpk 1 vehicle designed or permanently converted to provide living 2 quarters for recreational, camping, or travel use, with 3 direct walk through access to the living quarters from the 4 driver's seat, or a motor vehicle of the second division that 5 is of the van configuration designed for the transportation 6 of not less than 7 nor more than 16 passengers, as defined in 7 Section 1-146 of the Illinois Vehicle Code, that is used for 8 automobile renting, as defined in the Automobile Renting 9 Occupation and Use Tax Act. 10 (6) Personal property sold by a teacher-sponsored 11 student organization affiliated with an elementary or 12 secondary school located in Illinois. 13 (7) Proceeds of that portion of the selling price of a 14 passenger car the sale of which is subject to the Replacement 15 Vehicle Tax. 16 (8) Personal property sold to an Illinois county fair 17 association for use in conducting, operating, or promoting 18 the county fair. 19 (9) Personal property sold to a not-for-profit music or 20 dramatic arts organization that establishes, by proof 21 required by the Department by rule, that it has received an 22 exemption under Section 501(c) (3) of the Internal Revenue 23 Code and that is organized and operated for the presentation 24 of live public performances of musical or theatrical works on 25 a regular basis. 26 (10) Personal property sold by a corporation, society, 27 association, foundation, institution, or organization, other 28 than a limited liability company, that is organized and 29 operated as a not-for-profit service enterprise for the 30 benefit of persons 65 years of age or older if the personal 31 property was not purchased by the enterprise for the purpose 32 of resale by the enterprise. 33 (11) Personal property sold to a governmental body, to a 34 corporation, society, association, foundation, or institution SB666 Engrossed -48- LRB9104001PTpk 1 organized and operated exclusively for charitable, religious, 2 or educational purposes, or to a not-for-profit corporation, 3 society, association, foundation, institution, or 4 organization that has no compensated officers or employees 5 and that is organized and operated primarily for the 6 recreation of persons 55 years of age or older. A limited 7 liability company may qualify for the exemption under this 8 paragraph only if the limited liability company is organized 9 and operated exclusively for educational purposes. On and 10 after July 1, 1987, however, no entity otherwise eligible for 11 this exemption shall make tax-free purchases unless it has an 12 active identification number issued by the Department. 13 (12) Personal property sold to interstate carriers for 14 hire for use as rolling stock moving in interstate commerce 15 or to lessors under leases of one year or longer executed or 16 in effect at the time of purchase by interstate carriers for 17 hire for use as rolling stock moving in interstate commerce 18 and equipment operated by a telecommunications provider, 19 licensed as a common carrier by the Federal Communications 20 Commission, which is permanently installed in or affixed to 21 aircraft moving in interstate commerce. 22 (13) Proceeds from sales to owners, lessors, or shippers 23 of tangible personal property that is utilized by interstate 24 carriers for hire for use as rolling stock moving in 25 interstate commerce and equipment operated by a 26 telecommunications provider, licensed as a common carrier by 27 the Federal Communications Commission, which is permanently 28 installed in or affixed to aircraft moving in interstate 29 commerce. 30 (14) Machinery and equipment that will be used by the 31 purchaser, or a lessee of the purchaser, primarily in the 32 process of manufacturing or assembling tangible personal 33 property for wholesale or retail sale or lease, whether the 34 sale or lease is made directly by the manufacturer or by some SB666 Engrossed -49- LRB9104001PTpk 1 other person, whether the materials used in the process are 2 owned by the manufacturer or some other person, or whether 3 the sale or lease is made apart from or as an incident to the 4 seller's engaging in the service occupation of producing 5 machines, tools, dies, jigs, patterns, gauges, or other 6 similar items of no commercial value on special order for a 7 particular purchaser. 8 (15) Proceeds of mandatory service charges separately 9 stated on customers' bills for purchase and consumption of 10 food and beverages, to the extent that the proceeds of the 11 service charge are in fact turned over as tips or as a 12 substitute for tips to the employees who participate directly 13 in preparing, serving, hosting or cleaning up the food or 14 beverage function with respect to which the service charge is 15 imposed. 16 (16) Petroleum products sold to a purchaser if the 17 seller is prohibited by federal law from charging tax to the 18 purchaser. 19 (17) Tangible personal property sold to a common carrier 20 by rail or motor that receives the physical possession of the 21 property in Illinois and that transports the property, or 22 shares with another common carrier in the transportation of 23 the property, out of Illinois on a standard uniform bill of 24 lading showing the seller of the property as the shipper or 25 consignor of the property to a destination outside Illinois, 26 for use outside Illinois. 27 (18) Legal tender, currency, medallions, or gold or 28 silver coinage issued by the State of Illinois, the 29 government of the United States of America, or the government 30 of any foreign country, and bullion. 31 (19) Oil field exploration, drilling, and production 32 equipment, including (i) rigs and parts of rigs, rotary rigs, 33 cable tool rigs, and workover rigs, (ii) pipe and tubular 34 goods, including casing and drill strings, (iii) pumps and SB666 Engrossed -50- LRB9104001PTpk 1 pump-jack units, (iv) storage tanks and flow lines, (v) any 2 individual replacement part for oil field exploration, 3 drilling, and production equipment, and (vi) machinery and 4 equipment purchased for lease; but excluding motor vehicles 5 required to be registered under the Illinois Vehicle Code. 6 (20) Photoprocessing machinery and equipment, including 7 repair and replacement parts, both new and used, including 8 that manufactured on special order, certified by the 9 purchaser to be used primarily for photoprocessing, and 10 including photoprocessing machinery and equipment purchased 11 for lease. 