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91_SB1929
LRB9111995SMdv
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 "Access fees" means fees that an interexchange carrier
10 pays to a local exchange carrier for the use of its local
11 network to originate or terminate communication services.
12 "Computer" means a programmable electronically activated
13 device that:
14 (a) is capable of accepting information, applying
15 prescribed processes as to the information, and supplying the
16 results of these processes with or without human
17 intervention, and
18 (b) consists of a central processing unit containing
19 extensive storage, logic, arithmetic, and control
20 capabilities.
21 "Computer or peripheral equipment" means:
22 (a) any computer, and
23 (b) any related peripheral equipment, however
24 (c) the term "computer or peripheral equipment" does not
25 include:
26 (i) any equipment that is an integral part of other
27 property that is not a computer,
28 (ii) typewriters, calculators, adding and
29 accounting machines, copiers, duplicating equipment, and
30 similar equipment, and
31 (iii) equipment of a kind used primarily for
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1 amusement or entertainment of the user.
2 "Department" means the Department of Revenue.
3 "High technology medical equipment" means any electronic,
4 electromechanical, or computer-based high technology
5 equipment used in the screening, monitoring, observation,
6 diagnosis, or treatment of patients in a laboratory, medical,
7 or hospital environment.
8 "Person" means any natural individual, limited liability
9 company, firm, partnership, association, joint stock company,
10 joint venture, public or private corporation, or a receiver,
11 executor, trustee, conservator, or other representatives
12 appointed by order of any court.
13 "Leasing" means any transfer of the possession or right
14 to possession of qualified technological equipment to a user
15 for valuable consideration, for the purpose of use and not
16 for the purpose of re-lease or sublease.
17 "Lessor" means any person primarily engaged in the
18 business of leasing tangible personal property to users. For
19 this purpose, the objective of making a profit is not
20 necessary to make the leasing activity a business. For
21 purposes of this definition, "primarily" means deriving more
22 than 50% of gross revenue from the business of leasing
23 tangible personal property to users. Gross revenue from the
24 business of leasing tangible personal property to users does
25 not include access fees.
26 "Lessee" means any user to whom the possession, or the
27 right to possession, of qualified technological equipment is
28 transferred for a valuable consideration that is paid by such
29 "lessee" or by someone else.
30 "Gross receipts" means the total leasing price for the
31 lease of qualified technological equipment. In the case of
32 lease transactions in which the consideration is paid to the
33 lessor on an installment basis, the amounts of such payments
34 shall be included by the lessor in gross receipts only as and
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1 when payments are received by the lessor.
2 "Leasing price" means the consideration for leasing
3 qualified technological equipment valued in money, whether
4 received in money or otherwise, including cash, credits,
5 property, and services, and shall be determined without any
6 deduction on account of the cost of the property leased, the
7 cost of materials used, labor or service cost, or any other
8 expense whatsoever, but does not include charges that are
9 added by lessors on account of the lessor's tax liability
10 under this Act, or on account of the lessor's duty to
11 collect, from the lessee, the tax that is imposed by Section
12 20 of this Act.
13 "Maintaining a place of business in this State" means
14 having or maintaining within this State, directly or by a
15 subsidiary, an office, repair facilities, distribution house,
16 sales house, warehouse, or other place of business, or any
17 agent, or other representative, operating within this State,
18 irrespective of whether the place of business or agent or
19 other representative is located here permanently or
20 temporarily.
21 "Qualified technological equipment" for purposes of this
22 Act means the following:
23 (a) any computer or peripheral equipment; and
24 (b) any high technology medical equipment.
25 "Related peripheral equipment" means any auxiliary
26 machine (whether on-line or off-line) that is designed to be
27 placed under the control of the central processing unit of a
28 computer.
29 Section 10. Imposition of occupation tax. Beginning with
30 leases for periods of one year or more entered into on and
31 after January 1, 2001, a tax is imposed upon lessors engaged
32 in this State in the business of leasing qualified
33 technological equipment in Illinois at the rate of 6.25% of
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1 the gross receipts received from the business. The tax
2 imposed by this Section does not apply to access fees.
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 6.25% 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.
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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 January 1, 2001, a tax is imposed upon the privilege of using
13 in this State qualified technological equipment that is
14 leased from a lessor. The tax is at the rate of 6.25% of the
15 leasing price of the qualified technological equipment paid
16 to the lessor under any lease agreement.
17 It is presumed that a lessee has not leased from a lessor
18 if the lessor fails to show the tax imposed by this Act on an
19 invoice to the lessee. The presumption shall not, however,
20 prevent the Department from proceeding against the lessor for
21 any tax due under the provisions of this Act or the Use Tax
22 Act, whichever applies. The tax imposed by this Section does
23 not apply to access fees.
24 The Department shall have full power to administer and
25 enforce this Section; to collect all taxes, penalties, and
26 interest due hereunder; to dispose of taxes, penalties, and
27 interest so collected in the manner hereinafter provided; and
28 to determine all rights to credit memoranda or refunds
29 arising on account of the erroneous payment of tax, penalty,
30 or interest hereunder. In the administration of, and
31 compliance with, this Section, the Department and persons who
32 are subject to this Section shall have the same rights,
33 remedies, privileges, immunities, powers, and duties, and be
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1 subject to the same conditions, restrictions, limitations,
2 penalties, and definitions of terms, and employ the same
3 modes of procedure, as are prescribed in Sections 2, 3
4 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9
5 (except provisions relating to transaction returns and
6 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
7 19, 20, 21 and 22 of the Use Tax Act that are not
8 inconsistent with this Act as fully as if those provisions
9 were set forth herein. For purposes of this Section,
10 references in such incorporated Sections of the Use Tax Act
11 to users or purchasers means lessees of qualified
12 technological equipment under leases subject to this Act.
13 Each month the Department shall pay into the Local
14 Government Distributive Fund 20% of the net revenue realized
15 for the preceding month from the 6.25% tax imposed in this
16 Section. These amounts shall be distributed in the manner
17 provided in Section 2 of the State Revenue Sharing Act. The
18 remaining 80% of the revenue shall be paid as provided for in
19 Section 9 of the Use Tax Act.
20 Section 25. Exemption due to prior taxation. The taxes
21 imposed under Sections 10 and 20 of this Act do not apply to
22 leases of qualified technological equipment as defined in
23 this Act if the lessor had properly paid, prior to January 1,
24 2001, Illinois use tax or service use tax to a retailer or
25 directly to the Department on the purchase or use of such
26 leased property.
27 Section 30. Use tax collected. The use tax imposed by
28 Section 20 shall be collected from the lessee and remitted to
29 the Department by a lessor maintaining a place of business in
30 this State.
31 The use tax imposed by Section 20 and not paid to a
32 lessor pursuant to the preceding paragraph of this Section
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1 shall be paid to the Department directly by any person using
2 the leased qualified technological equipment within this
3 State.
4 Lessors shall collect the tax from lessees by adding the
5 tax to the leasing price of the qualified technological
6 equipment in the manner prescribed by the Department. The
7 Department shall have the power to adopt and promulgate
8 reasonable rules and regulations for the adding of the tax by
9 lessors to leasing prices by prescribing bracket systems for
10 the purpose of enabling the lessors to add and collect, as
11 far as practicable, the amount of the tax.
12 The tax imposed by this Act shall, when collected, be
13 stated as a distinct item on the customer's bill, separate
14 and apart from the leasing price of the qualified
15 technological equipment.
16 Section 35. Exemption for manufacturer-lessors. In the
17 case of a manufacturer which is the lessor of qualified
18 technological equipment which the manufacturer-lessor has
19 manufactured, the tax imposed by this Act shall not apply
20 and, in lieu thereof, the manufacturer-lessor shall pay use
21 tax pursuant to the Use Tax Act and regulations thereunder.
22 Section 40. Opt out for lessees. As to each
23 transaction, a qualified lessee shall have the right to
24 direct the lessor not to pay the State of Illinois, nor
25 collect from the qualified lessee, tax under this Act and, in
26 lieu thereof, to pay tax pursuant to the Retailers'
27 Occupation Tax Act or the Use Tax Act, whichever may apply.
28 For purposes of this Section, "transaction" means a leasing
29 contract between a qualified lessee and a lessor. Under a
30 blanket or master contract which is implemented by the
31 lessee's placing of a lease schedule or similar document,
32 each lease schedule or similar document shall be considered a
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1 separate leasing contract. For the purposes of this Section,
2 "qualified lessee" means any lessee which has its corporate
3 headquarters in Illinois in a municipality with a population
4 of 100,000 or more, has 3 or more manufacturing facilities in
5 Illinois, has its common stock listed on the New York Stock
6 Exchange, has annual sales of $10 billion per year or more,
7 and manufactures at least 2 of the following in Illinois:
8 heavy duty machines, construction machines, material handling
9 machines, or diesel engines. The definition of what
10 constitutes a heavy duty machine, a construction machine, a
11 material handling machine, or a diesel engine shall be the
12 definition used by the qualified lessee in the ordinary
13 course of its business.
14 Section 45. Severability clause. If any clause, sentence,
15 Section, provision, or part thereof of this Act or the
16 application thereof to any person or circumstance shall be
17 adjudged to be unconstitutional, the remainder of this Act or
18 its application to persons or circumstances other than those
19 to which it is held invalid, shall not be affected thereby.
20 In particular, if any provision that exempts or has the
21 effect of exempting some class of users or some kind of use
22 from the tax imposed by this Act should be held to constitute
23 or to result in an invalid classification or to be
24 unconstitutional for some other reason, that provision shall
25 be deemed to be severable, with the remainder of this Act
26 without the provision being held constitutional.
27 Section 105. The State Revenue Sharing Act is amended by
28 changing Section 1 as follows:
29 (30 ILCS 115/1) (from Ch. 85, par. 611)
30 Sec. 1. Local Government Distributive Fund. Through June
31 30, 1994, as soon as may be after the first day of each month
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1 the Department of Revenue shall certify to the Treasurer an
2 amount equal to 1/12 of the net revenue realized from the tax
3 imposed by subsections (a) and (b) of Section 201 of the
4 Illinois Income Tax Act during the preceding month.
5 Beginning July 1, 1994, and continuing through June 30, 1995,
6 as soon as may be after the first day of each month, the
7 Department of Revenue shall certify to the Treasurer an
8 amount equal to 1/11 of the net revenue realized from the tax
9 imposed by subsections (a) and (b) of Section 201 of the
10 Illinois Income Tax Act during the preceding month. Beginning
11 July 1, 1995, as soon as may be after the first day of each
12 month, the Department of Revenue shall certify to the
13 Treasurer an amount equal to 1/10 of the net revenue realized
14 from the tax imposed by subsections (a) and (b) of Section
15 201 of the Illinois Income Tax Act during the preceding
16 month. Net revenue realized for a month shall be defined as
17 the revenue from the tax imposed by subsections (a) and (b)
18 of Section 201 of the Illinois Income Tax Act which is
19 deposited in the General Revenue Fund, the Education
20 Assistance Fund and the Income Tax Surcharge Local Government
21 Distributive Fund during the month minus the amount paid out
22 of the General Revenue Fund in State warrants during that
23 same month as refunds to taxpayers for overpayment of
24 liability under the tax imposed by subsections (a) and (b) of
25 Section 201 of the Illinois Income Tax Act. In addition,
26 beginning January 1, 2001, as soon as may be after the first
27 day of each month, the Department shall certify to the
28 Treasurer an amount equal to 1/5 of the net revenue realized
29 under the Qualified Technological Equipment Leasing
30 Occupation and Use Tax Act. Upon receipt of such
31 certification, the Treasurer shall transfer from the General
32 Revenue Fund to a special fund in the State treasury, to be
33 known as the "Local Government Distributive Fund", the amount
34 shown on such certification.
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1 All amounts paid into the Local Government Distributive
2 Fund in accordance with this Section and allocated pursuant
3 to this Act are appropriated on a continuing basis.
4 (Source: P.A. 88-89.)
5 Section 110. The Use Tax Act is amended by changing
6 Sections 3-5 and 9 and adding Section 9.5 as follows:
7 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
8 Sec. 3-5. Exemptions. Use of the following tangible
9 personal property is exempt from the tax imposed by this Act:
10 (1) Personal property purchased from a corporation,
11 society, association, foundation, institution, or
12 organization, other than a limited liability company, that is
13 organized and operated as a not-for-profit service enterprise
14 for the benefit of persons 65 years of age or older if the
15 personal property was not purchased by the enterprise for the
16 purpose of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18 Illinois county fair association for use in conducting,
19 operating, or promoting the county fair.
20 (3) Personal property purchased by a not-for-profit arts
21 or cultural organization that establishes, by proof required
22 by the Department by rule, that it has received an exemption
23 under Section 501(c)(3) of the Internal Revenue Code and that
24 is organized and operated for the presentation or support of
25 arts or cultural programming, activities, or services. These
26 organizations include, but are not limited to, music and
27 dramatic arts organizations such as symphony orchestras and
28 theatrical groups, arts and cultural service organizations,
29 local arts councils, visual arts organizations, and media
30 arts organizations.
31 (4) Personal property purchased by a governmental body,
32 by a corporation, society, association, foundation, or
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1 institution organized and operated exclusively for
2 charitable, religious, or educational purposes, or by a
3 not-for-profit corporation, society, association, foundation,
4 institution, or organization that has no compensated officers
5 or employees and that is organized and operated primarily for
6 the 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 exemption identification number issued by the
13 Department.
14 (5) A passenger car that is a replacement vehicle to the
15 extent that the purchase price of the car is subject to the
16 Replacement Vehicle Tax.
17 (6) Graphic arts machinery and equipment, including
18 repair and replacement parts, both new and used, and
19 including that manufactured on special order, certified by
20 the purchaser to be used primarily for graphic arts
21 production, and including machinery and equipment purchased
22 for lease.
23 (7) Farm chemicals.
24 (8) Legal tender, currency, medallions, or gold or
25 silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion.
28 (9) Personal property purchased from a teacher-sponsored
29 student organization affiliated with an elementary or
30 secondary school located in Illinois.
31 (10) A motor vehicle of the first division, a motor
32 vehicle of the second division that is a self-contained motor
33 vehicle designed or permanently converted to provide living
34 quarters for recreational, camping, or travel use, with
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1 direct walk through to the living quarters from the driver's
2 seat, or a motor vehicle of the second division that is of
3 the van configuration designed for the transportation of not
4 less than 7 nor more than 16 passengers, as defined in
5 Section 1-146 of the Illinois Vehicle Code, that is used for
6 automobile renting, as defined in the Automobile Renting
7 Occupation and Use Tax Act.
8 (11) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (11). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (11) is exempt
8 from the provisions of Section 3-90.
