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92_SB0984eng SB984 Engrossed LRB9208148SMdv 1 AN ACT regarding taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by changing 5 Sections 6z-18 and 6z-20 as follows: 6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18) 7 Sec. 6z-18. A portion of the money paid into the Local 8 Government Tax Fund from sales of food for human consumption 9 which is to be consumed off the premises where it is sold 10 (other than alcoholic beverages, soft drinks and food which 11 has been prepared for immediate consumption) and prescription 12 and nonprescription medicines, drugs, medical appliances and 13 insulin, urine testing materials, syringes and needles used 14 by diabetics, which occurred in municipalities, shall be 15 distributed to each municipality based upon the sales which 16 occurred in that municipality. The remainder shall be 17 distributed to each county based upon the sales which 18 occurred in the unincorporated area of that county. 19 A portion of the money paid into the Local Government Tax 20 Fund from the 6.25% general use tax rate on the selling price 21 of tangible personal property which is purchased outside 22 Illinois at retail from a retailer and which is titled or 23 registered by any agency of this State's government shall be 24 distributed to municipalities as provided in this paragraph. 25 Each municipality shall receive the amount attributable to 26 sales for which Illinois addresses for titling or 27 registration purposes are given as being in such 28 municipality. The remainder of the money paid into the Local 29 Government Tax Fund from such sales shall be distributed to 30 counties. Each county shall receive the amount attributable 31 to sales for which Illinois addresses for titling or SB984 Engrossed -2- LRB9208148SMdv 1 registration purposes are given as being located in the 2 unincorporated area of such county. 3 A portion of the money paid into the Local Government Tax 4 Fund from the 6.25% general rate (and, beginning July 1, 2000 5 and through December 31, 2000, the 1.25% rate on motor fuel 6 and gasohol and, beginning January 1, 2002 and through 7 December 31, 2005, the 1.25% rate on energy efficient 8 appliances) on sales subject to taxation under the Retailers' 9 Occupation Tax Act and the Service Occupation Tax Act, which 10 occurred in municipalities, shall be distributed to each 11 municipality, based upon the sales which occurred in that 12 municipality. The remainder shall be distributed to each 13 county, based upon the sales which occurred in the 14 unincorporated area of such county. 15 For the purpose of determining allocation to the local 16 government unit, a retail sale by a producer of coal or other 17 mineral mined in Illinois is a sale at retail at the place 18 where the coal or other mineral mined in Illinois is 19 extracted from the earth. This paragraph does not apply to 20 coal or other mineral when it is delivered or shipped by the 21 seller to the purchaser at a point outside Illinois so that 22 the sale is exempt under the United States Constitution as a 23 sale in interstate or foreign commerce. 24 Whenever the Department determines that a refund of money 25 paid into the Local Government Tax Fund should be made to a 26 claimant instead of issuing a credit memorandum, the 27 Department shall notify the State Comptroller, who shall 28 cause the order to be drawn for the amount specified, and to 29 the person named, in such notification from the Department. 30 Such refund shall be paid by the State Treasurer out of the 31 Local Government Tax Fund. 32 On or before the 25th day of each calendar month, the 33 Department shall prepare and certify to the Comptroller the 34 disbursement of stated sums of money to named municipalities SB984 Engrossed -3- LRB9208148SMdv 1 and counties, the municipalities and counties to be those 2 entitled to distribution of taxes or penalties paid to the 3 Department during the second preceding calendar month. The 4 amount to be paid to each municipality or county shall be the 5 amount (not including credit memoranda) collected during the 6 second preceding calendar month by the Department and paid 7 into the Local Government Tax Fund, plus an amount the 8 Department determines is necessary to offset any amounts 9 which were erroneously paid to a different taxing body, and 10 not including an amount equal to the amount of refunds made 11 during the second preceding calendar month by the Department, 12 and not including any amount which the Department determines 13 is necessary to offset any amounts which are payable to a 14 different taxing body but were erroneously paid to the 15 municipality or county. Within 10 days after receipt, by the 16 Comptroller, of the disbursement certification to the 17 municipalities and counties, provided for in this Section to 18 be given to the Comptroller by the Department, the 19 Comptroller shall cause the orders to be drawn for the 20 respective amounts in accordance with the directions 21 contained in such certification. 22 When certifying the amount of monthly disbursement to a 23 municipality or county under this Section, the Department 24 shall increase or decrease that amount by an amount necessary 25 to offset any misallocation of previous disbursements. The 26 offset amount shall be the amount erroneously disbursed 27 within the 6 months preceding the time a misallocation is 28 discovered. 29 The provisions directing the distributions from the 30 special fund in the State Treasury provided for in this 31 Section shall constitute an irrevocable and continuing 32 appropriation of all amounts as provided herein. The State 33 Treasurer and State Comptroller are hereby authorized to make 34 distributions as provided in this Section. SB984 Engrossed -4- LRB9208148SMdv 1 In construing any development, redevelopment, annexation, 2 preannexation or other lawful agreement in effect prior to 3 September 1, 1990, which describes or refers to receipts from 4 a county or municipal retailers' occupation tax, use tax or 5 service occupation tax which now cannot be imposed, such 6 description or reference shall be deemed to include the 7 replacement revenue for such abolished taxes, distributed 8 from the Local Government Tax Fund. 9 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 10 91-872, eff. 7-1-00.) 11 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20) 12 Sec. 6z-20. Of the money received from the 6.25% general 13 rate (and, beginning July 1, 2000 and through December 31, 14 2000, the 1.25% rate on motor fuel and gasohol and, beginning 15 January 1, 2002 and through December 31, 2005, the 1.25% rate 16 on energy efficient appliances) on sales subject to taxation 17 under the Retailers' Occupation Tax Act and Service 18 Occupation Tax Act and paid into the County and Mass Transit 19 District Fund, distribution to the Regional Transportation 20 Authority tax fund, created pursuant to Section 4.03 of the 21 Regional Transportation Authority Act, for deposit therein 22 shall be made based upon the retail sales occurring in a 23 county having more than 3,000,000 inhabitants. The remainder 24 shall be distributed to each county having 3,000,000 or fewer 25 inhabitants based upon the retail sales occurring in each 26 such county. 