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91_SB1310enr SB1310 Enrolled LRB9110257SMdv 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 3. The State Finance Act is amended by changing 5 Sections 6z-18 and 6z-20 as follows: 6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 7 Sec. 6z-18. A portion of the money paid into the Local 8 Government Tax Fund from sales of food for human consumption 9 which is to be consumed off the premises where it is sold 10 (other than alcoholic beverages, soft drinks and food which 11 has been prepared for immediate consumption) and prescription 12 and nonprescription medicines, drugs, medical appliances and 13 insulin, urine testing materials, syringes and needles used 14 by diabetics, which occurred in municipalities, shall be 15 distributed to each municipality based upon the sales which 16 occurred in that municipality. The remainder shall be 17 distributed to each county based upon the sales which 18 occurred in the unincorporated area of that county. 19 A portion of the money paid into the Local Government Tax 20 Fund from the 6.25% general use tax rate on the selling price 21 of tangible personal property which is purchased outside 22 Illinois at retail from a retailer and which is titled or 23 registered by any agency of this State's government shall be 24 distributed to municipalities as provided in this paragraph. 25 Each municipality shall receive the amount attributable to 26 sales for which Illinois addresses for titling or 27 registration purposes are given as being in such 28 municipality. The remainder of the money paid into the Local 29 Government Tax Fund from such sales shall be distributed to 30 counties. Each county shall receive the amount attributable 31 to sales for which Illinois addresses for titling or SB1310 Enrolled -2- LRB9110257SMdv 1 registration purposes are given as being located in the 2 unincorporated area of such county. 3 A portion of the money paid into the Local Government Tax 4 Fund from the 6.25% general rate (and, beginning July 1, 2000 5 and through December 31, 2000, the 1.25% rate on motor fuel 6 and gasohol) on sales subject to taxation under the 7 Retailers' Occupation Tax Act and the Service Occupation Tax 8 Act, which occurred in municipalities, shall be distributed 9 to each municipality, based upon the sales which occurred in 10 that municipality. The remainder shall be distributed to each 11 county, based upon the sales which occurred in the 12 unincorporated area of such county. 13 For the purpose of determining allocation to the local 14 government unit, a retail sale by a producer of coal or other 15 mineral mined in Illinois is a sale at retail at the place 16 where the coal or other mineral mined in Illinois is 17 extracted from the earth. This paragraph does not apply to 18 coal or other mineral when it is delivered or shipped by the 19 seller to the purchaser at a point outside Illinois so that 20 the sale is exempt under the United States Constitution as a 21 sale in interstate or foreign commerce. 22 Whenever the Department determines that a refund of money 23 paid into the Local Government Tax Fund should be made to a 24 claimant instead of issuing a credit memorandum, the 25 Department shall notify the State Comptroller, who shall 26 cause the order to be drawn for the amount specified, and to 27 the person named, in such notification from the Department. 28 Such refund shall be paid by the State Treasurer out of the 29 Local Government Tax Fund. 30 On or before the 25th day of each calendar month, the 31 Department shall prepare and certify to the Comptroller the 32 disbursement of stated sums of money to named municipalities 33 and counties, the municipalities and counties to be those 34 entitled to distribution of taxes or penalties paid to the SB1310 Enrolled -3- LRB9110257SMdv 1 Department during the second preceding calendar month. The 2 amount to be paid to each municipality or county shall be the 3 amount (not including credit memoranda) collected during the 4 second preceding calendar month by the Department and paid 5 into the Local Government Tax Fund, plus an amount the 6 Department determines is necessary to offset any amounts 7 which were erroneously paid to a different taxing body, and 8 not including an amount equal to the amount of refunds made 9 during the second preceding calendar month by the Department, 10 and not including any amount which the Department determines 11 is necessary to offset any amounts which are payable to a 12 different taxing body but were erroneously paid to the 13 municipality or county. Within 10 days after receipt, by the 14 Comptroller, of the disbursement certification to the 15 municipalities and counties, provided for in this Section to 16 be given to the Comptroller by the Department, the 17 Comptroller shall cause the orders to be drawn for the 18 respective amounts in accordance with the directions 19 contained in such certification. 20 When certifying the amount of monthly disbursement to a 21 municipality or county under this Section, the Department 22 shall increase or decrease that amount by an amount necessary 23 to offset any misallocation of previous disbursements. The 24 offset amount shall be the amount erroneously disbursed 25 within the 6 months preceding the time a misallocation is 26 discovered. 27 The provisions directing the distributions from the 28 special fund in the State Treasury provided for in this 29 Section shall constitute an irrevocable and continuing 30 appropriation of all amounts as provided herein. The State 31 Treasurer and State Comptroller are hereby authorized to make 32 distributions as provided in this Section. 33 In construing any development, redevelopment, annexation, 34 preannexation or other lawful agreement in effect prior to SB1310 Enrolled -4- LRB9110257SMdv 1 September 1, 1990, which describes or refers to receipts from 2 a county or municipal retailers' occupation tax, use tax or 3 service occupation tax which now cannot be imposed, such 4 description or reference shall be deemed to include the 5 replacement revenue for such abolished taxes, distributed 6 from the Local Government Tax Fund. 7 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99.) 8 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 9 Sec. 6z-20. Of the money received from the 6.25% general 10 rate (and, beginning July 1, 2000 and through December 31, 11 2000, the 1.25% rate on motor fuel and gasohol) on sales 12 subject to taxation under the Retailers' Occupation Tax Act 13 and Service Occupation Tax Act and paid into the County and 14 Mass Transit District Fund, distribution to the Regional 15 Transportation Authority tax fund, created pursuant to 16 Section 4.03 of the Regional Transportation Authority Act, 17 for deposit therein shall be made based upon the retail sales 18 occurring in a county having more than 3,000,000 inhabitants. 19 The remainder shall be distributed to each county having 20 3,000,000 or fewer inhabitants based upon the retail sales 21 occurring in each such county. 22 For the purpose of determining allocation to the local 23 government unit, a retail sale by a producer of coal or other 24 mineral mined in Illinois is a sale at retail at the place 25 where the coal or other mineral mined in Illinois is 26 extracted from the earth. This paragraph does not apply to 27 coal or other mineral when it is delivered or shipped by the 28 seller to the purchaser at a point outside Illinois so that 29 the sale is exempt under the United States Constitution as a 30 sale in interstate or foreign commerce. 31 Of the money received from the 6.25% general use tax rate 32 on tangible personal property which is purchased outside 33 Illinois at retail from a retailer and which is titled or SB1310 Enrolled -5- LRB9110257SMdv 1 registered by any agency of this State's government and paid 2 into the County and Mass Transit District Fund, the amount 3 for which Illinois addresses for titling or registration 4 purposes are given as being in each county having more than 5 3,000,000 inhabitants shall be distributed into the Regional 6 Transportation Authority tax fund, created pursuant to 7 Section 4.03 of the Regional Transportation Authority Act. 8 The remainder of the money paid from such sales shall be 9 distributed to each county based on sales for which Illinois 10 addresses for titling or registration purposes are given as 11 being located in the county. Any money paid into the 12 Regional Transportation Authority Occupation and Use Tax 13 Replacement Fund from the County and Mass Transit District 14 Fund prior to January 14, 1991, which has not been paid to 15 the Authority prior to that date, shall be transferred to the 16 Regional Transportation Authority tax fund. 17 Whenever the Department determines that a refund of money 18 paid into the County and Mass Transit District Fund should be 19 made to a claimant instead of issuing a credit memorandum, 20 the Department shall notify the State Comptroller, who shall 21 cause the order to be drawn for the amount specified, and to 22 the person named, in such notification from the Department. 23 Such refund shall be paid by the State Treasurer out of the 24 County and Mass Transit District Fund. 25 On or before the 25th day of each calendar month, the 26 Department shall prepare and certify to the Comptroller the 27 disbursement of stated sums of money to the Regional 28 Transportation Authority and to named counties, the counties 29 to be those entitled to distribution, as hereinabove 30 provided, of taxes or penalties paid to the Department during 31 the second preceding calendar month. The amount to be paid 32 to the Regional Transportation Authority and each county 33 having 3,000,000 or fewer inhabitants shall be the amount 34 (not including credit memoranda) collected during the second SB1310 Enrolled -6- LRB9110257SMdv 1 preceding calendar month by the Department and paid into the 2 County and Mass Transit District Fund, plus an amount the 3 Department determines is necessary to offset any amounts 4 which were erroneously paid to a different taxing body, and 5 not including an amount equal to the amount of refunds made 6 during the second preceding calendar month by the Department, 7 and not including any amount which the Department determines 8 is necessary to offset any amounts which were payable to a 9 different taxing body but were erroneously paid to the 10 Regional Transportation Authority or county. Within 10 days 11 after receipt, by the Comptroller, of the disbursement 12 certification to the Regional Transportation Authority and 13 counties, provided for in this Section to be given to the 14 Comptroller by the Department, the Comptroller shall cause 15 the orders to be drawn for the respective amounts in 16 accordance with the directions contained in such 17 certification. 18 When certifying the amount of a monthly disbursement to 19 the Regional Transportation Authority or to a county under 20 this Section, the Department shall increase or decrease that 21 amount by an amount necessary to offset any misallocation of 22 previous disbursements. The offset amount shall be the 23 amount erroneously disbursed within the 6 months preceding 24 the time a misallocation is discovered. 25 The provisions directing the distributions from the 26 special fund in the State Treasury provided for in this 27 Section and from the Regional Transportation Authority tax 28 fund created by Section 4.03 of the Regional Transportation 29 Authority Act shall constitute an irrevocable and continuing 30 appropriation of all amounts as provided herein. The State 31 Treasurer and State Comptroller are hereby authorized to make 32 distributions as provided in this Section. 33 In construing any development, redevelopment, annexation, 34 preannexation or other lawful agreement in effect prior to SB1310 Enrolled -7- LRB9110257SMdv 1 September 1, 1990, which describes or refers to receipts from 2 a county or municipal retailers' occupation tax, use tax or 3 service occupation tax which now cannot be imposed, such 4 description or reference shall be deemed to include the 5 replacement revenue for such abolished taxes, distributed 6 from the County and Mass Transit District Fund or Local 7 Government Distributive Fund, as the case may be. 8 (Source: P.A. 90-491, eff. 1-1-98.) 9 Section 5. The Use Tax Act is amended by changing 10 Sections 3-10 and 9 as follows: 11 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 12 Sec. 3-10. Rate of tax. Unless otherwise provided in 13 this Section, the tax imposed by this Act is at the rate of 14 6.25% of either the selling price or the fair market value, 15 if any, of the tangible personal property. In all cases 16 where property functionally used or consumed is the same as 17 the property that was purchased at retail, then the tax is 18 imposed on the selling price of the property. In all cases 19 where property functionally used or consumed is a by-product 20 or waste product that has been refined, manufactured, or 21 produced from property purchased at retail, then the tax is 22 imposed on the lower of the fair market value, if any, of the 23 specific property so used in this State or on the selling 24 price of the property purchased at retail. For purposes of 25 this Section "fair market value" means the price at which 26 property would change hands between a willing buyer and a 27 willing seller, neither being under any compulsion to buy or 28 sell and both having reasonable knowledge of the relevant 29 facts. The fair market value shall be established by Illinois 30 sales by the taxpayer of the same property as that 31 functionally used or consumed, or if there are no such sales 32 by the taxpayer, then comparable sales or purchases of SB1310 Enrolled -8- LRB9110257SMdv 1 property of like kind and character in Illinois. 2 Beginning on July 1, 2000 and through December 31, 2000, 3 with respect to motor fuel, as defined in Section 1.1 of the 4 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 5 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 6 With respect to gasohol, the tax imposed by this Act 7 applies to 70% of the proceeds of sales made on or after 8 January 1, 1990, and before July 1, 2003, and to 100% of the 9 proceeds of sales made thereafter. 10 With respect to food for human consumption that is to be 11 consumed off the premises where it is sold (other than 12 alcoholic beverages, soft drinks, and food that has been 13 prepared for immediate consumption) and prescription and 14 nonprescription medicines, drugs, medical appliances, 15 modifications to a motor vehicle for the purpose of rendering 16 it usable by a disabled person, and insulin, urine testing 17 materials, syringes, and needles used by diabetics, for human 18 use, the tax is imposed at the rate of 1%. For the purposes 19 of this Section, the term "soft drinks" means any complete, 20 finished, ready-to-use, non-alcoholic drink, whether 21 carbonated or not, including but not limited to soda water, 22 cola, fruit juice, vegetable juice, carbonated water, and all 23 other preparations commonly known as soft drinks of whatever 24 kind or description that are contained in any closed or 25 sealed bottle, can, carton, or container, regardless of size. 26 "Soft drinks" does not include coffee, tea, non-carbonated 27 water, infant formula, milk or milk products as defined in 28 the Grade A Pasteurized Milk and Milk Products Act, or drinks 29 containing 50% or more natural fruit or vegetable juice. 30 Notwithstanding any other provisions of this Act, "food 31 for human consumption that is to be consumed off the premises 32 where it is sold" includes all food sold through a vending 33 machine, except soft drinks and food products that are 34 dispensed hot from a vending machine, regardless of the SB1310 Enrolled -9- LRB9110257SMdv 1 location of the vending machine. 2 If the property that is purchased at retail from a 3 retailer is acquired outside Illinois and used outside 4 Illinois before being brought to Illinois for use here and is 5 taxable under this Act, the "selling price" on which the tax 6 is computed shall be reduced by an amount that represents a 7 reasonable allowance for depreciation for the period of prior 8 out-of-state use. 9 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 10 91-51, eff. 6-30-99.) 11 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 12 Sec. 9. Except as to motor vehicles, watercraft, 13 aircraft, and trailers that are required to be registered 14 with an agency of this State, each retailer required or 15 authorized to collect the tax imposed by this Act shall pay 16 to the Department the amount of such tax (except as otherwise 17 provided) at the time when he is required to file his return 18 for the period during which such tax was collected, less a 19 discount of 2.1% prior to January 1, 1990, and 1.75% on and 20 after January 1, 1990, or $5 per calendar year, whichever is 21 greater, which is allowed to reimburse the retailer for 22 expenses incurred in collecting the tax, keeping records, 23 preparing and filing returns, remitting the tax and supplying 24 data to the Department on request. In the case of retailers 25 who report and pay the tax on a transaction by transaction 26 basis, as provided in this Section, such discount shall be 27 taken with each such tax remittance instead of when such 28 retailer files his periodic return. A retailer need not 29 remit that part of any tax collected by him to the extent 30 that he is required to remit and does remit the tax imposed 31 by the Retailers' Occupation Tax Act, with respect to the 32 sale of the same property. 33 Where such tangible personal property is sold under a SB1310 Enrolled -10- LRB9110257SMdv 1 conditional sales contract, or under any other form of sale 2 wherein the payment of the principal sum, or a part thereof, 3 is extended beyond the close of the period for which the 4 return is filed, the retailer, in collecting the tax (except 5 as to motor vehicles, watercraft, aircraft, and trailers that 6 are required to be registered with an agency of this State), 7 may collect for each tax return period, only the tax 8 applicable to that part of the selling price actually 9 received during such tax return period. 10 Except as provided in this Section, on or before the 11 twentieth day of each calendar month, such retailer shall 12 file a return for the preceding calendar month. Such return 13 shall be filed on forms prescribed by the Department and 14 shall furnish such information as the Department may 15 reasonably require. 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; SB1310 Enrolled -11- LRB9110257SMdv 1 5. The amount of tax due; 2 5-5. The signature of the taxpayer; and 3 6. Such other reasonable information as the 4 Department may require. 