9 (12) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (13) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages purchased at retail from a retailer, to
19 the extent that the proceeds of the service charge are in
20 fact turned over as tips or as a substitute for tips to the
21 employees who participate directly in preparing, serving,
22 hosting or cleaning up the food or beverage function with
23 respect to which the service charge is imposed.
24 (14) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (15) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
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1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (16) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (17) Distillation machinery and equipment, sold as a
11 unit or kit, assembled or installed by the retailer,
12 certified by the user to be used only for the production of
13 ethyl alcohol that will be used for consumption as motor fuel
14 or as a component of motor fuel for the personal use of the
15 user, and not subject to sale or resale.
16 (18) Manufacturing and assembling machinery and
17 equipment used primarily in the process of manufacturing or
18 assembling tangible personal property for wholesale or retail
19 sale or lease, whether that sale or lease is made directly by
20 the manufacturer or by some other person, whether the
21 materials used in the process are owned by the manufacturer
22 or some other person, or whether that sale or lease is made
23 apart from or as an incident to the seller's engaging in the
24 service occupation of producing machines, tools, dies, jigs,
25 patterns, gauges, or other similar items of no commercial
26 value on special order for a particular purchaser.
27 (19) Personal property delivered to a purchaser or
28 purchaser's donee inside Illinois when the purchase order for
29 that personal property was received by a florist located
30 outside Illinois who has a florist located inside Illinois
31 deliver the personal property.
32 (20) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (21) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (22) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is
15 leased in a manner that does not qualify for this exemption
16 or is used in any other non-exempt manner, the lessor shall
17 be liable for the tax imposed under this Act or the Service
18 Use Tax Act, as the case may be, based on the fair market
19 value of the property at the time the non-qualifying use
20 occurs. No lessor shall collect or attempt to collect an
21 amount (however designated) that purports to reimburse that
22 lessor for the tax imposed by this Act or the Service Use Tax
23 Act, as the case may be, if the tax has not been paid by the
24 lessor. If a lessor improperly collects any such amount from
25 the lessee, the lessee shall have a legal right to claim a
26 refund of that amount from the lessor. If, however, that
27 amount is not refunded to the lessee for any reason, the
28 lessor is liable to pay that amount to the Department. This
29 paragraph is exempt from the provisions of Section 3-90.
30 (23) Personal property purchased by a lessor who leases
31 the property, under a lease of one year or longer executed
32 or in effect at the time the lessor would otherwise be
33 subject to the tax imposed by this Act, to a governmental
34 body that has been issued an active sales tax exemption
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1 identification number by the Department under Section 1g of
2 the Retailers' Occupation Tax Act. If the property is leased
3 in a manner that does not qualify for this exemption or used
4 in any other non-exempt manner, the lessor shall be liable
5 for the tax imposed under this Act or the Service Use Tax
6 Act, as the case may be, based on the fair market value of
7 the property at the time the non-qualifying use occurs. No
8 lessor shall collect or attempt to collect an amount (however
9 designated) that purports to reimburse that lessor for the
10 tax imposed by this Act or the Service Use Tax Act, as the
11 case may be, if the tax has not been paid by the lessor. If
12 a lessor improperly collects any such amount from the lessee,
13 the lessee shall have a legal right to claim a refund of that
14 amount from the lessor. If, however, that amount is not
15 refunded to the lessee for any reason, the lessor is liable
16 to pay that amount to the Department. This paragraph is
17 exempt from the provisions of Section 3-90.
18 (24) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is donated
21 for disaster relief to be used in a State or federally
22 declared disaster area in Illinois or bordering Illinois by a
23 manufacturer or retailer that is registered in this State to
24 a corporation, society, association, foundation, or
25 institution that has been issued a sales tax exemption
26 identification number by the Department that assists victims
27 of the disaster who reside within the declared disaster area.
28 (25) Beginning with taxable years ending on or after
29 December 31, 1995 and ending with taxable years ending on or
30 before December 31, 2004, personal property that is used in
31 the performance of infrastructure repairs in this State,
32 including but not limited to municipal roads and streets,
33 access roads, bridges, sidewalks, waste disposal systems,
34 water and sewer line extensions, water distribution and
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1 purification facilities, storm water drainage and retention
2 facilities, and sewage treatment facilities, resulting from a
3 State or federally declared disaster in Illinois or bordering
4 Illinois when such repairs are initiated on facilities
5 located in the declared disaster area within 6 months after
6 the disaster.
7 (26) Beginning July 1, 1999, game or game birds
8 purchased at a "game breeding and hunting preserve area" or
9 an "exotic game hunting area" as those terms are used in the
10 Wildlife Code or at a hunting enclosure approved through
11 rules adopted by the Department of Natural Resources. This
12 paragraph is exempt from the provisions of Section 3-90.
13 (27) (26) A motor vehicle, as that term is defined in
14 Section 1-146 of the Illinois Vehicle Code, that is donated
15 to a corporation, limited liability company, society,
16 association, foundation, or institution that is determined by
17 the Department to be organized and operated exclusively for
18 educational purposes. For purposes of this exemption, "a
19 corporation, limited liability company, society, association,
20 foundation, or institution organized and operated exclusively
21 for educational purposes" means all tax-supported public
22 schools, private schools that offer systematic instruction in
23 useful branches of learning by methods common to public
24 schools and that compare favorably in their scope and
25 intensity with the course of study presented in tax-supported
26 schools, and vocational or technical schools or institutes
27 organized and operated exclusively to provide a course of
28 study of not less than 6 weeks duration and designed to
29 prepare individuals to follow a trade or to pursue a manual,
30 technical, mechanical, industrial, business, or commercial
31 occupation.
32 (28) (27) Beginning January 1, 2000, personal property,
33 including food, purchased through fundraising events for the
34 benefit of a public or private elementary or secondary
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1 school, a group of those schools, or one or more school
2 districts if the events are sponsored by an entity recognized
3 by the school district that consists primarily of volunteers
4 and includes parents and teachers of the school children.
5 This paragraph does not apply to fundraising events (i) for
6 the benefit of private home instruction or (ii) for which the
7 fundraising entity purchases the personal property sold at
8 the events from another individual or entity that sold the
9 property for the purpose of resale by the fundraising entity
10 and that profits from the sale to the fundraising entity.
11 This paragraph is exempt from the provisions of Section 3-90.
12 (29) (26) Beginning January 1, 2000, new or used
13 automatic vending machines that prepare and serve hot food
14 and beverages, including coffee, soup, and other items, and
15 replacement parts for these machines. This paragraph is
16 exempt from the provisions of Section 3-90.
17 (30) Beginning January 1, 2001, qualified technological
18 equipment purchased for lease by lessors under leases subject
19 to the Qualified Technological Equipment Leasing Occupation
20 and Use Tax Act. However, this exemption will last only as
21 long as the property continues to be leased by the lessor.
22 When the property is no longer used for lease and the
23 property reverts to the lessor, the property is subject to
24 the tax imposed by this Act upon the fair market value of the
25 property on the date of the reversion. The property will not
26 be considered to revert to the lessor as long as the lessor
27 holds the property in his or her lease inventory and does not
28 otherwise use the property, except for demonstration
29 purposes. In addition, property held in the lessor's lease
30 inventory that is subsequently leased for a period of less
31 than one year will not be considered to revert to the lessor
32 if the property is returned to lease inventory at the
33 termination of the lease. This paragraph is exempt from the
34 provisions of Section 3-90.
-19- LRB9111995SMdv
1 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
2 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
3 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
4 eff. 8-20-99; revised 9-29-99.)
5 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
6 Sec. 9. Except as to motor vehicles, watercraft,
7 aircraft, and trailers that are required to be registered
8 with an agency of this State, each retailer required or
9 authorized to collect the tax imposed by this Act shall pay
10 to the Department the amount of such tax (except as otherwise
11 provided) at the time when he is required to file his return
12 for the period during which such tax was collected, less a
13 discount of 2.1% prior to January 1, 1990, and 1.75% on and
14 after January 1, 1990, or $5 per calendar year, whichever is
15 greater, which is allowed to reimburse the retailer for
16 expenses incurred in collecting the tax, keeping records,
17 preparing and filing returns, remitting the tax and supplying
18 data to the Department on request. In the case of retailers
19 who report and pay the tax on a transaction by transaction
20 basis, as provided in this Section, such discount shall be
21 taken with each such tax remittance instead of when such
22 retailer files his periodic return. A retailer need not
23 remit that part of any tax collected by him to the extent
24 that he is required to remit and does remit the tax imposed
25 by the Retailers' Occupation Tax Act, with respect to the
26 sale of the same property.
27 Where such tangible personal property is sold under a
28 conditional sales contract, or under any other form of sale
29 wherein the payment of the principal sum, or a part thereof,
30 is extended beyond the close of the period for which the
31 return is filed, the retailer, in collecting the tax (except
32 as to motor vehicles, watercraft, aircraft, and trailers that
33 are required to be registered with an agency of this State),
-20- LRB9111995SMdv
1 may collect for each tax return period, only the tax
2 applicable to that part of the selling price actually
3 received during such tax return period.
4 Except as provided in this Section, on or before the
5 twentieth day of each calendar month, such retailer shall
6 file a return for the preceding calendar month. Such return
7 shall be filed on forms prescribed by the Department and
8 shall furnish such information as the Department may
9 reasonably require.
10 The Department may require returns to be filed on a
11 quarterly basis. If so required, a return for each calendar
12 quarter shall be filed on or before the twentieth day of the
13 calendar month following the end of such calendar quarter.
14 The taxpayer shall also file a return with the Department for
15 each of the first two months of each calendar quarter, on or
16 before the twentieth day of the following calendar month,
17 stating:
18 1. The name of the seller;
19 2. The address of the principal place of business
20 from which he engages in the business of selling tangible
21 personal property at retail in this State;
22 3. The total amount of taxable receipts received by
23 him during the preceding calendar month from sales of
24 tangible personal property by him during such preceding
25 calendar month, including receipts from charge and time
26 sales, but less all deductions allowed by law;
27 4. The amount of credit provided in Section 2d of
28 this Act;
29 5. The amount of tax due;
30 5-5. The signature of the taxpayer; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
-21- LRB9111995SMdv
1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who has
7 an average monthly tax liability of $100,000 or more shall
8 make all payments required by rules of the Department by
9 electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. Beginning October 1,
13 2000, a taxpayer who has an annual tax liability of $200,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "annual
16 tax liability" shall be the sum of the taxpayer's liabilities
17 under this Act, and under all other State and local
18 occupation and use tax laws administered by the Department,
19 for the immediately preceding calendar year. The term
20 "average monthly tax liability" means the sum of the
21 taxpayer's liabilities under this Act, and under all other
22 State and local occupation and use tax laws administered by
23 the Department, for the immediately preceding calendar year
24 divided by 12.
25 Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers required
28 to make payments by electronic funds transfer shall make
29 those payments for a minimum of one year beginning on October
30 1.
31 Any taxpayer not required to make payments by electronic
32 funds transfer may make payments by electronic funds transfer
33 with the permission of the Department.
34 All taxpayers required to make payment by electronic
-22- LRB9111995SMdv
1 funds transfer and any taxpayers authorized to voluntarily
2 make payments by electronic funds transfer shall make those
3 payments in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5 effectuate a program of electronic funds transfer and the
6 requirements of this Section.
7 Before October 1, 2000, if the taxpayer's average monthly
8 tax liability to the Department under this Act, the
9 Retailers' Occupation Tax Act, the Service Occupation Tax
10 Act, the Service Use Tax Act was $10,000 or more during the
11 preceding 4 complete calendar quarters, he shall file a
12 return with the Department each month by the 20th day of the
13 month next following the month during which such tax
14 liability is incurred and shall make payments to the
15 Department on or before the 7th, 15th, 22nd and last day of
16 the month during which such liability is incurred. On and
17 after October 1, 2000, if the taxpayer's average monthly tax
18 liability to the Department under this Act, the Retailers'
19 Occupation Tax Act, the Service Occupation Tax Act, and the
20 Service Use Tax Act was $20,000 or more during the preceding
21 4 complete calendar quarters, he shall file a return with the
22 Department each month by the 20th day of the month next
23 following the month during which such tax liability is
24 incurred and shall make payment to the Department on or
25 before the 7th, 15th, 22nd and last day of or the month
26 during which such liability is incurred. If the month during
27 which such tax liability is incurred began prior to January
28 1, 1985, each payment shall be in an amount equal to 1/4 of
29 the taxpayer's actual liability for the month or an amount
30 set by the Department not to exceed 1/4 of the average
31 monthly liability of the taxpayer to the Department for the
32 preceding 4 complete calendar quarters (excluding the month
33 of highest liability and the month of lowest liability in
34 such 4 quarter period). If the month during which such tax
-23- LRB9111995SMdv
1 liability is incurred begins on or after January 1, 1985, and
2 prior to January 1, 1987, each payment shall be in an amount
3 equal to 22.5% of the taxpayer's actual liability for the
4 month or 27.5% of the taxpayer's liability for the same
5 calendar month of the preceding year. If the month during
6 which such tax liability is incurred begins on or after
7 January 1, 1987, and prior to January 1, 1988, each payment
8 shall be in an amount equal to 22.5% of the taxpayer's actual
9 liability for the month or 26.25% of the taxpayer's liability
10 for the same calendar month of the preceding year. If the
11 month during which such tax liability is incurred begins on
12 or after January 1, 1988, and prior to January 1, 1989, or
13 begins on or after January 1, 1996, each payment shall be in
14 an amount equal to 22.5% of the taxpayer's actual liability
15 for the month or 25% of the taxpayer's liability for the same
16 calendar month of the preceding year. If the month during
17 which such tax liability is incurred begins on or after
18 January 1, 1989, and prior to January 1, 1996, each payment
19 shall be in an amount equal to 22.5% of the taxpayer's actual
20 liability for the month or 25% of the taxpayer's liability
21 for the same calendar month of the preceding year or 100% of
22 the taxpayer's actual liability for the quarter monthly
23 reporting period. The amount of such quarter monthly
24 payments shall be credited against the final tax liability of
25 the taxpayer's return for that month. Before October 1,
26 2000, once applicable, the requirement of the making of
27 quarter monthly payments to the Department shall continue
28 until such taxpayer's average monthly liability to the
29 Department during the preceding 4 complete calendar quarters
30 (excluding the month of highest liability and the month of
31 lowest liability) is less than $9,000, or until such
32 taxpayer's average monthly liability to the Department as
33 computed for each calendar quarter of the 4 preceding
34 complete calendar quarter period is less than $10,000.