27 For the purpose of determining allocation to the local 28 government unit, a retail sale by a producer of coal or other 29 mineral mined in Illinois is a sale at retail at the place 30 where the coal or other mineral mined in Illinois is 31 extracted from the earth. This paragraph does not apply to 32 coal or other mineral when it is delivered or shipped by the 33 seller to the purchaser at a point outside Illinois so that SB984 Engrossed -5- LRB9208148SMdv 1 the sale is exempt under the United States Constitution as a 2 sale in interstate or foreign commerce. 3 Of the money received from the 6.25% general use tax rate 4 on tangible personal property which is purchased outside 5 Illinois at retail from a retailer and which is titled or 6 registered by any agency of this State's government and paid 7 into the County and Mass Transit District Fund, the amount 8 for which Illinois addresses for titling or registration 9 purposes are given as being in each county having more than 10 3,000,000 inhabitants shall be distributed into the Regional 11 Transportation Authority tax fund, created pursuant to 12 Section 4.03 of the Regional Transportation Authority Act. 13 The remainder of the money paid from such sales shall be 14 distributed to each county based on sales for which Illinois 15 addresses for titling or registration purposes are given as 16 being located in the county. Any money paid into the 17 Regional Transportation Authority Occupation and Use Tax 18 Replacement Fund from the County and Mass Transit District 19 Fund prior to January 14, 1991, which has not been paid to 20 the Authority prior to that date, shall be transferred to the 21 Regional Transportation Authority tax fund. 22 Whenever the Department determines that a refund of money 23 paid into the County and Mass Transit District Fund should be 24 made to a claimant instead of issuing a credit memorandum, 25 the Department shall notify the State Comptroller, who shall 26 cause the order to be drawn for the amount specified, and to 27 the person named, in such notification from the Department. 28 Such refund shall be paid by the State Treasurer out of the 29 County and Mass Transit District Fund. 30 On or before the 25th day of each calendar month, the 31 Department shall prepare and certify to the Comptroller the 32 disbursement of stated sums of money to the Regional 33 Transportation Authority and to named counties, the counties 34 to be those entitled to distribution, as hereinabove SB984 Engrossed -6- LRB9208148SMdv 1 provided, of taxes or penalties paid to the Department during 2 the second preceding calendar month. The amount to be paid 3 to the Regional Transportation Authority and each county 4 having 3,000,000 or fewer inhabitants shall be the amount 5 (not including credit memoranda) collected during the second 6 preceding calendar month by the Department and paid into the 7 County and Mass Transit District Fund, plus an amount the 8 Department determines is necessary to offset any amounts 9 which were erroneously paid to a different taxing body, and 10 not including an amount equal to the amount of refunds made 11 during the second preceding calendar month by the Department, 12 and not including any amount which the Department determines 13 is necessary to offset any amounts which were payable to a 14 different taxing body but were erroneously paid to the 15 Regional Transportation Authority or county. Within 10 days 16 after receipt, by the Comptroller, of the disbursement 17 certification to the Regional Transportation Authority and 18 counties, provided for in this Section to be given to the 19 Comptroller by the Department, the Comptroller shall cause 20 the orders to be drawn for the respective amounts in 21 accordance with the directions contained in such 22 certification. 23 When certifying the amount of a monthly disbursement to 24 the Regional Transportation Authority or to a county under 25 this Section, the Department shall increase or decrease that 26 amount by an amount necessary to offset any misallocation of 27 previous disbursements. The offset amount shall be the 28 amount erroneously disbursed within the 6 months preceding 29 the time a misallocation is discovered. 30 The provisions directing the distributions from the 31 special fund in the State Treasury provided for in this 32 Section and from the Regional Transportation Authority tax 33 fund created by Section 4.03 of the Regional Transportation 34 Authority Act shall constitute an irrevocable and continuing SB984 Engrossed -7- LRB9208148SMdv 1 appropriation of all amounts as provided herein. The State 2 Treasurer and State Comptroller are hereby authorized to make 3 distributions as provided in this Section. 4 In construing any development, redevelopment, annexation, 5 preannexation or other lawful agreement in effect prior to 6 September 1, 1990, which describes or refers to receipts from 7 a county or municipal retailers' occupation tax, use tax or 8 service occupation tax which now cannot be imposed, such 9 description or reference shall be deemed to include the 10 replacement revenue for such abolished taxes, distributed 11 from the County and Mass Transit District Fund or Local 12 Government Distributive Fund, as the case may be. 13 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.) 14 Section 10. The Use Tax Act is amended by changing 15 Sections 3-10 and 9 as follows: 16 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 17 Sec. 3-10. Rate of tax. Unless otherwise provided in 18 this Section, the tax imposed by this Act is at the rate of 19 6.25% of either the selling price or the fair market value, 20 if any, of the tangible personal property. In all cases 21 where property functionally used or consumed is the same as 22 the property that was purchased at retail, then the tax is 23 imposed on the selling price of the property. In all cases 24 where property functionally used or consumed is a by-product 25 or waste product that has been refined, manufactured, or 26 produced from property purchased at retail, then the tax is 27 imposed on the lower of the fair market value, if any, of the 28 specific property so used in this State or on the selling 29 price of the property purchased at retail. For purposes of 30 this Section "fair market value" means the price at which 31 property would change hands between a willing buyer and a 32 willing seller, neither being under any compulsion to buy or SB984 Engrossed -8- LRB9208148SMdv 1 sell and both having reasonable knowledge of the relevant 2 facts. The fair market value shall be established by Illinois 3 sales by the taxpayer of the same property as that 4 functionally used or consumed, or if there are no such sales 5 by the taxpayer, then comparable sales or purchases of 6 property of like kind and character in Illinois. 7 Beginning on July 1, 2000 and through December 31, 2000, 8 with respect to motor fuel, as defined in Section 1.1 of the 9 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 10 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 11 With respect to gasohol, the tax imposed by this Act 12 applies to 70% of the proceeds of sales made on or after 13 January 1, 1990, and before July 1, 2003, and to 100% of the 14 proceeds of sales made thereafter. 