12 (21) Coal exploration, mining, offhighway hauling, 13 processing, maintenance, and reclamation equipment, including 14 replacement parts and equipment, and including equipment 15 purchased for lease, but excluding motor vehicles required to 16 be registered under the Illinois Vehicle Code. 17 (22) Fuel and petroleum products sold to or used by an 18 air carrier, certified by the carrier to be used for 19 consumption, shipment, or storage in the conduct of its 20 business as an air common carrier, for a flight destined for 21 or returning from a location or locations outside the United 22 States without regard to previous or subsequent domestic 23 stopovers. 24 (23) A transaction in which the purchase order is 25 received by a florist who is located outside Illinois, but 26 who has a florist located in Illinois deliver the property to 27 the purchaser or the purchaser's donee in Illinois. 28 (24) Fuel consumed or used in the operation of ships, 29 barges, or vessels that are used primarily in or for the 30 transportation of property or the conveyance of persons for 31 hire on rivers bordering on this State if the fuel is 32 delivered by the seller to the purchaser's barge, ship, or 33 vessel while it is afloat upon that bordering river. 34 (25) A motor vehicle sold in this State to a nonresident SB666 Engrossed -51- LRB9104001PTpk 1 even though the motor vehicle is delivered to the nonresident 2 in this State, if the motor vehicle is not to be titled in 3 this State, and if a driveaway decal permit is issued to the 4 motor vehicle as provided in Section 3-603 of the Illinois 5 Vehicle Code or if the nonresident purchaser has vehicle 6 registration plates to transfer to the motor vehicle upon 7 returning to his or her home state. The issuance of the 8 driveaway decal permit or having the out-of-state 9 registration plates to be transferred is prima facie evidence 10 that the motor vehicle will not be titled in this State. 11 (26) Semen used for artificial insemination of livestock 12 for direct agricultural production. 13 (27) Horses, or interests in horses, registered with and 14 meeting the requirements of any of the Arabian Horse Club 15 Registry of America, Appaloosa Horse Club, American Quarter 16 Horse Association, United States Trotting Association, or 17 Jockey Club, as appropriate, used for purposes of breeding or 18 racing for prizes. 19 (28) Computers and communications equipment utilized for 20 any hospital purpose and equipment used in the diagnosis, 21 analysis, or treatment of hospital patients sold to a lessor 22 who leases the equipment, under a lease of one year or longer 23 executed or in effect at the time of the purchase, to a 24 hospital that has been issued an active tax exemption 25 identification number by the Department under Section 1g of 26 this Act. This paragraph is exempt from the provisions of 27 Section 2-70. 28 (29) Personal property sold to a lessor who leases the 29 property, under a lease of one year or longer executed or in 30 effect at the time of the purchase, to a governmental body 31 that has been issued an active tax exemption identification 32 number by the Department under Section 1g of this Act. This 33 paragraph is exempt from the provisions of Section 2-70. 34 (30) Beginning with taxable years ending on or after SB666 Engrossed -52- LRB9104001PTpk 1 December 31, 1995 and ending with taxable years ending on or 2 before December 31, 2004, personal property that is donated 3 for disaster relief to be used in a State or federally 4 declared disaster area in Illinois or bordering Illinois by a 5 manufacturer or retailer that is registered in this State to 6 a corporation, society, association, foundation, or 7 institution that has been issued a sales tax exemption 8 identification number by the Department that assists victims 9 of the disaster who reside within the declared disaster area. 10 (31) Beginning with taxable years ending on or after 11 December 31, 1995 and ending with taxable years ending on or 12 before December 31, 2004, personal property that is used in 13 the performance of infrastructure repairs in this State, 14 including but not limited to municipal roads and streets, 15 access roads, bridges, sidewalks, waste disposal systems, 16 water and sewer line extensions, water distribution and 17 purification facilities, storm water drainage and retention 18 facilities, and sewage treatment facilities, resulting from a 19 State or federally declared disaster in Illinois or bordering 20 Illinois when such repairs are initiated on facilities 21 located in the declared disaster area within 6 months after 22 the disaster. 23 (32) Beginning July 1, 1999, qualified technological 24 equipment sold to lessors for lease under leases subject to 25 the Qualified Technological Equipment Leasing Occupation and 26 Use Tax Act. This paragraph is exempt from the provisions of 27 Section 2-70. 28 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 29 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 30 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519, 31 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.) 32 (35 ILCS 120/3) (from Ch. 120, par. 442) 33 Sec. 3. Except as provided in this Section, on or before SB666 Engrossed -53- LRB9104001PTpk 1 the twentieth day of each calendar month, every person 2 engaged in the business of selling tangible personal property 3 at retail in this State during the preceding calendar month 4 shall file a return with the Department, stating: 5 1. The name of the seller; 6 2. His residence address and the address of his 7 principal place of business and the address of the 8 principal place of business (if that is a different 9 address) from which he engages in the business of selling 10 tangible personal property at retail in this State; 11 3. Total amount of receipts received by him during 12 the preceding calendar month or quarter, as the case may 13 be, from sales of tangible personal property, and from 14 services furnished, by him during such preceding calendar 15 month or quarter; 16 4. Total amount received by him during the 17 preceding calendar month or quarter on charge and time 18 sales of tangible personal property, and from services 19 furnished, by him prior to the month or quarter for which 20 the return is filed; 21 5. Deductions allowed by law; 22 6. Gross receipts which were received by him during 23 the preceding calendar month or quarter and upon the 24 basis of which the tax is imposed; 25 7. The amount of credit provided in Section 2d of 26 this Act; 27 8. The amount of tax due; 28 9. The signature of the taxpayer; and 29 10. Such other reasonable information as the 30 Department may require. 