-24- LRB9111995SMdv
1 However, if a taxpayer can show the Department that a
2 substantial change in the taxpayer's business has occurred
3 which causes the taxpayer to anticipate that his average
4 monthly tax liability for the reasonably foreseeable future
5 will fall below the $10,000 threshold stated above, then such
6 taxpayer may petition the Department for change in such
7 taxpayer's reporting status. On and after October 1, 2000,
8 once applicable, the requirement of the making of quarter
9 monthly payments to the Department shall continue until such
10 taxpayer's average monthly liability to the Department during
11 the preceding 4 complete calendar quarters (excluding the
12 month of highest liability and the month of lowest liability)
13 is less than $19,000 or until such taxpayer's average monthly
14 liability to the Department as computed for each calendar
15 quarter of the 4 preceding complete calendar quarter period
16 is less than $20,000. However, if a taxpayer can show the
17 Department that a substantial change in the taxpayer's
18 business has occurred which causes the taxpayer to anticipate
19 that his average monthly tax liability for the reasonably
20 foreseeable future will fall below the $20,000 threshold
21 stated above, then such taxpayer may petition the Department
22 for a change in such taxpayer's reporting status. The
23 Department shall change such taxpayer's reporting status
24 unless it finds that such change is seasonal in nature and
25 not likely to be long term. If any such quarter monthly
26 payment is not paid at the time or in the amount required by
27 this Section, then the taxpayer shall be liable for penalties
28 and interest on the difference between the minimum amount due
29 and the amount of such quarter monthly payment actually and
30 timely paid, except insofar as the taxpayer has previously
31 made payments for that month to the Department in excess of
32 the minimum payments previously due as provided in this
33 Section. The Department shall make reasonable rules and
34 regulations to govern the quarter monthly payment amount and
-25- LRB9111995SMdv
1 quarter monthly payment dates for taxpayers who file on other
2 than a calendar monthly basis.
3 If any such payment provided for in this Section exceeds
4 the taxpayer's liabilities under this Act, the Retailers'
5 Occupation Tax Act, the Service Occupation Tax Act and the
6 Service Use Tax Act, as shown by an original monthly return,
7 the Department shall issue to the taxpayer a credit
8 memorandum no later than 30 days after the date of payment,
9 which memorandum may be submitted by the taxpayer to the
10 Department in payment of tax liability subsequently to be
11 remitted by the taxpayer to the Department or be assigned by
12 the taxpayer to a similar taxpayer under this Act, the
13 Retailers' Occupation Tax Act, the Service Occupation Tax Act
14 or the Service Use Tax Act, in accordance with reasonable
15 rules and regulations to be prescribed by the Department,
16 except that if such excess payment is shown on an original
17 monthly return and is made after December 31, 1986, no credit
18 memorandum shall be issued, unless requested by the taxpayer.
19 If no such request is made, the taxpayer may credit such
20 excess payment against tax liability subsequently to be
21 remitted by the taxpayer to the Department under this Act,
22 the Retailers' Occupation Tax Act, the Service Occupation Tax
23 Act or the Service Use Tax Act, in accordance with reasonable
24 rules and regulations prescribed by the Department. If the
25 Department subsequently determines that all or any part of
26 the credit taken was not actually due to the taxpayer, the
27 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
28 by 2.1% or 1.75% of the difference between the credit taken
29 and that actually due, and the taxpayer shall be liable for
30 penalties and interest on such difference.
31 If the retailer is otherwise required to file a monthly
32 return and if the retailer's average monthly tax liability to
33 the Department does not exceed $200, the Department may
34 authorize his returns to be filed on a quarter annual basis,
-26- LRB9111995SMdv
1 with the return for January, February, and March of a given
2 year being due by April 20 of such year; with the return for
3 April, May and June of a given year being due by July 20 of
4 such year; with the return for July, August and September of
5 a given year being due by October 20 of such year, and with
6 the return for October, November and December of a given year
7 being due by January 20 of the following year.
8 If the retailer is otherwise required to file a monthly
9 or quarterly return and if the retailer's average monthly tax
10 liability to the Department does not exceed $50, the
11 Department may authorize his returns to be filed on an annual
12 basis, with the return for a given year being due by January
13 20 of the following year.
14 Such quarter annual and annual returns, as to form and
15 substance, shall be subject to the same requirements as
16 monthly returns.
17 Notwithstanding any other provision in this Act
18 concerning the time within which a retailer may file his
19 return, in the case of any retailer who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Act, such retailer shall file a final
22 return under this Act with the Department not more than one
23 month after discontinuing such business.
24 In addition, with respect to motor vehicles, watercraft,
25 aircraft, and trailers that are required to be registered
26 with an agency of this State, every retailer selling this
27 kind of tangible personal property shall file, with the
28 Department, upon a form to be prescribed and supplied by the
29 Department, a separate return for each such item of tangible
30 personal property which the retailer sells, except that
31 where, in the same transaction, a retailer of aircraft,
32 watercraft, motor vehicles or trailers transfers more than
33 one aircraft, watercraft, motor vehicle or trailer to another
34 aircraft, watercraft, motor vehicle or trailer retailer for
-27- LRB9111995SMdv
1 the purpose of resale, that seller for resale may report the
2 transfer of all the aircraft, watercraft, motor vehicles or
3 trailers involved in that transaction to the Department on
4 the same uniform invoice-transaction reporting return form.
5 For purposes of this Section, "watercraft" means a Class 2,
6 Class 3, or Class 4 watercraft as defined in Section 3-2 of
7 the Boat Registration and Safety Act, a personal watercraft,
8 or any boat equipped with an inboard motor.
9 The transaction reporting return in the case of motor
10 vehicles or trailers that are required to be registered with
11 an agency of this State, shall be the same document as the
12 Uniform Invoice referred to in Section 5-402 of the Illinois
13 Vehicle Code and must show the name and address of the
14 seller; the name and address of the purchaser; the amount of
15 the selling price including the amount allowed by the
16 retailer for traded-in property, if any; the amount allowed
17 by the retailer for the traded-in tangible personal property,
18 if any, to the extent to which Section 2 of this Act allows
19 an exemption for the value of traded-in property; the balance
20 payable after deducting such trade-in allowance from the
21 total selling price; the amount of tax due from the retailer
22 with respect to such transaction; the amount of tax collected
23 from the purchaser by the retailer on such transaction (or
24 satisfactory evidence that such tax is not due in that
25 particular instance, if that is claimed to be the fact); the
26 place and date of the sale; a sufficient identification of
27 the property sold; such other information as is required in
28 Section 5-402 of the Illinois Vehicle Code, and such other
29 information as the Department may reasonably require.
30 The transaction reporting return in the case of
31 watercraft and aircraft must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
-28- LRB9111995SMdv
1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale, a sufficient identification of
11 the property sold, and such other information as the
12 Department may reasonably require.
13 Such transaction reporting return shall be filed not
14 later than 20 days after the date of delivery of the item
15 that is being sold, but may be filed by the retailer at any
16 time sooner than that if he chooses to do so. The
17 transaction reporting return and tax remittance or proof of
18 exemption from the tax that is imposed by this Act may be
19 transmitted to the Department by way of the State agency with
20 which, or State officer with whom, the tangible personal
21 property must be titled or registered (if titling or
22 registration is required) if the Department and such agency
23 or State officer determine that this procedure will expedite
24 the processing of applications for title or registration.
25 With each such transaction reporting return, the retailer
26 shall remit the proper amount of tax due (or shall submit
27 satisfactory evidence that the sale is not taxable if that is
28 the case), to the Department or its agents, whereupon the
29 Department shall issue, in the purchaser's name, a tax
30 receipt (or a certificate of exemption if the Department is
31 satisfied that the particular sale is tax exempt) which such
32 purchaser may submit to the agency with which, or State
33 officer with whom, he must title or register the tangible
34 personal property that is involved (if titling or
-29- LRB9111995SMdv
1 registration is required) in support of such purchaser's
2 application for an Illinois certificate or other evidence of
3 title or registration to such tangible personal property.
4 No retailer's failure or refusal to remit tax under this
5 Act precludes a user, who has paid the proper tax to the
6 retailer, from obtaining his certificate of title or other
7 evidence of title or registration (if titling or registration
8 is required) upon satisfying the Department that such user
9 has paid the proper tax (if tax is due) to the retailer. The
10 Department shall adopt appropriate rules to carry out the
11 mandate of this paragraph.
12 If the user who would otherwise pay tax to the retailer
13 wants the transaction reporting return filed and the payment
14 of tax or proof of exemption made to the Department before
15 the retailer is willing to take these actions and such user
16 has not paid the tax to the retailer, such user may certify
17 to the fact of such delay by the retailer, and may (upon the
18 Department being satisfied of the truth of such
19 certification) transmit the information required by the
20 transaction reporting return and the remittance for tax or
21 proof of exemption directly to the Department and obtain his
22 tax receipt or exemption determination, in which event the
23 transaction reporting return and tax remittance (if a tax
24 payment was required) shall be credited by the Department to
25 the proper retailer's account with the Department, but
26 without the 2.1% or 1.75% discount provided for in this
27 Section being allowed. When the user pays the tax directly
28 to the Department, he shall pay the tax in the same amount
29 and in the same form in which it would be remitted if the tax
30 had been remitted to the Department by the retailer.
31 Where a retailer collects the tax with respect to the
32 selling price of tangible personal property which he sells
33 and the purchaser thereafter returns such tangible personal
34 property and the retailer refunds the selling price thereof
-30- LRB9111995SMdv
1 to the purchaser, such retailer shall also refund, to the
2 purchaser, the tax so collected from the purchaser. When
3 filing his return for the period in which he refunds such tax
4 to the purchaser, the retailer may deduct the amount of the
5 tax so refunded by him to the purchaser from any other use
6 tax which such retailer may be required to pay or remit to
7 the Department, as shown by such return, if the amount of the
8 tax to be deducted was previously remitted to the Department
9 by such retailer. If the retailer has not previously
10 remitted the amount of such tax to the Department, he is
11 entitled to no deduction under this Act upon refunding such
12 tax to the purchaser.
13 Any retailer filing a return under this Section shall
14 also include (for the purpose of paying tax thereon) the
15 total tax covered by such return upon the selling price of
16 tangible personal property purchased by him at retail from a
17 retailer, but as to which the tax imposed by this Act was not
18 collected from the retailer filing such return, and such
19 retailer shall remit the amount of such tax to the Department
20 when filing such return.
21 If experience indicates such action to be practicable,
22 the Department may prescribe and furnish a combination or
23 joint return which will enable retailers, who are required to
24 file returns hereunder and also under the Retailers'
25 Occupation Tax Act, to furnish all the return information
26 required by both Acts on the one form.
27 Where the retailer has more than one business registered
28 with the Department under separate registration under this
29 Act, such retailer may not file each return that is due as a
30 single return covering all such registered businesses, but
31 shall file separate returns for each such registered
32 business.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the State and Local Sales Tax Reform Fund, a
-31- LRB9111995SMdv
1 special fund in the State Treasury which is hereby created,
2 the net revenue realized for the preceding month from the 1%
3 tax on sales of food for human consumption which is to be
4 consumed off the premises where it is sold (other than
5 alcoholic beverages, soft drinks and food which has been
6 prepared for immediate consumption) and prescription and
7 nonprescription medicines, drugs, medical appliances and
8 insulin, urine testing materials, syringes and needles used
9 by diabetics.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the County and Mass Transit District Fund 4%
12 of the net revenue realized for the preceding month from the
13 6.25% general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of
16 this State's government.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury, 20% of the net revenue
20 realized for the preceding month from the 6.25% general rate
21 on the selling price of tangible personal property, other
22 than tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
24 registered by an agency of this State's government.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the Local Government Tax Fund 16% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property which is purchased outside Illinois at retail from a
30 retailer and which is titled or registered by an agency of
31 this State's government.
32 Of the remainder of the moneys received by the Department
33 pursuant to this Act, (a) 1.75% thereof shall be paid into
34 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
-32- LRB9111995SMdv
1 and on and after July 1, 1989, 3.8% thereof shall be paid
2 into the Build Illinois Fund; provided, however, that if in
3 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
4 as the case may be, of the moneys received by the Department
5 and required to be paid into the Build Illinois Fund pursuant
6 to Section 3 of the Retailers' Occupation Tax Act, Section 9
7 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
8 Section 9 of the Service Occupation Tax Act, such Acts being
9 hereinafter called the "Tax Acts" and such aggregate of 2.2%
10 or 3.8%, as the case may be, of moneys being hereinafter
11 called the "Tax Act Amount", and (2) the amount transferred
12 to the Build Illinois Fund from the State and Local Sales Tax
13 Reform Fund shall be less than the Annual Specified Amount
14 (as defined in Section 3 of the Retailers' Occupation Tax
15 Act), an amount equal to the difference shall be immediately
16 paid into the Build Illinois Fund from other moneys received
17 by the Department pursuant to the Tax Acts; and further
18 provided, that if on the last business day of any month the
19 sum of (1) the Tax Act Amount required to be deposited into
20 the Build Illinois Bond Account in the Build Illinois Fund
21 during such month and (2) the amount transferred during such
22 month to the Build Illinois Fund from the State and Local
23 Sales Tax Reform Fund shall have been less than 1/12 of the
24 Annual Specified Amount, an amount equal to the difference
25 shall be immediately paid into the Build Illinois Fund from
26 other moneys received by the Department pursuant to the Tax
27 Acts; and, further provided, that in no event shall the
28 payments required under the preceding proviso result in
29 aggregate payments into the Build Illinois Fund pursuant to
30 this clause (b) for any fiscal year in excess of the greater
31 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
32 for such fiscal year; and, further provided, that the amounts
33 payable into the Build Illinois Fund under this clause (b)
34 shall be payable only until such time as the aggregate amount
-33- LRB9111995SMdv
1 on deposit under each trust indenture securing Bonds issued
2 and outstanding pursuant to the Build Illinois Bond Act is
3 sufficient, taking into account any future investment income,
4 to fully provide, in accordance with such indenture, for the
5 defeasance of or the payment of the principal of, premium, if
6 any, and interest on the Bonds secured by such indenture and
7 on any Bonds expected to be issued thereafter and all fees
8 and costs payable with respect thereto, all as certified by
9 the Director of the Bureau of the Budget. If on the last
10 business day of any month in which Bonds are outstanding
11 pursuant to the Build Illinois Bond Act, the aggregate of the
12 moneys deposited in the Build Illinois Bond Account in the
13 Build Illinois Fund in such month shall be less than the
14 amount required to be transferred in such month from the
15 Build Illinois Bond Account to the Build Illinois Bond
16 Retirement and Interest Fund pursuant to Section 13 of the
17 Build Illinois Bond Act, an amount equal to such deficiency
18 shall be immediately paid from other moneys received by the
19 Department pursuant to the Tax Acts to the Build Illinois
20 Fund; provided, however, that any amounts paid to the Build
21 Illinois Fund in any fiscal year pursuant to this sentence
22 shall be deemed to constitute payments pursuant to clause (b)
23 of the preceding sentence and shall reduce the amount
24 otherwise payable for such fiscal year pursuant to clause (b)
25 of the preceding sentence. The moneys received by the
26 Department pursuant to this Act and required to be deposited
27 into the Build Illinois Fund are subject to the pledge, claim
28 and charge set forth in Section 12 of the Build Illinois Bond
29 Act.
30 Subject to payment of amounts into the Build Illinois
31 Fund as provided in the preceding paragraph or in any
32 amendment thereto hereafter enacted, the following specified
33 monthly installment of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
-34- LRB9111995SMdv
1 Exposition Authority provided under Section 8.25f of the
2 State Finance Act, but not in excess of the sums designated
3 as "Total Deposit", shall be deposited in the aggregate from
4 collections under Section 9 of the Use Tax Act, Section 9 of
5 the Service Use Tax Act, Section 9 of the Service Occupation
6 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
7 into the McCormick Place Expansion Project Fund in the
8 specified fiscal years.