15 Beginning January 1, 2002 and through December 31, 2005, 16 with respect to energy efficient appliances, the tax is 17 imposed at the rate of 1.25%. "Energy efficient appliances" 18 are clothes washers, refrigerators, and dishwashers that meet 19 or exceed applicable energy saving efficiency requirements 20 developed by the United States Department of Energy for the 21 Energy Star Program. The Department of Revenue, in 22 consultation with manufacturers, retailers, and public 23 interest groups, must develop public information programs and 24 materials to identify and encourage the sales of products 25 eligible for this tax reduction. 26 With respect to food for human consumption that is to be 27 consumed off the premises where it is sold (other than 28 alcoholic beverages, soft drinks, and food that has been 29 prepared for immediate consumption) and prescription and 30 nonprescription medicines, drugs, medical appliances, 31 modifications to a motor vehicle for the purpose of rendering 32 it usable by a disabled person, and insulin, urine testing 33 materials, syringes, and needles used by diabetics, for human 34 use, the tax is imposed at the rate of 1%. For the purposes SB984 Engrossed -9- LRB9208148SMdv 1 of this Section, the term "soft drinks" means any complete, 2 finished, ready-to-use, non-alcoholic drink, whether 3 carbonated or not, including but not limited to soda water, 4 cola, fruit juice, vegetable juice, carbonated water, and all 5 other preparations commonly known as soft drinks of whatever 6 kind or description that are contained in any closed or 7 sealed bottle, can, carton, or container, regardless of size. 8 "Soft drinks" does not include coffee, tea, non-carbonated 9 water, infant formula, milk or milk products as defined in 10 the Grade A Pasteurized Milk and Milk Products Act, or drinks 11 containing 50% or more natural fruit or vegetable juice. 12 Notwithstanding any other provisions of this Act, "food 13 for human consumption that is to be consumed off the premises 14 where it is sold" includes all food sold through a vending 15 machine, except soft drinks and food products that are 16 dispensed hot from a vending machine, regardless of the 17 location of the vending machine. 18 If the property that is purchased at retail from a 19 retailer is acquired outside Illinois and used outside 20 Illinois before being brought to Illinois for use here and is 21 taxable under this Act, the "selling price" on which the tax 22 is computed shall be reduced by an amount that represents a 23 reasonable allowance for depreciation for the period of prior 24 out-of-state use. 25 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 26 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 27 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 28 Sec. 9. Except as to motor vehicles, watercraft, 29 aircraft, and trailers that are required to be registered 30 with an agency of this State, each retailer required or 31 authorized to collect the tax imposed by this Act shall pay 32 to the Department the amount of such tax (except as otherwise 33 provided) at the time when he is required to file his return SB984 Engrossed -10- LRB9208148SMdv 1 for the period during which such tax was collected, less a 2 discount of 2.1% prior to January 1, 1990, and 1.75% on and 3 after January 1, 1990, or $5 per calendar year, whichever is 4 greater, which is allowed to reimburse the retailer for 5 expenses incurred in collecting the tax, keeping records, 6 preparing and filing returns, remitting the tax and supplying 7 data to the Department on request. In the case of retailers 8 who report and pay the tax on a transaction by transaction 9 basis, as provided in this Section, such discount shall be 10 taken with each such tax remittance instead of when such 11 retailer files his periodic return. A retailer need not 12 remit that part of any tax collected by him to the extent 13 that he is required to remit and does remit the tax imposed 14 by the Retailers' Occupation Tax Act, with respect to the 15 sale of the same property. 16 Where such tangible personal property is sold under a 17 conditional sales contract, or under any other form of sale 18 wherein the payment of the principal sum, or a part thereof, 19 is extended beyond the close of the period for which the 20 return is filed, the retailer, in collecting the tax (except 21 as to motor vehicles, watercraft, aircraft, and trailers that 22 are required to be registered with an agency of this State), 23 may collect for each tax return period, only the tax 24 applicable to that part of the selling price actually 25 received during such tax return period. 26 Except as provided in this Section, on or before the 27 twentieth day of each calendar month, such retailer shall 28 file a return for the preceding calendar month. Such return 29 shall be filed on forms prescribed by the Department and 30 shall furnish such information as the Department may 31 reasonably require. 32 The Department may require returns to be filed on a 33 quarterly basis. If so required, a return for each calendar 34 quarter shall be filed on or before the twentieth day of the SB984 Engrossed -11- LRB9208148SMdv 1 calendar month following the end of such calendar quarter. 2 The taxpayer shall also file a return with the Department for 3 each of the first two months of each calendar quarter, on or 4 before the twentieth day of the following calendar month, 5 stating: 6 1. The name of the seller; 7 2. The address of the principal place of business 8 from which he engages in the business of selling tangible 9 personal property at retail in this State; 10 3. The total amount of taxable receipts received by 11 him during the preceding calendar month from sales of 12 tangible personal property by him during such preceding 13 calendar month, including receipts from charge and time 14 sales, but less all deductions allowed by law; 15 4. The amount of credit provided in Section 2d of 16 this Act; 17 5. The amount of tax due; 18 5-5. The signature of the taxpayer; and 19 6. Such other reasonable information as the 20 Department may require. 21 If a taxpayer fails to sign a return within 30 days after 22 the proper notice and demand for signature by the Department, 23 the return shall be considered valid and any amount shown to 24 be due on the return shall be deemed assessed. 25 Beginning October 1, 1993, a taxpayer who has an average 26 monthly tax liability of $150,000 or more shall make all 27 payments required by rules of the Department by electronic 28 funds transfer. Beginning October 1, 1994, a taxpayer who has 29 an average monthly tax liability of $100,000 or more shall 30 make all payments required by rules of the Department by 31 electronic funds transfer. Beginning October 1, 1995, a 32 taxpayer who has an average monthly tax liability of $50,000 33 or more shall make all payments required by rules of the 34 Department by electronic funds transfer. Beginning October 1, SB984 Engrossed -12- LRB9208148SMdv 1 2000, a taxpayer who has an annual tax liability of $200,000 2 or more shall make all payments required by rules of the 3 Department by electronic funds transfer. The term "annual 4 tax liability" shall be the sum of the taxpayer's liabilities 5 under this Act, and under all other State and local 6 occupation and use tax laws administered by the Department, 7 for the immediately preceding calendar year. The term 8 "average monthly tax liability" means the sum of the 9 taxpayer's liabilities under this Act, and under all other 10 State and local occupation and use tax laws administered by 11 the Department, for the immediately preceding calendar year 12 divided by 12. 