31 If a taxpayer fails to sign a return within 30 days after 32 the proper notice and demand for signature by the Department, 33 the return shall be considered valid and any amount shown to 34 be due on the return shall be deemed assessed. SB666 Engrossed -54- LRB9104001PTpk 1 Each return shall be accompanied by the statement of 2 prepaid tax issued pursuant to Section 2e for which credit is 3 claimed. 4 A retailer may accept a Manufacturer's Purchase Credit 5 certification from a purchaser in satisfaction of Use Tax as 6 provided in Section 3-85 of the Use Tax Act if the purchaser 7 provides the appropriate documentation as required by Section 8 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 9 certification, accepted by a retailer as provided in Section 10 3-85 of the Use Tax Act, may be used by that retailer to 11 satisfy Retailers' Occupation Tax liability in the amount 12 claimed in the certification, not to exceed 6.25% of the 13 receipts subject to tax from a qualifying purchase. 14 The Department may require returns to be filed on a 15 quarterly basis. If so required, a return for each calendar 16 quarter shall be filed on or before the twentieth day of the 17 calendar month following the end of such calendar quarter. 18 The taxpayer shall also file a return with the Department for 19 each of the first two months of each calendar quarter, on or 20 before the twentieth day of the following calendar month, 21 stating: 22 1. The name of the seller; 23 2. The address of the principal place of business 24 from which he engages in the business of selling tangible 25 personal property at retail in this State; 26 3. The total amount of taxable receipts received by 27 him during the preceding calendar month from sales of 28 tangible personal property by him during such preceding 29 calendar month, including receipts from charge and time 30 sales, but less all deductions allowed by law; 31 4. The amount of credit provided in Section 2d of 32 this Act; 33 5. The amount of tax due; and 34 6. Such other reasonable information as the SB666 Engrossed -55- LRB9104001PTpk 1 Department may require. 2 If a total amount of less than $1 is payable, refundable 3 or creditable, such amount shall be disregarded if it is less 4 than 50 cents and shall be increased to $1 if it is 50 cents 5 or more. 6 Beginning October 1, 1993, a taxpayer who has an average 7 monthly tax liability of $150,000 or more shall make all 8 payments required by rules of the Department by electronic 9 funds transfer. Beginning October 1, 1994, a taxpayer who 10 has an average monthly tax liability of $100,000 or more 11 shall make all payments required by rules of the Department 12 by electronic funds transfer. Beginning October 1, 1995, a 13 taxpayer who has an average monthly tax liability of $50,000 14 or more shall make all payments required by rules of the 15 Department by electronic funds transfer. The term "average 16 monthly tax liability" shall be the sum of the taxpayer's 17 liabilities under this Act, and under all other State and 18 local occupation and use tax laws administered by the 19 Department, for the immediately preceding calendar year 20 divided by 12. 21 Before August 1 of each year beginning in 1993, the 22 Department shall notify all taxpayers required to make 23 payments by electronic funds transfer. All taxpayers 24 required to make payments by electronic funds transfer shall 25 make those payments for a minimum of one year beginning on 26 October 1. 27 Any taxpayer not required to make payments by electronic 28 funds transfer may make payments by electronic funds transfer 29 with the permission of the Department. 30 All taxpayers required to make payment by electronic 31 funds transfer and any taxpayers authorized to voluntarily 32 make payments by electronic funds transfer shall make those 33 payments in the manner authorized by the Department. 34 The Department shall adopt such rules as are necessary to SB666 Engrossed -56- LRB9104001PTpk 1 effectuate a program of electronic funds transfer and the 2 requirements of this Section. 3 Any amount which is required to be shown or reported on 4 any return or other document under this Act shall, if such 5 amount is not a whole-dollar amount, be increased to the 6 nearest whole-dollar amount in any case where the fractional 7 part of a dollar is 50 cents or more, and decreased to the 8 nearest whole-dollar amount where the fractional part of a 9 dollar is less than 50 cents. 10 If the retailer is otherwise required to file a monthly 11 return and if the retailer's average monthly tax liability to 12 the Department does not exceed $200, the Department may 13 authorize his returns to be filed on a quarter annual basis, 14 with the return for January, February and March of a given 15 year being due by April 20 of such year; with the return for 16 April, May and June of a given year being due by July 20 of 17 such year; with the return for July, August and September of 18 a given year being due by October 20 of such year, and with 19 the return for October, November and December of a given year 20 being due by January 20 of the following year. 21 If the retailer is otherwise required to file a monthly 22 or quarterly return and if the retailer's average monthly tax 23 liability with the Department does not exceed $50, the 24 Department may authorize his returns to be filed on an annual 25 basis, with the return for a given year being due by January 26 20 of the following year. 27 Such quarter annual and annual returns, as to form and 28 substance, shall be subject to the same requirements as 29 monthly returns. 30 Notwithstanding any other provision in this Act 31 concerning the time within which a retailer may file his 32 return, in the case of any retailer who ceases to engage in a 33 kind of business which makes him responsible for filing 34 returns under this Act, such retailer shall file a final SB666 Engrossed -57- LRB9104001PTpk 1 return under this Act with the Department not more than one 2 month after discontinuing such business. 3 Where the same person has more than one business 4 registered with the Department under separate registrations 5 under this Act, such person may not file each return that is 6 due as a single return covering all such registered 7 businesses, but shall file separate returns for each such 8 registered business. 