9 Fiscal Year Total Deposit
10 1993 $0
11 1994 53,000,000
12 1995 58,000,000
13 1996 61,000,000
14 1997 64,000,000
15 1998 68,000,000
16 1999 71,000,000
17 2000 75,000,000
18 2001 80,000,000
19 2002 84,000,000
20 2003 89,000,000
21 2004 93,000,000
22 2005 97,000,000
23 2006 102,000,000
24 2007 108,000,000
25 2008 115,000,000
26 2009 120,000,000
27 2010 126,000,000
28 2011 132,000,000
29 2012 138,000,000
30 2013 and 145,000,000
31 each fiscal year
32 thereafter that bonds
33 are outstanding under
34 Section 13.2 of the
-35- LRB9111995SMdv
1 Metropolitan Pier and
2 Exposition Authority
3 Act, but not after fiscal year 2029.
4 Beginning July 20, 1993 and in each month of each fiscal
5 year thereafter, one-eighth of the amount requested in the
6 certificate of the Chairman of the Metropolitan Pier and
7 Exposition Authority for that fiscal year, less the amount
8 deposited into the McCormick Place Expansion Project Fund by
9 the State Treasurer in the respective month under subsection
10 (g) of Section 13 of the Metropolitan Pier and Exposition
11 Authority Act, plus cumulative deficiencies in the deposits
12 required under this Section for previous months and years,
13 shall be deposited into the McCormick Place Expansion Project
14 Fund, until the full amount requested for the fiscal year,
15 but not in excess of the amount specified above as "Total
16 Deposit", has been deposited.
17 Subject to payment of amounts into the Build Illinois
18 Fund and the McCormick Place Expansion Project Fund pursuant
19 to the preceding paragraphs or in any amendment thereto
20 hereafter enacted, each month the Department shall pay into
21 the Local Government Distributive Fund .4% of the net revenue
22 realized for the preceding month from the 5% general rate, or
23 .4% of 80% of the net revenue realized for the preceding
24 month from the 6.25% general rate, as the case may be, on the
25 selling price of tangible personal property which amount
26 shall, subject to appropriation, be distributed as provided
27 in Section 2 of the State Revenue Sharing Act. No payments or
28 distributions pursuant to this paragraph shall be made if the
29 tax imposed by this Act on photoprocessing products is
30 declared unconstitutional, or if the proceeds from such tax
31 are unavailable for distribution because of litigation.
32 Subject to payment of amounts into the Build Illinois
33 Fund, the McCormick Place Expansion Project Fund, and the
34 Local Government Distributive Fund pursuant to the preceding
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1 paragraphs or in any amendments thereto hereafter enacted,
2 beginning July 1, 1993, the Department shall each month pay
3 into the Illinois Tax Increment Fund 0.27% of 80% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act and the moneys received by the
9 Department from the 80% of the 6.25% rate of use tax imposed
10 in Section 20 of the Qualified Technological Equipment
11 Leasing Occupation and Use Tax Act, 75% thereof shall be paid
12 into the State Treasury and 25% shall be reserved in a
13 special account and used only for the transfer to the Common
14 School Fund as part of the monthly transfer from the General
15 Revenue Fund in accordance with Section 8a of the State
16 Finance Act.
17 As soon as possible after the first day of each month,
18 upon certification of the Department of Revenue, the
19 Comptroller shall order transferred and the Treasurer shall
20 transfer from the General Revenue Fund to the Motor Fuel Tax
21 Fund an amount equal to 1.7% of 80% of the net revenue
22 realized under this Act for the second preceding month.
23 Beginning April 1, 2000, this transfer is no longer required
24 and shall not be made.
25 Net revenue realized for a month shall be the revenue
26 collected by the State pursuant to this Act, less the amount
27 paid out during that month as refunds to taxpayers for
28 overpayment of liability.
29 For greater simplicity of administration, manufacturers,
30 importers and wholesalers whose products are sold at retail
31 in Illinois by numerous retailers, and who wish to do so, may
32 assume the responsibility for accounting and paying to the
33 Department all tax accruing under this Act with respect to
34 such sales, if the retailers who are affected do not make
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1 written objection to the Department to this arrangement.
2 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
3 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
4 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
5 (35 ILCS 105/9.5 new)
6 Sec. 9.5. Refund; leaseback transaction. A purchaser of
7 qualified technological equipment, as defined in Section 5 of
8 the Qualified Technological Equipment Leasing Occupation and
9 Use Tax Act, may obtain a refund of all tax paid to a seller
10 under this Act or any other tax administered by the
11 Department if the purchaser sells the property to a rentor
12 under a bona fide sale and leaseback transaction (to such
13 purchaser) within 90 days of the first functional use of the
14 property. The purchaser shall request the refund from the
15 seller to whom he or she has paid the tax in the same manner
16 and subject to the same requirements as other refunds
17 provided in Section 9 of this Act. For purposes of this
18 Section, the first functional use of property shall be the
19 use for which the property is intended, which shall, in the
20 absence of other evidence, be presumed to be the date of
21 delivery of the property.
22 Section 115. The Service Use Tax Act is amended by
23 changing Section 3-5 as follows:
24 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
25 Sec. 3-5. Exemptions. Use of the following tangible
26 personal property is exempt from the tax imposed by this Act:
27 (1) Personal property purchased from a corporation,
28 society, association, foundation, institution, or
29 organization, other than a limited liability company, that is
30 organized and operated as a not-for-profit service enterprise
31 for the benefit of persons 65 years of age or older if the
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1 personal property was not purchased by the enterprise for the
2 purpose of resale by the enterprise.
3 (2) Personal property purchased by a non-profit Illinois
4 county fair association for use in conducting, operating, or
5 promoting the county fair.
6 (3) Personal property purchased by a not-for-profit arts
7 or cultural organization that establishes, by proof required
8 by the Department by rule, that it has received an exemption
9 under Section 501(c)(3) of the Internal Revenue Code and that
10 is organized and operated for the presentation or support of
11 arts or cultural programming, activities, or services. These
12 organizations include, but are not limited to, music and
13 dramatic arts organizations such as symphony orchestras and
14 theatrical groups, arts and cultural service organizations,
15 local arts councils, visual arts organizations, and media
16 arts organizations.
17 (4) Legal tender, currency, medallions, or gold or
18 silver coinage issued by the State of Illinois, the
19 government of the United States of America, or the government
20 of any foreign country, and bullion.
21 (5) Graphic arts machinery and equipment, including
22 repair and replacement parts, both new and used, and
23 including that manufactured on special order or purchased for
24 lease, certified by the purchaser to be used primarily for
25 graphic arts production.
26 (6) Personal property purchased from a teacher-sponsored
27 student organization affiliated with an elementary or
28 secondary school located in Illinois.
29 (7) Farm machinery and equipment, both new and used,
30 including that manufactured on special order, certified by
31 the purchaser to be used primarily for production agriculture
32 or State or federal agricultural programs, including
33 individual replacement parts for the machinery and equipment,
34 including machinery and equipment purchased for lease, and
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1 including implements of husbandry defined in Section 1-130 of
2 the Illinois Vehicle Code, farm machinery and agricultural
3 chemical and fertilizer spreaders, and nurse wagons required
4 to be registered under Section 3-809 of the Illinois Vehicle
5 Code, but excluding other motor vehicles required to be
6 registered under the Illinois Vehicle Code. Horticultural
7 polyhouses or hoop houses used for propagating, growing, or
8 overwintering plants shall be considered farm machinery and
9 equipment under this item (7). Agricultural chemical tender
10 tanks and dry boxes shall include units sold separately from
11 a motor vehicle required to be licensed and units sold
12 mounted on a motor vehicle required to be licensed if the
13 selling price of the tender is separately stated.
14 Farm machinery and equipment shall include precision
15 farming equipment that is installed or purchased to be
16 installed on farm machinery and equipment including, but not
17 limited to, tractors, harvesters, sprayers, planters,
18 seeders, or spreaders. Precision farming equipment includes,
19 but is not limited to, soil testing sensors, computers,
20 monitors, software, global positioning and mapping systems,
21 and other such equipment.
22 Farm machinery and equipment also includes computers,
23 sensors, software, and related equipment used primarily in
24 the computer-assisted operation of production agriculture
25 facilities, equipment, and activities such as, but not
26 limited to, the collection, monitoring, and correlation of
27 animal and crop data for the purpose of formulating animal
28 diets and agricultural chemicals. This item (7) is exempt
29 from the provisions of Section 3-75.
30 (8) Fuel and petroleum products sold to or used by an
31 air common carrier, certified by the carrier to be used for
32 consumption, shipment, or storage in the conduct of its
33 business as an air common carrier, for a flight destined for
34 or returning from a location or locations outside the United
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1 States without regard to previous or subsequent domestic
2 stopovers.
3 (9) Proceeds of mandatory service charges separately
4 stated on customers' bills for the purchase and consumption
5 of food and beverages acquired as an incident to the purchase
6 of a service from a serviceman, to the extent that the
7 proceeds of the service charge are in fact turned over as
8 tips or as a substitute for tips to the employees who
9 participate directly in preparing, serving, hosting or
10 cleaning up the food or beverage function with respect to
11 which the service charge is imposed.
12 (10) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (11) Proceeds from the sale of photoprocessing machinery
22 and equipment, including repair and replacement parts, both
23 new and used, including that manufactured on special order,
24 certified by the purchaser to be used primarily for
25 photoprocessing, and including photoprocessing machinery and
26 equipment purchased for lease.
27 (12) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (13) Semen used for artificial insemination of livestock
33 for direct agricultural production.
34 (14) Horses, or interests in horses, registered with and
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1 meeting the requirements of any of the Arabian Horse Club
2 Registry of America, Appaloosa Horse Club, American Quarter
3 Horse Association, United States Trotting Association, or
4 Jockey Club, as appropriate, used for purposes of breeding or
5 racing for prizes.
6 (15) Computers and communications equipment utilized for
7 any hospital purpose and equipment used in the diagnosis,
8 analysis, or treatment of hospital patients purchased by a
9 lessor who leases the equipment, under a lease of one year or
10 longer executed or in effect at the time the lessor would
11 otherwise be subject to the tax imposed by this Act, to a
12 hospital that has been issued an active tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the equipment is leased
15 in a manner that does not qualify for this exemption or is
16 used in any other non-exempt manner, the lessor shall be
17 liable for the tax imposed under this Act or the Use Tax Act,
18 as the case may be, based on the fair market value of the
19 property at the time the non-qualifying use occurs. No
20 lessor shall collect or attempt to collect an amount (however
21 designated) that purports to reimburse that lessor for the
22 tax imposed by this Act or the Use Tax Act, as the case may
23 be, if the tax has not been paid by the lessor. If a lessor
24 improperly collects any such amount from the lessee, the
25 lessee shall have a legal right to claim a refund of that
26 amount from the lessor. If, however, that amount is not
27 refunded to the lessee for any reason, the lessor is liable
28 to pay that amount to the Department. This paragraph is
29 exempt from the provisions of Section 3-75.
30 (16) Personal property purchased by a lessor who leases
31 the property, under a lease of one year or longer executed or
32 in effect at the time the lessor would otherwise be subject
33 to the tax imposed by this Act, to a governmental body that
34 has been issued an active tax exemption identification number
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1 by the Department under Section 1g of the Retailers'
2 Occupation Tax Act. If the property is leased in a manner
3 that does not qualify for this exemption or is used in any
4 other non-exempt manner, the lessor shall be liable for the
5 tax imposed under this Act or the Use Tax Act, as the case
6 may be, based on the fair market value of the property at the
7 time the non-qualifying use occurs. No lessor shall collect
8 or attempt to collect an amount (however designated) that
9 purports to reimburse that lessor for the tax imposed by this
10 Act or the Use Tax Act, as the case may be, if the tax has
11 not been paid by the lessor. If a lessor improperly collects
12 any such amount from the lessee, the lessee shall have a
13 legal right to claim a refund of that amount from the lessor.
14 If, however, that amount is not refunded to the lessee for
15 any reason, the lessor is liable to pay that amount to the
16 Department. This paragraph is exempt from the provisions of
17 Section 3-75.
18 (17) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is donated
21 for disaster relief to be used in a State or federally
22 declared disaster area in Illinois or bordering Illinois by a
23 manufacturer or retailer that is registered in this State to
24 a corporation, society, association, foundation, or
25 institution that has been issued a sales tax exemption
26 identification number by the Department that assists victims
27 of the disaster who reside within the declared disaster area.
28 (18) Beginning with taxable years ending on or after
29 December 31, 1995 and ending with taxable years ending on or
30 before December 31, 2004, personal property that is used in
31 the performance of infrastructure repairs in this State,
32 including but not limited to municipal roads and streets,
33 access roads, bridges, sidewalks, waste disposal systems,
34 water and sewer line extensions, water distribution and
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1 purification facilities, storm water drainage and retention
2 facilities, and sewage treatment facilities, resulting from a
3 State or federally declared disaster in Illinois or bordering
4 Illinois when such repairs are initiated on facilities
5 located in the declared disaster area within 6 months after
6 the disaster.
7 (19) Beginning July 1, 1999, game or game birds
8 purchased at a "game breeding and hunting preserve area" or
9 an "exotic game hunting area" as those terms are used in the
10 Wildlife Code or at a hunting enclosure approved through
11 rules adopted by the Department of Natural Resources. This
12 paragraph is exempt from the provisions of Section 3-75.