5 If a taxpayer fails to sign a return within 30 days after 6 the proper notice and demand for signature by the Department, 7 the return shall be considered valid and any amount shown to 8 be due on the return shall be deemed assessed. 9 Beginning October 1, 1993, a taxpayer who has an average 10 monthly tax liability of $150,000 or more shall make all 11 payments required by rules of the Department by electronic 12 funds transfer. Beginning October 1, 1994, a taxpayer who has 13 an average monthly tax liability of $100,000 or more shall 14 make all payments required by rules of the Department by 15 electronic funds transfer. Beginning October 1, 1995, a 16 taxpayer who has an average monthly tax liability of $50,000 17 or more shall make all payments required by rules of the 18 Department by electronic funds transfer. Beginning October 1, 19 2000, a taxpayer who has an annual tax liability of $200,000 20 or more shall make all payments required by rules of the 21 Department by electronic funds transfer. The term "annual 22 tax liability" shall be the sum of the taxpayer's liabilities 23 under this Act, and under all other State and local 24 occupation and use tax laws administered by the Department, 25 for the immediately preceding calendar year. The term 26 "average monthly tax liability" means the sum of the 27 taxpayer's liabilities under this Act, and under all other 28 State and local occupation and use tax laws administered by 29 the Department, for the immediately preceding calendar year 30 divided by 12. 31 Before August 1 of each year beginning in 1993, the 32 Department shall notify all taxpayers required to make 33 payments by electronic funds transfer. All taxpayers required 34 to make payments by electronic funds transfer shall make SB1310 Enrolled -12- LRB9110257SMdv 1 those payments for a minimum of one year beginning on October 2 1. 3 Any taxpayer not required to make payments by electronic 4 funds transfer may make payments by electronic funds transfer 5 with the permission of the Department. 6 All taxpayers required to make payment by electronic 7 funds transfer and any taxpayers authorized to voluntarily 8 make payments by electronic funds transfer shall make those 9 payments in the manner authorized by the Department. 10 The Department shall adopt such rules as are necessary to 11 effectuate a program of electronic funds transfer and the 12 requirements of this Section. 13 Before October 1, 2000, if the taxpayer's average monthly 14 tax liability to the Department under this Act, the 15 Retailers' Occupation Tax Act, the Service Occupation Tax 16 Act, the Service Use Tax Act was $10,000 or more during the 17 preceding 4 complete calendar quarters, he shall file a 18 return with the Department each month by the 20th day of the 19 month next following the month during which such tax 20 liability is incurred and shall make payments to the 21 Department on or before the 7th, 15th, 22nd and last day of 22 the month during which such liability is incurred. On and 23 after October 1, 2000, if the taxpayer's average monthly tax 24 liability to the Department under this Act, the Retailers' 25 Occupation Tax Act, the Service Occupation Tax Act, and the 26 Service Use Tax Act was $20,000 or more during the preceding 27 4 complete calendar quarters, he shall file a return with the 28 Department each month by the 20th day of the month next 29 following the month during which such tax liability is 30 incurred and shall make payment to the Department on or 31 before the 7th, 15th, 22nd and last day oforthe month 32 during which such liability is incurred. If the month during 33 which such tax liability is incurred began prior to January 34 1, 1985, each payment shall be in an amount equal to 1/4 of SB1310 Enrolled -13- LRB9110257SMdv 1 the taxpayer's actual liability for the month or an amount 2 set by the Department not to exceed 1/4 of the average 3 monthly liability of the taxpayer to the Department for the 4 preceding 4 complete calendar quarters (excluding the month 5 of highest liability and the month of lowest liability in 6 such 4 quarter period). If the month during which such tax 7 liability is incurred begins on or after January 1, 1985, and 8 prior to January 1, 1987, each payment shall be in an amount 9 equal to 22.5% of the taxpayer's actual liability for the 10 month or 27.5% of the taxpayer's liability for the same 11 calendar month of the preceding year. If the month during 12 which such tax liability is incurred begins on or after 13 January 1, 1987, and prior to January 1, 1988, each payment 14 shall be in an amount equal to 22.5% of the taxpayer's actual 15 liability for the month or 26.25% of the taxpayer's liability 16 for the same calendar month of the preceding year. If the 17 month during which such tax liability is incurred begins on 18 or after January 1, 1988, and prior to January 1, 1989, or 19 begins on or after January 1, 1996, each payment shall be in 20 an amount equal to 22.5% of the taxpayer's actual liability 21 for the month or 25% of the taxpayer's liability for the same 22 calendar month of the preceding year. If the month during 23 which such tax liability is incurred begins on or after 24 January 1, 1989, and prior to January 1, 1996, each payment 25 shall be in an amount equal to 22.5% of the taxpayer's actual 26 liability for the month or 25% of the taxpayer's liability 27 for the same calendar month of the preceding year or 100% of 28 the taxpayer's actual liability for the quarter monthly 29 reporting period. The amount of such quarter monthly 30 payments shall be credited against the final tax liability of 31 the taxpayer's return for that month. Before October 1, 32 2000, once applicable, the requirement of the making of 33 quarter monthly payments to the Department shall continue 34 until such taxpayer's average monthly liability to the SB1310 Enrolled -14- LRB9110257SMdv 1 Department during the preceding 4 complete calendar quarters 2 (excluding the month of highest liability and the month of 3 lowest liability) is less than $9,000, or until such 4 taxpayer's average monthly liability to the Department as 5 computed for each calendar quarter of the 4 preceding 6 complete calendar quarter period is less than $10,000. 7 However, if a taxpayer can show the Department that a 8 substantial change in the taxpayer's business has occurred 9 which causes the taxpayer to anticipate that his average 10 monthly tax liability for the reasonably foreseeable future 11 will fall below the $10,000 threshold stated above, then such 12 taxpayer may petition the Department for change in such 13 taxpayer's reporting status. On and after October 1, 2000, 14 once applicable, the requirement of the making of quarter 15 monthly payments to the Department shall continue until such 16 taxpayer's average monthly liability to the Department during 17 the preceding 4 complete calendar quarters (excluding the 18 month of highest liability and the month of lowest liability) 19 is less than $19,000 or until such taxpayer's average monthly 20 liability to the Department as computed for each calendar 21 quarter of the 4 preceding complete calendar quarter period 22 is less than $20,000. However, if a taxpayer can show the 23 Department that a substantial change in the taxpayer's 24 business has occurred which causes the taxpayer to anticipate 25 that his average monthly tax liability for the reasonably 26 foreseeable future will fall below the $20,000 threshold 27 stated above, then such taxpayer may petition the Department 28 for a change in such taxpayer's reporting status. The 29 Department shall change such taxpayer's reporting status 30 unless it finds that such change is seasonal in nature and 31 not likely to be long term. If any such quarter monthly 32 payment is not paid at the time or in the amount required by 33 this Section, then the taxpayer shall be liable for penalties 34 and interest on the difference between the minimum amount due SB1310 Enrolled -15- LRB9110257SMdv 1 and the amount of such quarter monthly payment actually and 2 timely paid, except insofar as the taxpayer has previously 3 made payments for that month to the Department in excess of 4 the minimum payments previously due as provided in this 5 Section. The Department shall make reasonable rules and 6 regulations to govern the quarter monthly payment amount and 7 quarter monthly payment dates for taxpayers who file on other 8 than a calendar monthly basis. 9 If any such payment provided for in this Section exceeds 10 the taxpayer's liabilities under this Act, the Retailers' 11 Occupation Tax Act, the Service Occupation Tax Act and the 12 Service Use Tax Act, as shown by an original monthly return, 13 the Department shall issue to the taxpayer a credit 14 memorandum no later than 30 days after the date of payment, 15 which memorandum may be submitted by the taxpayer to the 16 Department in payment of tax liability subsequently to be 17 remitted by the taxpayer to the Department or be assigned by 18 the taxpayer to a similar taxpayer under this Act, the 19 Retailers' Occupation Tax Act, the Service Occupation Tax Act 20 or the Service Use Tax Act, in accordance with reasonable 21 rules and regulations to be prescribed by the Department, 22 except that if such excess payment is shown on an original 23 monthly return and is made after December 31, 1986, no credit 24 memorandum shall be issued, unless requested by the taxpayer. 25 If no such request is made, the taxpayer may credit such 26 excess payment against tax liability subsequently to be 27 remitted by the taxpayer to the Department under this Act, 28 the Retailers' Occupation Tax Act, the Service Occupation Tax 29 Act or the Service Use Tax Act, in accordance with reasonable 30 rules and regulations prescribed by the Department. If the 31 Department subsequently determines that all or any part of 32 the credit taken was not actually due to the taxpayer, the 33 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 34 by 2.1% or 1.75% of the difference between the credit taken SB1310 Enrolled -16- LRB9110257SMdv 1 and that actually due, and the taxpayer shall be liable for 2 penalties and interest on such difference. 3 If the retailer is otherwise required to file a monthly 4 return and if the retailer's average monthly tax liability to 5 the Department does not exceed $200, the Department may 6 authorize his returns to be filed on a quarter annual basis, 7 with the return for January, February, and March of a given 8 year being due by April 20 of such year; with the return for 9 April, May and June of a given year being due by July 20 of 10 such year; with the return for July, August and September of 11 a given year being due by October 20 of such year, and with 12 the return for October, November and December of a given year 13 being due by January 20 of the following year. 14 If the retailer is otherwise required to file a monthly 15 or quarterly return and if the retailer's average monthly tax 16 liability to the Department does not exceed $50, the 17 Department may authorize his returns to be filed on an annual 18 basis, with the return for a given year being due by January 19 20 of the following year. 20 Such quarter annual and annual returns, as to form and 21 substance, shall be subject to the same requirements as 22 monthly returns. 23 Notwithstanding any other provision in this Act 24 concerning the time within which a retailer may file his 25 return, in the case of any retailer who ceases to engage in a 26 kind of business which makes him responsible for filing 27 returns under this Act, such retailer shall file a final 28 return under this Act with the Department not more than one 29 month after discontinuing such business. 30 In addition, with respect to motor vehicles, watercraft, 31 aircraft, and trailers that are required to be registered 32 with an agency of this State, every retailer selling this 33 kind of tangible personal property shall file, with the 34 Department, upon a form to be prescribed and supplied by the SB1310 Enrolled -17- LRB9110257SMdv 1 Department, a separate return for each such item of tangible 2 personal property which the retailer sells, except that 3 where, in the same transaction, a retailer of aircraft, 4 watercraft, motor vehicles or trailers transfers more than 5 one aircraft, watercraft, motor vehicle or trailer to another 6 aircraft, watercraft, motor vehicle or trailer retailer for 7 the purpose of resale, that seller for resale may report the 8 transfer of all the aircraft, watercraft, motor vehicles or 9 trailers involved in that transaction to the Department on 10 the same uniform invoice-transaction reporting return form. 11 For purposes of this Section, "watercraft" means a Class 2, 12 Class 3, or Class 4 watercraft as defined in Section 3-2 of 13 the Boat Registration and Safety Act, a personal watercraft, 14 or any boat equipped with an inboard motor. 15 The transaction reporting return in the case of motor 16 vehicles or trailers that are required to be registered with 17 an agency of this State, shall be the same document as the 18 Uniform Invoice referred to in Section 5-402 of the Illinois 19 Vehicle Code and must show the name and address of the 20 seller; the name and address of the purchaser; the amount of 21 the selling price including the amount allowed by the 22 retailer for traded-in property, if any; the amount allowed 23 by the retailer for the traded-in tangible personal property, 24 if any, to the extent to which Section 2 of this Act allows 25 an exemption for the value of traded-in property; the balance 26 payable after deducting such trade-in allowance from the 27 total selling price; the amount of tax due from the retailer 28 with respect to such transaction; the amount of tax collected 29 from the purchaser by the retailer on such transaction (or 30 satisfactory evidence that such tax is not due in that 31 particular instance, if that is claimed to be the fact); the 32 place and date of the sale; a sufficient identification of 33 the property sold; such other information as is required in 34 Section 5-402 of the Illinois Vehicle Code, and such other SB1310 Enrolled -18- LRB9110257SMdv 1 information as the Department may reasonably require. 2 The transaction reporting return in the case of 3 watercraft and aircraft must show the name and address of the 4 seller; the name and address of the purchaser; the amount of 5 the selling price including the amount allowed by the 6 retailer for traded-in property, if any; the amount allowed 7 by the retailer for the traded-in tangible personal property, 8 if any, to the extent to which Section 2 of this Act allows 9 an exemption for the value of traded-in property; the balance 10 payable after deducting such trade-in allowance from the 11 total selling price; the amount of tax due from the retailer 12 with respect to such transaction; the amount of tax collected 13 from the purchaser by the retailer on such transaction (or 14 satisfactory evidence that such tax is not due in that 15 particular instance, if that is claimed to be the fact); the 16 place and date of the sale, a sufficient identification of 17 the property sold, and such other information as the 18 Department may reasonably require. 19 Such transaction reporting return shall be filed not 20 later than 20 days after the date of delivery of the item 21 that is being sold, but may be filed by the retailer at any 22 time sooner than that if he chooses to do so. The 23 transaction reporting return and tax remittance or proof of 24 exemption from the tax that is imposed by this Act may be 25 transmitted to the Department by way of the State agency with 26 which, or State officer with whom, the tangible personal 27 property must be titled or registered (if titling or 28 registration is required) if the Department and such agency 29 or State officer determine that this procedure will expedite 30 the processing of applications for title or registration. 31 With each such transaction reporting return, the retailer 32 shall remit the proper amount of tax due (or shall submit 33 satisfactory evidence that the sale is not taxable if that is 34 the case), to the Department or its agents, whereupon the SB1310 Enrolled -19- LRB9110257SMdv 1 Department shall issue, in the purchaser's name, a tax 2 receipt (or a certificate of exemption if the Department is 3 satisfied that the particular sale is tax exempt) which such 4 purchaser may submit to the agency with which, or State 5 officer with whom, he must title or register the tangible 6 personal property that is involved (if titling or 7 registration is required) in support of such purchaser's 8 application for an Illinois certificate or other evidence of 9 title or registration to such tangible personal property. 10 No retailer's failure or refusal to remit tax under this 11 Act precludes a user, who has paid the proper tax to the 12 retailer, from obtaining his certificate of title or other 13 evidence of title or registration (if titling or registration 14 is required) upon satisfying the Department that such user 15 has paid the proper tax (if tax is due) to the retailer. The 16 Department shall adopt appropriate rules to carry out the 17 mandate of this paragraph. 18 If the user who would otherwise pay tax to the retailer 19 wants the transaction reporting return filed and the payment 20 of tax or proof of exemption made to the Department before 21 the retailer is willing to take these actions and such user 22 has not paid the tax to the retailer, such user may certify 23 to the fact of such delay by the retailer, and may (upon the 24 Department being satisfied of the truth of such 25 certification) transmit the information required by the 26 transaction reporting return and the remittance for tax or 27 proof of exemption directly to the Department and obtain his 28 tax receipt or exemption determination, in which event the 29 transaction reporting return and tax remittance (if a tax 30 payment was required) shall be credited by the Department to 31 the proper retailer's account with the Department, but 32 without the 2.1% or 1.75% discount provided for in this 33 Section being allowed. When the user pays the tax directly 34 to the Department, he shall pay the tax in the same amount SB1310 Enrolled -20- LRB9110257SMdv 1 and in the same form in which it would be remitted if the tax 2 had been remitted to the Department by the retailer. 