9 In addition, with respect to motor vehicles, watercraft, 10 aircraft, and trailers that are required to be registered 11 with an agency of this State, every retailer selling this 12 kind of tangible personal property shall file, with the 13 Department, upon a form to be prescribed and supplied by the 14 Department, a separate return for each such item of tangible 15 personal property which the retailer sells, except that 16 where, in the same transaction, a retailer of aircraft, 17 watercraft, motor vehicles or trailers transfers more than 18 one aircraft, watercraft, motor vehicle or trailer to another 19 aircraft, watercraft, motor vehicle retailer or trailer 20 retailer for the purpose of resale, that seller for resale 21 may report the transfer of all aircraft, watercraft, motor 22 vehicles or trailers involved in that transaction to the 23 Department on the same uniform invoice-transaction reporting 24 return form. For purposes of this Section, "watercraft" 25 means a Class 2, Class 3, or Class 4 watercraft as defined in 26 Section 3-2 of the Boat Registration and Safety Act, a 27 personal watercraft, or any boat equipped with an inboard 28 motor. 29 Any retailer who sells only motor vehicles, watercraft, 30 aircraft, or trailers that are required to be registered with 31 an agency of this State, so that all retailers' occupation 32 tax liability is required to be reported, and is reported, on 33 such transaction reporting returns and who is not otherwise 34 required to file monthly or quarterly returns, need not file SB666 Engrossed -58- LRB9104001PTpk 1 monthly or quarterly returns. However, those retailers shall 2 be required to file returns on an annual basis. 3 The transaction reporting return, in the case of motor 4 vehicles or trailers that are required to be registered with 5 an agency of this State, shall be the same document as the 6 Uniform Invoice referred to in Section 5-402 of The Illinois 7 Vehicle Code and must show the name and address of the 8 seller; the name and address of the purchaser; the amount of 9 the selling price including the amount allowed by the 10 retailer for traded-in property, if any; the amount allowed 11 by the retailer for the traded-in tangible personal property, 12 if any, to the extent to which Section 1 of this Act allows 13 an exemption for the value of traded-in property; the balance 14 payable after deducting such trade-in allowance from the 15 total selling price; the amount of tax due from the retailer 16 with respect to such transaction; the amount of tax collected 17 from the purchaser by the retailer on such transaction (or 18 satisfactory evidence that such tax is not due in that 19 particular instance, if that is claimed to be the fact); the 20 place and date of the sale; a sufficient identification of 21 the property sold; such other information as is required in 22 Section 5-402 of The Illinois Vehicle Code, and such other 23 information as the Department may reasonably require. 24 The transaction reporting return in the case of 25 watercraft or aircraft must show the name and address of the 26 seller; the name and address of the purchaser; the amount of 27 the selling price including the amount allowed by the 28 retailer for traded-in property, if any; the amount allowed 29 by the retailer for the traded-in tangible personal property, 30 if any, to the extent to which Section 1 of this Act allows 31 an exemption for the value of traded-in property; the balance 32 payable after deducting such trade-in allowance from the 33 total selling price; the amount of tax due from the retailer 34 with respect to such transaction; the amount of tax collected SB666 Engrossed -59- LRB9104001PTpk 1 from the purchaser by the retailer on such transaction (or 2 satisfactory evidence that such tax is not due in that 3 particular instance, if that is claimed to be the fact); the 4 place and date of the sale, a sufficient identification of 5 the property sold, and such other information as the 6 Department may reasonably require. 7 Such transaction reporting return shall be filed not 8 later than 20 days after the day of delivery of the item that 9 is being sold, but may be filed by the retailer at any time 10 sooner than that if he chooses to do so. The transaction 11 reporting return and tax remittance or proof of exemption 12 from the Illinois use tax may be transmitted to the 13 Department by way of the State agency with which, or State 14 officer with whom the tangible personal property must be 15 titled or registered (if titling or registration is required) 16 if the Department and such agency or State officer determine 17 that this procedure will expedite the processing of 18 applications for title or registration. 19 With each such transaction reporting return, the retailer 20 shall remit the proper amount of tax due (or shall submit 21 satisfactory evidence that the sale is not taxable if that is 22 the case), to the Department or its agents, whereupon the 23 Department shall issue, in the purchaser's name, a use tax 24 receipt (or a certificate of exemption if the Department is 25 satisfied that the particular sale is tax exempt) which such 26 purchaser may submit to the agency with which, or State 27 officer with whom, he must title or register the tangible 28 personal property that is involved (if titling or 29 registration is required) in support of such purchaser's 30 application for an Illinois certificate or other evidence of 31 title or registration to such tangible personal property. 32 No retailer's failure or refusal to remit tax under this 33 Act precludes a user, who has paid the proper tax to the 34 retailer, from obtaining his certificate of title or other SB666 Engrossed -60- LRB9104001PTpk 1 evidence of title or registration (if titling or registration 2 is required) upon satisfying the Department that such user 3 has paid the proper tax (if tax is due) to the retailer. The 4 Department shall adopt appropriate rules to carry out the 5 mandate of this paragraph. 6 If the user who would otherwise pay tax to the retailer 7 wants the transaction reporting return filed and the payment 8 of the tax or proof of exemption made to the Department 9 before the retailer is willing to take these actions and such 10 user has not paid the tax to the retailer, such user may 11 certify to the fact of such delay by the retailer and may 12 (upon the Department being satisfied of the truth of such 13 certification) transmit the information required by the 14 transaction reporting return and the remittance for tax or 15 proof of exemption directly to the Department and obtain his 16 tax receipt or exemption determination, in which event the 17 transaction reporting return and tax remittance (if a tax 18 payment was required) shall be credited by the Department to 19 the proper retailer's account with the Department, but 20 without the 2.1% or 1.75% discount provided for in this 21 Section being allowed. When the user pays the tax directly 22 to the Department, he shall pay the tax in the same amount 23 and in the same form in which it would be remitted if the tax 24 had been remitted to the Department by the retailer. 