13 (20) (19) A motor vehicle, as that term is defined in
14 Section 1-146 of the Illinois Vehicle Code, that is donated
15 to a corporation, limited liability company, society,
16 association, foundation, or institution that is determined by
17 the Department to be organized and operated exclusively for
18 educational purposes. For purposes of this exemption, "a
19 corporation, limited liability company, society, association,
20 foundation, or institution organized and operated exclusively
21 for educational purposes" means all tax-supported public
22 schools, private schools that offer systematic instruction in
23 useful branches of learning by methods common to public
24 schools and that compare favorably in their scope and
25 intensity with the course of study presented in tax-supported
26 schools, and vocational or technical schools or institutes
27 organized and operated exclusively to provide a course of
28 study of not less than 6 weeks duration and designed to
29 prepare individuals to follow a trade or to pursue a manual,
30 technical, mechanical, industrial, business, or commercial
31 occupation.
32 (21) (20) Beginning January 1, 2000, personal property,
33 including food, purchased through fundraising events for the
34 benefit of a public or private elementary or secondary
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1 school, a group of those schools, or one or more school
2 districts if the events are sponsored by an entity recognized
3 by the school district that consists primarily of volunteers
4 and includes parents and teachers of the school children.
5 This paragraph does not apply to fundraising events (i) for
6 the benefit of private home instruction or (ii) for which the
7 fundraising entity purchases the personal property sold at
8 the events from another individual or entity that sold the
9 property for the purpose of resale by the fundraising entity
10 and that profits from the sale to the fundraising entity.
11 This paragraph is exempt from the provisions of Section 3-75.
12 (22) (19) Beginning January 1, 2000, new or used
13 automatic vending machines that prepare and serve hot food
14 and beverages, including coffee, soup, and other items, and
15 replacement parts for these machines. This paragraph is
16 exempt from the provisions of Section 3-75.
17 (23) Beginning January 1, 2001, qualified technological
18 equipment purchased for lease by lessors under leases subject
19 to the Qualified Technological Equipment Leasing Occupation
20 and Use Tax Act. However, this exemption will last only as
21 long as the property continues to be leased by the lessor.
22 When the property is no longer used for lease and the
23 property reverts to the lessor, the property is subject to
24 the tax imposed by this Act upon the fair market value of the
25 property on the date of the reversion. The property will not
26 be considered to revert to the lessor as long as the lessor
27 holds the property in his or her lease inventory and does not
28 otherwise use the property, except for demonstration
29 purposes. In addition, property held in the lessor's lease
30 inventory that is subsequently leased for a period of less
31 than one year will not be considered to revert to the lessor
32 if the property is returned to lease inventory at the
33 termination of the lease. This paragraph is exempt from the
34 provisions of Section 3-75.
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1 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
2 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
3 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
4 eff. 8-20-99; revised 9-29-99.)
5 Section 120. The Service Occupation Tax Act is amended
6 by changing Section 3-5 as follows:
7 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
8 Sec. 3-5. Exemptions. The following tangible personal
9 property is exempt from the tax imposed by this Act:
10 (1) Personal property sold by a corporation, society,
11 association, foundation, institution, or organization, other
12 than a limited liability company, that is organized and
13 operated as a not-for-profit service enterprise for the
14 benefit of persons 65 years of age or older if the personal
15 property was not purchased by the enterprise for the purpose
16 of resale by the enterprise.
17 (2) Personal property purchased by a not-for-profit
18 Illinois county fair association for use in conducting,
19 operating, or promoting the county fair.
20 (3) Personal property purchased by any not-for-profit
21 arts or cultural organization that establishes, by proof
22 required by the Department by rule, that it has received an
23 exemption under Section 501(c)(3) of the Internal Revenue
24 Code and that is organized and operated for the presentation
25 or support of arts or cultural programming, activities, or
26 services. These organizations include, but are not limited
27 to, music and dramatic arts organizations such as symphony
28 orchestras and theatrical groups, arts and cultural service
29 organizations, local arts councils, visual arts
30 organizations, and media arts organizations.
31 (4) Legal tender, currency, medallions, or gold or
32 silver coinage issued by the State of Illinois, the
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1 government of the United States of America, or the government
2 of any foreign country, and bullion.
3 (5) Graphic arts machinery and equipment, including
4 repair and replacement parts, both new and used, and
5 including that manufactured on special order or purchased for
6 lease, certified by the purchaser to be used primarily for
7 graphic arts production.
8 (6) Personal property sold by a teacher-sponsored
9 student organization affiliated with an elementary or
10 secondary school located in Illinois.
11 (7) Farm machinery and equipment, both new and used,
12 including that manufactured on special order, certified by
13 the purchaser to be used primarily for production agriculture
14 or State or federal agricultural programs, including
15 individual replacement parts for the machinery and equipment,
16 including machinery and equipment purchased for lease, and
17 including implements of husbandry defined in Section 1-130 of
18 the Illinois Vehicle Code, farm machinery and agricultural
19 chemical and fertilizer spreaders, and nurse wagons required
20 to be registered under Section 3-809 of the Illinois Vehicle
21 Code, but excluding other motor vehicles required to be
22 registered under the Illinois Vehicle Code. Horticultural
23 polyhouses or hoop houses used for propagating, growing, or
24 overwintering plants shall be considered farm machinery and
25 equipment under this item (7). Agricultural chemical tender
26 tanks and dry boxes shall include units sold separately from
27 a motor vehicle required to be licensed and units sold
28 mounted on a motor vehicle required to be licensed if the
29 selling price of the tender is separately stated.
30 Farm machinery and equipment shall include precision
31 farming equipment that is installed or purchased to be
32 installed on farm machinery and equipment including, but not
33 limited to, tractors, harvesters, sprayers, planters,
34 seeders, or spreaders. Precision farming equipment includes,
-47- LRB9111995SMdv
1 but is not limited to, soil testing sensors, computers,
2 monitors, software, global positioning and mapping systems,
3 and other such equipment.
4 Farm machinery and equipment also includes computers,
5 sensors, software, and related equipment used primarily in
6 the computer-assisted operation of production agriculture
7 facilities, equipment, and activities such as, but not
8 limited to, the collection, monitoring, and correlation of
9 animal and crop data for the purpose of formulating animal
10 diets and agricultural chemicals. This item (7) is exempt
11 from the provisions of Section 3-55.
12 (8) Fuel and petroleum products sold to or used by an
13 air common carrier, certified by the carrier to be used for
14 consumption, shipment, or storage in the conduct of its
15 business as an air common carrier, for a flight destined for
16 or returning from a location or locations outside the United
17 States without regard to previous or subsequent domestic
18 stopovers.
19 (9) Proceeds of mandatory service charges separately
20 stated on customers' bills for the purchase and consumption
21 of food and beverages, to the extent that the proceeds of the
22 service charge are in fact turned over as tips or as a
23 substitute for tips to the employees who participate directly
24 in preparing, serving, hosting or cleaning up the food or
25 beverage function with respect to which the service charge is
26 imposed.
27 (10) Oil field exploration, drilling, and production
28 equipment, including (i) rigs and parts of rigs, rotary rigs,
29 cable tool rigs, and workover rigs, (ii) pipe and tubular
30 goods, including casing and drill strings, (iii) pumps and
31 pump-jack units, (iv) storage tanks and flow lines, (v) any
32 individual replacement part for oil field exploration,
33 drilling, and production equipment, and (vi) machinery and
34 equipment purchased for lease; but excluding motor vehicles
-48- LRB9111995SMdv
1 required to be registered under the Illinois Vehicle Code.
2 (11) Photoprocessing machinery and equipment, including
3 repair and replacement parts, both new and used, including
4 that manufactured on special order, certified by the
5 purchaser to be used primarily for photoprocessing, and
6 including photoprocessing machinery and equipment purchased
7 for lease.
8 (12) Coal exploration, mining, offhighway hauling,
9 processing, maintenance, and reclamation equipment, including
10 replacement parts and equipment, and including equipment
11 purchased for lease, but excluding motor vehicles required to
12 be registered under the Illinois Vehicle Code.
13 (13) Food for human consumption that is to be consumed
14 off the premises where it is sold (other than alcoholic
15 beverages, soft drinks and food that has been prepared for
16 immediate consumption) and prescription and non-prescription
17 medicines, drugs, medical appliances, and insulin, urine
18 testing materials, syringes, and needles used by diabetics,
19 for human use, when purchased for use by a person receiving
20 medical assistance under Article 5 of the Illinois Public Aid
21 Code who resides in a licensed long-term care facility, as
22 defined in the Nursing Home Care Act.
23 (14) Semen used for artificial insemination of livestock
24 for direct agricultural production.
25 (15) 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 (16) Computers and communications equipment utilized for
32 any hospital purpose and equipment used in the diagnosis,
33 analysis, or treatment of hospital patients sold to a lessor
34 who leases the equipment, under a lease of one year or longer
-49- LRB9111995SMdv
1 executed or in effect at the time of the purchase, to a
2 hospital that has been issued an active tax exemption
3 identification number by the Department under Section 1g of
4 the Retailers' Occupation Tax Act. This paragraph is exempt
5 from the provisions of Section 3-55.
6 (17) Personal property sold to a lessor who leases the
7 property, under a lease of one year or longer executed or in
8 effect at the time of the purchase, to a governmental body
9 that has been issued an active tax exemption identification
10 number by the Department under Section 1g of the Retailers'
11 Occupation Tax Act. This paragraph is exempt from the
12 provisions of Section 3-55.
13 (18) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is donated
16 for disaster relief to be used in a State or federally
17 declared disaster area in Illinois or bordering Illinois by a
18 manufacturer or retailer that is registered in this State to
19 a corporation, society, association, foundation, or
20 institution that has been issued a sales tax exemption
21 identification number by the Department that assists victims
22 of the disaster who reside within the declared disaster area.
23 (19) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is used in
26 the performance of infrastructure repairs in this State,
27 including but not limited to municipal roads and streets,
28 access roads, bridges, sidewalks, waste disposal systems,
29 water and sewer line extensions, water distribution and
30 purification facilities, storm water drainage and retention
31 facilities, and sewage treatment facilities, resulting from a
32 State or federally declared disaster in Illinois or bordering
33 Illinois when such repairs are initiated on facilities
34 located in the declared disaster area within 6 months after
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1 the disaster.
2 (20) Beginning July 1, 1999, game or game birds sold at
3 a "game breeding and hunting preserve area" or an "exotic
4 game hunting area" as those terms are used in the Wildlife
5 Code or at a hunting enclosure approved through rules adopted
6 by the Department of Natural Resources. This paragraph is
7 exempt from the provisions of Section 3-55.
8 (21) (20) A motor vehicle, as that term is defined in
9 Section 1-146 of the Illinois Vehicle Code, that is donated
10 to a corporation, limited liability company, society,
11 association, foundation, or institution that is determined by
12 the Department to be organized and operated exclusively for
13 educational purposes. For purposes of this exemption, "a
14 corporation, limited liability company, society, association,
15 foundation, or institution organized and operated exclusively
16 for educational purposes" means all tax-supported public
17 schools, private schools that offer systematic instruction in
18 useful branches of learning by methods common to public
19 schools and that compare favorably in their scope and
20 intensity with the course of study presented in tax-supported
21 schools, and vocational or technical schools or institutes
22 organized and operated exclusively to provide a course of
23 study of not less than 6 weeks duration and designed to
24 prepare individuals to follow a trade or to pursue a manual,
25 technical, mechanical, industrial, business, or commercial
26 occupation.
27 (22) (21) Beginning January 1, 2000, personal property,
28 including food, purchased through fundraising events for the
29 benefit of a public or private elementary or secondary
30 school, a group of those schools, or one or more school
31 districts if the events are sponsored by an entity recognized
32 by the school district that consists primarily of volunteers
33 and includes parents and teachers of the school children.
34 This paragraph does not apply to fundraising events (i) for
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1 the benefit of private home instruction or (ii) for which the
2 fundraising entity purchases the personal property sold at
3 the events from another individual or entity that sold the
4 property for the purpose of resale by the fundraising entity
5 and that profits from the sale to the fundraising entity.
6 This paragraph is exempt from the provisions of Section 3-55.
7 (23) (20) Beginning January 1, 2000, new or used
8 automatic vending machines that prepare and serve hot food
9 and beverages, including coffee, soup, and other items, and
10 replacement parts for these machines. This paragraph is
11 exempt from the provisions of Section 3-55.
12 (24) Beginning January 1, 2001, qualified technological
13 equipment sold to lessors for lease under leases subject to
14 the Qualified Technological Equipment Leasing Occupation and
15 Use Tax Act. This paragraph is exempt from the provisions of
16 Section 3-55.
17 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97;
18 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff.
19 7-20-99; 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637,
20 eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)
21 Section 125. The Retailers' Occupation Tax Act is
22 amended by adding Sections 1c-5 and 3.5 and changing
23 Sections 2-5 and 3 as follows:
24 (35 ILCS 120/1c-5 new)
25 Sec. 1c-5. Sale of used qualified technological
26 equipment by lessors. A person who is engaged in the
27 business of leasing qualified technological equipment under
28 leases subject to the Qualified Technological Equipment
29 Leasing Occupation and Use Tax Act and who, in connection
30 with that business, sells the property to a purchaser for his
31 or her use and not for the purpose of resale, is a retailer
32 engaged in the business of selling tangible personal property
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1 at retail under this Act to the extent of the value of the
2 property sold.
3 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
4 Sec. 2-5. Exemptions. Gross receipts from proceeds from
5 the sale of the following tangible personal property are
6 exempt from the tax imposed by this Act:
7 (1) Farm chemicals.
8 (2) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (2). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed, if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
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1 and other such equipment.
2 Farm machinery and equipment also includes computers,
3 sensors, software, and related equipment used primarily in
4 the computer-assisted operation of production agriculture
5 facilities, equipment, and activities such as, but not
6 limited to, the collection, monitoring, and correlation of
7 animal and crop data for the purpose of formulating animal
8 diets and agricultural chemicals. This item (7) is exempt
9 from the provisions of Section 2-70.
10 (3) Distillation machinery and equipment, sold as a unit
11 or kit, assembled or installed by the retailer, certified by
12 the user to be used only for the production of ethyl alcohol
13 that will be used for consumption as motor fuel or as a
14 component of motor fuel for the personal use of the user, and
15 not subject to sale or resale.
16 (4) Graphic arts machinery and equipment, including
17 repair and replacement parts, both new and used, and
18 including that manufactured on special order or purchased for
19 lease, certified by the purchaser to be used primarily for
20 graphic arts production.