13 Before August 1 of each year beginning in 1993, the 14 Department shall notify all taxpayers required to make 15 payments by electronic funds transfer. All taxpayers required 16 to make payments by electronic funds transfer shall make 17 those payments for a minimum of one year beginning on October 18 1. 19 Any taxpayer not required to make payments by electronic 20 funds transfer may make payments by electronic funds transfer 21 with the permission of the Department. 22 All taxpayers required to make payment by electronic 23 funds transfer and any taxpayers authorized to voluntarily 24 make payments by electronic funds transfer shall make those 25 payments in the manner authorized by the Department. 26 The Department shall adopt such rules as are necessary to 27 effectuate a program of electronic funds transfer and the 28 requirements of this Section. 29 Before October 1, 2000, if the taxpayer's average monthly 30 tax liability to the Department under this Act, the 31 Retailers' Occupation Tax Act, the Service Occupation Tax 32 Act, the Service Use Tax Act was $10,000 or more during the 33 preceding 4 complete calendar quarters, he shall file a 34 return with the Department each month by the 20th day of the SB984 Engrossed -13- LRB9208148SMdv 1 month next following the month during which such tax 2 liability is incurred and shall make payments to the 3 Department on or before the 7th, 15th, 22nd and last day of 4 the month during which such liability is incurred. On and 5 after October 1, 2000, if the taxpayer's average monthly tax 6 liability to the Department under this Act, the Retailers' 7 Occupation Tax Act, the Service Occupation Tax Act, and the 8 Service Use Tax Act was $20,000 or more during the preceding 9 4 complete calendar quarters, he shall file a return with the 10 Department each month by the 20th day of the month next 11 following the month during which such tax liability is 12 incurred and shall make payment to the Department on or 13 before the 7th, 15th, 22nd and last day of the month during 14 which such liability is incurred. If the month during which 15 such tax liability is incurred began prior to January 1, 16 1985, each payment shall be in an amount equal to 1/4 of the 17 taxpayer's actual liability for the month or an amount set by 18 the Department not to exceed 1/4 of the average monthly 19 liability of the taxpayer to the Department for the preceding 20 4 complete calendar quarters (excluding the month of highest 21 liability and the month of lowest liability in such 4 quarter 22 period). If the month during which such tax liability is 23 incurred begins on or after January 1, 1985, and prior to 24 January 1, 1987, each payment shall be in an amount equal to 25 22.5% of the taxpayer's actual liability for the month or 26 27.5% of the taxpayer's liability for the same calendar month 27 of the preceding year. If the month during which such tax 28 liability is incurred begins on or after January 1, 1987, and 29 prior to January 1, 1988, each payment shall be in an amount 30 equal to 22.5% of the taxpayer's actual liability for the 31 month or 26.25% of the taxpayer's liability for the same 32 calendar month of the preceding year. If the month during 33 which such tax liability is incurred begins on or after 34 January 1, 1988, and prior to January 1, 1989, or begins on SB984 Engrossed -14- LRB9208148SMdv 1 or after January 1, 1996, each payment shall be in an amount 2 equal to 22.5% of the taxpayer's actual liability for the 3 month or 25% of the taxpayer's liability for the same 4 calendar month of the preceding year. If the month during 5 which such tax liability is incurred begins on or after 6 January 1, 1989, and prior to January 1, 1996, each payment 7 shall be in an amount equal to 22.5% of the taxpayer's actual 8 liability for the month or 25% of the taxpayer's liability 9 for the same calendar month of the preceding year or 100% of 10 the taxpayer's actual liability for the quarter monthly 11 reporting period. The amount of such quarter monthly 12 payments shall be credited against the final tax liability of 13 the taxpayer's return for that month. Before October 1, 14 2000, once applicable, the requirement of the making of 15 quarter monthly payments to the Department shall continue 16 until such taxpayer's average monthly liability to the 17 Department during the preceding 4 complete calendar quarters 18 (excluding the month of highest liability and the month of 19 lowest liability) is less than $9,000, or until such 20 taxpayer's average monthly liability to the Department as 21 computed for each calendar quarter of the 4 preceding 22 complete calendar quarter period is less than $10,000. 23 However, if a taxpayer can show the Department that a 24 substantial change in the taxpayer's business has occurred 25 which causes the taxpayer to anticipate that his average 26 monthly tax liability for the reasonably foreseeable future 27 will fall below the $10,000 threshold stated above, then such 28 taxpayer may petition the Department for change in such 29 taxpayer's reporting status. On and after October 1, 2000, 30 once applicable, the requirement of the making of quarter 31 monthly payments to the Department shall continue until such 32 taxpayer's average monthly liability to the Department during 33 the preceding 4 complete calendar quarters (excluding the 34 month of highest liability and the month of lowest liability) SB984 Engrossed -15- LRB9208148SMdv 1 is less than $19,000 or until such taxpayer's average monthly 2 liability to the Department as computed for each calendar 3 quarter of the 4 preceding complete calendar quarter period 4 is less than $20,000. However, if a taxpayer can show the 5 Department that a substantial change in the taxpayer's 6 business has occurred which causes the taxpayer to anticipate 7 that his average monthly tax liability for the reasonably 8 foreseeable future will fall below the $20,000 threshold 9 stated above, then such taxpayer may petition the Department 10 for a change in such taxpayer's reporting status. The 11 Department shall change such taxpayer's reporting status 12 unless it finds that such change is seasonal in nature and 13 not likely to be long term. If any such quarter monthly 14 payment is not paid at the time or in the amount required by 15 this Section, then the taxpayer shall be liable for penalties 16 and interest on the difference between the minimum amount due 17 and the amount of such quarter monthly payment actually and 18 timely paid, except insofar as the taxpayer has previously 19 made payments for that month to the Department in excess of 20 the minimum payments previously due as provided in this 21 Section. The Department shall make reasonable rules and 22 regulations to govern the quarter monthly payment amount and 23 quarter monthly payment dates for taxpayers who file on other 24 than a calendar monthly basis. 