25 Refunds made by the seller during the preceding return 26 period to purchasers, on account of tangible personal 27 property returned to the seller, shall be allowed as a 28 deduction under subdivision 5 of his monthly or quarterly 29 return, as the case may be, in case the seller had 30 theretofore included the receipts from the sale of such 31 tangible personal property in a return filed by him and had 32 paid the tax imposed by this Act with respect to such 33 receipts. 34 Where the seller is a corporation, the return filed on SB666 Engrossed -61- LRB9104001PTpk 1 behalf of such corporation shall be signed by the president, 2 vice-president, secretary or treasurer or by the properly 3 accredited agent of such corporation. 4 Where the seller is a limited liability company, the 5 return filed on behalf of the limited liability company shall 6 be signed by a manager, member, or properly accredited agent 7 of the limited liability company. 8 Except as provided in this Section, the retailer filing 9 the return under this Section shall, at the time of filing 10 such return, pay to the Department the amount of tax imposed 11 by this Act less a discount of 2.1% prior to January 1, 1990 12 and 1.75% on and after January 1, 1990, or $5 per calendar 13 year, whichever is greater, which is allowed to reimburse the 14 retailer for the expenses incurred in keeping records, 15 preparing and filing returns, remitting the tax and supplying 16 data to the Department on request. Any prepayment made 17 pursuant to Section 2d of this Act shall be included in the 18 amount on which such 2.1% or 1.75% discount is computed. In 19 the case of retailers who report and pay the tax on a 20 transaction by transaction basis, as provided in this 21 Section, such discount shall be taken with each such tax 22 remittance instead of when such retailer files his periodic 23 return. 24 If the taxpayer's average monthly tax liability to the 25 Department under this Act, the Use Tax Act, the Service 26 Occupation Tax Act, and the Service Use Tax Act, excluding 27 any liability for prepaid sales tax to be remitted in 28 accordance with Section 2d of this Act, was $10,000 or more 29 during the preceding 4 complete calendar quarters, he shall 30 file a return with the Department each month by the 20th day 31 of the month next following the month during which such tax 32 liability is incurred and shall make payments to the 33 Department on or before the 7th, 15th, 22nd and last day of 34 the month during which such liability is incurred. If the SB666 Engrossed -62- LRB9104001PTpk 1 month during which such tax liability is incurred began prior 2 to January 1, 1985, each payment shall be in an amount equal 3 to 1/4 of the taxpayer's actual liability for the month or an 4 amount set by the Department not to exceed 1/4 of the average 5 monthly liability of the taxpayer to the Department for the 6 preceding 4 complete calendar quarters (excluding the month 7 of highest liability and the month of lowest liability in 8 such 4 quarter period). If the month during which such tax 9 liability is incurred begins on or after January 1, 1985 and 10 prior to January 1, 1987, each payment shall be in an amount 11 equal to 22.5% of the taxpayer's actual liability for the 12 month or 27.5% of the taxpayer's liability for the same 13 calendar month of the preceding year. If the month during 14 which such tax liability is incurred begins on or after 15 January 1, 1987 and prior to January 1, 1988, each payment 16 shall be in an amount equal to 22.5% of the taxpayer's actual 17 liability for the month or 26.25% of the taxpayer's liability 18 for the same calendar month of the preceding year. If the 19 month during which such tax liability is incurred begins on 20 or after January 1, 1988, and prior to January 1, 1989, or 21 begins on or after January 1, 1996, each payment shall be in 22 an amount equal to 22.5% of the taxpayer's actual liability 23 for the month or 25% of the taxpayer's liability for the same 24 calendar month of the preceding year. If the month during 25 which such tax liability is incurred begins on or after 26 January 1, 1989, and prior to January 1, 1996, each payment 27 shall be in an amount equal to 22.5% of the taxpayer's actual 28 liability for the month or 25% of the taxpayer's liability 29 for the same calendar month of the preceding year or 100% of 30 the taxpayer's actual liability for the quarter monthly 31 reporting period. The amount of such quarter monthly 32 payments shall be credited against the final tax liability of 33 the taxpayer's return for that month. Once applicable, the 34 requirement of the making of quarter monthly payments to the SB666 Engrossed -63- LRB9104001PTpk 1 Department by taxpayers having an average monthly tax 2 liability of $10,000 or more as determined in the manner 3 provided above shall continue until such taxpayer's average 4 monthly liability to the Department during the preceding 4 5 complete calendar quarters (excluding the month of highest 6 liability and the month of lowest liability) is less than 7 $9,000, or until such taxpayer's average monthly liability to 8 the Department as computed for each calendar quarter of the 4 9 preceding complete calendar quarter period is less than 10 $10,000. However, if a taxpayer can show the Department that 11 a substantial change in the taxpayer's business has occurred 12 which causes the taxpayer to anticipate that his average 13 monthly tax liability for the reasonably foreseeable future 14 will fall below $10,000, then such taxpayer may petition the 15 Department for a change in such taxpayer's reporting status. 16 The Department shall change such taxpayer's reporting status 17 unless it finds that such change is seasonal in nature and 18 not likely to be long term. If any such quarter monthly 19 payment is not paid at the time or in the amount required by 20 this Section, then the taxpayer shall be liable for penalties 21 and interest on the difference between the minimum amount due 22 as a payment and the amount of such quarter monthly payment 23 actually and timely paid, except insofar as the taxpayer has 24 previously made payments for that month to the Department in 25 excess of the minimum payments previously due as provided in 26 this Section. The Department shall make reasonable rules and 27 regulations to govern the quarter monthly payment amount and 28 quarter monthly payment dates for taxpayers who file on other 29 than a calendar monthly basis. 