21 (5) A motor vehicle of the first division, a motor
22 vehicle of the second division that is a self-contained motor
23 vehicle designed or permanently converted to provide living
24 quarters for recreational, camping, or travel use, with
25 direct walk through access to the living quarters from the
26 driver's seat, or a motor vehicle of the second division that
27 is of the van configuration designed for the transportation
28 of not less than 7 nor more than 16 passengers, as defined in
29 Section 1-146 of the Illinois Vehicle Code, that is used for
30 automobile renting, as defined in the Automobile Renting
31 Occupation and Use Tax Act.
32 (6) Personal property sold by a teacher-sponsored
33 student organization affiliated with an elementary or
34 secondary school located in Illinois.
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1 (7) Proceeds of that portion of the selling price of a
2 passenger car the sale of which is subject to the Replacement
3 Vehicle Tax.
4 (8) Personal property sold to an Illinois county fair
5 association for use in conducting, operating, or promoting
6 the county fair.
7 (9) Personal property sold to a not-for-profit arts or
8 cultural organization that establishes, by proof required by
9 the Department by rule, that it has received an exemption
10 under Section 501(c)(3) of the Internal Revenue Code and that
11 is organized and operated for the presentation or support of
12 arts or cultural programming, activities, or services. These
13 organizations include, but are not limited to, music and
14 dramatic arts organizations such as symphony orchestras and
15 theatrical groups, arts and cultural service organizations,
16 local arts councils, visual arts organizations, and media
17 arts organizations.
18 (10) Personal property sold by a corporation, society,
19 association, foundation, institution, or organization, other
20 than a limited liability company, that is organized and
21 operated as a not-for-profit service enterprise for the
22 benefit of persons 65 years of age or older if the personal
23 property was not purchased by the enterprise for the purpose
24 of resale by the enterprise.
25 (11) Personal property sold to a governmental body, to a
26 corporation, society, association, foundation, or institution
27 organized and operated exclusively for charitable, religious,
28 or educational purposes, or to a not-for-profit corporation,
29 society, association, foundation, institution, or
30 organization that has no compensated officers or employees
31 and that is organized and operated primarily for the
32 recreation of persons 55 years of age or older. A limited
33 liability company may qualify for the exemption under this
34 paragraph only if the limited liability company is organized
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1 and operated exclusively for educational purposes. On and
2 after July 1, 1987, however, no entity otherwise eligible for
3 this exemption shall make tax-free purchases unless it has an
4 active identification number issued by the Department.
5 (12) Personal property sold to interstate carriers for
6 hire for use as rolling stock moving in interstate commerce
7 or to lessors under leases of one year or longer executed or
8 in effect at the time of purchase by interstate carriers for
9 hire for use as rolling stock moving in interstate commerce
10 and equipment operated by a telecommunications provider,
11 licensed as a common carrier by the Federal Communications
12 Commission, which is permanently installed in or affixed to
13 aircraft moving in interstate commerce.
14 (13) Proceeds from sales to owners, lessors, or shippers
15 of tangible personal property that is utilized by interstate
16 carriers for hire for use as rolling stock moving in
17 interstate commerce and equipment operated by a
18 telecommunications provider, licensed as a common carrier by
19 the Federal Communications Commission, which is permanently
20 installed in or affixed to aircraft moving in interstate
21 commerce.
22 (14) Machinery and equipment that will be used by the
23 purchaser, or a lessee of the purchaser, primarily in the
24 process of manufacturing or assembling tangible personal
25 property for wholesale or retail sale or lease, whether the
26 sale or lease is made directly by the manufacturer or by some
27 other person, whether the materials used in the process are
28 owned by the manufacturer or some other person, or whether
29 the sale or lease is made apart from or as an incident to the
30 seller's engaging in the service occupation of producing
31 machines, tools, dies, jigs, patterns, gauges, or other
32 similar items of no commercial value on special order for a
33 particular purchaser.
34 (15) Proceeds of mandatory service charges separately
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1 stated on customers' bills for purchase and consumption of
2 food and beverages, to the extent that the proceeds of the
3 service charge are in fact turned over as tips or as a
4 substitute for tips to the employees who participate directly
5 in preparing, serving, hosting or cleaning up the food or
6 beverage function with respect to which the service charge is
7 imposed.
8 (16) Petroleum products sold to a purchaser if the
9 seller is prohibited by federal law from charging tax to the
10 purchaser.
11 (17) Tangible personal property sold to a common carrier
12 by rail or motor that receives the physical possession of the
13 property in Illinois and that transports the property, or
14 shares with another common carrier in the transportation of
15 the property, out of Illinois on a standard uniform bill of
16 lading showing the seller of the property as the shipper or
17 consignor of the property to a destination outside Illinois,
18 for use outside Illinois.
19 (18) Legal tender, currency, medallions, or gold or
20 silver coinage issued by the State of Illinois, the
21 government of the United States of America, or the government
22 of any foreign country, and bullion.
23 (19) Oil field exploration, drilling, and production
24 equipment, including (i) rigs and parts of rigs, rotary rigs,
25 cable tool rigs, and workover rigs, (ii) pipe and tubular
26 goods, including casing and drill strings, (iii) pumps and
27 pump-jack units, (iv) storage tanks and flow lines, (v) any
28 individual replacement part for oil field exploration,
29 drilling, and production equipment, and (vi) machinery and
30 equipment purchased for lease; but excluding motor vehicles
31 required to be registered under the Illinois Vehicle Code.
32 (20) Photoprocessing machinery and equipment, including
33 repair and replacement parts, both new and used, including
34 that manufactured on special order, certified by the
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1 purchaser to be used primarily for photoprocessing, and
2 including photoprocessing machinery and equipment purchased
3 for lease.
4 (21) Coal exploration, mining, offhighway hauling,
5 processing, maintenance, and reclamation equipment, including
6 replacement parts and equipment, and including equipment
7 purchased for lease, but excluding motor vehicles required to
8 be registered under the Illinois Vehicle Code.
9 (22) Fuel and petroleum products sold to or used by an
10 air carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (23) A transaction in which the purchase order is
17 received by a florist who is located outside Illinois, but
18 who has a florist located in Illinois deliver the property to
19 the purchaser or the purchaser's donee in Illinois.
20 (24) Fuel consumed or used in the operation of ships,
21 barges, or vessels that are used primarily in or for the
22 transportation of property or the conveyance of persons for
23 hire on rivers bordering on this State if the fuel is
24 delivered by the seller to the purchaser's barge, ship, or
25 vessel while it is afloat upon that bordering river.
26 (25) A motor vehicle sold in this State to a nonresident
27 even though the motor vehicle is delivered to the nonresident
28 in this State, if the motor vehicle is not to be titled in
29 this State, and if a driveaway decal permit is issued to the
30 motor vehicle as provided in Section 3-603 of the Illinois
31 Vehicle Code or if the nonresident purchaser has vehicle
32 registration plates to transfer to the motor vehicle upon
33 returning to his or her home state. The issuance of the
34 driveaway decal permit or having the out-of-state
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1 registration plates to be transferred is prima facie evidence
2 that the motor vehicle will not be titled in this State.
3 (26) Semen used for artificial insemination of livestock
4 for direct agricultural production.
5 (27) Horses, or interests in horses, registered with and
6 meeting the requirements of any of the Arabian Horse Club
7 Registry of America, Appaloosa Horse Club, American Quarter
8 Horse Association, United States Trotting Association, or
9 Jockey Club, as appropriate, used for purposes of breeding or
10 racing for prizes.
11 (28) Computers and communications equipment utilized for
12 any hospital purpose and equipment used in the diagnosis,
13 analysis, or treatment of hospital patients sold to a lessor
14 who leases the equipment, under a lease of one year or longer
15 executed or in effect at the time of the purchase, to a
16 hospital that has been issued an active tax exemption
17 identification number by the Department under Section 1g of
18 this Act. This paragraph is exempt from the provisions of
19 Section 2-70.
20 (29) Personal property sold to a lessor who leases the
21 property, under a lease of one year or longer executed or in
22 effect at the time of the purchase, to a governmental body
23 that has been issued an active tax exemption identification
24 number by the Department under Section 1g of this Act. This
25 paragraph is exempt from the provisions of Section 2-70.
26 (30) Beginning with taxable years ending on or after
27 December 31, 1995 and ending with taxable years ending on or
28 before December 31, 2004, personal property that is donated
29 for disaster relief to be used in a State or federally
30 declared disaster area in Illinois or bordering Illinois by a
31 manufacturer or retailer that is registered in this State to
32 a corporation, society, association, foundation, or
33 institution that has been issued a sales tax exemption
34 identification number by the Department that assists victims
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1 of the disaster who reside within the declared disaster area.
2 (31) Beginning with taxable years ending on or after
3 December 31, 1995 and ending with taxable years ending on or
4 before December 31, 2004, personal property that is used in
5 the performance of infrastructure repairs in this State,
6 including but not limited to municipal roads and streets,
7 access roads, bridges, sidewalks, waste disposal systems,
8 water and sewer line extensions, water distribution and
9 purification facilities, storm water drainage and retention
10 facilities, and sewage treatment facilities, resulting from a
11 State or federally declared disaster in Illinois or bordering
12 Illinois when such repairs are initiated on facilities
13 located in the declared disaster area within 6 months after
14 the disaster.
15 (32) Beginning July 1, 1999, game or game birds sold at
16 a "game breeding and hunting preserve area" or an "exotic
17 game hunting area" as those terms are used in the Wildlife
18 Code or at a hunting enclosure approved through rules adopted
19 by the Department of Natural Resources. This paragraph is
20 exempt from the provisions of Section 2-70.
21 (33) (32) A motor vehicle, as that term is defined in
22 Section 1-146 of the Illinois Vehicle Code, that is donated
23 to a corporation, limited liability company, society,
24 association, foundation, or institution that is determined by
25 the Department to be organized and operated exclusively for
26 educational purposes. For purposes of this exemption, "a
27 corporation, limited liability company, society, association,
28 foundation, or institution organized and operated exclusively
29 for educational purposes" means all tax-supported public
30 schools, private schools that offer systematic instruction in
31 useful branches of learning by methods common to public
32 schools and that compare favorably in their scope and
33 intensity with the course of study presented in tax-supported
34 schools, and vocational or technical schools or institutes
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1 organized and operated exclusively to provide a course of
2 study of not less than 6 weeks duration and designed to
3 prepare individuals to follow a trade or to pursue a manual,
4 technical, mechanical, industrial, business, or commercial
5 occupation.
6 (34) (33) Beginning January 1, 2000, personal property,
7 including food, purchased through fundraising events for the
8 benefit of a public or private elementary or secondary
9 school, a group of those schools, or one or more school
10 districts if the events are sponsored by an entity recognized
11 by the school district that consists primarily of volunteers
12 and includes parents and teachers of the school children.
13 This paragraph does not apply to fundraising events (i) for
14 the benefit of private home instruction or (ii) for which the
15 fundraising entity purchases the personal property sold at
16 the events from another individual or entity that sold the
17 property for the purpose of resale by the fundraising entity
18 and that profits from the sale to the fundraising entity.
19 This paragraph is exempt from the provisions of Section 2-70.
20 (35) (32) Beginning January 1, 2000, new or used
21 automatic vending machines that prepare and serve hot food
22 and beverages, including coffee, soup, and other items, and
23 replacement parts for these machines. This paragraph is
24 exempt from the provisions of Section 2-70.
25 (36) Beginning January 1, 2001, qualified technological
26 equipment sold to lessors for lease under leases subject to
27 the Qualified Technological Equipment Leasing Occupation and
28 Use Tax Act. This paragraph is exempt from the provisions of
29 Section 2-70.
30 (Source: P.A. 90-14, eff. 7-1-97; 90-519, eff. 6-1-98;
31 90-552, eff. 12-12-97; 90-605, eff. 6-30-98; 91-51, eff.
32 6-30-99; 91-200, eff. 7-20-99; 91-439, eff. 8-6-99; 91-533,
33 eff. 8-13-99; 91-637, eff. 8-20-99; 91-644, eff. 8-20-99;
34 revised 9-28-99.)
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1 (35 ILCS 120/3) (from Ch. 120, par. 442)
2 Sec. 3. Except as provided in this Section, on or before
3 the twentieth day of each calendar month, every person
4 engaged in the business of selling tangible personal property
5 at retail in this State during the preceding calendar month
6 shall file a return with the Department, stating:
7 1. The name of the seller;
8 2. His residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 3. Total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 4. Total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 5. Deductions allowed by law;
24 6. Gross receipts which were received by him during
25 the preceding calendar month or quarter and upon the
26 basis of which the tax is imposed;
27 7. The amount of credit provided in Section 2d of
28 this Act;
29 8. The amount of tax due;
30 9. The signature of the taxpayer; and
31 10. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Each return shall be accompanied by the statement of
4 prepaid tax issued pursuant to Section 2e for which credit is
5 claimed.
6 A retailer may accept a Manufacturer's Purchase Credit
7 certification from a purchaser in satisfaction of Use Tax as
8 provided in Section 3-85 of the Use Tax Act if the purchaser
9 provides the appropriate documentation as required by Section
10 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11 certification, accepted by a retailer as provided in Section
12 3-85 of the Use Tax Act, may be used by that retailer to
13 satisfy Retailers' Occupation Tax liability in the amount
14 claimed in the certification, not to exceed 6.25% of the
15 receipts subject to tax from a qualifying purchase.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter.
20 The taxpayer shall also file a return with the Department for
21 each of the first two months of each calendar quarter, on or
22 before the twentieth day of the following calendar month,
23 stating:
24 1. The name of the seller;
25 2. The address of the principal place of business
26 from which he engages in the business of selling tangible
27 personal property at retail in this State;
28 3. The total amount of taxable receipts received by
29 him during the preceding calendar month from sales of
30 tangible personal property by him during such preceding
31 calendar month, including receipts from charge and time
32 sales, but less all deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
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1 5. The amount of tax due; and
2 6. Such other reasonable information as the
3 Department may require.
4 If a total amount of less than $1 is payable, refundable
5 or creditable, such amount shall be disregarded if it is less
6 than 50 cents and shall be increased to $1 if it is 50 cents
7 or more.