25 If any such payment provided for in this Section exceeds 26 the taxpayer's liabilities under this Act, the Retailers' 27 Occupation Tax Act, the Service Occupation Tax Act and the 28 Service Use Tax Act, as shown by an original monthly return, 29 the Department shall issue to the taxpayer a credit 30 memorandum no later than 30 days after the date of payment, 31 which memorandum may be submitted by the taxpayer to the 32 Department in payment of tax liability subsequently to be 33 remitted by the taxpayer to the Department or be assigned by 34 the taxpayer to a similar taxpayer under this Act, the SB984 Engrossed -16- LRB9208148SMdv 1 Retailers' Occupation Tax Act, the Service Occupation Tax Act 2 or the Service Use Tax Act, in accordance with reasonable 3 rules and regulations to be prescribed by the Department, 4 except that if such excess payment is shown on an original 5 monthly return and is made after December 31, 1986, no credit 6 memorandum shall be issued, unless requested by the taxpayer. 7 If no such request is made, the taxpayer may credit such 8 excess payment against tax liability subsequently to be 9 remitted by the taxpayer to the Department under this Act, 10 the Retailers' Occupation Tax Act, the Service Occupation Tax 11 Act or the Service Use Tax Act, in accordance with reasonable 12 rules and regulations prescribed by the Department. If the 13 Department subsequently determines that all or any part of 14 the credit taken was not actually due to the taxpayer, the 15 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 16 by 2.1% or 1.75% of the difference between the credit taken 17 and that actually due, and the taxpayer shall be liable for 18 penalties and interest on such difference. 19 If the retailer is otherwise required to file a monthly 20 return and if the retailer's average monthly tax liability to 21 the Department does not exceed $200, the Department may 22 authorize his returns to be filed on a quarter annual basis, 23 with the return for January, February, and March of a given 24 year being due by April 20 of such year; with the return for 25 April, May and June of a given year being due by July 20 of 26 such year; with the return for July, August and September of 27 a given year being due by October 20 of such year, and with 28 the return for October, November and December of a given year 29 being due by January 20 of the following year. 30 If the retailer is otherwise required to file a monthly 31 or quarterly return and if the retailer's average monthly tax 32 liability to the Department does not exceed $50, the 33 Department may authorize his returns to be filed on an annual 34 basis, with the return for a given year being due by January SB984 Engrossed -17- LRB9208148SMdv 1 20 of the following year. 2 Such quarter annual and annual returns, as to form and 3 substance, shall be subject to the same requirements as 4 monthly returns. 5 Notwithstanding any other provision in this Act 6 concerning the time within which a retailer may file his 7 return, in the case of any retailer who ceases to engage in a 8 kind of business which makes him responsible for filing 9 returns under this Act, such retailer shall file a final 10 return under this Act with the Department not more than one 11 month after discontinuing such business. 12 In addition, with respect to motor vehicles, watercraft, 13 aircraft, and trailers that are required to be registered 14 with an agency of this State, every retailer selling this 15 kind of tangible personal property shall file, with the 16 Department, upon a form to be prescribed and supplied by the 17 Department, a separate return for each such item of tangible 18 personal property which the retailer sells, except that if, 19 in the same transaction, (i) a retailer of aircraft, 20 watercraft, motor vehicles or trailers transfers more than 21 one aircraft, watercraft, motor vehicle or trailer to another 22 aircraft, watercraft, motor vehicle or trailer retailer for 23 the purpose of resale or (ii) a retailer of aircraft, 24 watercraft, motor vehicles, or trailers transfers more than 25 one aircraft, watercraft, motor vehicle, or trailer to a 26 purchaser for use as a qualifying rolling stock as provided 27 in Section 3-55 of this Act, then that seller may report the 28 transfer of all the aircraft, watercraft, motor vehicles or 29 trailers involved in that transaction to the Department on 30 the same uniform invoice-transaction reporting return form. 31 For purposes of this Section, "watercraft" means a Class 2, 32 Class 3, or Class 4 watercraft as defined in Section 3-2 of 33 the Boat Registration and Safety Act, a personal watercraft, 34 or any boat equipped with an inboard motor. SB984 Engrossed -18- LRB9208148SMdv 1 The transaction reporting return in the case of motor 2 vehicles or trailers that are required to be registered with 3 an agency of this State, shall be the same document as the 4 Uniform Invoice referred to in Section 5-402 of the Illinois 5 Vehicle Code and must show the name and address of the 6 seller; the name and address of the purchaser; the amount of 7 the selling price including the amount allowed by the 8 retailer for traded-in property, if any; the amount allowed 9 by the retailer for the traded-in tangible personal property, 10 if any, to the extent to which Section 2 of this Act allows 11 an exemption for the value of traded-in property; the balance 12 payable after deducting such trade-in allowance from the 13 total selling price; the amount of tax due from the retailer 14 with respect to such transaction; the amount of tax collected 15 from the purchaser by the retailer on such transaction (or 16 satisfactory evidence that such tax is not due in that 17 particular instance, if that is claimed to be the fact); the 18 place and date of the sale; a sufficient identification of 19 the property sold; such other information as is required in 20 Section 5-402 of the Illinois Vehicle Code, and such other 21 information as the Department may reasonably require. 22 The transaction reporting return in the case of 23 watercraft and aircraft must show the name and address of the 24 seller; the name and address of the purchaser; the amount of 25 the selling price including the amount allowed by the 26 retailer for traded-in property, if any; the amount allowed 27 by the retailer for the traded-in tangible personal property, 28 if any, to the extent to which Section 2 of this Act allows 29 an exemption for the value of traded-in property; the balance 30 payable after deducting such trade-in allowance from the 31 total selling price; the amount of tax due from the retailer 32 with respect to such transaction; the amount of tax collected 33 from the purchaser by the retailer on such transaction (or 34 satisfactory evidence that such tax is not due in that SB984 Engrossed -19- LRB9208148SMdv 1 particular instance, if that is claimed to be the fact); the 2 place and date of the sale, a sufficient identification of 3 the property sold, and such other information as the 4 Department may reasonably require. 