3 Where a retailer collects the tax with respect to the 4 selling price of tangible personal property which he sells 5 and the purchaser thereafter returns such tangible personal 6 property and the retailer refunds the selling price thereof 7 to the purchaser, such retailer shall also refund, to the 8 purchaser, the tax so collected from the purchaser. When 9 filing his return for the period in which he refunds such tax 10 to the purchaser, the retailer may deduct the amount of the 11 tax so refunded by him to the purchaser from any other use 12 tax which such retailer may be required to pay or remit to 13 the Department, as shown by such return, if the amount of the 14 tax to be deducted was previously remitted to the Department 15 by such retailer. If the retailer has not previously 16 remitted the amount of such tax to the Department, he is 17 entitled to no deduction under this Act upon refunding such 18 tax to the purchaser. 19 Any retailer filing a return under this Section shall 20 also include (for the purpose of paying tax thereon) the 21 total tax covered by such return upon the selling price of 22 tangible personal property purchased by him at retail from a 23 retailer, but as to which the tax imposed by this Act was not 24 collected from the retailer filing such return, and such 25 retailer shall remit the amount of such tax to the Department 26 when filing such return. 27 If experience indicates such action to be practicable, 28 the Department may prescribe and furnish a combination or 29 joint return which will enable retailers, who are required to 30 file returns hereunder and also under the Retailers' 31 Occupation Tax Act, to furnish all the return information 32 required by both Acts on the one form. 33 Where the retailer has more than one business registered 34 with the Department under separate registration under this SB1310 Enrolled -21- LRB9110257SMdv 1 Act, such retailer may not file each return that is due as a 2 single return covering all such registered businesses, but 3 shall file separate returns for each such registered 4 business. 5 Beginning January 1, 1990, each month the Department 6 shall pay into the State and Local Sales Tax Reform Fund, a 7 special fund in the State Treasury which is hereby created, 8 the net revenue realized for the preceding month from the 1% 9 tax on sales of food for human consumption which is to be 10 consumed off the premises where it is sold (other than 11 alcoholic beverages, soft drinks and food which has been 12 prepared for immediate consumption) and prescription and 13 nonprescription medicines, drugs, medical appliances and 14 insulin, urine testing materials, syringes and needles used 15 by diabetics. 16 Beginning January 1, 1990, each month the Department 17 shall pay into the County and Mass Transit District Fund 4% 18 of the net revenue realized for the preceding month from the 19 6.25% general rate on the selling price of tangible personal 20 property which is purchased outside Illinois at retail from a 21 retailer and which is titled or registered by an agency of 22 this State's government. 23 Beginning January 1, 1990, each month the Department 24 shall pay into the State and Local Sales Tax Reform Fund, a 25 special fund in the State Treasury, 20% of the net revenue 26 realized for the preceding month from the 6.25% general rate 27 on the selling price of tangible personal property, other 28 than tangible personal property which is purchased outside 29 Illinois at retail from a retailer and which is titled or 30 registered by an agency of this State's government. 31 Beginning August 1, 2000, each month the Department shall 32 pay into the State and Local Sales Tax Reform Fund 100% of 33 the net revenue realized for the preceding month from the 34 1.25% rate on the selling price of motor fuel and gasohol. SB1310 Enrolled -22- LRB9110257SMdv 1 Beginning January 1, 1990, each month the Department 2 shall pay into the Local Government Tax Fund 16% of the net 3 revenue realized for the preceding month from the 6.25% 4 general rate on the selling price of tangible personal 5 property which is purchased outside Illinois at retail from a 6 retailer and which is titled or registered by an agency of 7 this State's government. 8 Of the remainder of the moneys received by the Department 9 pursuant to this Act, (a) 1.75% thereof shall be paid into 10 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 11 and on and after July 1, 1989, 3.8% thereof shall be paid 12 into the Build Illinois Fund; provided, however, that if in 13 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 14 as the case may be, of the moneys received by the Department 15 and required to be paid into the Build Illinois Fund pursuant 16 to Section 3 of the Retailers' Occupation Tax Act, Section 9 17 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 18 Section 9 of the Service Occupation Tax Act, such Acts being 19 hereinafter called the "Tax Acts" and such aggregate of 2.2% 20 or 3.8%, as the case may be, of moneys being hereinafter 21 called the "Tax Act Amount", and (2) the amount transferred 22 to the Build Illinois Fund from the State and Local Sales Tax 23 Reform Fund shall be less than the Annual Specified Amount 24 (as defined in Section 3 of the Retailers' Occupation Tax 25 Act), an amount equal to the difference shall be immediately 26 paid into the Build Illinois Fund from other moneys received 27 by the Department pursuant to the Tax Acts; and further 28 provided, that if on the last business day of any month the 29 sum of (1) the Tax Act Amount required to be deposited into 30 the Build Illinois Bond Account in the Build Illinois Fund 31 during such month and (2) the amount transferred during such 32 month to the Build Illinois Fund from the State and Local 33 Sales Tax Reform Fund shall have been less than 1/12 of the 34 Annual Specified Amount, an amount equal to the difference SB1310 Enrolled -23- LRB9110257SMdv 1 shall be immediately paid into the Build Illinois Fund from 2 other moneys received by the Department pursuant to the Tax 3 Acts; and, further provided, that in no event shall the 4 payments required under the preceding proviso result in 5 aggregate payments into the Build Illinois Fund pursuant to 6 this clause (b) for any fiscal year in excess of the greater 7 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 8 for such fiscal year; and, further provided, that the amounts 9 payable into the Build Illinois Fund under this clause (b) 10 shall be payable only until such time as the aggregate amount 11 on deposit under each trust indenture securing Bonds issued 12 and outstanding pursuant to the Build Illinois Bond Act is 13 sufficient, taking into account any future investment income, 14 to fully provide, in accordance with such indenture, for the 15 defeasance of or the payment of the principal of, premium, if 16 any, and interest on the Bonds secured by such indenture and 17 on any Bonds expected to be issued thereafter and all fees 18 and costs payable with respect thereto, all as certified by 19 the Director of the Bureau of the Budget. If on the last 20 business day of any month in which Bonds are outstanding 21 pursuant to the Build Illinois Bond Act, the aggregate of the 22 moneys deposited in the Build Illinois Bond Account in the 23 Build Illinois Fund in such month shall be less than the 24 amount required to be transferred in such month from the 25 Build Illinois Bond Account to the Build Illinois Bond 26 Retirement and Interest Fund pursuant to Section 13 of the 27 Build Illinois Bond Act, an amount equal to such deficiency 28 shall be immediately paid from other moneys received by the 29 Department pursuant to the Tax Acts to the Build Illinois 30 Fund; provided, however, that any amounts paid to the Build 31 Illinois Fund in any fiscal year pursuant to this sentence 32 shall be deemed to constitute payments pursuant to clause (b) 33 of the preceding sentence and shall reduce the amount 34 otherwise payable for such fiscal year pursuant to clause (b) SB1310 Enrolled -24- LRB9110257SMdv 1 of the preceding sentence. The moneys received by the 2 Department pursuant to this Act and required to be deposited 3 into the Build Illinois Fund are subject to the pledge, claim 4 and charge set forth in Section 12 of the Build Illinois Bond 5 Act. 6 Subject to payment of amounts into the Build Illinois 7 Fund as provided in the preceding paragraph or in any 8 amendment thereto hereafter enacted, the following specified 9 monthly installment of the amount requested in the 10 certificate of the Chairman of the Metropolitan Pier and 11 Exposition Authority provided under Section 8.25f of the 12 State Finance Act, but not in excess of the sums designated 13 as "Total Deposit", shall be deposited in the aggregate from 14 collections under Section 9 of the Use Tax Act, Section 9 of 15 the Service Use Tax Act, Section 9 of the Service Occupation 16 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 17 into the McCormick Place Expansion Project Fund in the 18 specified fiscal years. 19 Fiscal Year Total Deposit 20 1993 $0 21 1994 53,000,000 22 1995 58,000,000 23 1996 61,000,000 24 1997 64,000,000 25 1998 68,000,000 26 1999 71,000,000 27 2000 75,000,000 28 2001 80,000,000 29 2002 84,000,000 30 2003 89,000,000 31 2004 93,000,000 32 2005 97,000,000 33 2006 102,000,000 34 2007 108,000,000 SB1310 Enrolled -25- LRB9110257SMdv 1 2008 115,000,000 2 2009 120,000,000 3 2010 126,000,000 4 2011 132,000,000 5 2012 138,000,000 6 2013 and 145,000,000 7 each fiscal year 8 thereafter that bonds 9 are outstanding under 10 Section 13.2 of the 11 Metropolitan Pier and 12 Exposition Authority 13 Act, but not after fiscal year 2029. 14 Beginning July 20, 1993 and in each month of each fiscal 15 year thereafter, one-eighth of the amount requested in the 16 certificate of the Chairman of the Metropolitan Pier and 17 Exposition Authority for that fiscal year, less the amount 18 deposited into the McCormick Place Expansion Project Fund by 19 the State Treasurer in the respective month under subsection 20 (g) of Section 13 of the Metropolitan Pier and Exposition 21 Authority Act, plus cumulative deficiencies in the deposits 22 required under this Section for previous months and years, 23 shall be deposited into the McCormick Place Expansion Project 24 Fund, until the full amount requested for the fiscal year, 25 but not in excess of the amount specified above as "Total 26 Deposit", has been deposited. 27 Subject to payment of amounts into the Build Illinois 28 Fund and the McCormick Place Expansion Project Fund pursuant 29 to the preceding paragraphs or in any amendment thereto 30 hereafter enacted, each month the Department shall pay into 31 the Local Government Distributive Fund .4% of the net revenue 32 realized for the preceding month from the 5% general rate, or 33 .4% of 80% of the net revenue realized for the preceding 34 month from the 6.25% general rate, as the case may be, on the SB1310 Enrolled -26- LRB9110257SMdv 1 selling price of tangible personal property which amount 2 shall, subject to appropriation, be distributed as provided 3 in Section 2 of the State Revenue Sharing Act. No payments or 4 distributions pursuant to this paragraph shall be made if the 5 tax imposed by this Act on photoprocessing products is 6 declared unconstitutional, or if the proceeds from such tax 7 are unavailable for distribution because of litigation. 8 Subject to payment of amounts into the Build Illinois 9 Fund, the McCormick Place Expansion Project Fund, and the 10 Local Government Distributive Fund pursuant to the preceding 11 paragraphs or in any amendments thereto hereafter enacted, 12 beginning July 1, 1993, the Department shall each month pay 13 into the Illinois Tax Increment Fund 0.27% of 80% 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, 75% thereof shall be paid into the 19 State Treasury and 25% shall be reserved in a special account 20 and used only for the transfer to the Common School Fund as 21 part of the monthly transfer from the General Revenue Fund in 22 accordance with Section 8a of the State Finance Act. 23 As soon as possible after the first day of each month, 24 upon certification of the Department of Revenue, the 25 Comptroller shall order transferred and the Treasurer shall 26 transfer from the General Revenue Fund to the Motor Fuel Tax 27 Fund an amount equal to 1.7% of 80% of the net revenue 28 realized under this Act for the second preceding month. 29 Beginning April 1, 2000, this transfer is no longer required 30 and shall not be made. 31 Net revenue realized for a month shall be the revenue 32 collected by the State pursuant to this Act, less the amount 33 paid out during that month as refunds to taxpayers for 34 overpayment of liability. SB1310 Enrolled -27- LRB9110257SMdv 1 For greater simplicity of administration, manufacturers, 2 importers and wholesalers whose products are sold at retail 3 in Illinois by numerous retailers, and who wish to do so, may 4 assume the responsibility for accounting and paying to the 5 Department all tax accruing under this Act with respect to 6 such sales, if the retailers who are affected do not make 7 written objection to the Department to this arrangement. 8 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 9 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 10 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.) 11 Section 10. The Service Use Tax Act is amended by 12 changing Sections 3-10 and 9 as follows: 13 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 14 Sec. 3-10. Rate of tax. Unless otherwise provided in 15 this Section, the tax imposed by this Act is at the rate of 16 6.25% of the selling price of tangible personal property 17 transferred as an incident to the sale of service, but, for 18 the purpose of computing this tax, in no event shall the 19 selling price be less than the cost price of the property to 20 the serviceman. 21 Beginning on July 1, 2000 and through December 31, 2000, 22 with respect to motor fuel, as defined in Section 1.1 of the 23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 24 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 25 With respect to gasohol, as defined in the Use Tax Act, 26 the tax imposed by this Act applies to 70% of the selling 27 price of property transferred as an incident to the sale of 28 service on or after January 1, 1990, and before July 1, 2003, 29 and to 100% of the selling price thereafter. 30 At the election of any registered serviceman made for 31 each fiscal year, sales of service in which the aggregate 32 annual cost price of tangible personal property transferred SB1310 Enrolled -28- LRB9110257SMdv 1 as an incident to the sales of service is less than 35%, or 2 75% in the case of servicemen transferring prescription drugs 3 or servicemen engaged in graphic arts production, of the 4 aggregate annual total gross receipts from all sales of 5 service, the tax imposed by this Act shall be based on the 6 serviceman's cost price of the tangible personal property 7 transferred as an incident to the sale of those services. 8 The tax shall be imposed at the rate of 1% on food 9 prepared for immediate consumption and transferred incident 10 to a sale of service subject to this Act or the Service 11 Occupation Tax Act by an entity licensed under the Hospital 12 Licensing Act, the Nursing Home Care Act, or the Child Care 13 Act of 1969. The tax shall also be imposed at the rate of 1% 14 on food for human consumption that is to be consumed off the 15 premises where it is sold (other than alcoholic beverages, 16 soft drinks, and food that has been prepared for immediate 17 consumption and is not otherwise included in this paragraph) 18 and prescription and nonprescription medicines, drugs, 19 medical appliances, modifications to a motor vehicle for the 20 purpose of rendering it usable by a disabled person, and 21 insulin, urine testing materials, syringes, and needles used 22 by diabetics, for human use. For the purposes of this 23 Section, the term "soft drinks" means any complete, finished, 24 ready-to-use, non-alcoholic drink, whether carbonated or not, 25 including but not limited to soda water, cola, fruit juice, 26 vegetable juice, carbonated water, and all other preparations 27 commonly known as soft drinks of whatever kind or description 28 that are contained in any closed or sealed bottle, can, 29 carton, or container, regardless of size. "Soft drinks" does 30 not include coffee, tea, non-carbonated water, infant 31 formula, milk or milk products as defined in the Grade A 32 Pasteurized Milk and Milk Products Act, or drinks containing 33 50% or more natural fruit or vegetable juice. 34 Notwithstanding any other provisions of this Act, "food SB1310 Enrolled -29- LRB9110257SMdv 1 for human consumption that is to be consumed off the premises 2 where it is sold" includes all food sold through a vending 3 machine, except soft drinks and food products that are 4 dispensed hot from a vending machine, regardless of the 5 location of the vending machine. 6 If the property that is acquired from a serviceman is 7 acquired outside Illinois and used outside Illinois before 8 being brought to Illinois for use here and is taxable under 9 this Act, the "selling price" on which the tax is computed 10 shall be reduced by an amount that represents a reasonable 11 allowance for depreciation for the period of prior 12 out-of-state use. 13 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 14 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.) 15 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 16 Sec. 9. Each serviceman required or authorized to 17 collect the tax herein imposed shall pay to the Department 18 the amount of such tax (except as otherwise provided) at the 19 time when he is required to file his return for the period 20 during which such tax was collected, less a discount of 2.1% 21 prior to January 1, 1990 and 1.75% on and after January 1, 22 1990, or $5 per calendar year, whichever is greater, which is 23 allowed to reimburse the serviceman for expenses incurred in 24 collecting the tax, keeping records, preparing and filing 25 returns, remitting the tax and supplying data to the 26 Department on request. A serviceman need not remit that part 27 of any tax collected by him to the extent that he is required 28 to pay and does pay the tax imposed by the Service Occupation 29 Tax Act with respect to his sale of service involving the 30 incidental transfer by him of the same property. 31 Except as provided hereinafter in this Section, on or 32 before the twentieth day of each calendar month, such 33 serviceman shall file a return for the preceding calendar SB1310 Enrolled -30- LRB9110257SMdv 1 month in accordance with reasonable Rules and Regulations to 2 be promulgated by the Department. Such return shall be filed 3 on a form prescribed by the Department and shall contain such 4 information as the Department may reasonably require. 