8 Beginning October 1, 1993, a taxpayer who has an average
9 monthly tax liability of $150,000 or more shall make all
10 payments required by rules of the Department by electronic
11 funds transfer. Beginning October 1, 1994, a taxpayer who
12 has an average monthly tax liability of $100,000 or more
13 shall make all payments required by rules of the Department
14 by electronic funds transfer. Beginning October 1, 1995, a
15 taxpayer who has an average monthly tax liability of $50,000
16 or more shall make all payments required by rules of the
17 Department by electronic funds transfer. Beginning October
18 1, 2000, a taxpayer who has an annual tax liability of
19 $200,000 or more shall make all payments required by rules of
20 the Department by electronic funds transfer. The term
21 "annual tax liability" shall be the sum of the taxpayer's
22 liabilities under this Act, and under all other State and
23 local occupation and use tax laws administered by the
24 Department, for the immediately preceding calendar year. The
25 term "average monthly tax liability" shall be the sum of the
26 taxpayer's liabilities under this Act, and under all other
27 State and local occupation and use tax laws administered by
28 the Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers
33 required to make payments by electronic funds transfer shall
34 make those payments for a minimum of one year beginning on
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1 October 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 Any amount which is required to be shown or reported on
13 any return or other document under this Act shall, if such
14 amount is not a whole-dollar amount, be increased to the
15 nearest whole-dollar amount in any case where the fractional
16 part of a dollar is 50 cents or more, and decreased to the
17 nearest whole-dollar amount where the fractional part of a
18 dollar is less than 50 cents.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability with the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
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1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 Where the same person has more than one business
13 registered with the Department under separate registrations
14 under this Act, such person may not file each return that is
15 due as a single return covering all such registered
16 businesses, but shall file separate returns for each such
17 registered business.
18 In addition, with respect to motor vehicles, watercraft,
19 aircraft, and trailers that are required to be registered
20 with an agency of this State, every retailer selling this
21 kind of tangible personal property shall file, with the
22 Department, upon a form to be prescribed and supplied by the
23 Department, a separate return for each such item of tangible
24 personal property which the retailer sells, except that
25 where, in the same transaction, a retailer of aircraft,
26 watercraft, motor vehicles or trailers transfers more than
27 one aircraft, watercraft, motor vehicle or trailer to another
28 aircraft, watercraft, motor vehicle retailer or trailer
29 retailer for the purpose of resale, that seller for resale
30 may report the transfer of all aircraft, watercraft, motor
31 vehicles or trailers involved in that transaction to the
32 Department on the same uniform invoice-transaction reporting
33 return form. For purposes of this Section, "watercraft"
34 means a Class 2, Class 3, or Class 4 watercraft as defined in
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1 Section 3-2 of the Boat Registration and Safety Act, a
2 personal watercraft, or any boat equipped with an inboard
3 motor.
4 Any retailer who sells only motor vehicles, watercraft,
5 aircraft, or trailers that are required to be registered with
6 an agency of this State, so that all retailers' occupation
7 tax liability is required to be reported, and is reported, on
8 such transaction reporting returns and who is not otherwise
9 required to file monthly or quarterly returns, need not file
10 monthly or quarterly returns. However, those retailers shall
11 be required to file returns on an annual basis.
12 The transaction reporting return, in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of The Illinois
16 Vehicle Code and must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 1 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale; a sufficient identification of
30 the property sold; such other information as is required in
31 Section 5-402 of The Illinois Vehicle Code, and such other
32 information as the Department may reasonably require.
33 The transaction reporting return in the case of
34 watercraft or aircraft must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale, a sufficient identification of
14 the property sold, and such other information as the
15 Department may reasonably require.
16 Such transaction reporting return shall be filed not
17 later than 20 days after the day of delivery of the item that
18 is being sold, but may be filed by the retailer at any time
19 sooner than that if he chooses to do so. The transaction
20 reporting return and tax remittance or proof of exemption
21 from the Illinois use tax may be transmitted to the
22 Department by way of the State agency with which, or State
23 officer with whom the tangible personal property must be
24 titled or registered (if titling or registration is required)
25 if the Department and such agency or State officer determine
26 that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such transaction reporting return, the retailer
29 shall remit the proper amount of tax due (or shall submit
30 satisfactory evidence that the sale is not taxable if that is
31 the case), to the Department or its agents, whereupon the
32 Department shall issue, in the purchaser's name, a use tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
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1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title or registration (if titling or registration
11 is required) upon satisfying the Department that such user
12 has paid the proper tax (if tax is due) to the retailer. The
13 Department shall adopt appropriate rules to carry out the
14 mandate of this paragraph.
15 If the user who would otherwise pay tax to the retailer
16 wants the transaction reporting return filed and the payment
17 of the tax or proof of exemption made to the Department
18 before the retailer is willing to take these actions and such
19 user has not paid the tax to the retailer, such user may
20 certify to the fact of such delay by the retailer and may
21 (upon the Department being satisfied of the truth of such
22 certification) transmit the information required by the
23 transaction reporting return and the remittance for tax or
24 proof of exemption directly to the Department and obtain his
25 tax receipt or exemption determination, in which event the
26 transaction reporting return and tax remittance (if a tax
27 payment was required) shall be credited by the Department to
28 the proper retailer's account with the Department, but
29 without the 2.1% or 1.75% discount provided for in this
30 Section being allowed. When the user pays the tax directly
31 to the Department, he shall pay the tax in the same amount
32 and in the same form in which it would be remitted if the tax
33 had been remitted to the Department by the retailer.
34 Refunds made by the seller during the preceding return
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1 period to purchasers, on account of tangible personal
2 property returned to the seller, shall be allowed as a
3 deduction under subdivision 5 of his monthly or quarterly
4 return, as the case may be, in case the seller had
5 theretofore included the receipts from the sale of such
6 tangible personal property in a return filed by him and had
7 paid the tax imposed by this Act with respect to such
8 receipts.
9 Where the seller is a corporation, the return filed on
10 behalf of such corporation shall be signed by the president,
11 vice-president, secretary or treasurer or by the properly
12 accredited agent of such corporation.
13 Where the seller is a limited liability company, the
14 return filed on behalf of the limited liability company shall
15 be signed by a manager, member, or properly accredited agent
16 of the limited liability company.
17 Except as provided in this Section, the retailer filing
18 the return under this Section shall, at the time of filing
19 such return, pay to the Department the amount of tax imposed
20 by this Act less a discount of 2.1% prior to January 1, 1990
21 and 1.75% on and after January 1, 1990, or $5 per calendar
22 year, whichever is greater, which is allowed to reimburse the
23 retailer for the expenses incurred in keeping records,
24 preparing and filing returns, remitting the tax and supplying
25 data to the Department on request. Any prepayment made
26 pursuant to Section 2d of this Act shall be included in the
27 amount on which such 2.1% or 1.75% discount is computed. In
28 the case of retailers who report and pay the tax on a
29 transaction by transaction basis, as provided in this
30 Section, such discount shall be taken with each such tax
31 remittance instead of when such retailer files his periodic
32 return.
33 Before October 1, 2000, if the taxpayer's average monthly
34 tax liability to the Department under this Act, the Use Tax
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1 Act, the Service Occupation Tax Act, and the Service Use Tax
2 Act, excluding any liability for prepaid sales tax to be
3 remitted in accordance with Section 2d of this Act, was
4 $10,000 or more during the preceding 4 complete calendar
5 quarters, he shall file a return with the Department each
6 month by the 20th day of the month next following the month
7 during which such tax liability is incurred and shall make
8 payments to the Department on or before the 7th, 15th, 22nd
9 and last day of the month during which such liability is
10 incurred. On and after October 1, 2000, if the taxpayer's
11 average monthly tax liability to the Department under this
12 Act, the Use Tax Act, the Service Occupation Tax Act, and the
13 Service Use Tax Act, excluding any liability for prepaid
14 sales tax to be remitted in accordance with Section 2d of
15 this Act, was $20,000 or more during the preceding 4 complete
16 calendar quarters, he shall file a return with the Department
17 each month by the 20th day of the month next following the
18 month during which such tax liability is incurred and shall
19 make payment to the Department on or before the 7th, 15th,
20 22nd and last day of the month during which such liability is
21 incurred. If the month during which such tax liability is
22 incurred began prior to January 1, 1985, each payment shall
23 be in an amount equal to 1/4 of the taxpayer's actual
24 liability for the month or an amount set by the Department
25 not to exceed 1/4 of the average monthly liability of the
26 taxpayer to the Department for the preceding 4 complete
27 calendar quarters (excluding the month of highest liability
28 and the month of lowest liability in such 4 quarter period).
29 If the month during which such tax liability is incurred
30 begins on or after January 1, 1985 and prior to January 1,
31 1987, each payment shall be in an amount equal to 22.5% of
32 the taxpayer's actual liability for the month or 27.5% of the
33 taxpayer's liability for the same calendar month of the
34 preceding year. If the month during which such tax liability
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1 is incurred begins on or after January 1, 1987 and prior to
2 January 1, 1988, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or
4 26.25% of the taxpayer's liability for the same calendar
5 month of the preceding year. If the month during which such
6 tax liability is incurred begins on or after January 1, 1988,
7 and prior to January 1, 1989, or begins on or after January
8 1, 1996, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 25% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1989, and prior to
13 January 1, 1996, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or 25%
15 of the taxpayer's liability for the same calendar month of
16 the preceding year or 100% of the taxpayer's actual liability
17 for the quarter monthly reporting period. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month.
20 Before October 1, 2000, once applicable, the requirement of
21 the making of quarter monthly payments to the Department by
22 taxpayers having an average monthly tax liability of $10,000
23 or more as determined in the manner provided above shall
24 continue until such taxpayer's average monthly liability to
25 the Department during the preceding 4 complete calendar
26 quarters (excluding the month of highest liability and the
27 month of lowest liability) is less than $9,000, or until such
28 taxpayer's average monthly liability to the Department as
29 computed for each calendar quarter of the 4 preceding
30 complete calendar quarter period is less than $10,000.
31 However, if a taxpayer can show the Department that a
32 substantial change in the taxpayer's business has occurred
33 which causes the taxpayer to anticipate that his average
34 monthly tax liability for the reasonably foreseeable future
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1 will fall below the $10,000 threshold stated above, then such
2 taxpayer may petition the Department for a change in such
3 taxpayer's reporting status. On and after October 1, 2000,
4 once applicable, the requirement of the making of quarter
5 monthly payments to the Department by taxpayers having an
6 average monthly tax liability of $20,000 or more as
7 determined in the manner provided above shall continue until
8 such taxpayer's average monthly liability to the Department
9 during the preceding 4 complete calendar quarters (excluding
10 the month of highest liability and the month of lowest
11 liability) is less than $19,000 or until such taxpayer's
12 average monthly liability to the Department as computed for
13 each calendar quarter of the 4 preceding complete calendar
14 quarter period is less than $20,000. However, if a taxpayer
15 can show the Department that a substantial change in the
16 taxpayer's business has occurred which causes the taxpayer to
17 anticipate that his average monthly tax liability for the
18 reasonably foreseeable future will fall below the $20,000
19 threshold stated above, then such taxpayer may petition the
20 Department for a change in such taxpayer's reporting status.
21 The Department shall change such taxpayer's reporting status
22 unless it finds that such change is seasonal in nature and
23 not likely to be long term. If any such quarter monthly
24 payment is not paid at the time or in the amount required by
25 this Section, then the taxpayer shall be liable for penalties
26 and interest on the difference between the minimum amount due
27 as a payment and the amount of such quarter monthly payment
28 actually and timely paid, except insofar as the taxpayer has
29 previously made payments for that month to the Department in
30 excess of the minimum payments previously due as provided in
31 this Section. The Department shall make reasonable rules and
32 regulations to govern the quarter monthly payment amount and
33 quarter monthly payment dates for taxpayers who file on other
34 than a calendar monthly basis.
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1 Without regard to whether a taxpayer is required to make
2 quarter monthly payments as specified above, any taxpayer who
3 is required by Section 2d of this Act to collect and remit
4 prepaid taxes and has collected prepaid taxes which average
5 in excess of $25,000 per month during the preceding 2
6 complete calendar quarters, shall file a return with the
7 Department as required by Section 2f and shall make payments
8 to the Department on or before the 7th, 15th, 22nd and last
9 day of the month during which such liability is incurred. If
10 the month during which such tax liability is incurred began
11 prior to the effective date of this amendatory Act of 1985,
12 each payment shall be in an amount not less than 22.5% of the
13 taxpayer's actual liability under Section 2d. If the month
14 during which such tax liability is incurred begins on or
15 after January 1, 1986, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 27.5% of the taxpayer's liability for the same
18 calendar month of the preceding calendar year. If the month
19 during which such tax liability is incurred begins on or
20 after January 1, 1987, each payment shall be in an amount
21 equal to 22.5% of the taxpayer's actual liability for the
22 month or 26.25% of the taxpayer's liability for the same
23 calendar month of the preceding year. The amount of such
24 quarter monthly payments shall be credited against the final
25 tax liability of the taxpayer's return for that month filed
26 under this Section or Section 2f, as the case may be. Once
27 applicable, the requirement of the making of quarter monthly
28 payments to the Department pursuant to this paragraph shall
29 continue until such taxpayer's average monthly prepaid tax
30 collections during the preceding 2 complete calendar quarters
31 is $25,000 or less. If any such quarter monthly payment is
32 not paid at the time or in the amount required, the taxpayer
33 shall be liable for penalties and interest on such
34 difference, except insofar as the taxpayer has previously
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1 made payments for that month in excess of the minimum
2 payments previously due.
3 If any payment provided for in this Section exceeds the
4 taxpayer's liabilities under this Act, the Use Tax Act, the
5 Service Occupation Tax Act and the Service Use Tax Act, as
6 shown on an original monthly return, the Department shall, if
7 requested by the taxpayer, issue to the taxpayer a credit
8 memorandum no later than 30 days after the date of payment.
9 The credit evidenced by such credit memorandum may be
10 assigned by the taxpayer to a similar taxpayer under this
11 Act, the Use Tax Act, the Service Occupation Tax Act or the
12 Service Use Tax Act, in accordance with reasonable rules and
13 regulations to be prescribed by the Department. If no such
14 request is made, the taxpayer may credit such excess payment
15 against tax liability subsequently to be remitted to the
16 Department under this Act, the Use Tax Act, the Service
17 Occupation Tax Act or the Service Use Tax Act, in accordance
18 with reasonable rules and regulations prescribed by the
19 Department. If the Department subsequently determined that
20 all or any part of the credit taken was not actually due to
21 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
22 shall be reduced by 2.1% or 1.75% of the difference between
23 the credit taken and that actually due, and that taxpayer
24 shall be liable for penalties and interest on such
25 difference.