5 Such transaction reporting return shall be filed not 6 later than 20 days after the date of delivery of the item 7 that is being sold, but may be filed by the retailer at any 8 time sooner than that if he chooses to do so. The 9 transaction reporting return and tax remittance or proof of 10 exemption from the tax that is imposed by this Act may be 11 transmitted to the Department by way of the State agency with 12 which, or State officer with whom, the tangible personal 13 property must be titled or registered (if titling or 14 registration is required) if the Department and such agency 15 or State officer determine that this procedure will expedite 16 the processing of applications for title or registration. 17 With each such transaction reporting return, the retailer 18 shall remit the proper amount of tax due (or shall submit 19 satisfactory evidence that the sale is not taxable if that is 20 the case), to the Department or its agents, whereupon the 21 Department shall issue, in the purchaser's name, a tax 22 receipt (or a certificate of exemption if the Department is 23 satisfied that the particular sale is tax exempt) which such 24 purchaser may submit to the agency with which, or State 25 officer with whom, he must title or register the tangible 26 personal property that is involved (if titling or 27 registration is required) in support of such purchaser's 28 application for an Illinois certificate or other evidence of 29 title or registration to such tangible personal property. 30 No retailer's failure or refusal to remit tax under this 31 Act precludes a user, who has paid the proper tax to the 32 retailer, from obtaining his certificate of title or other 33 evidence of title or registration (if titling or registration 34 is required) upon satisfying the Department that such user SB984 Engrossed -20- LRB9208148SMdv 1 has paid the proper tax (if tax is due) to the retailer. The 2 Department shall adopt appropriate rules to carry out the 3 mandate of this paragraph. 4 If the user who would otherwise pay tax to the retailer 5 wants the transaction reporting return filed and the payment 6 of tax or proof of exemption made to the Department before 7 the retailer is willing to take these actions and such user 8 has not paid the tax to the retailer, such user may certify 9 to the fact of such delay by the retailer, and may (upon the 10 Department being satisfied of the truth of such 11 certification) transmit the information required by the 12 transaction reporting return and the remittance for tax or 13 proof of exemption directly to the Department and obtain his 14 tax receipt or exemption determination, in which event the 15 transaction reporting return and tax remittance (if a tax 16 payment was required) shall be credited by the Department to 17 the proper retailer's account with the Department, but 18 without the 2.1% or 1.75% discount provided for in this 19 Section being allowed. When the user pays the tax directly 20 to the Department, he shall pay the tax in the same amount 21 and in the same form in which it would be remitted if the tax 22 had been remitted to the Department by the retailer. 23 Where a retailer collects the tax with respect to the 24 selling price of tangible personal property which he sells 25 and the purchaser thereafter returns such tangible personal 26 property and the retailer refunds the selling price thereof 27 to the purchaser, such retailer shall also refund, to the 28 purchaser, the tax so collected from the purchaser. When 29 filing his return for the period in which he refunds such tax 30 to the purchaser, the retailer may deduct the amount of the 31 tax so refunded by him to the purchaser from any other use 32 tax which such retailer may be required to pay or remit to 33 the Department, as shown by such return, if the amount of the 34 tax to be deducted was previously remitted to the Department SB984 Engrossed -21- LRB9208148SMdv 1 by such retailer. If the retailer has not previously 2 remitted the amount of such tax to the Department, he is 3 entitled to no deduction under this Act upon refunding such 4 tax to the purchaser. 5 Any retailer filing a return under this Section shall 6 also include (for the purpose of paying tax thereon) the 7 total tax covered by such return upon the selling price of 8 tangible personal property purchased by him at retail from a 9 retailer, but as to which the tax imposed by this Act was not 10 collected from the retailer filing such return, and such 11 retailer shall remit the amount of such tax to the Department 12 when filing such return. 13 If experience indicates such action to be practicable, 14 the Department may prescribe and furnish a combination or 15 joint return which will enable retailers, who are required to 16 file returns hereunder and also under the Retailers' 17 Occupation Tax Act, to furnish all the return information 18 required by both Acts on the one form. 19 Where the retailer has more than one business registered 20 with the Department under separate registration under this 21 Act, such retailer may not file each return that is due as a 22 single return covering all such registered businesses, but 23 shall file separate returns for each such registered 24 business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Sales Tax Reform Fund, a 27 special fund in the State Treasury which is hereby created, 28 the net revenue realized for the preceding month from the 1% 29 tax on sales of food for human consumption which is to be 30 consumed off the premises where it is sold (other than 31 alcoholic beverages, soft drinks and food which has been 32 prepared for immediate consumption) and prescription and 33 nonprescription medicines, drugs, medical appliances and 34 insulin, urine testing materials, syringes and needles used SB984 Engrossed -22- LRB9208148SMdv 1 by diabetics. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the County and Mass Transit District Fund 4% 4 of the net revenue realized for the preceding month from the 5 6.25% general rate on the selling price of tangible personal 6 property which is purchased outside Illinois at retail from a 7 retailer and which is titled or registered by an agency of 8 this State's government. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the State and Local Sales Tax Reform Fund, a 11 special fund in the State Treasury, 20% of the net revenue 12 realized for the preceding month from the 6.25% general rate 13 on the selling price of tangible personal property, other 14 than tangible personal property which is purchased outside 15 Illinois at retail from a retailer and which is titled or 16 registered by an agency of this State's government. 17 Beginning August 1, 2000, each month the Department shall 18 pay into the State and Local Sales Tax Reform Fund 100% of 19 the net revenue realized for the preceding month from the 20 1.25% rate on the selling price of motor fuel and gasohol. 21 Beginning February 1, 2002, each month the Department 22 shall pay into the State and Local Sales Tax Reform Fund 100% 23 of the net revenue realized for the preceding month from the 24 1.25% rate on the selling price of energy efficient 25 appliances. 26 Beginning January 1, 1990, each month the Department 27 shall pay into the Local Government Tax Fund 16% of the net 28 revenue realized for the preceding month from the 6.25% 29 general rate on the selling price of tangible personal 30 property which is purchased outside Illinois at retail from a 31 retailer and which is titled or registered by an agency of 32 this State's government. 