5 The Department may require returns to be filed on a 6 quarterly basis. If so required, a return for each calendar 7 quarter shall be filed on or before the twentieth day of the 8 calendar month following the end of such calendar quarter. 9 The taxpayer shall also file a return with the Department for 10 each of the first two months of each calendar quarter, on or 11 before the twentieth day of the following calendar month, 12 stating: 13 1. The name of the seller; 14 2. The address of the principal place of business 15 from which he engages in business as a serviceman in this 16 State; 17 3. The total amount of taxable receipts received by 18 him during the preceding calendar month, including 19 receipts from charge and time sales, but less all 20 deductions allowed by law; 21 4. The amount of credit provided in Section 2d of 22 this Act; 23 5. The amount of tax due; 24 5-5. The signature of the taxpayer; and 25 6. Such other reasonable information as the 26 Department may require. 27 If a taxpayer fails to sign a return within 30 days after 28 the proper notice and demand for signature by the Department, 29 the return shall be considered valid and any amount shown to 30 be due on the return shall be deemed assessed. 31 Beginning October 1, 1993, a taxpayer who has an average 32 monthly tax liability of $150,000 or more shall make all 33 payments required by rules of the Department by electronic 34 funds transfer. Beginning October 1, 1994, a taxpayer who SB1310 Enrolled -31- LRB9110257SMdv 1 has an average monthly tax liability of $100,000 or more 2 shall make all payments required by rules of the Department 3 by electronic funds transfer. Beginning October 1, 1995, a 4 taxpayer who has an average monthly tax liability of $50,000 5 or more shall make all payments required by rules of the 6 Department by electronic funds transfer. Beginning October 1, 7 2000, a taxpayer who has an annual tax liability of $200,000 8 or more shall make all payments required by rules of the 9 Department by electronic funds transfer. The term "annual 10 tax liability" shall be the sum of the taxpayer's liabilities 11 under this Act, and under all other State and local 12 occupation and use tax laws administered by the Department, 13 for the immediately preceding calendar year. The term 14 "average monthly tax liability" means the sum of the 15 taxpayer's liabilities under this Act, and under all other 16 State and local occupation and use tax laws administered by 17 the Department, for the immediately preceding calendar year 18 divided by 12. 19 Before August 1 of each year beginning in 1993, the 20 Department shall notify all taxpayers required to make 21 payments by electronic funds transfer. All taxpayers required 22 to make payments by electronic funds transfer shall make 23 those payments for a minimum of one year beginning on October 24 1. 25 Any taxpayer not required to make payments by electronic 26 funds transfer may make payments by electronic funds transfer 27 with the permission of the Department. 28 All taxpayers required to make payment by electronic 29 funds transfer and any taxpayers authorized to voluntarily 30 make payments by electronic funds transfer shall make those 31 payments in the manner authorized by the Department. 32 The Department shall adopt such rules as are necessary to 33 effectuate a program of electronic funds transfer and the 34 requirements of this Section. SB1310 Enrolled -32- LRB9110257SMdv 1 If the serviceman is otherwise required to file a monthly 2 return and if the serviceman's average monthly tax liability 3 to the Department does not exceed $200, the Department may 4 authorize his returns to be filed on a quarter annual basis, 5 with the return for January, February and March of a given 6 year being due by April 20 of such year; with the return for 7 April, May and June of a given year being due by July 20 of 8 such year; with the return for July, August and September of 9 a given year being due by October 20 of such year, and with 10 the return for October, November and December of a given year 11 being due by January 20 of the following year. 12 If the serviceman is otherwise required to file a monthly 13 or quarterly return and if the serviceman's average monthly 14 tax liability to the Department does not exceed $50, the 15 Department may authorize his returns to be filed on an annual 16 basis, with the return for a given year being due by January 17 20 of the following year. 18 Such quarter annual and annual returns, as to form and 19 substance, shall be subject to the same requirements as 20 monthly returns. 21 Notwithstanding any other provision in this Act 22 concerning the time within which a serviceman may file his 23 return, in the case of any serviceman who ceases to engage in 24 a kind of business which makes him responsible for filing 25 returns under this Act, such serviceman shall file a final 26 return under this Act with the Department not more than 1 27 month after discontinuing such business. 28 Where a serviceman collects the tax with respect to the 29 selling price of property which he sells and the purchaser 30 thereafter returns such property and the serviceman refunds 31 the selling price thereof to the purchaser, such serviceman 32 shall also refund, to the purchaser, the tax so collected 33 from the purchaser. When filing his return for the period in 34 which he refunds such tax to the purchaser, the serviceman SB1310 Enrolled -33- LRB9110257SMdv 1 may deduct the amount of the tax so refunded by him to the 2 purchaser from any other Service Use Tax, Service Occupation 3 Tax, retailers' occupation tax or use tax which such 4 serviceman may be required to pay or remit to the Department, 5 as shown by such return, provided that the amount of the tax 6 to be deducted shall previously have been remitted to the 7 Department by such serviceman. If the serviceman shall not 8 previously have remitted the amount of such tax to the 9 Department, he shall be entitled to no deduction hereunder 10 upon refunding such tax to the purchaser. 11 Any serviceman filing a return hereunder shall also 12 include the total tax upon the selling price of tangible 13 personal property purchased for use by him as an incident to 14 a sale of service, and such serviceman shall remit the amount 15 of such tax to the Department when filing such return. 16 If experience indicates such action to be practicable, 17 the Department may prescribe and furnish a combination or 18 joint return which will enable servicemen, who are required 19 to file returns hereunder and also under the Service 20 Occupation Tax Act, to furnish all the return information 21 required by both Acts on the one form. 22 Where the serviceman has more than one business 23 registered with the Department under separate registration 24 hereunder, such serviceman shall not file each return that is 25 due as a single return covering all such registered 26 businesses, but shall file separate returns for each such 27 registered business. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the State and Local Tax Reform Fund, a special 30 fund in the State Treasury, the net revenue realized for the 31 preceding month from the 1% tax on sales of food for human 32 consumption which is to be consumed off the premises where it 33 is sold (other than alcoholic beverages, soft drinks and food 34 which has been prepared for immediate consumption) and SB1310 Enrolled -34- LRB9110257SMdv 1 prescription and nonprescription medicines, drugs, medical 2 appliances and insulin, urine testing materials, syringes and 3 needles used by diabetics. 4 Beginning January 1, 1990, each month the Department 5 shall pay into the State and Local Sales Tax Reform Fund 20% 6 of the net revenue realized for the preceding month from the 7 6.25% general rate on transfers of tangible personal 8 property, other than tangible personal property which is 9 purchased outside Illinois at retail from a retailer and 10 which is titled or registered by an agency of this State's 11 government. 12 Beginning August 1, 2000, each month the Department shall 13 pay into the State and Local Sales Tax Reform Fund 100% of 14 the net revenue realized for the preceding month from the 15 1.25% rate on the selling price of motor fuel and gasohol. 16 Of the remainder of the moneys received by the Department 17 pursuant to this Act, (a) 1.75% thereof shall be paid into 18 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 19 and on and after July 1, 1989, 3.8% thereof shall be paid 20 into the Build Illinois Fund; provided, however, that if in 21 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 22 as the case may be, of the moneys received by the Department 23 and required to be paid into the Build Illinois Fund pursuant 24 to Section 3 of the Retailers' Occupation Tax Act, Section 9 25 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 26 Section 9 of the Service Occupation Tax Act, such Acts being 27 hereinafter called the "Tax Acts" and such aggregate of 2.2% 28 or 3.8%, as the case may be, of moneys being hereinafter 29 called the "Tax Act Amount", and (2) the amount transferred 30 to the Build Illinois Fund from the State and Local Sales Tax 31 Reform Fund shall be less than the Annual Specified Amount 32 (as defined in Section 3 of the Retailers' Occupation Tax 33 Act), an amount equal to the difference shall be immediately 34 paid into the Build Illinois Fund from other moneys received SB1310 Enrolled -35- LRB9110257SMdv 1 by the Department pursuant to the Tax Acts; and further 2 provided, that if on the last business day of any month the 3 sum of (1) the Tax Act Amount required to be deposited into 4 the Build Illinois Bond Account in the Build Illinois Fund 5 during such month and (2) the amount transferred during such 6 month to the Build Illinois Fund from the State and Local 7 Sales Tax Reform Fund shall have been less than 1/12 of the 8 Annual Specified Amount, an amount equal to the difference 9 shall be immediately paid into the Build Illinois Fund from 10 other moneys received by the Department pursuant to the Tax 11 Acts; and, further provided, that in no event shall the 12 payments required under the preceding proviso result in 13 aggregate payments into the Build Illinois Fund pursuant to 14 this clause (b) for any fiscal year in excess of the greater 15 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 16 for such fiscal year; and, further provided, that the amounts 17 payable into the Build Illinois Fund under this clause (b) 18 shall be payable only until such time as the aggregate amount 19 on deposit under each trust indenture securing Bonds issued 20 and outstanding pursuant to the Build Illinois Bond Act is 21 sufficient, taking into account any future investment income, 22 to fully provide, in accordance with such indenture, for the 23 defeasance of or the payment of the principal of, premium, if 24 any, and interest on the Bonds secured by such indenture and 25 on any Bonds expected to be issued thereafter and all fees 26 and costs payable with respect thereto, all as certified by 27 the Director of the Bureau of the Budget. If on the last 28 business day of any month in which Bonds are outstanding 29 pursuant to the Build Illinois Bond Act, the aggregate of the 30 moneys deposited in the Build Illinois Bond Account in the 31 Build Illinois Fund in such month shall be less than the 32 amount required to be transferred in such month from the 33 Build Illinois Bond Account to the Build Illinois Bond 34 Retirement and Interest Fund pursuant to Section 13 of the SB1310 Enrolled -36- LRB9110257SMdv 1 Build Illinois Bond Act, an amount equal to such deficiency 2 shall be immediately paid from other moneys received by the 3 Department pursuant to the Tax Acts to the Build Illinois 4 Fund; provided, however, that any amounts paid to the Build 5 Illinois Fund in any fiscal year pursuant to this sentence 6 shall be deemed to constitute payments pursuant to clause (b) 7 of the preceding sentence and shall reduce the amount 8 otherwise payable for such fiscal year pursuant to clause (b) 9 of the preceding sentence. The moneys received by the 10 Department pursuant to this Act and required to be deposited 11 into the Build Illinois Fund are subject to the pledge, claim 12 and charge set forth in Section 12 of the Build Illinois Bond 13 Act. 14 Subject to payment of amounts into the Build Illinois 15 Fund as provided in the preceding paragraph or in any 16 amendment thereto hereafter enacted, the following specified 17 monthly installment of the amount requested in the 18 certificate of the Chairman of the Metropolitan Pier and 19 Exposition Authority provided under Section 8.25f of the 20 State Finance Act, but not in excess of the sums designated 21 as "Total Deposit", shall be deposited in the aggregate from 22 collections under Section 9 of the Use Tax Act, Section 9 of 23 the Service Use Tax Act, Section 9 of the Service Occupation 24 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 25 into the McCormick Place Expansion Project Fund in the 26 specified fiscal years. 27 Fiscal Year Total Deposit 28 1993 $0 29 1994 53,000,000 30 1995 58,000,000 31 1996 61,000,000 32 1997 64,000,000 33 1998 68,000,000 34 1999 71,000,000 SB1310 Enrolled -37- LRB9110257SMdv 1 2000 75,000,000 2 2001 80,000,000 3 2002 84,000,000 4 2003 89,000,000 5 2004 93,000,000 6 2005 97,000,000 7 2006 102,000,000 8 2007 108,000,000 9 2008 115,000,000 10 2009 120,000,000 11 2010 126,000,000 12 2011 132,000,000 13 2012 138,000,000 14 2013 and 145,000,000 15 each fiscal year 16 thereafter that bonds 17 are outstanding under 18 Section 13.2 of the 19 Metropolitan Pier and 20 Exposition Authority Act, 21 but not after fiscal year 2029. 22 Beginning July 20, 1993 and in each month of each fiscal 23 year thereafter, one-eighth of the amount requested in the 24 certificate of the Chairman of the Metropolitan Pier and 25 Exposition Authority for that fiscal year, less the amount 26 deposited into the McCormick Place Expansion Project Fund by 27 the State Treasurer in the respective month under subsection 28 (g) of Section 13 of the Metropolitan Pier and Exposition 29 Authority Act, plus cumulative deficiencies in the deposits 30 required under this Section for previous months and years, 31 shall be deposited into the McCormick Place Expansion Project 32 Fund, until the full amount requested for the fiscal year, 33 but not in excess of the amount specified above as "Total 34 Deposit", has been deposited. SB1310 Enrolled -38- LRB9110257SMdv 1 Subject to payment of amounts into the Build Illinois 2 Fund and the McCormick Place Expansion Project Fund pursuant 3 to the preceding paragraphs or in any amendment thereto 4 hereafter enacted, each month the Department shall pay into 5 the Local Government Distributive Fund 0.4% of the net 6 revenue realized for the preceding month from the 5% general 7 rate or 0.4% of 80% of the net revenue realized for the 8 preceding month from the 6.25% general rate, as the case may 9 be, on the selling price of tangible personal property which 10 amount shall, subject to appropriation, be distributed as 11 provided in Section 2 of the State Revenue Sharing Act. No 12 payments or distributions pursuant to this paragraph shall be 13 made if the tax imposed by this Act on photo processing 14 products is declared unconstitutional, or if the proceeds 15 from such tax are unavailable for distribution because of 16 litigation. 17 Subject to payment of amounts into the Build Illinois 18 Fund, the McCormick Place Expansion Project Fund, and the 19 Local Government Distributive Fund pursuant to the preceding 20 paragraphs or in any amendments thereto hereafter enacted, 21 beginning July 1, 1993, the Department shall each month pay 22 into the Illinois Tax Increment Fund 0.27% of 80% of the net 23 revenue realized for the preceding month from the 6.25% 24 general rate on the selling price of tangible personal 25 property. 26 All remaining moneys received by the Department pursuant 27 to this Act shall be paid into the General Revenue Fund of 28 the State Treasury. 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. SB1310 Enrolled -39- LRB9110257SMdv 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 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 8 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 9 revised 9-27-99.) 10 Section 15. The Service Occupation Tax Act is amended by 11 changing Sections 3-10 and 9 as follows: 12 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 13 Sec. 3-10. Rate of tax. Unless otherwise provided in 14 this Section, the tax imposed by this Act is at the rate of 15 6.25% of the "selling price", as defined in Section 2 of the 16 Service Use Tax Act, of the tangible personal property. For 17 the purpose of computing this tax, in no event shall the 18 "selling price" be less than the cost price to the serviceman 19 of the tangible personal property transferred. The selling 20 price of each item of tangible personal property transferred 21 as an incident of a sale of service may be shown as a 22 distinct and separate item on the serviceman's billing to the 23 service customer. If the selling price is not so shown, the 24 selling price of the tangible personal property is deemed to 25 be 50% of the serviceman's entire billing to the service 26 customer. When, however, a serviceman contracts to design, 27 develop, and produce special order machinery or equipment, 28 the tax imposed by this Act shall be based on the 29 serviceman's cost price of the tangible personal property 30 transferred incident to the completion of the contract. 31 Beginning on July 1, 2000 and through December 31, 2000, 32 with respect to motor fuel, as defined in Section 1.1 of the SB1310 Enrolled -40- LRB9110257SMdv 1 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 2 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 3 With respect to gasohol, as defined in the Use Tax Act, 4 the tax imposed by this Act shall apply to 70% of the cost 5 price of property transferred as an incident to the sale of 6 service on or after January 1, 1990, and before July 1, 2003, 7 and to 100% of the cost price thereafter. 8 At the election of any registered serviceman made for 9 each fiscal year, sales of service in which the aggregate 10 annual cost price of tangible personal property transferred 11 as an incident to the sales of service is less than 35%, or 12 75% in the case of servicemen transferring prescription drugs 13 or servicemen engaged in graphic arts production, of the 14 aggregate annual total gross receipts from all sales of 15 service, the tax imposed by this Act shall be based on the 16 serviceman's cost price of the tangible personal property 17 transferred incident to the sale of those services. 