30 Without regard to whether a taxpayer is required to make 31 quarter monthly payments as specified above, any taxpayer who 32 is required by Section 2d of this Act to collect and remit 33 prepaid taxes and has collected prepaid taxes which average 34 in excess of $25,000 per month during the preceding 2 SB666 Engrossed -64- LRB9104001PTpk 1 complete calendar quarters, shall file a return with the 2 Department as required by Section 2f and shall make payments 3 to the Department on or before the 7th, 15th, 22nd and last 4 day of the month during which such liability is incurred. If 5 the month during which such tax liability is incurred began 6 prior to the effective date of this amendatory Act of 1985, 7 each payment shall be in an amount not less than 22.5% of the 8 taxpayer's actual liability under Section 2d. If the month 9 during which such tax liability is incurred begins on or 10 after January 1, 1986, each payment shall be in an amount 11 equal to 22.5% of the taxpayer's actual liability for the 12 month or 27.5% of the taxpayer's liability for the same 13 calendar month of the preceding calendar year. If the month 14 during which such tax liability is incurred begins on or 15 after January 1, 1987, each payment shall be in an amount 16 equal to 22.5% of the taxpayer's actual liability for the 17 month or 26.25% of the taxpayer's liability for the same 18 calendar month of the preceding year. The amount of such 19 quarter monthly payments shall be credited against the final 20 tax liability of the taxpayer's return for that month filed 21 under this Section or Section 2f, as the case may be. Once 22 applicable, the requirement of the making of quarter monthly 23 payments to the Department pursuant to this paragraph shall 24 continue until such taxpayer's average monthly prepaid tax 25 collections during the preceding 2 complete calendar quarters 26 is $25,000 or less. If any such quarter monthly payment is 27 not paid at the time or in the amount required, the taxpayer 28 shall be liable for penalties and interest on such 29 difference, except insofar as the taxpayer has previously 30 made payments for that month in excess of the minimum 31 payments previously due. 32 If any payment provided for in this Section exceeds the 33 taxpayer's liabilities under this Act, the Use Tax Act, the 34 Service Occupation Tax Act and the Service Use Tax Act, as SB666 Engrossed -65- LRB9104001PTpk 1 shown on an original monthly return, the Department shall, if 2 requested by the taxpayer, issue to the taxpayer a credit 3 memorandum no later than 30 days after the date of payment. 4 The credit evidenced by such credit memorandum may be 5 assigned by the taxpayer to a similar taxpayer under this 6 Act, the Use Tax Act, the Service Occupation Tax Act or the 7 Service Use Tax Act, in accordance with reasonable rules and 8 regulations to be prescribed by the Department. If no such 9 request is made, the taxpayer may credit such excess payment 10 against tax liability subsequently to be remitted to the 11 Department under this Act, the Use Tax Act, the Service 12 Occupation Tax Act or the Service Use Tax Act, in accordance 13 with reasonable rules and regulations prescribed by the 14 Department. If the Department subsequently determined that 15 all or any part of the credit taken was not actually due to 16 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 17 shall be reduced by 2.1% or 1.75% of the difference between 18 the credit taken and that actually due, and that taxpayer 19 shall be liable for penalties and interest on such 20 difference. 21 If a retailer of motor fuel is entitled to a credit under 22 Section 2d of this Act which exceeds the taxpayer's liability 23 to the Department under this Act for the month which the 24 taxpayer is filing a return, the Department shall issue the 25 taxpayer a credit memorandum for the excess. 26 Beginning January 1, 1990, each month the Department 27 shall pay into the Local Government Tax Fund, a special fund 28 in the State treasury which is hereby created, the net 29 revenue realized for the preceding month from the 1% tax on 30 sales of food for human consumption which is to be consumed 31 off the premises where it is sold (other than alcoholic 32 beverages, soft drinks and food which has been prepared for 33 immediate consumption) and prescription and nonprescription 34 medicines, drugs, medical appliances and insulin, urine SB666 Engrossed -66- LRB9104001PTpk 1 testing materials, syringes and needles used by diabetics. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the County and Mass Transit District Fund, a 4 special fund in the State treasury which is hereby created, 5 4% of the net revenue realized for the preceding month from 6 the 6.25% general rate. 7 Beginning January 1, 1990, each month the Department 8 shall pay into the Local Government Tax Fund 16% of the net 9 revenue realized for the preceding month from the 6.25% 10 general rate on the selling price of tangible personal 11 property. 12 Of the remainder of the moneys received by the Department 13 pursuant to this Act and the moneys received by the 14 Department from the 80% of the 8.25% occupation tax imposed 15 in Section 10 of the Qualified Technological Equipment 16 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall 17 be paid into the Build Illinois Fund and (b) prior to July 1, 18 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall 19 be paid into the Build Illinois Fund; provided, however, that 20 if in any fiscal year the sum of (1) the aggregate of 2.2% or 21 3.8%, as the case may be, of the moneys received by the 22 Department and required to be paid into the Build Illinois 23 Fund pursuant to this Act, Section 9 of the Use Tax Act, 24 Section 9 of the Service Use Tax Act, and Section 9 of the 25 Service Occupation Tax Act, such Acts being hereinafter 26 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as 27 the case may be, of moneys being hereinafter called the "Tax 28 Act Amount", and (2) the amount transferred to the Build 29 Illinois Fund from the State and Local Sales Tax Reform Fund 30 shall be less than the Annual Specified Amount (as 31 hereinafter defined), an amount equal to the difference shall 32 be immediately paid into the Build Illinois Fund from other 33 moneys received by the Department pursuant to the Tax