33 Of the remainder of the moneys received by the Department 34 pursuant to this Act, (a) 1.75% thereof shall be paid into SB984 Engrossed -23- LRB9208148SMdv 1 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 2 and on and after July 1, 1989, 3.8% thereof shall be paid 3 into the Build Illinois Fund; provided, however, that if in 4 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 5 as the case may be, of the moneys received by the Department 6 and required to be paid into the Build Illinois Fund pursuant 7 to Section 3 of the Retailers' Occupation Tax Act, Section 9 8 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 9 Section 9 of the Service Occupation Tax Act, such Acts being 10 hereinafter called the "Tax Acts" and such aggregate of 2.2% 11 or 3.8%, as the case may be, of moneys being hereinafter 12 called the "Tax Act Amount", and (2) the amount transferred 13 to the Build Illinois Fund from the State and Local Sales Tax 14 Reform Fund shall be less than the Annual Specified Amount 15 (as defined in Section 3 of the Retailers' Occupation Tax 16 Act), an amount equal to the difference shall be immediately 17 paid into the Build Illinois Fund from other moneys received 18 by the Department pursuant to the Tax Acts; and further 19 provided, that if on the last business day of any month the 20 sum of (1) the Tax Act Amount required to be deposited into 21 the Build Illinois Bond Account in the Build Illinois Fund 22 during such month and (2) the amount transferred during such 23 month to the Build Illinois Fund from the State and Local 24 Sales Tax Reform Fund shall have been less than 1/12 of the 25 Annual Specified Amount, an amount equal to the difference 26 shall be immediately paid into the Build Illinois Fund from 27 other moneys received by the Department pursuant to the Tax 28 Acts; and, further provided, that in no event shall the 29 payments required under the preceding proviso result in 30 aggregate payments into the Build Illinois Fund pursuant to 31 this clause (b) for any fiscal year in excess of the greater 32 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 33 for such fiscal year; and, further provided, that the amounts 34 payable into the Build Illinois Fund under this clause (b) SB984 Engrossed -24- LRB9208148SMdv 1 shall be payable only until such time as the aggregate amount 2 on deposit under each trust indenture securing Bonds issued 3 and outstanding pursuant to the Build Illinois Bond Act is 4 sufficient, taking into account any future investment income, 5 to fully provide, in accordance with such indenture, for the 6 defeasance of or the payment of the principal of, premium, if 7 any, and interest on the Bonds secured by such indenture and 8 on any Bonds expected to be issued thereafter and all fees 9 and costs payable with respect thereto, all as certified by 10 the Director of the Bureau of the Budget. If on the last 11 business day of any month in which Bonds are outstanding 12 pursuant to the Build Illinois Bond Act, the aggregate of the 13 moneys deposited in the Build Illinois Bond Account in the 14 Build Illinois Fund in such month shall be less than the 15 amount required to be transferred in such month from the 16 Build Illinois Bond Account to the Build Illinois Bond 17 Retirement and Interest Fund pursuant to Section 13 of the 18 Build Illinois Bond Act, an amount equal to such deficiency 19 shall be immediately paid from other moneys received by the 20 Department pursuant to the Tax Acts to the Build Illinois 21 Fund; provided, however, that any amounts paid to the Build 22 Illinois Fund in any fiscal year pursuant to this sentence 23 shall be deemed to constitute payments pursuant to clause (b) 24 of the preceding sentence and shall reduce the amount 25 otherwise payable for such fiscal year pursuant to clause (b) 26 of the preceding sentence. The moneys received by the 27 Department pursuant to this Act and required to be deposited 28 into the Build Illinois Fund are subject to the pledge, claim 29 and charge set forth in Section 12 of the Build Illinois Bond 30 Act. 31 Subject to payment of amounts into the Build Illinois 32 Fund as provided in the preceding paragraph or in any 33 amendment thereto hereafter enacted, the following specified 34 monthly installment of the amount requested in the SB984 Engrossed -25- LRB9208148SMdv 1 certificate of the Chairman of the Metropolitan Pier and 2 Exposition Authority provided under Section 8.25f of the 3 State Finance Act, but not in excess of the sums designated 4 as "Total Deposit", shall be deposited in the aggregate from 5 collections under Section 9 of the Use Tax Act, Section 9 of 6 the Service Use Tax Act, Section 9 of the Service Occupation 7 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 8 into the McCormick Place Expansion Project Fund in the 9 specified fiscal years. 10 Fiscal Year Total Deposit 11 1993 $0 12 1994 53,000,000 13 1995 58,000,000 14 1996 61,000,000 15 1997 64,000,000 16 1998 68,000,000 17 1999 71,000,000 18 2000 75,000,000 19 2001 80,000,000 20 2002 84,000,000 21 2003 89,000,000 22 2004 93,000,000 23 2005 97,000,000 24 2006 102,000,000 25 2007 108,000,000 26 2008 115,000,000 27 2009 120,000,000 28 2010 126,000,000 29 2011 132,000,000 30 2012 138,000,000 31 2013 and 145,000,000 32 each fiscal year 33 thereafter that bonds 34 are outstanding under SB984 Engrossed -26- LRB9208148SMdv 1 Section 13.2 of the 2 Metropolitan Pier and 3 Exposition Authority 4 Act, but not after fiscal year 2029. 5 Beginning July 20, 1993 and in each month of each fiscal 6 year thereafter, one-eighth of the amount requested in the 7 certificate of the Chairman of the Metropolitan Pier and 8 Exposition Authority for that fiscal year, less the amount 9 deposited into the McCormick Place Expansion Project Fund by 10 the State Treasurer in the respective month under subsection 11 (g) of Section 13 of the Metropolitan Pier and Exposition 12 Authority Act, plus cumulative deficiencies in the deposits 13 required under this Section for previous months and years, 14 shall be deposited into the McCormick Place Expansion Project 15 Fund, until the full amount requested for the fiscal year, 16 but not in excess of the amount specified above as "Total 17 Deposit", has been deposited. 18 Subject to payment of amounts into the Build Illinois 19 Fund and the McCormick Place Expansion Project Fund pursuant 20 to the preceding paragraphs or in any amendment thereto 21 hereafter enacted, each month the Department shall pay into 22 the Local Government Distributive Fund .4% of the net revenue 23 realized for the preceding month from the 5% general rate, or 24 .4% of 80% of the net revenue realized for the preceding 25 month from the 6.25% general rate, as the case may be, on the 26 selling price of tangible personal property which amount 27 shall, subject to appropriation, be distributed as provided 28 in Section 2 of the State Revenue Sharing Act. No payments or 29 distributions pursuant to this paragraph shall be made if the 30 tax imposed by this Act on photoprocessing products is 31 declared unconstitutional, or if the proceeds from such tax 32 are unavailable for distribution because of litigation. 