18 The tax shall be imposed at the rate of 1% on food 19 prepared for immediate consumption and transferred incident 20 to a sale of service subject to this Act or the Service 21 Occupation Tax Act by an entity licensed under the Hospital 22 Licensing Act, the Nursing Home Care Act, or the Child Care 23 Act of 1969. The tax shall also be imposed at the rate of 1% 24 on food for human consumption that is to be consumed off the 25 premises where it is sold (other than alcoholic beverages, 26 soft drinks, and food that has been prepared for immediate 27 consumption and is not otherwise included in this paragraph) 28 and prescription and nonprescription medicines, drugs, 29 medical appliances, modifications to a motor vehicle for the 30 purpose of rendering it usable by a disabled person, and 31 insulin, urine testing materials, syringes, and needles used 32 by diabetics, for human use. For the purposes of this 33 Section, the term "soft drinks" means any complete, finished, 34 ready-to-use, non-alcoholic drink, whether carbonated or not, SB1310 Enrolled -41- LRB9110257SMdv 1 including but not limited to soda water, cola, fruit juice, 2 vegetable juice, carbonated water, and all other preparations 3 commonly known as soft drinks of whatever kind or description 4 that are contained in any closed or sealed can, carton, or 5 container, regardless of size. "Soft drinks" does not 6 include coffee, tea, non-carbonated water, infant formula, 7 milk or milk products as defined in the Grade A Pasteurized 8 Milk and Milk Products Act, or drinks containing 50% or more 9 natural fruit or vegetable juice. 10 Notwithstanding any other provisions of this Act, "food 11 for human consumption that is to be consumed off the premises 12 where it is sold" includes all food sold through a vending 13 machine, except soft drinks and food products that are 14 dispensed hot from a vending machine, regardless of the 15 location of the vending machine. 16 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 17 91-51, 6-30-99; 91-541, eff. 8-13-99.) 18 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 19 Sec. 9. Each serviceman required or authorized to 20 collect the tax herein imposed shall pay to the Department 21 the amount of such tax at the time when he is required to 22 file his return for the period during which such tax was 23 collectible, less a discount of 2.1% prior to January 1, 24 1990, and 1.75% on and after January 1, 1990, or $5 per 25 calendar year, whichever is greater, which is allowed to 26 reimburse the serviceman for expenses incurred in collecting 27 the tax, keeping records, preparing and filing returns, 28 remitting the tax and supplying data to the Department on 29 request. 30 Where such tangible personal property is sold under a 31 conditional sales contract, or under any other form of sale 32 wherein the payment of the principal sum, or a part thereof, 33 is extended beyond the close of the period for which the SB1310 Enrolled -42- LRB9110257SMdv 1 return is filed, the serviceman, in collecting the tax may 2 collect, for each tax return period, only the tax applicable 3 to the part of the selling price actually received during 4 such tax return period. 5 Except as provided hereinafter in this Section, on or 6 before the twentieth day of each calendar month, such 7 serviceman shall file a return for the preceding calendar 8 month in accordance with reasonable rules and regulations to 9 be promulgated by the Department of Revenue. Such return 10 shall be filed on a form prescribed by the Department and 11 shall contain such information as the Department may 12 reasonably require. 13 The Department may require returns to be filed on a 14 quarterly basis. If so required, a return for each calendar 15 quarter shall be filed on or before the twentieth day of the 16 calendar month following the end of such calendar quarter. 17 The taxpayer shall also file a return with the Department for 18 each of the first two months of each calendar quarter, on or 19 before the twentieth day of the following calendar month, 20 stating: 21 1. The name of the seller; 22 2. The address of the principal place of business 23 from which he engages in business as a serviceman in this 24 State; 25 3. The total amount of taxable receipts received by 26 him during the preceding calendar month, including 27 receipts from charge and time sales, but less all 28 deductions allowed by law; 29 4. The amount of credit provided in Section 2d of 30 this Act; 31 5. The amount of tax due; 32 5-5. The signature of the taxpayer; and 33 6. Such other reasonable information as the 34 Department may require. SB1310 Enrolled -43- LRB9110257SMdv 1 If a taxpayer fails to sign a return within 30 days after 2 the proper notice and demand for signature by the Department, 3 the return shall be considered valid and any amount shown to 4 be due on the return shall be deemed assessed. 5 A serviceman may accept a Manufacturer's Purchase Credit 6 certification from a purchaser in satisfaction of Service Use 7 Tax as provided in Section 3-70 of the Service Use Tax Act if 8 the purchaser provides the appropriate documentation as 9 required by Section 3-70 of the Service Use Tax Act. A 10 Manufacturer's Purchase Credit certification, accepted by a 11 serviceman as provided in Section 3-70 of the Service Use Tax 12 Act, may be used by that serviceman to satisfy Service 13 Occupation Tax liability in the amount claimed in the 14 certification, not to exceed 6.25% of the receipts subject to 15 tax from a qualifying purchase. 16 If the serviceman's average monthly tax liability to the 17 Department does not exceed $200, the Department may authorize 18 his returns to be filed on a quarter annual basis, with the 19 return for January, February and March of a given year being 20 due by April 20 of such year; with the return for April, May 21 and June of a given year being due by July 20 of such year; 22 with the return for July, August and September of a given 23 year being due by October 20 of such year, and with the 24 return for October, November and December of a given year 25 being due by January 20 of the following year. 26 If the serviceman's average monthly tax liability to the 27 Department does not exceed $50, the Department may authorize 28 his returns to be filed on an annual basis, with the return 29 for a given year being due by January 20 of the following 30 year. 31 Such quarter annual and annual returns, as to form and 32 substance, shall be subject to the same requirements as 33 monthly returns. 34 Notwithstanding any other provision in this Act SB1310 Enrolled -44- LRB9110257SMdv 1 concerning the time within which a serviceman may file his 2 return, in the case of any serviceman who ceases to engage in 3 a kind of business which makes him responsible for filing 4 returns under this Act, such serviceman shall file a final 5 return under this Act with the Department not more than 1 6 month after discontinuing such business. 7 Beginning October 1, 1993, a taxpayer who has an average 8 monthly tax liability of $150,000 or more shall make all 9 payments required by rules of the Department by electronic 10 funds transfer. Beginning October 1, 1994, a taxpayer who 11 has an average monthly tax liability of $100,000 or more 12 shall make all payments required by rules of the Department 13 by electronic funds transfer. Beginning October 1, 1995, a 14 taxpayer who has an average monthly tax liability of $50,000 15 or more shall make all payments required by rules of the 16 Department by electronic funds transfer. Beginning October 17 1, 2000, a taxpayer who has an annual tax liability of 18 $200,000 or more shall make all payments required by rules of 19 the Department by electronic funds transfer. The term 20 "annual tax liability" shall be the sum of the taxpayer's 21 liabilities under this Act, and under all other State and 22 local occupation and use tax laws administered by the 23 Department, for the immediately preceding calendar year. The 24 term "average monthly tax liability" means the sum of the 25 taxpayer's liabilities under this Act, and under all other 26 State and local occupation and use tax laws administered by 27 the Department, for the immediately preceding calendar year 28 divided by 12. 29 Before August 1 of each year beginning in 1993, the 30 Department shall notify all taxpayers required to make 31 payments by electronic funds transfer. All taxpayers 32 required to make payments by electronic funds transfer shall 33 make those payments for a minimum of one year beginning on 34 October 1. SB1310 Enrolled -45- LRB9110257SMdv 1 Any taxpayer not required to make payments by electronic 2 funds transfer may make payments by electronic funds transfer 3 with the permission of the Department. 4 All taxpayers required to make payment by electronic 5 funds transfer and any taxpayers authorized to voluntarily 6 make payments by electronic funds transfer shall make those 7 payments in the manner authorized by the Department. 8 The Department shall adopt such rules as are necessary to 9 effectuate a program of electronic funds transfer and the 10 requirements of this Section. 11 Where a serviceman collects the tax with respect to the 12 selling price of tangible personal property which he sells 13 and the purchaser thereafter returns such tangible personal 14 property and the serviceman refunds the selling price thereof 15 to the purchaser, such serviceman shall also refund, to the 16 purchaser, the tax so collected from the purchaser. When 17 filing his return for the period in which he refunds such tax 18 to the purchaser, the serviceman may deduct the amount of the 19 tax so refunded by him to the purchaser from any other 20 Service Occupation Tax, Service Use Tax, Retailers' 21 Occupation Tax or Use Tax which such serviceman may be 22 required to pay or remit to the Department, as shown by such 23 return, provided that the amount of the tax to be deducted 24 shall previously have been remitted to the Department by such 25 serviceman. If the serviceman shall not previously have 26 remitted the amount of such tax to the Department, he shall 27 be entitled to no deduction hereunder upon refunding such tax 28 to the purchaser. 29 If experience indicates such action to be practicable, 30 the Department may prescribe and furnish a combination or 31 joint return which will enable servicemen, who are required 32 to file returns hereunder and also under the Retailers' 33 Occupation Tax Act, the Use Tax Act or the Service Use Tax 34 Act, to furnish all the return information required by all SB1310 Enrolled -46- LRB9110257SMdv 1 said Acts on the one form. 2 Where the serviceman has more than one business 3 registered with the Department under separate registrations 4 hereunder, such serviceman shall file separate returns for 5 each registered business. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the Local Government Tax Fund the revenue 8 realized for the preceding month from the 1% tax on sales of 9 food for human consumption which is to be consumed off the 10 premises where it is sold (other than alcoholic beverages, 11 soft drinks and food which has been prepared for immediate 12 consumption) and prescription and nonprescription medicines, 13 drugs, medical appliances and insulin, urine testing 14 materials, syringes and needles used by diabetics. 15 Beginning January 1, 1990, each month the Department 16 shall pay into the County and Mass Transit District Fund 4% 17 of the revenue realized for the preceding month from the 18 6.25% general rate. 19 Beginning August 1, 2000, each month the Department shall 20 pay into the County and Mass Transit District Fund 20% of the 21 net revenue realized for the preceding month from the 1.25% 22 rate on the selling price of motor fuel and gasohol. 23 Beginning January 1, 1990, each month the Department 24 shall pay into the Local Government Tax Fund 16% of the 25 revenue realized for the preceding month from the 6.25% 26 general rate on transfers of tangible personal property. 27 Beginning August 1, 2000, each month the Department shall 28 pay into the Local Government Tax Fund 80% of the net revenue 29 realized for the preceding month from the 1.25% rate on the 30 selling price of motor fuel and gasohol. 31 Of the remainder of the moneys received by the Department 32 pursuant to this Act, (a) 1.75% thereof shall be paid into 33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 34 and on and after July 1, 1989, 3.8% thereof shall be paid SB1310 Enrolled -47- LRB9110257SMdv 1 into the Build Illinois Fund; provided, however, that if in 2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 3 as the case may be, of the moneys received by the Department 4 and required to be paid into the Build Illinois Fund pursuant 5 to Section 3 of the Retailers' Occupation Tax Act, Section 9 6 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 7 Section 9 of the Service Occupation Tax Act, such Acts being 8 hereinafter called the "Tax Acts" and such aggregate of 2.2% 9 or 3.8%, as the case may be, of moneys being hereinafter 10 called the "Tax Act Amount", and (2) the amount transferred 11 to the Build Illinois Fund from the State and Local Sales Tax 12 Reform Fund shall be less than the Annual Specified Amount 13 (as defined in Section 3 of the Retailers' Occupation Tax 14 Act), an amount equal to the difference shall be immediately 15 paid into the Build Illinois Fund from other moneys received 16 by the Department pursuant to the Tax Acts; and further 17 provided, that if on the last business day of any month the 18 sum of (1) the Tax Act Amount required to be deposited into 19 the Build Illinois Account in the Build Illinois Fund during 20 such month and (2) the amount transferred during such month 21 to the Build Illinois Fund from the State and Local Sales Tax 22 Reform Fund shall have been less than 1/12 of the Annual 23 Specified Amount, an amount equal to the difference shall be 24 immediately paid into the Build Illinois Fund from other 25 moneys received by the Department pursuant to the Tax Acts; 26 and, further provided, that in no event shall the payments 27 required under the preceding proviso result in aggregate 28 payments into the Build Illinois Fund pursuant to this clause 29 (b) for any fiscal year in excess of the greater of (i) the 30 Tax Act Amount or (ii) the Annual Specified Amount for such 31 fiscal year; and, further provided, that the amounts payable 32 into the Build Illinois Fund under this clause (b) shall be 33 payable only until such time as the aggregate amount on 34 deposit under each trust indenture securing Bonds issued and SB1310 Enrolled -48- LRB9110257SMdv 1 outstanding pursuant to the Build Illinois Bond Act is 2 sufficient, taking into account any future investment income, 3 to fully provide, in accordance with such indenture, for the 4 defeasance of or the payment of the principal of, premium, if 5 any, and interest on the Bonds secured by such indenture and 6 on any Bonds expected to be issued thereafter and all fees 7 and costs payable with respect thereto, all as certified by 8 the Director of the Bureau of the Budget. If on the last 9 business day of any month in which Bonds are outstanding 10 pursuant to the Build Illinois Bond Act, the aggregate of the 11 moneys deposited in the Build Illinois Bond Account in the 12 Build Illinois Fund in such month shall be less than the 13 amount required to be transferred in such month from the 14 Build Illinois Bond Account to the Build Illinois Bond 15 Retirement and Interest Fund pursuant to Section 13 of the 16 Build Illinois Bond Act, an amount equal to such deficiency 17 shall be immediately paid from other moneys received by the 18 Department pursuant to the Tax Acts to the Build Illinois 19 Fund; provided, however, that any amounts paid to the Build 20 Illinois Fund in any fiscal year pursuant to this sentence 21 shall be deemed to constitute payments pursuant to clause (b) 22 of the preceding sentence and shall reduce the amount 23 otherwise payable for such fiscal year pursuant to clause (b) 24 of the preceding sentence. The moneys received by the 25 Department pursuant to this Act and required to be deposited 26 into the Build Illinois Fund are subject to the pledge, claim 27 and charge set forth in Section 12 of the Build Illinois Bond 28 Act. 29 Subject to payment of amounts into the Build Illinois 30 Fund as provided in the preceding paragraph or in any 31 amendment thereto hereafter enacted, the following specified 32 monthly installment of the amount requested in the 33 certificate of the Chairman of the Metropolitan Pier and 34 Exposition Authority provided under Section 8.25f of the SB1310 Enrolled -49- LRB9110257SMdv 1 State Finance Act, but not in excess of the sums designated 2 as "Total Deposit", shall be deposited in the aggregate from 3 collections under Section 9 of the Use Tax Act, Section 9 of 4 the Service Use Tax Act, Section 9 of the Service Occupation 5 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 6 into the McCormick Place Expansion Project Fund in the 7 specified fiscal years. 8 Fiscal Year Total Deposit 9 1993 $0 10 1994 53,000,000 11 1995 58,000,000 12 1996 61,000,000 13 1997 64,000,000 14 1998 68,000,000 15 1999 71,000,000 16 2000 75,000,000 17 2001 80,000,000 18 2002 84,000,000 19 2003 89,000,000 20 2004 93,000,000 21 2005 97,000,000 22 2006 102,000,000 23 2007 108,000,000 24 2008 115,000,000 25 2009 120,000,000 26 2010 126,000,000 27 2011 132,000,000 28 2012 138,000,000 29 2013 and 145,000,000 30 each fiscal year 31 thereafter that bonds 32 are outstanding under 33 Section 13.2 of the 34 Metropolitan Pier and SB1310 Enrolled -50- LRB9110257SMdv 1 Exposition Authority 2 Act, but not after fiscal year 2029. 3 Beginning July 20, 1993 and in each month of each fiscal 4 year thereafter, one-eighth of the amount requested in the 5 certificate of the Chairman of the Metropolitan Pier and 6 Exposition Authority for that fiscal year, less the amount 7 deposited into the McCormick Place Expansion Project Fund by 8 the State Treasurer in the respective month under subsection 9 (g) of Section 13 of the Metropolitan Pier and Exposition 10 Authority Act, plus cumulative deficiencies in the deposits 11 required under this Section for previous months and years, 12 shall be deposited into the McCormick Place Expansion Project 13 Fund, until the full amount requested for the fiscal year, 14 but not in excess of the amount specified above as "Total 15 Deposit", has been deposited. 