Acts; 34 the "Annual Specified Amount" means the amounts specified SB666 Engrossed -67- LRB9104001PTpk 1 below for fiscal years 1986 through 1993: 2 Fiscal Year Annual Specified Amount 3 1986 $54,800,000 4 1987 $76,650,000 5 1988 $80,480,000 6 1989 $88,510,000 7 1990 $115,330,000 8 1991 $145,470,000 9 1992 $182,730,000 10 1993 $206,520,000; 11 and means the Certified Annual Debt Service Requirement (as 12 defined in Section 13 of the Build Illinois Bond Act) or the 13 Tax Act Amount, whichever is greater, for fiscal year 1994 14 and each fiscal year thereafter; and further provided, that 15 if on the last business day of any month the sum of (1) the 16 Tax Act Amount required to be deposited into the Build 17 Illinois Bond Account in the Build Illinois Fund during such 18 month and (2) the amount transferred to the Build Illinois 19 Fund from the State and Local Sales Tax Reform Fund shall 20 have been less than 1/12 of the Annual Specified Amount, an 21 amount equal to the difference shall be immediately paid into 22 the Build Illinois Fund from other moneys received by the 23 Department pursuant to the Tax Acts; and, further provided, 24 that in no event shall the payments required under the 25 preceding proviso result in aggregate payments into the Build 26 Illinois Fund pursuant to this clause (b) for any fiscal year 27 in excess of the greater of (i) the Tax Act Amount or (ii) 28 the Annual Specified Amount for such fiscal year. The 29 amounts payable into the Build Illinois Fund under clause (b) 30 of the first sentence in this paragraph shall be payable only 31 until such time as the aggregate amount on deposit under each 32 trust indenture securing Bonds issued and outstanding 33 pursuant to the Build Illinois Bond Act is sufficient, taking 34 into account any future investment income, to fully provide, SB666 Engrossed -68- LRB9104001PTpk 1 in accordance with such indenture, for the defeasance of or 2 the payment of the principal of, premium, if any, and 3 interest on the Bonds secured by such indenture and on any 4 Bonds expected to be issued thereafter and all fees and costs 5 payable with respect thereto, all as certified by the 6 Director of the Bureau of the Budget. If on the last 7 business day of any month in which Bonds are outstanding 8 pursuant to the Build Illinois Bond Act, the aggregate of 9 moneys deposited in the Build Illinois Bond Account in the 10 Build Illinois Fund in such month shall be less than the 11 amount required to be transferred in such month from the 12 Build Illinois Bond Account to the Build Illinois Bond 13 Retirement and Interest Fund pursuant to Section 13 of the 14 Build Illinois Bond Act, an amount equal to such deficiency 15 shall be immediately paid from other moneys received by the 16 Department pursuant to the Tax Acts to the Build Illinois 17 Fund; provided, however, that any amounts paid to the Build 18 Illinois Fund in any fiscal year pursuant to this sentence 19 shall be deemed to constitute payments pursuant to clause (b) 20 of the first sentence of this paragraph and shall reduce the 21 amount otherwise payable for such fiscal year pursuant to 22 that clause (b). The moneys received by the Department 23 pursuant to this Act and required to be deposited into the 24 Build Illinois Fund are subject to the pledge, claim and 25 charge set forth in Section 12 of the Build Illinois Bond 26 Act. 27 Subject to payment of amounts into the Build Illinois 28 Fund as provided in the preceding paragraph or in any 29 amendment thereto hereafter enacted, the following specified 30 monthly installment of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority provided under Section 8.25f of the 33 State Finance Act, but not in excess of sums designated as 34 "Total Deposit", shall be deposited in the aggregate from SB666 Engrossed -69- LRB9104001PTpk 1 collections under Section 9 of the Use Tax Act, Section 9 of 2 the Service Use Tax Act, Section 9 of the Service Occupation 3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 4 into the McCormick Place Expansion Project Fund in the 5 specified fiscal years. 6 Fiscal Year Total Deposit 7 1993 $0 8 1994 53,000,000 9 1995 58,000,000 10 1996 61,000,000 11 1997 64,000,000 12 1998 68,000,000 13 1999 71,000,000 14 2000 75,000,000 15 2001 80,000,000 16 2002 84,000,000 17 2003 89,000,000 18 2004 93,000,000 19 2005 97,000,000 20 2006 102,000,000 21 2007 and 106,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority 28 Act, but not after fiscal year 2029. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB666 Engrossed -70- LRB9104001PTpk 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund 0.4% of the net 13 revenue realized for the preceding month from the 5% general 14 rate or 0.4% of 80% of the net revenue realized for the 15 preceding month from the 6.25% general rate, as the case may 16 be, on the selling price of tangible personal property which 17 amount shall, subject to appropriation, be distributed as 18 provided in Section 2 of the State Revenue Sharing Act. No 19 payments or distributions pursuant to this paragraph shall be 20 made if the tax imposed by this Act on photoprocessing 21 products is declared unconstitutional, or if the proceeds 22 from such tax are unavailable for distribution because of 23 litigation. 24 Subject to payment of amounts into the Build Illinois 25 Fund, the McCormick Place Expansion Project to the preceding 26 paragraphs or in any amendments thereto hereafter enacted, 27 beginning July 1, 1993, the Department shall each month pay 28 into the Illinois Tax Increment Fund 0.27% of 80% of the net 29 revenue realized for the preceding month from the 6.25% 30 general rate on the selling price of tangible personal 31 property. 32 Of the remainder of the moneys received by the Department 33 pursuant to this Act, 75% thereof shall be paid into the 34 State Treasury and 25% shall be reserved in a special account SB666 Engrossed -71- LRB9104001PTpk 1 and used only for the transfer to the Common School Fund as 2 part of the monthly transfer from the General Revenue Fund in 3 accordance with Section 8a of the State Finance Act. 4 The Department may, upon separate written notice to a 5 taxpayer, require the taxpayer to prepare and file with the 6 Department on a form prescribed by the Department within not 7 less than 60 days after receipt of the notice an annual 8 information return for the tax year specified in the notice. 