26 If a retailer of motor fuel is entitled to a credit under
27 Section 2d of this Act which exceeds the taxpayer's liability
28 to the Department under this Act for the month which the
29 taxpayer is filing a return, the Department shall issue the
30 taxpayer a credit memorandum for the excess.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund, a special fund
33 in the State treasury which is hereby created, the net
34 revenue realized for the preceding month from the 1% tax on
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1 sales of food for human consumption which is to be consumed
2 off the premises where it is sold (other than alcoholic
3 beverages, soft drinks and food which has been prepared for
4 immediate consumption) and prescription and nonprescription
5 medicines, drugs, medical appliances and insulin, urine
6 testing materials, syringes and needles used by diabetics.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the County and Mass Transit District Fund, a
9 special fund in the State treasury which is hereby created,
10 4% of the net revenue realized for the preceding month from
11 the 6.25% general rate.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the Local Government Tax Fund 16% of the net
14 revenue realized for the preceding month from the 6.25%
15 general rate on the selling price of tangible personal
16 property.
17 Of the remainder of the moneys received by the Department
18 pursuant to this Act and the moneys received by the
19 Department from the 80% of the 6.25% occupation tax imposed
20 in Section 10 of the Qualified Technological Equipment
21 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
22 be paid into the Build Illinois Fund and (b) prior to July 1,
23 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
24 be paid into the Build Illinois Fund; provided, however, that
25 if in any fiscal year the sum of (1) the aggregate of 2.2% or
26 3.8%, as the case may be, of the moneys received by the
27 Department and required to be paid into the Build Illinois
28 Fund pursuant to this Act, Section 9 of the Use Tax Act,
29 Section 9 of the Service Use Tax Act, and Section 9 of the
30 Service Occupation Tax Act, such Acts being hereinafter
31 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
32 the case may be, of moneys being hereinafter called the "Tax
33 Act Amount", and (2) the amount transferred to the Build
34 Illinois Fund from the State and Local Sales Tax Reform Fund
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1 shall be less than the Annual Specified Amount (as
2 hereinafter defined), an amount equal to the difference shall
3 be immediately paid into the Build Illinois Fund from other
4 moneys received by the Department pursuant to the Tax Acts;
5 the "Annual Specified Amount" means the amounts specified
6 below for fiscal years 1986 through 1993:
7 Fiscal Year Annual Specified Amount
8 1986 $54,800,000
9 1987 $76,650,000
10 1988 $80,480,000
11 1989 $88,510,000
12 1990 $115,330,000
13 1991 $145,470,000
14 1992 $182,730,000
15 1993 $206,520,000;
16 and means the Certified Annual Debt Service Requirement (as
17 defined in Section 13 of the Build Illinois Bond Act) or the
18 Tax Act Amount, whichever is greater, for fiscal year 1994
19 and each fiscal year thereafter; and further provided, that
20 if on the last business day of any month the sum of (1) the
21 Tax Act Amount required to be deposited into the Build
22 Illinois Bond Account in the Build Illinois Fund during such
23 month and (2) the amount transferred to the Build Illinois
24 Fund from the State and Local Sales Tax Reform Fund shall
25 have been less than 1/12 of the Annual Specified Amount, an
26 amount equal to the difference shall be immediately paid into
27 the Build Illinois Fund from other moneys received by the
28 Department pursuant to the Tax Acts; and, further provided,
29 that in no event shall the payments required under the
30 preceding proviso result in aggregate payments into the Build
31 Illinois Fund pursuant to this clause (b) for any fiscal year
32 in excess of the greater of (i) the Tax Act Amount or (ii)
33 the Annual Specified Amount for such fiscal year. The
34 amounts payable into the Build Illinois Fund under clause (b)
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1 of the first sentence in this paragraph shall be payable only
2 until such time as the aggregate amount on deposit under each
3 trust indenture securing Bonds issued and outstanding
4 pursuant to the Build Illinois Bond Act is sufficient, taking
5 into account any future investment income, to fully provide,
6 in accordance with such indenture, for the defeasance of or
7 the payment of the principal of, premium, if any, and
8 interest on the Bonds secured by such indenture and on any
9 Bonds expected to be issued thereafter and all fees and costs
10 payable with respect thereto, all as certified by the
11 Director of the Bureau of the Budget. If on the last
12 business day of any month in which Bonds are outstanding
13 pursuant to the Build Illinois Bond Act, the aggregate of
14 moneys deposited in the Build Illinois Bond Account in the
15 Build Illinois Fund in such month shall be less than the
16 amount required to be transferred in such month from the
17 Build Illinois Bond Account to the Build Illinois Bond
18 Retirement and Interest Fund pursuant to Section 13 of the
19 Build Illinois Bond Act, an amount equal to such deficiency
20 shall be immediately paid from other moneys received by the
21 Department pursuant to the Tax Acts to the Build Illinois
22 Fund; provided, however, that any amounts paid to the Build
23 Illinois Fund in any fiscal year pursuant to this sentence
24 shall be deemed to constitute payments pursuant to clause (b)
25 of the first sentence of this paragraph and shall reduce the
26 amount otherwise payable for such fiscal year pursuant to
27 that clause (b). The moneys received by the Department
28 pursuant to this Act and required to be deposited into the
29 Build Illinois Fund are subject to the pledge, claim and
30 charge set forth in Section 12 of the Build Illinois Bond
31 Act.
32 Subject to payment of amounts into the Build Illinois
33 Fund as provided in the preceding paragraph or in any
34 amendment thereto hereafter enacted, the following specified
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1 monthly installment of the amount requested in the
2 certificate of the Chairman of the Metropolitan Pier and
3 Exposition Authority provided under Section 8.25f of the
4 State Finance Act, but not in excess of sums designated as
5 "Total Deposit", shall be deposited in the aggregate from
6 collections under Section 9 of the Use Tax Act, Section 9 of
7 the Service Use Tax Act, Section 9 of the Service Occupation
8 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
9 into the McCormick Place Expansion Project Fund in the
10 specified fiscal years.
11 Fiscal Year Total Deposit
12 1993 $0
13 1994 53,000,000
14 1995 58,000,000
15 1996 61,000,000
16 1997 64,000,000
17 1998 68,000,000
18 1999 71,000,000
19 2000 75,000,000
20 2001 80,000,000
21 2002 84,000,000
22 2003 89,000,000
23 2004 93,000,000
24 2005 97,000,000
25 2006 102,000,000
26 2007 108,000,000
27 2008 115,000,000
28 2009 120,000,000
29 2010 126,000,000
30 2011 132,000,000
31 2012 138,000,000
32 2013 and 145,000,000
33 each fiscal year
34 thereafter that bonds
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1 are outstanding under
2 Section 13.2 of the
3 Metropolitan Pier and
4 Exposition Authority
5 Act, but not after fiscal year 2029.
6 Beginning July 20, 1993 and in each month of each fiscal
7 year thereafter, one-eighth of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority for that fiscal year, less the amount
10 deposited into the McCormick Place Expansion Project Fund by
11 the State Treasurer in the respective month under subsection
12 (g) of Section 13 of the Metropolitan Pier and Exposition
13 Authority Act, plus cumulative deficiencies in the deposits
14 required under this Section for previous months and years,
15 shall be deposited into the McCormick Place Expansion Project
16 Fund, until the full amount requested for the fiscal year,
17 but not in excess of the amount specified above as "Total
18 Deposit", has been deposited.
19 Subject to payment of amounts into the Build Illinois
20 Fund and the McCormick Place Expansion Project Fund pursuant
21 to the preceding paragraphs or in any amendment thereto
22 hereafter enacted, each month the Department shall pay into
23 the Local Government Distributive Fund 0.4% of the net
24 revenue realized for the preceding month from the 5% general
25 rate or 0.4% of 80% of the net revenue realized for the
26 preceding month from the 6.25% general rate, as the case may
27 be, on the selling price of tangible personal property which
28 amount shall, subject to appropriation, be distributed as
29 provided in Section 2 of the State Revenue Sharing Act. No
30 payments or distributions pursuant to this paragraph shall be
31 made if the tax imposed by this Act on photoprocessing
32 products is declared unconstitutional, or if the proceeds
33 from such tax are unavailable for distribution because of
34 litigation.
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1 Subject to payment of amounts into the Build Illinois
2 Fund, the McCormick Place Expansion Project to the preceding
3 paragraphs or in any amendments thereto hereafter enacted,
4 beginning July 1, 1993, the Department shall each month pay
5 into the Illinois Tax Increment Fund 0.27% of 80% of the net
6 revenue realized for the preceding month from the 6.25%
7 general rate on the selling price of tangible personal
8 property.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act, 75% thereof shall be paid into the
11 State Treasury and 25% shall be reserved in a special account
12 and used only for the transfer to the Common School Fund as
13 part of the monthly transfer from the General Revenue Fund in
14 accordance with Section 8a of the State Finance Act.
15 The Department may, upon separate written notice to a
16 taxpayer, require the taxpayer to prepare and file with the
17 Department on a form prescribed by the Department within not
18 less than 60 days after receipt of the notice an annual
19 information return for the tax year specified in the notice.
20 Such annual return to the Department shall include a
21 statement of gross receipts as shown by the retailer's last
22 Federal income tax return. If the total receipts of the
23 business as reported in the Federal income tax return do not
24 agree with the gross receipts reported to the Department of
25 Revenue for the same period, the retailer shall attach to his
26 annual return a schedule showing a reconciliation of the 2
27 amounts and the reasons for the difference. The retailer's
28 annual return to the Department shall also disclose the cost
29 of goods sold by the retailer during the year covered by such
30 return, opening and closing inventories of such goods for
31 such year, costs of goods used from stock or taken from stock
32 and given away by the retailer during such year, payroll
33 information of the retailer's business during such year and
34 any additional reasonable information which the Department
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1 deems would be helpful in determining the accuracy of the
2 monthly, quarterly or annual returns filed by such retailer
3 as provided for in this Section.
4 If the annual information return required by this Section
5 is not filed when and as required, the taxpayer shall be
6 liable as follows:
7 (i) Until January 1, 1994, the taxpayer shall be
8 liable for a penalty equal to 1/6 of 1% of the tax due
9 from such taxpayer under this Act during the period to be
10 covered by the annual return for each month or fraction
11 of a month until such return is filed as required, the
12 penalty to be assessed and collected in the same manner
13 as any other penalty provided for in this Act.
14 (ii) On and after January 1, 1994, the taxpayer
15 shall be liable for a penalty as described in Section 3-4
16 of the Uniform Penalty and Interest Act.
17 The chief executive officer, proprietor, owner or highest
18 ranking manager shall sign the annual return to certify the
19 accuracy of the information contained therein. Any person
20 who willfully signs the annual return containing false or
21 inaccurate information shall be guilty of perjury and
22 punished accordingly. The annual return form prescribed by
23 the Department shall include a warning that the person
24 signing the return may be liable for perjury.
25 The provisions of this Section concerning the filing of
26 an annual information return do not apply to a retailer who
27 is not required to file an income tax return with the United
28 States Government.
29 As soon as possible after the first day of each month,
30 upon certification of the Department of Revenue, the
31 Comptroller shall order transferred and the Treasurer shall
32 transfer from the General Revenue Fund to the Motor Fuel Tax
33 Fund an amount equal to 1.7% of 80% of the net revenue
34 realized under this Act for the second preceding month.
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1 Beginning April 1, 2000, this transfer is no longer required
2 and shall not be made.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to this Act, less the amount
5 paid out during that month as refunds to taxpayers for
6 overpayment of liability.
7 For greater simplicity of administration, manufacturers,
8 importers and wholesalers whose products are sold at retail
9 in Illinois by numerous retailers, and who wish to do so, may
10 assume the responsibility for accounting and paying to the
11 Department all tax accruing under this Act with respect to
12 such sales, if the retailers who are affected do not make
13 written objection to the Department to this arrangement.
14 Any person who promotes, organizes, provides retail
15 selling space for concessionaires or other types of sellers
16 at the Illinois State Fair, DuQuoin State Fair, county fairs,
17 local fairs, art shows, flea markets and similar exhibitions
18 or events, including any transient merchant as defined by
19 Section 2 of the Transient Merchant Act of 1987, is required
20 to file a report with the Department providing the name of
21 the merchant's business, the name of the person or persons
22 engaged in merchant's business, the permanent address and
23 Illinois Retailers Occupation Tax Registration Number of the
24 merchant, the dates and location of the event and other
25 reasonable information that the Department may require. The
26 report must be filed not later than the 20th day of the month
27 next following the month during which the event with retail
28 sales was held. Any person who fails to file a report
29 required by this Section commits a business offense and is
30 subject to a fine not to exceed $250.
31 Any person engaged in the business of selling tangible
32 personal property at retail as a concessionaire or other type
33 of seller at the Illinois State Fair, county fairs, art
34 shows, flea markets and similar exhibitions or events, or any
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1 transient merchants, as defined by Section 2 of the Transient
2 Merchant Act of 1987, may be required to make a daily report
3 of the amount of such sales to the Department and to make a
4 daily payment of the full amount of tax due. The Department
5 shall impose this requirement when it finds that there is a
6 significant risk of loss of revenue to the State at such an
7 exhibition or event. Such a finding shall be based on
8 evidence that a substantial number of concessionaires or
9 other sellers who are not residents of Illinois will be
10 engaging in the business of selling tangible personal
11 property at retail at the exhibition or event, or other
12 evidence of a significant risk of loss of revenue to the
13 State. The Department shall notify concessionaires and other
14 sellers affected by the imposition of this requirement. In
15 the absence of notification by the Department, the
16 concessionaires and other sellers shall file their returns as
17 otherwise required in this Section.
18 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
19 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
20 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
21 (35 ILCS 120/3.5 new)
22 Sec. 3.5. Refund; leaseback transaction. A purchaser of
23 qualified technological equipment, as defined in Section 5 of
24 the Qualified Technological Equipment Leasing Occupation and
25 Use Tax Act, may obtain a refund of all tax paid to a seller
26 under this Act or any other tax administered by the
27 Department if the purchaser sells the property to a rentor
28 under a bona fide sale and leaseback transaction (to such
29 purchaser) within 90 days of the first functional use of the
30 property. The purchaser shall request the refund from the
31 seller to whom he or she has paid the tax in the same manner
32 and subject to the same requirements as other refunds
33 provided in Section 3 of this Act. For purposes of this
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1 Section, the first functional use of property shall be the
2 use for which the property is intended, which shall, in the
3 absence of other evidence, be presumed to be the date of
4 delivery of the property.
5 Section 999. Effective date. This Act takes effect
6 January 1, 2001.
-85- LRB9111995SMdv
1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 115/1 from Ch. 85, par. 611
4 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
5 35 ILCS 105/9 from Ch. 120, par. 439.9
6 35 ILCS 105/9.5 new
7 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
8 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
9 35 ILCS 120/1c-5 new
10 35 ILCS 120/2-5 from Ch. 120, par. 441-5
11 35 ILCS 120/3 from Ch. 120, par. 442
12 35 ILCS 120/3.5 new