16 Subject to payment of amounts into the Build Illinois 17 Fund and the McCormick Place Expansion Project Fund pursuant 18 to the preceding paragraphs or in any amendment thereto 19 hereafter enacted, each month the Department shall pay into 20 the Local Government Distributive Fund 0.4% of the net 21 revenue realized for the preceding month from the 5% general 22 rate or 0.4% of 80% of the net revenue realized for the 23 preceding month from the 6.25% general rate, as the case may 24 be, on the selling price of tangible personal property which 25 amount shall, subject to appropriation, be distributed as 26 provided in Section 2 of the State Revenue Sharing Act. No 27 payments or distributions pursuant to this paragraph shall be 28 made if the tax imposed by this Act on photoprocessing 29 products is declared unconstitutional, or if the proceeds 30 from such tax are unavailable for distribution because of 31 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 SB1310 Enrolled -51- LRB9110257SMdv 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 Remaining moneys received by the Department pursuant to 8 this Act shall be paid into the General Revenue Fund of the 9 State Treasury. 10 The Department may, upon separate written notice to a 11 taxpayer, require the taxpayer to prepare and file with the 12 Department on a form prescribed by the Department within not 13 less than 60 days after receipt of the notice an annual 14 information return for the tax year specified in the notice. 15 Such annual return to the Department shall include a 16 statement of gross receipts as shown by the taxpayer's last 17 Federal income tax return. If the total receipts of the 18 business as reported in the Federal income tax return do not 19 agree with the gross receipts reported to the Department of 20 Revenue for the same period, the taxpayer shall attach to his 21 annual return a schedule showing a reconciliation of the 2 22 amounts and the reasons for the difference. The taxpayer's 23 annual return to the Department shall also disclose the cost 24 of goods sold by the taxpayer during the year covered by such 25 return, opening and closing inventories of such goods for 26 such year, cost of goods used from stock or taken from stock 27 and given away by the taxpayer during such year, pay roll 28 information of the taxpayer's business during such year and 29 any additional reasonable information which the Department 30 deems would be helpful in determining the accuracy of the 31 monthly, quarterly or annual returns filed by such taxpayer 32 as hereinbefore provided for in this Section. 33 If the annual information return required by this Section 34 is not filed when and as required, the taxpayer shall be SB1310 Enrolled -52- LRB9110257SMdv 1 liable as follows: 2 (i) Until January 1, 1994, the taxpayer shall be 3 liable for a penalty equal to 1/6 of 1% of the tax due 4 from such taxpayer under this Act during the period to be 5 covered by the annual return for each month or fraction 6 of a month until such return is filed as required, the 7 penalty to be assessed and collected in the same manner 8 as any other penalty provided for in this Act. 9 (ii) On and after January 1, 1994, the taxpayer 10 shall be liable for a penalty as described in Section 3-4 11 of the Uniform Penalty and Interest Act. 12 The chief executive officer, proprietor, owner or highest 13 ranking manager shall sign the annual return to certify the 14 accuracy of the information contained therein. Any person 15 who willfully signs the annual return containing false or 16 inaccurate information shall be guilty of perjury and 17 punished accordingly. The annual return form prescribed by 18 the Department shall include a warning that the person 19 signing the return may be liable for perjury. 20 The foregoing portion of this Section concerning the 21 filing of an annual information return shall not apply to a 22 serviceman who is not required to file an income tax return 23 with the United States Government. 24 As soon as possible after the first day of each month, 25 upon certification of the Department of Revenue, the 26 Comptroller shall order transferred and the Treasurer shall 27 transfer from the General Revenue Fund to the Motor Fuel Tax 28 Fund an amount equal to 1.7% of 80% of the net revenue 29 realized under this Act for the second preceding month. 30 Beginning April 1, 2000, this transfer is no longer required 31 and shall not be made. 32 Net revenue realized for a month shall be the revenue 33 collected by the State pursuant to this Act, less the amount 34 paid out during that month as refunds to taxpayers for SB1310 Enrolled -53- LRB9110257SMdv 1 overpayment of liability. 2 For greater simplicity of administration, it shall be 3 permissible for manufacturers, importers and wholesalers 4 whose products are sold by numerous servicemen in Illinois, 5 and who wish to do so, to assume the responsibility for 6 accounting and paying to the Department all tax accruing 7 under this Act with respect to such sales, if the servicemen 8 who are affected do not make written objection to the 9 Department to this arrangement. 10 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 11 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 12 revised 9-28-99.) 13 Section 20. The Retailers' Occupation Tax Act is amended 14 by changing Sections 2-10, 2d, and 3 as follows: 15 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 16 Sec. 2-10. Rate of tax. Unless otherwise provided in 17 this Section, the tax imposed by this Act is at the rate of 18 6.25% of gross receipts from sales of tangible personal 19 property made in the course of business. 20 Beginning on July 1, 2000 and through December 31, 2000, 21 with respect to motor fuel, as defined in Section 1.1 of the 22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 23 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 24 Within 14 days after the effective date of this 25 amendatory Act of the 91st General Assembly, each retailer of 26 motor fuel and gasohol shall cause the following notice to be 27 posted in a prominently visible place on each retail 28 dispensing device that is used to dispense motor fuel or 29 gasohol in the State of Illinois: "As of July 1, 2000, the 30 State of Illinois has eliminated the State's share of sales 31 tax on motor fuel and gasohol through December 31, 2000. The 32 price on this pump should reflect the elimination of the SB1310 Enrolled -54- LRB9110257SMdv 1 tax." The notice shall be printed in bold print on a sign 2 that is no smaller than 4 inches by 8 inches. The sign shall 3 be clearly visible to customers. Any retailer who fails to 4 post or maintain a required sign through December 31, 2000 is 5 guilty of a petty offense for which the fine shall be $500 6 per day per each retail premises where a violation occurs. 7 With respect to gasohol, as defined in the Use Tax Act, 8 the tax imposed by this Act applies to 70% of the proceeds of 9 sales made on or after January 1, 1990, and before July 1, 10 2003, and to 100% of the proceeds of sales made thereafter. 11 With respect to food for human consumption that is to be 12 consumed off the premises where it is sold (other than 13 alcoholic beverages, soft drinks, and food that has been 14 prepared for immediate consumption) and prescription and 15 nonprescription medicines, drugs, medical appliances, 16 modifications to a motor vehicle for the purpose of rendering 17 it usable by a disabled person, and insulin, urine testing 18 materials, syringes, and needles used by diabetics, for human 19 use, the tax is imposed at the rate of 1%. For the purposes 20 of this Section, the term "soft drinks" means any complete, 21 finished, ready-to-use, non-alcoholic drink, whether 22 carbonated or not, including but not limited to soda water, 23 cola, fruit juice, vegetable juice, carbonated water, and all 24 other preparations commonly known as soft drinks of whatever 25 kind or description that are contained in any closed or 26 sealed bottle, can, carton, or container, regardless of size. 27 "Soft drinks" does not include coffee, tea, non-carbonated 28 water, infant formula, milk or milk products as defined in 29 the Grade A Pasteurized Milk and Milk Products Act, or drinks 30 containing 50% or more natural fruit or vegetable juice. 31 Notwithstanding any other provisions of this Act, "food 32 for human consumption that is to be consumed off the premises 33 where it is sold" includes all food sold through a vending 34 machine, except soft drinks and food products that are SB1310 Enrolled -55- LRB9110257SMdv 1 dispensed hot from a vending machine, regardless of the 2 location of the vending machine. 3 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 4 91-51, eff. 6-30-99.) 5 (35 ILCS 120/2d) (from Ch. 120, par. 441d) 6 Sec. 2d. Tax prepayment by motor fuel retailer. Any 7 person engaged in the business of selling motor fuel at 8 retail, as defined in the Motor Fuel Tax Law, and who is not 9 a licensed distributor or supplier, as defined in the Motor 10 Fuel Tax Law, shall prepay to his or her distributor, 11 supplier, or other reseller of motor fuel a portion of the 12 tax imposed by this Act if the distributor, supplier, or 13 other reseller of motor fuel is registered under Section 2a 14 or Section 2c of this Act. The prepayment requirement 15 provided for in this Section does not apply to liquid propane 16 gas. 17 Beginning on July 1, 2000 and through December 31, 2000, 18 the Retailers' Occupation Tax paid to the distributor, 19 supplier, or other reseller shall be an amount equal to $0.01 20$0.04per gallon of the motor fuel, except gasohol as defined 21 in Section 2-10 of this Act which shall be an amount equal to 22 $0.01$0.03per gallon, purchased from the distributor, 23 supplier, or other reseller. 24 Before July 1, 2000 and then beginning on January 1, 2001 25 and thereafter, the Retailers' Occupation Tax paid to the 26 distributor, supplier, or other reseller shall be an amount 27 equal to $0.04 per gallon of the motor fuel, except gasohol 28 as defined in Section 2-10 of this Act which shall be an 29 amount equal to $0.03 per gallon, purchased from the 30 distributor, supplier, or other reseller. 31 Any person engaged in the business of selling motor fuel 32 at retail shall be entitled to a credit against tax due under 33 this Act in an amount equal to the tax paid to the SB1310 Enrolled -56- LRB9110257SMdv 1 distributor, supplier, or other reseller. 2 Every distributor, supplier, or other reseller registered 3 as provided in Section 2a or Section 2c of this Act shall 4 remit the prepaid tax on all motor fuel that is due from any 5 person engaged in the business of selling at retail motor 6 fuel with the returns filed under Section 2f or Section 3 of 7 this Act, but the vendors discount provided in Section 3 8 shall not apply to the amount of prepaid tax that is 9 remitted. Any distributor or supplier who fails to properly 10 collect and remit the tax shall be liable for the tax. For 11 purposes of this Section, the prepaid tax is due on invoiced 12 gallons sold during a month by the 20th day of the following 13 month. 14 (Source: P.A. 86-1475; 87-14.) 15 (35 ILCS 120/3) (from Ch. 120, par. 442) 16 Sec. 3. Except as provided in this Section, on or before 17 the twentieth day of each calendar month, every person 18 engaged in the business of selling tangible personal property 19 at retail in this State during the preceding calendar month 20 shall file a return with the Department, stating: 21 1. The name of the seller; 22 2. His residence address and the address of his 23 principal place of business and the address of the 24 principal place of business (if that is a different 25 address) from which he engages in the business of selling 26 tangible personal property at retail in this State; 27 3. Total amount of receipts received by him during 28 the preceding calendar month or quarter, as the case may 29 be, from sales of tangible personal property, and from 30 services furnished, by him during such preceding calendar 31 month or quarter; 32 4. Total amount received by him during the 33 preceding calendar month or quarter on charge and time SB1310 Enrolled -57- LRB9110257SMdv 1 sales of tangible personal property, and from services 2 furnished, by him prior to the month or quarter for which 3 the return is filed; 4 5. Deductions allowed by law; 5 6. Gross receipts which were received by him during 6 the preceding calendar month or quarter and upon the 7 basis of which the tax is imposed; 8 7. The amount of credit provided in Section 2d of 9 this Act; 10 8. The amount of tax due; 11 9. The signature of the taxpayer; and 12 10. Such other reasonable information as the 13 Department may require. 14 If a taxpayer fails to sign a return within 30 days after 15 the proper notice and demand for signature by the Department, 16 the return shall be considered valid and any amount shown to 17 be due on the return shall be deemed assessed. 18 Each return shall be accompanied by the statement of 19 prepaid tax issued pursuant to Section 2e for which credit is 20 claimed. 21 A retailer may accept a Manufacturer's Purchase Credit 22 certification from a purchaser in satisfaction of Use Tax as 23 provided in Section 3-85 of the Use Tax Act if the purchaser 24 provides the appropriate documentation as required by Section 25 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 26 certification, accepted by a retailer as provided in Section 27 3-85 of the Use Tax Act, may be used by that retailer to 28 satisfy Retailers' Occupation Tax liability in the amount 29 claimed in the certification, not to exceed 6.25% of the 30 receipts subject to tax from a qualifying purchase. 31 The Department may require returns to be filed on a 32 quarterly basis. If so required, a return for each calendar 33 quarter shall be filed on or before the twentieth day of the 34 calendar month following the end of such calendar quarter. SB1310 Enrolled -58- LRB9110257SMdv 1 The taxpayer shall also file a return with the Department for 2 each of the first two months of each calendar quarter, on or 3 before the twentieth day of the following calendar month, 4 stating: 5 1. The name of the seller; 6 2. The address of the principal place of business 7 from which he engages in the business of selling tangible 8 personal property at retail in this State; 9 3. The total amount of taxable receipts received by 10 him during the preceding calendar month from sales of 11 tangible personal property by him during such preceding 12 calendar month, including receipts from charge and time 13 sales, but less all deductions allowed by law; 14 4. The amount of credit provided in Section 2d of 15 this Act; 16 5. The amount of tax due; and 17 6. Such other reasonable information as the 18 Department may require. 19 If a total amount of less than $1 is payable, refundable 20 or creditable, such amount shall be disregarded if it is less 21 than 50 cents and shall be increased to $1 if it is 50 cents 22 or more. 23 Beginning October 1, 1993, a taxpayer who has an average 24 monthly tax liability of $150,000 or more shall make all 25 payments required by rules of the Department by electronic 26 funds transfer. Beginning October 1, 1994, a taxpayer who 27 has an average monthly tax liability of $100,000 or more 28 shall make all payments required by rules of the Department 29 by electronic funds transfer. Beginning October 1, 1995, a 30 taxpayer who has an average monthly tax liability of $50,000 31 or more shall make all payments required by rules of the 32 Department by electronic funds transfer. Beginning October 33 1, 2000, a taxpayer who has an annual tax liability of 34 $200,000 or more shall make all payments required by rules of SB1310 Enrolled -59- LRB9110257SMdv 1 the Department by electronic funds transfer. The term 2 "annual tax liability" shall be the sum of the taxpayer's 3 liabilities under this Act, and under all other State and 4 local occupation and use tax laws administered by the 5 Department, for the immediately preceding calendar year. The 6 term "average monthly tax liability" shall be the sum of the 7 taxpayer's liabilities under this Act, and under all other 8 State and local occupation and use tax laws administered by 9 the Department, for the immediately preceding calendar year 10 divided by 12. 11 Before August 1 of each year beginning in 1993, the 12 Department shall notify all taxpayers required to make 13 payments by electronic funds transfer. All taxpayers 14 required to make payments by electronic funds transfer shall 15 make those payments for a minimum of one year beginning on 16 October 1. 17 Any taxpayer not required to make payments by electronic 18 funds transfer may make payments by electronic funds transfer 19 with the permission of the Department. 20 All taxpayers required to make payment by electronic 21 funds transfer and any taxpayers authorized to voluntarily 22 make payments by electronic funds transfer shall make those 23 payments in the manner authorized by the Department. 24 The Department shall adopt such rules as are necessary to 25 effectuate a program of electronic funds transfer and the 26 requirements of this Section. 27 Any amount which is required to be shown or reported on 28 any return or other document under this Act shall, if such 29 amount is not a whole-dollar amount, be increased to the 30 nearest whole-dollar amount in any case where the fractional 31 part of a dollar is 50 cents or more, and decreased to the 32 nearest whole-dollar amount where the fractional part of a 33 dollar is less than 50 cents. 34 If the retailer is otherwise required to file a monthly SB1310 Enrolled -60- LRB9110257SMdv 1 return and if the retailer's average monthly tax liability to 2 the Department does not exceed $200, the Department may 3 authorize his returns to be filed on a quarter annual basis, 4 with the return for January, February and March of a given 5 year being due by April 20 of such year; with the return for 6 April, May and June of a given year being due by July 20 of 7 such year; with the return for July, August and September of 8 a given year being due by October 20 of such year, and with 9 the return for October, November and December of a given year 10 being due by January 20 of the following year. 11 If the retailer is otherwise required to file a monthly 12 or quarterly return and if the retailer's average monthly tax 13 liability with the Department does not exceed $50, the 14 Department may authorize his returns to be filed on an annual 15 basis, with the return for a given year being due by January 16 20 of the following year. 17 Such quarter annual and annual returns, as to form and 18 substance, shall be subject to the same requirements as 19 monthly returns. 20 Notwithstanding any other provision in this Act 21 concerning the time within which a retailer may file his 22 return, in the case of any retailer who ceases to engage in a 23 kind of business which makes him responsible for filing 24 returns under this Act, such retailer shall file a final 25 return under this Act with the Department not more than one 26 month after discontinuing such business. 