9 Such annual return to the Department shall include a 10 statement of gross receipts as shown by the retailer's last 11 Federal income tax return. If the total receipts of the 12 business as reported in the Federal income tax return do not 13 agree with the gross receipts reported to the Department of 14 Revenue for the same period, the retailer shall attach to his 15 annual return a schedule showing a reconciliation of the 2 16 amounts and the reasons for the difference. The retailer's 17 annual return to the Department shall also disclose the cost 18 of goods sold by the retailer during the year covered by such 19 return, opening and closing inventories of such goods for 20 such year, costs of goods used from stock or taken from stock 21 and given away by the retailer during such year, payroll 22 information of the retailer's business during such year and 23 any additional reasonable information which the Department 24 deems would be helpful in determining the accuracy of the 25 monthly, quarterly or annual returns filed by such retailer 26 as provided for in this Section. 27 If the annual information return required by this Section 28 is not filed when and as required, the taxpayer shall be 29 liable as follows: 30 (i) Until January 1, 1994, the taxpayer shall be 31 liable for a penalty equal to 1/6 of 1% of the tax due 32 from such taxpayer under this Act during the period to be 33 covered by the annual return for each month or fraction 34 of a month until such return is filed as required, the SB666 Engrossed -72- LRB9104001PTpk 1 penalty to be assessed and collected in the same manner 2 as any other penalty provided for in this Act. 3 (ii) On and after January 1, 1994, the taxpayer 4 shall be liable for a penalty as described in Section 3-4 5 of the Uniform Penalty and Interest Act. 6 The chief executive officer, proprietor, owner or highest 7 ranking manager shall sign the annual return to certify the 8 accuracy of the information contained therein. Any person 9 who willfully signs the annual return containing false or 10 inaccurate information shall be guilty of perjury and 11 punished accordingly. The annual return form prescribed by 12 the Department shall include a warning that the person 13 signing the return may be liable for perjury. 14 The provisions of this Section concerning the filing of 15 an annual information return do not apply to a retailer who 16 is not required to file an income tax return with the United 17 States Government. 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, 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 SB666 Engrossed -73- LRB9104001PTpk 1 such sales, if the retailers who are affected do not make 2 written objection to the Department to this arrangement. 3 Any person who promotes, organizes, provides retail 4 selling space for concessionaires or other types of sellers 5 at the Illinois State Fair, DuQuoin State Fair, county fairs, 6 local fairs, art shows, flea markets and similar exhibitions 7 or events, including any transient merchant as defined by 8 Section 2 of the Transient Merchant Act of 1987, is required 9 to file a report with the Department providing the name of 10 the merchant's business, the name of the person or persons 11 engaged in merchant's business, the permanent address and 12 Illinois Retailers Occupation Tax Registration Number of the 13 merchant, the dates and location of the event and other 14 reasonable information that the Department may require. The 15 report must be filed not later than the 20th day of the month 16 next following the month during which the event with retail 17 sales was held. Any person who fails to file a report 18 required by this Section commits a business offense and is 19 subject to a fine not to exceed $250. 20 Any person engaged in the business of selling tangible 21 personal property at retail as a concessionaire or other type 22 of seller at the Illinois State Fair, county fairs, art 23 shows, flea markets and similar exhibitions or events, or any 24 transient merchants, as defined by Section 2 of the Transient 25 Merchant Act of 1987, may be required to make a daily report 26 of the amount of such sales to the Department and to make a 27 daily payment of the full amount of tax due. The Department 28 shall impose this requirement when it finds that there is a 29 significant risk of loss of revenue to the State at such an 30 exhibition or event. Such a finding shall be based on 31 evidence that a substantial number of concessionaires or 32 other sellers who are not residents of Illinois will be 33 engaging in the business of selling tangible personal 34 property at retail at the exhibition or event, or other SB666 Engrossed -74- LRB9104001PTpk 1 evidence of a significant risk of loss of revenue to the 2 State. The Department shall notify concessionaires and other 3 sellers affected by the imposition of this requirement. In 4 the absence of notification by the Department, the 5 concessionaires and other sellers shall file their returns as 6 otherwise required in this Section. 7 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95; 8 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff. 9 1-1-99; 90-612, eff. 7-8-98.) 10 (35 ILCS 120/3.5 new) 11 Sec. 3.5. Refund; leaseback transaction. A purchaser of 12 qualified technological equipment, as defined in Section 5 of 13 the Qualified Technological Equipment Leasing Occupation and 14 Use Tax Act, may obtain a refund of all tax paid to a seller 15 under this Act or any other tax administered by the 16 Department if the purchaser sells the property to a rentor 17 under a bona fide sale and leaseback transaction (to such 18 purchaser) within 90 days of the first functional use of the 19 property. The purchaser shall request the refund from the 20 seller to whom he or she has paid the tax in the same manner 21 and subject to the same requirements as other refunds 22 provided in Section 3 of this Act. For purposes of this 23 Section, the first functional use of property shall be the 24 use for which the property is intended, which shall, in the 25 absence of other evidence, be presumed to be the date of 26 delivery of the property. 27 Section 999. Effective date. This Act takes effect July 28 1, 1999. SB666 Engrossed -75- LRB9104001PTpk 1 INDEX 2 Statutes amended in order of appearance 3 New Act 4 30 ILCS 115/1 from Ch. 85, par. 611 5 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5 6 35 ILCS 105/9 from Ch. 120, par. 439.9 7 35 ILCS 105/9.5 new 8 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5 9 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5 10 35 ILCS 120/1c-5 new 11 35 ILCS 120/2-5 from Ch. 120, par. 441-5 12 35 ILCS 120/3 from Ch. 120, par. 442 13 35 ILCS 120/3.5 new