27 Where the same person has more than one business 28 registered with the Department under separate registrations 29 under this Act, such person may not file each return that is 30 due as a single return covering all such registered 31 businesses, but shall file separate returns for each such 32 registered business. 33 In addition, with respect to motor vehicles, watercraft, 34 aircraft, and trailers that are required to be registered SB1310 Enrolled -61- LRB9110257SMdv 1 with an agency of this State, every retailer selling this 2 kind of tangible personal property shall file, with the 3 Department, upon a form to be prescribed and supplied by the 4 Department, a separate return for each such item of tangible 5 personal property which the retailer sells, except that 6 where, in the same transaction, a retailer of aircraft, 7 watercraft, motor vehicles or trailers transfers more than 8 one aircraft, watercraft, motor vehicle or trailer to another 9 aircraft, watercraft, motor vehicle retailer or trailer 10 retailer for the purpose of resale, that seller for resale 11 may report the transfer of all aircraft, watercraft, motor 12 vehicles or trailers involved in that transaction to the 13 Department on the same uniform invoice-transaction reporting 14 return form. For purposes of this Section, "watercraft" 15 means a Class 2, Class 3, or Class 4 watercraft as defined in 16 Section 3-2 of the Boat Registration and Safety Act, a 17 personal watercraft, or any boat equipped with an inboard 18 motor. 19 Any retailer who sells only motor vehicles, watercraft, 20 aircraft, or trailers that are required to be registered with 21 an agency of this State, so that all retailers' occupation 22 tax liability is required to be reported, and is reported, on 23 such transaction reporting returns and who is not otherwise 24 required to file monthly or quarterly returns, need not file 25 monthly or quarterly returns. However, those retailers shall 26 be required to file returns on an annual basis. 27 The transaction reporting return, in the case of motor 28 vehicles or trailers that are required to be registered with 29 an agency of this State, shall be the same document as the 30 Uniform Invoice referred to in Section 5-402 of The Illinois 31 Vehicle Code and must show the name and address of the 32 seller; the name and address of the purchaser; the amount of 33 the selling price including the amount allowed by the 34 retailer for traded-in property, if any; the amount allowed SB1310 Enrolled -62- LRB9110257SMdv 1 by the retailer for the traded-in tangible personal property, 2 if any, to the extent to which Section 1 of this Act allows 3 an exemption for the value of traded-in property; the balance 4 payable after deducting such trade-in allowance from the 5 total selling price; the amount of tax due from the retailer 6 with respect to such transaction; the amount of tax collected 7 from the purchaser by the retailer on such transaction (or 8 satisfactory evidence that such tax is not due in that 9 particular instance, if that is claimed to be the fact); the 10 place and date of the sale; a sufficient identification of 11 the property sold; such other information as is required in 12 Section 5-402 of The Illinois Vehicle Code, and such other 13 information as the Department may reasonably require. 14 The transaction reporting return in the case of 15 watercraft or aircraft must show the name and address of the 16 seller; the name and address of the purchaser; the amount of 17 the selling price including the amount allowed by the 18 retailer for traded-in property, if any; the amount allowed 19 by the retailer for the traded-in tangible personal property, 20 if any, to the extent to which Section 1 of this Act allows 21 an exemption for the value of traded-in property; the balance 22 payable after deducting such trade-in allowance from the 23 total selling price; the amount of tax due from the retailer 24 with respect to such transaction; the amount of tax collected 25 from the purchaser by the retailer on such transaction (or 26 satisfactory evidence that such tax is not due in that 27 particular instance, if that is claimed to be the fact); the 28 place and date of the sale, a sufficient identification of 29 the property sold, and such other information as the 30 Department may reasonably require. 31 Such transaction reporting return shall be filed not 32 later than 20 days after the day of delivery of the item that 33 is being sold, but may be filed by the retailer at any time 34 sooner than that if he chooses to do so. The transaction SB1310 Enrolled -63- LRB9110257SMdv 1 reporting return and tax remittance or proof of exemption 2 from the Illinois use tax may be transmitted to the 3 Department by way of the State agency with which, or State 4 officer with whom the tangible personal property must be 5 titled or registered (if titling or registration is required) 6 if the Department and such agency or State officer determine 7 that this procedure will expedite the processing of 8 applications for title or registration. 9 With each such transaction reporting return, the retailer 10 shall remit the proper amount of tax due (or shall submit 11 satisfactory evidence that the sale is not taxable if that is 12 the case), to the Department or its agents, whereupon the 13 Department shall issue, in the purchaser's name, a use tax 14 receipt (or a certificate of exemption if the Department is 15 satisfied that the particular sale is tax exempt) which such 16 purchaser may submit to the agency with which, or State 17 officer with whom, he must title or register the tangible 18 personal property that is involved (if titling or 19 registration is required) in support of such purchaser's 20 application for an Illinois certificate or other evidence of 21 title or registration to such tangible personal property. 22 No retailer's failure or refusal to remit tax under this 23 Act precludes a user, who has paid the proper tax to the 24 retailer, from obtaining his certificate of title or other 25 evidence of title or registration (if titling or registration 26 is required) upon satisfying the Department that such user 27 has paid the proper tax (if tax is due) to the retailer. The 28 Department shall adopt appropriate rules to carry out the 29 mandate of this paragraph. 30 If the user who would otherwise pay tax to the retailer 31 wants the transaction reporting return filed and the payment 32 of the tax or proof of exemption made to the Department 33 before the retailer is willing to take these actions and such 34 user has not paid the tax to the retailer, such user may SB1310 Enrolled -64- LRB9110257SMdv 1 certify to the fact of such delay by the retailer and may 2 (upon the Department being satisfied of the truth of such 3 certification) transmit the information required by the 4 transaction reporting return and the remittance for tax or 5 proof of exemption directly to the Department and obtain his 6 tax receipt or exemption determination, in which event the 7 transaction reporting return and tax remittance (if a tax 8 payment was required) shall be credited by the Department to 9 the proper retailer's account with the Department, but 10 without the 2.1% or 1.75% discount provided for in this 11 Section being allowed. When the user pays the tax directly 12 to the Department, he shall pay the tax in the same amount 13 and in the same form in which it would be remitted if the tax 14 had been remitted to the Department by the retailer. 15 Refunds made by the seller during the preceding return 16 period to purchasers, on account of tangible personal 17 property returned to the seller, shall be allowed as a 18 deduction under subdivision 5 of his monthly or quarterly 19 return, as the case may be, in case the seller had 20 theretofore included the receipts from the sale of such 21 tangible personal property in a return filed by him and had 22 paid the tax imposed by this Act with respect to such 23 receipts. 24 Where the seller is a corporation, the return filed on 25 behalf of such corporation shall be signed by the president, 26 vice-president, secretary or treasurer or by the properly 27 accredited agent of such corporation. 28 Where the seller is a limited liability company, the 29 return filed on behalf of the limited liability company shall 30 be signed by a manager, member, or properly accredited agent 31 of the limited liability company. 32 Except as provided in this Section, the retailer filing 33 the return under this Section shall, at the time of filing 34 such return, pay to the Department the amount of tax imposed SB1310 Enrolled -65- LRB9110257SMdv 1 by this Act less a discount of 2.1% prior to January 1, 1990 2 and 1.75% on and after January 1, 1990, or $5 per calendar 3 year, whichever is greater, which is allowed to reimburse the 4 retailer for the expenses incurred in keeping records, 5 preparing and filing returns, remitting the tax and supplying 6 data to the Department on request. Any prepayment made 7 pursuant to Section 2d of this Act shall be included in the 8 amount on which such 2.1% or 1.75% discount is computed. In 9 the case of retailers who report and pay the tax on a 10 transaction by transaction basis, as provided in this 11 Section, such discount shall be taken with each such tax 12 remittance instead of when such retailer files his periodic 13 return. 14 Before October 1, 2000, if the taxpayer's average monthly 15 tax liability to the Department under this Act, the Use Tax 16 Act, the Service Occupation Tax Act, and the Service Use Tax 17 Act, excluding any liability for prepaid sales tax to be 18 remitted in accordance with Section 2d of this Act, was 19 $10,000 or more during the preceding 4 complete calendar 20 quarters, he shall file a return with the Department each 21 month by the 20th day of the month next following the month 22 during which such tax liability is incurred and shall make 23 payments to the Department on or before the 7th, 15th, 22nd 24 and last day of the month during which such liability is 25 incurred. On and after October 1, 2000, if the taxpayer's 26 average monthly tax liability to the Department under this 27 Act, the Use Tax Act, the Service Occupation Tax Act, and the 28 Service Use Tax Act, excluding any liability for prepaid 29 sales tax to be remitted in accordance with Section 2d of 30 this Act, was $20,000 or more during the preceding 4 complete 31 calendar quarters, he shall file a return with the Department 32 each month by the 20th day of the month next following the 33 month during which such tax liability is incurred and shall 34 make payment to the Department on or before the 7th, 15th, SB1310 Enrolled -66- LRB9110257SMdv 1 22nd and last day of the month during which such liability is 2 incurred. If the month during which such tax liability is 3 incurred began prior to January 1, 1985, each payment shall 4 be in an amount equal to 1/4 of the taxpayer's actual 5 liability for the month or an amount set by the Department 6 not to exceed 1/4 of the average monthly liability of the 7 taxpayer to the Department for the preceding 4 complete 8 calendar quarters (excluding the month of highest liability 9 and the month of lowest liability in such 4 quarter period). 10 If the month during which such tax liability is incurred 11 begins on or after January 1, 1985 and prior to January 1, 12 1987, each payment shall be in an amount equal to 22.5% of 13 the taxpayer's actual liability for the month or 27.5% of the 14 taxpayer's liability for the same calendar month of the 15 preceding year. If the month during which such tax liability 16 is incurred begins on or after January 1, 1987 and prior to 17 January 1, 1988, each payment shall be in an amount equal to 18 22.5% of the taxpayer's actual liability for the month or 19 26.25% of the taxpayer's liability for the same calendar 20 month of the preceding year. If the month during which such 21 tax liability is incurred begins on or after January 1, 1988, 22 and prior to January 1, 1989, or begins on or after January 23 1, 1996, each payment shall be in an amount equal to 22.5% of 24 the taxpayer's actual liability for the month or 25% of the 25 taxpayer's liability for the same calendar month of the 26 preceding year. If the month during which such tax liability 27 is incurred begins on or after January 1, 1989, and prior to 28 January 1, 1996, each payment shall be in an amount equal to 29 22.5% of the taxpayer's actual liability for the month or 25% 30 of the taxpayer's liability for the same calendar month of 31 the preceding year or 100% of the taxpayer's actual liability 32 for the quarter monthly reporting period. The amount of such 33 quarter monthly payments shall be credited against the final 34 tax liability of the taxpayer's return for that month. SB1310 Enrolled -67- LRB9110257SMdv 1 Before October 1, 2000, once applicable, the requirement of 2 the making of quarter monthly payments to the Department by 3 taxpayers having an average monthly tax liability of $10,000 4 or more as determined in the manner provided above shall 5 continue until such taxpayer's average monthly liability to 6 the Department during the preceding 4 complete calendar 7 quarters (excluding the month of highest liability and the 8 month of lowest liability) is less than $9,000, or until such 9 taxpayer's average monthly liability to the Department as 10 computed for each calendar quarter of the 4 preceding 11 complete calendar quarter period is less than $10,000. 12 However, if a taxpayer can show the Department that a 13 substantial change in the taxpayer's business has occurred 14 which causes the taxpayer to anticipate that his average 15 monthly tax liability for the reasonably foreseeable future 16 will fall below the $10,000 threshold stated above, then such 17 taxpayer may petition the Department for a change in such 18 taxpayer's reporting status. On and after October 1, 2000, 19 once applicable, the requirement of the making of quarter 20 monthly payments to the Department by taxpayers having an 21 average monthly tax liability of $20,000 or more as 22 determined in the manner provided above shall continue until 23 such taxpayer's average monthly liability to the Department 24 during the preceding 4 complete calendar quarters (excluding 25 the month of highest liability and the month of lowest 26 liability) is less than $19,000 or until such taxpayer's 27 average monthly liability to the Department as computed for 28 each calendar quarter of the 4 preceding complete calendar 29 quarter period is less than $20,000. However, if a taxpayer 30 can show the Department that a substantial change in the 31 taxpayer's business has occurred which causes the taxpayer to 32 anticipate that his average monthly tax liability for the 33 reasonably foreseeable future will fall below the $20,000 34 threshold stated above, then such taxpayer may petition the SB1310 Enrolled -68- LRB9110257SMdv 1 Department for a change in such taxpayer's reporting status. 2 The Department shall change such taxpayer's reporting status 3 unless it finds that such change is seasonal in nature and 4 not likely to be long term. If any such quarter monthly 5 payment is not paid at the time or in the amount required by 6 this Section, then the taxpayer shall be liable for penalties 7 and interest on the difference between the minimum amount due 8 as a payment and the amount of such quarter monthly payment 9 actually and timely paid, except insofar as the taxpayer has 10 previously made payments for that month to the Department in 11 excess of the minimum payments previously due as provided in 12 this Section. The Department shall make reasonable rules and 13 regulations to govern the quarter monthly payment amount and 14 quarter monthly payment dates for taxpayers who file on other 15 than a calendar monthly basis. 16 Without regard to whether a taxpayer is required to make 17 quarter monthly payments as specified above, any taxpayer who 18 is required by Section 2d of this Act to collect and remit 19 prepaid taxes and has collected prepaid taxes which average 20 in excess of $25,000 per month during the preceding 2 21 complete calendar quarters, shall file a return with the 22 Department as required by Section 2f and shall make payments 23 to the Department on or before the 7th, 15th, 22nd and last 24 day of the month during which such liability is incurred. If 25 the month during which such tax liability is incurred began 26 prior to the effective date of this amendatory Act of 1985, 27 each payment shall be in an amount not less than 22.5% of the 28 taxpayer's actual liability under Section 2d. If the month 29 during which such tax liability is incurred begins on or 30 after January 1, 1986, each payment shall be in an amount 31 equal to 22.5% of the taxpayer's actual liability for the 32 month or 27.5% of the taxpayer's liability for the same 33 calendar month of the preceding calendar year. If the month 34 during which such tax liability is incurred begins on or SB1310 Enrolled -69- LRB9110257SMdv 1 after January 1, 1987, each payment shall be in an amount 2 equal to 22.5% of the taxpayer's actual liability for the 3 month or 26.25% of the taxpayer's liability for the same 4 calendar month of the preceding year. The amount of such 5 quarter monthly payments shall be credited against the final 6 tax liability of the taxpayer's return for that month filed 7 under this Section or Section 2f, as the case may be. Once 8 applicable, the requirement of the making of quarter monthly 9 payments to the Department pursuant to this paragraph shall 10 continue until such taxpayer's average monthly prepaid tax 11 collections during the preceding 2 complete calendar quarters 12 is $25,000 or less. If any such quarter monthly payment is 13 not paid at the time or in the amount required, the taxpayer 14 shall be liable for penalties and interest on such 15 difference, except insofar as the taxpayer has previously 16 made payments for that month in excess of the minimum 17 payments previously due. 18 If any payment provided for in this Section exceeds the 19 taxpayer's liabilities under this Act, the Use Tax Act, the 20 Service Occupation Tax Act and the Service Use Tax Act, as 21 shown on an original monthly return, the Department shall, if 22 requested by the taxpayer, issue to the taxpayer a credit 23 memorandum no later than 30 days after the date of payment. 24 The credit evidenced by such credit memorandum may be 25 assigned by the taxpayer to a similar taxpayer under this 26 Act, the Use Tax Act, the Service Occupation Tax Act or the 27 Service Use Tax Act, in accordance with reasonable rules and 28 regulations to be prescribed by the Department. If no such 29 request is made, the taxpayer may credit such excess payment 30 against tax liability subsequently to be remitted to the 31 Department under this Act, the Use Tax Act, the Service 32 Occupation Tax Act or the Service Use Tax Act, in accordance 33 with reasonable rules and regulations prescribed by the 34 Department. If the Department subsequently determined that SB1310 Enrolled -70- LRB9110257SMdv 1 all or any part of the credit taken was not actually due to 2 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 3 shall be reduced by 2.1% or 1.75% of the difference between 4 the credit taken and that actually due, and that taxpayer 5 shall be liable for penalties and interest on such 6 difference. 7 If a retailer of motor fuel is entitled to a credit under 8 Section 2d of this Act which exceeds the taxpayer's liability 9 to the Department under this Act for the month which the 10 taxpayer is filing a return, the Department shall issue the 11 taxpayer a credit memorandum for the excess. 12 Beginning January 1, 1990, each month the Department 13 shall pay into the Local Government Tax Fund, a special fund 14 in the State treasury which is hereby created, the net 15 revenue realized for the preceding month from the 1% tax on 16 sales of food for human consumption which is to be consumed 17 off the premises where it is sold (other than alcoholic 18 beverages, soft drinks and food which has been prepared for 19 immediate consumption) and prescription and nonprescription 20 medicines, drugs, medical appliances and insulin, urine 21 testing materials, syringes and needles used by diabetics. 22 Beginning January 1, 1990, each month the Department 23 shall pay into the County and Mass Transit District Fund, a 24 special fund in the State treasury which is hereby created, 25 4% of the net revenue realized for the preceding month from 26 the 6.25% general rate. 27 Beginning August 1, 2000, each month the Department shall 28 pay into the County and Mass Transit District Fund 20% of the 29 net revenue realized for the preceding month from the 1.25% 30 rate on the selling price of motor fuel and gasohol. 31 Beginning January 1, 1990, each month the Department 32 shall pay into the Local Government Tax Fund 16% of the net 33 revenue realized for the preceding month from the 6.25% 34 general rate on the selling price of tangible personal SB1310 Enrolled -71- LRB9110257SMdv 1 property. 2 Beginning August 1, 2000, each month the Department shall 3 pay into the Local Government Tax Fund 80% of the net revenue 4 realized for the preceding month from the 1.25% rate on the 5 selling price of motor fuel and gasohol. 6 Of the remainder of the moneys received by the Department 7 pursuant to this Act, (a) 1.75% thereof shall be paid into 8 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 9 and on and after July 1, 1989, 3.8% thereof shall be paid 10 into the Build Illinois Fund; provided, however, that if in 11 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 12 as the case may be, of the moneys received by the Department 13 and required to be paid into the Build Illinois Fund pursuant 14 to this Act, Section 9 of the Use Tax Act, Section 9 of the 15 Service Use Tax Act, and Section 9 of the Service Occupation 16 Tax Act, such Acts being hereinafter called the "Tax Acts" 17 and such aggregate of 2.2% or 3.8%, as the case may be, of 18 moneys being hereinafter called the "Tax Act Amount", and (2) 19 the amount transferred to the Build Illinois Fund from the 20 State and Local Sales Tax Reform Fund shall be less than the 21 Annual Specified Amount (as hereinafter defined), an amount 22 equal to the difference shall be immediately paid into the 23 Build Illinois Fund from other moneys received by the 24 Department pursuant to the Tax Acts; the "Annual Specified 25 Amount" means the amounts specified below for fiscal years 26 1986 through 1993: 27 Fiscal Year Annual Specified Amount 28 1986 $54,800,000 29 1987 $76,650,000 30 1988 $80,480,000 31 1989 $88,510,000 32 1990 $115,330,000 33 1991 $145,470,000 34 1992 $182,730,000 SB1310 Enrolled -72- LRB9110257SMdv 1 1993 $206,520,000; 2 and means the Certified Annual Debt Service Requirement (as 3 defined in Section 13 of the Build Illinois Bond Act) or the 4 Tax Act Amount, whichever is greater, for fiscal year 1994 5 and each fiscal year thereafter; and further provided, that 6 if on the last business day of any month the sum of (1) the 7 Tax Act Amount required to be deposited into the Build 8 Illinois Bond Account in the Build Illinois Fund during such 9 month and (2) the amount transferred to the Build Illinois 10 Fund from the State and Local Sales Tax Reform Fund shall 11 have been less than 1/12 of the Annual Specified Amount, an 12 amount equal to the difference shall be immediately paid into 13 the Build Illinois Fund from other moneys received by the 14 Department pursuant to the Tax Acts; and, further provided, 15 that in no event shall the payments required under the 16 preceding proviso result in aggregate payments into the Build 17 Illinois Fund pursuant to this clause (b) for any fiscal year 18 in excess of the greater of (i) the Tax Act Amount or (ii) 19 the Annual Specified Amount for such fiscal year. The 20 amounts payable into the Build Illinois Fund under clause (b) 21 of the first sentence in this paragraph shall be payable only 22 until such time as the aggregate amount on deposit under each 23 trust indenture securing Bonds issued and outstanding 24 pursuant to the Build Illinois Bond Act is sufficient, taking 25 into account any future investment income, to fully provide, 26 in accordance with such indenture, for the defeasance of or 27 the payment of the principal of, premium, if any, and 28 interest on the Bonds secured by such indenture and on any 29 Bonds expected to be issued thereafter and all fees and costs 30 payable with respect thereto, all as certified by the 31 Director of the Bureau of the Budget. If on the last 32 business day of any month in which Bonds are outstanding 33 pursuant to the Build Illinois Bond Act, the aggregate of 34 moneys deposited in the Build Illinois Bond Account in the SB1310 Enrolled -73- LRB9110257SMdv 1 Build Illinois Fund in such month shall be less than the 2 amount required to be transferred in such month from the 3 Build Illinois Bond Account to the Build Illinois Bond 4 Retirement and Interest Fund pursuant to Section 13 of the 5 Build Illinois Bond Act, an amount equal to such deficiency 6 shall be immediately paid from other moneys received by the 7 Department pursuant to the Tax Acts to the Build Illinois 8 Fund; provided, however, that any amounts paid to the Build 9 Illinois Fund in any fiscal year pursuant to this sentence 10 shall be deemed to constitute payments pursuant to clause (b) 11 of the first sentence of this paragraph and shall reduce the 12 amount otherwise payable for such fiscal year pursuant to 13 that clause (b). The moneys received by the Department 14 pursuant to this Act and required to be deposited into the 15 Build Illinois Fund are subject to the pledge, claim and 16 charge set forth in Section 12 of the Build Illinois Bond 17 Act. 18 Subject to payment of amounts into the Build Illinois 19 Fund as provided in the preceding paragraph or in any 20 amendment thereto hereafter enacted, the following specified 21 monthly installment of the amount requested in the 22 certificate of the Chairman of the Metropolitan Pier and 23 Exposition Authority provided under Section 8.25f of the 24 State Finance Act, but not in excess of sums designated as 25 "Total Deposit", shall be deposited in the aggregate from 26 collections under Section 9 of the Use Tax Act, Section 9 of 27 the Service Use Tax Act, Section 9 of the Service Occupation 28 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 29 into the McCormick Place Expansion Project Fund in the 30 specified fiscal years. 31 Fiscal Year Total Deposit 32 1993 $0 33 1994 53,000,000 34 1995 58,000,000 SB1310 Enrolled -74- LRB9110257SMdv 1 1996 61,000,000 2 1997 64,000,000 3 1998 68,000,000 4 1999 71,000,000 5 2000 75,000,000 6 2001 80,000,000 7 2002 84,000,000 8 2003 89,000,000 9 2004 93,000,000 10 2005 97,000,000 11 2006 102,000,000 12 2007 108,000,000 13 2008 115,000,000 14 2009 120,000,000 15 2010 126,000,000 16 2011 132,000,000 17 2012 138,000,000 18 2013 and 145,000,000 19 each fiscal year 20 thereafter that bonds 21 are outstanding under 22 Section 13.2 of the 23 Metropolitan Pier and 24 Exposition Authority 25 Act, but not after fiscal year 2029. 26 Beginning July 20, 1993 and in each month of each fiscal 27 year thereafter, one-eighth of the amount requested in the 28 certificate of the Chairman of the Metropolitan Pier and 29 Exposition Authority for that fiscal year, less the amount 30 deposited into the McCormick Place Expansion Project Fund by 31 the State Treasurer in the respective month under subsection 32 (g) of Section 13 of the Metropolitan Pier and Exposition 33 Authority Act, plus cumulative deficiencies in the deposits 34 required under this Section for previous months and years, SB1310 Enrolled -75- LRB9110257SMdv 1 shall be deposited into the McCormick Place Expansion Project 2 Fund, until the full amount requested for the fiscal year, 3 but not in excess of the amount specified above as "Total 4 Deposit", has been deposited. 5 Subject to payment of amounts into the Build Illinois 6 Fund and the McCormick Place Expansion Project Fund pursuant 7 to the preceding paragraphs or in any amendment thereto 8 hereafter enacted, each month the Department shall pay into 9 the Local Government Distributive Fund 0.4% of the net 10 revenue realized for the preceding month from the 5% general 11 rate or 0.4% of 80% of the net revenue realized for the 12 preceding month from the 6.25% general rate, as the case may 13 be, on the selling price of tangible personal property which 14 amount shall, subject to appropriation, be distributed as 15 provided in Section 2 of the State Revenue Sharing Act. No 16 payments or distributions pursuant to this paragraph shall be 17 made if the tax imposed by this Act on photoprocessing 18 products is declared unconstitutional, or if the proceeds 19 from such tax are unavailable for distribution because of 20 litigation. 21 Subject to payment of amounts into the Build Illinois 22 Fund, the McCormick Place Expansion Project to the preceding 23 paragraphs or in any amendments thereto hereafter enacted, 24 beginning July 1, 1993, the Department shall each month pay 25 into the Illinois Tax Increment Fund 0.27% of 80% of the net 26 revenue realized for the preceding month from the 6.25% 27 general rate on the selling price of tangible personal 28 property. 29 Of the remainder of the moneys received by the Department 30 pursuant to this Act, 75% thereof shall be paid into the 31 State Treasury and 25% shall be reserved in a special account 32 and used only for the transfer to the Common School Fund as 33 part of the monthly transfer from the General Revenue Fund in 34 accordance with Section 8a of the State Finance Act. SB1310 Enrolled -76- LRB9110257SMdv 1 The Department may, upon separate written notice to a 2 taxpayer, require the taxpayer to prepare and file with the 3 Department on a form prescribed by the Department within not 4 less than 60 days after receipt of the notice an annual 5 information return for the tax year specified in the notice. 6 Such annual return to the Department shall include a 7 statement of gross receipts as shown by the retailer's last 8 Federal income tax return. If the total receipts of the 9 business as reported in the Federal income tax return do not 10 agree with the gross receipts reported to the Department of 11 Revenue for the same period, the retailer shall attach to his 12 annual return a schedule showing a reconciliation of the 2 13 amounts and the reasons for the difference. The retailer's 14 annual return to the Department shall also disclose the cost 15 of goods sold by the retailer during the year covered by such 16 return, opening and closing inventories of such goods for 17 such year, costs of goods used from stock or taken from stock 18 and given away by the retailer during such year, payroll 19 information of the retailer's business during such year and 20 any additional reasonable information which the Department 21 deems would be helpful in determining the accuracy of the 22 monthly, quarterly or annual returns filed by such retailer 23 as provided for in this Section. 24 If the annual information return required by this Section 25 is not filed when and as required, the taxpayer shall be 26 liable as follows: 27 (i) Until January 1, 1994, the taxpayer shall be 28 liable for a penalty equal to 1/6 of 1% of the tax due 29 from such taxpayer under this Act during the period to be 30 covered by the annual return for each month or fraction 31 of a month until such return is filed as required, the 32 penalty to be assessed and collected in the same manner 33 as any other penalty provided for in this Act. 34 (ii) On and after January 1, 1994, the taxpayer SB1310 Enrolled -77- LRB9110257SMdv 1 shall be liable for a penalty as described in Section 3-4 2 of the Uniform Penalty and Interest Act. 3 The chief executive officer, proprietor, owner or highest 4 ranking manager shall sign the annual return to certify the 5 accuracy of the information contained therein. Any person 6 who willfully signs the annual return containing false or 7 inaccurate information shall be guilty of perjury and 8 punished accordingly. The annual return form prescribed by 9 the Department shall include a warning that the person 10 signing the return may be liable for perjury. 11 The provisions of this Section concerning the filing of 12 an annual information return do not apply to a retailer who 13 is not required to file an income tax return with the United 14 States Government. 15 As soon as possible after the first day of each month, 16 upon certification of the Department of Revenue, the 17 Comptroller shall order transferred and the Treasurer shall 18 transfer from the General Revenue Fund to the Motor Fuel Tax 19 Fund an amount equal to 1.7% of 80% of the net revenue 20 realized under this Act for the second preceding month. 21 Beginning April 1, 2000, this transfer is no longer required 22 and shall not be made. 23 Net revenue realized for a month shall be the revenue 24 collected by the State pursuant to this Act, less the amount 25 paid out during that month as refunds to taxpayers for 26 overpayment of liability. 27 For greater simplicity of administration, manufacturers, 28 importers and wholesalers whose products are sold at retail 29 in Illinois by numerous retailers, and who wish to do so, may 30 assume the responsibility for accounting and paying to the 31 Department all tax accruing under this Act with respect to 32 such sales, if the retailers who are affected do not make 33 written objection to the Department to this arrangement. 34 Any person who promotes, organizes, provides retail SB1310 Enrolled -78- LRB9110257SMdv 1 selling space for concessionaires or other types of sellers 2 at the Illinois State Fair, DuQuoin State Fair, county fairs, 3 local fairs, art shows, flea markets and similar exhibitions 4 or events, including any transient merchant as defined by 5 Section 2 of the Transient Merchant Act of 1987, is required 6 to file a report with the Department providing the name of 7 the merchant's business, the name of the person or persons 8 engaged in merchant's business, the permanent address and 9 Illinois Retailers Occupation Tax Registration Number of the 10 merchant, the dates and location of the event and other 11 reasonable information that the Department may require. The 12 report must be filed not later than the 20th day of the month 13 next following the month during which the event with retail 14 sales was held. Any person who fails to file a report 15 required by this Section commits a business offense and is 16 subject to a fine not to exceed $250. 17 Any person engaged in the business of selling tangible 18 personal property at retail as a concessionaire or other type 19 of seller at the Illinois State Fair, county fairs, art 20 shows, flea markets and similar exhibitions or events, or any 21 transient merchants, as defined by Section 2 of the Transient 22 Merchant Act of 1987, may be required to make a daily report 23 of the amount of such sales to the Department and to make a 24 daily payment of the full amount of tax due. The Department 25 shall impose this requirement when it finds that there is a 26 significant risk of loss of revenue to the State at such an 27 exhibition or event. Such a finding shall be based on 28 evidence that a substantial number of concessionaires or 29 other sellers who are not residents of Illinois will be 30 engaging in the business of selling tangible personal 31 property at retail at the exhibition or event, or other 32 evidence of a significant risk of loss of revenue to the 33 State. The Department shall notify concessionaires and other 34 sellers affected by the imposition of this requirement. In SB1310 Enrolled -79- LRB9110257SMdv 1 the absence of notification by the Department, the 2 concessionaires and other sellers shall file their returns as 3 otherwise required in this Section. 4 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 5 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 6 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.) 7 Section 22. The Motor Fuel Tax Law is amended by 8 changing Section 13a as follows: 9 (35 ILCS 505/13a) (from Ch. 120, par. 429a) 10 Sec. 13a. (1) A tax is hereby imposed upon the use of 11 motor fuel upon highways of this State by commercial motor 12 vehicles. The tax shall be comprised of 2 parts. Part (a) 13 shall be at the rate established by Section 2 of this Act, as 14 heretofore or hereafter amended. Part (b) shall be at the 15 rate established by subsection (2) of this Section as now or 16 hereafter amended. 17 (2) A rate shall be established by the Department as of 18 January 1 of each year using the average "selling price", as 19 defined in the Retailers' Occupation Tax Act, per gallon of 20 motor fuel sold in this State during the previous 12 months 21 and multiplying it by 6 1/4% to determine the cents per 22 gallon rate. For the period beginning on July 1, 2000 and 23 through December 31, 2000, the Department shall establish a 24 rate using the average "selling price", as defined in the 25 Retailers' Occupation Tax Act, per gallon of motor fuel sold 26 in this State during calendar year 1999 and multiplying it by 27 1.25% to determine the cents per gallon rate. 28 (Source: P.A. 88-480.) SB1310 Enrolled -80- LRB9110257SMdv 1 Section 99. Effective date. This Act takes effect on 2 July 1, 2000.