33 Subject to payment of amounts into the Build Illinois 34 Fund, the McCormick Place Expansion Project Fund, and the SB984 Engrossed -27- LRB9208148SMdv 1 Local Government Distributive Fund pursuant to the preceding 2 paragraphs or in any amendments thereto hereafter enacted, 3 beginning July 1, 1993, the Department shall each month pay 4 into the Illinois Tax Increment Fund 0.27% of 80% of the net 5 revenue realized for the preceding month from the 6.25% 6 general rate on the selling price of tangible personal 7 property. 8 Of the remainder of the moneys received by the Department 9 pursuant to this Act, 75% thereof shall be paid into the 10 State Treasury and 25% shall be reserved in a special account 11 and used only for the transfer to the Common School Fund as 12 part of the monthly transfer from the General Revenue Fund in 13 accordance with Section 8a of the State Finance Act. 14 As soon as possible after the first day of each month, 15 upon certification of the Department of Revenue, the 16 Comptroller shall order transferred and the Treasurer shall 17 transfer from the General Revenue Fund to the Motor Fuel Tax 18 Fund an amount equal to 1.7% of 80% of the net revenue 19 realized under this Act for the second preceding month. 20 Beginning April 1, 2000, this transfer is no longer required 21 and shall not be made. 22 Net revenue realized for a month shall be the revenue 23 collected by the State pursuant to this Act, less the amount 24 paid out during that month as refunds to taxpayers for 25 overpayment of liability. 26 For greater simplicity of administration, manufacturers, 27 importers and wholesalers whose products are sold at retail 28 in Illinois by numerous retailers, and who wish to do so, may 29 assume the responsibility for accounting and paying to the 30 Department all tax accruing under this Act with respect to 31 such sales, if the retailers who are affected do not make 32 written objection to the Department to this arrangement. 33 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 34 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. SB984 Engrossed -28- LRB9208148SMdv 1 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 2 eff. 1-1-01; revised 8-30-00.) 3 Section 15. The Service Use Tax Act is amended by 4 changing Sections 3-10 and 9 as follows: 5 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 6 Sec. 3-10. Rate of tax. Unless otherwise provided in 7 this Section, the tax imposed by this Act is at the rate of 8 6.25% of the selling price of tangible personal property 9 transferred as an incident to the sale of service, but, for 10 the purpose of computing this tax, in no event shall the 11 selling price be less than the cost price of the property to 12 the serviceman. 13 Beginning on July 1, 2000 and through December 31, 2000, 14 with respect to motor fuel, as defined in Section 1.1 of the 15 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 16 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 17 With respect to gasohol, as defined in the Use Tax Act, 18 the tax imposed by this Act applies to 70% of the selling 19 price of property transferred as an incident to the sale of 20 service on or after January 1, 1990, and before July 1, 2003, 21 and to 100% of the selling price thereafter. 22 Beginning January 1, 2002 and through December 31, 2005, 23 with respect to energy efficient appliances, the tax is 24 imposed at the rate of 1.25%. "Energy efficient appliances" 25 are clothes washers, refrigerators, and dishwashers that meet 26 or exceed applicable energy saving efficiency requirements 27 developed by the United States Department of Energy for the 28 Energy Star Program. The Department of Revenue, in 29 consultation with manufacturers, retailers, and public 30 interest groups, must develop public information programs and 31 materials to identify and encourage the sales of products 32 eligible for this tax reduction. SB984 Engrossed -29- LRB9208148SMdv 1 At the election of any registered serviceman made for 2 each fiscal year, sales of service in which the aggregate 3 annual cost price of tangible personal property transferred 4 as an incident to the sales of service is less than 35%, or 5 75% in the case of servicemen transferring prescription drugs 6 or servicemen engaged in graphic arts production, of the 7 aggregate annual total gross receipts from all sales of 8 service, the tax imposed by this Act shall be based on the 9 serviceman's cost price of the tangible personal property 10 transferred as an incident to the sale of those services. 11 The tax shall be imposed at the rate of 1% on food 12 prepared for immediate consumption and transferred incident 13 to a sale of service subject to this Act or the Service 14 Occupation Tax Act by an entity licensed under the Hospital 15 Licensing Act, the Nursing Home Care Act, or the Child Care 16 Act of 1969. The tax shall also be imposed at the rate of 1% 17 on food for human consumption that is to be consumed off the 18 premises where it is sold (other than alcoholic beverages, 19 soft drinks, and food that has been prepared for immediate 20 consumption and is not otherwise included in this paragraph) 21 and prescription and nonprescription medicines, drugs, 22 medical appliances, modifications to a motor vehicle for the 23 purpose of rendering it usable by a disabled person, and 24 insulin, urine testing materials, syringes, and needles used 25 by diabetics, for human use. For the purposes of this 26 Section, the term "soft drinks" means any complete, finished, 27 ready-to-use, non-alcoholic drink, whether carbonated or not, 28 including but not limited to soda water, cola, fruit juice, 29 vegetable juice, carbonated water, and all other preparations 30 commonly known as soft drinks of whatever kind or description 31 that are contained in any closed or sealed bottle, can, 32 carton, or container, regardless of size. "Soft drinks" does 33 not include coffee, tea, non-carbonated water, infant 34 formula, milk or milk products as defined in the Grade A SB984 Engrossed -30- LRB9208148SMdv 1 Pasteurized Milk and Milk Products Act, or drinks containing 2 50% or more natural fruit or vegetable juice. 3 Notwithstanding any other provisions of this Act, "food 4 for human consumption that is to be consumed off the premises 5 where it is sold" includes all food sold through a vending 6 machine, except soft drinks and food products that are 7 dispensed hot from a vending machine, regardless of the 8 location of the vending machine. 9 If the property that is acquired from a serviceman is 10 acquired outside Illinois and used outside Illinois before 11 being brought to Illinois for use here and is taxable under 12 this Act, the "selling price" on which the tax is computed 13 shall be reduced by an amount that represents a reasonable 14 allowance for depreciation for the period of prior 15 out-of-state use. 16 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 17 91-51, eff. 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 18 7-1-00.) 19 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 20 Sec. 9. Each serviceman required or authorized to 21 collect the tax herein imposed shall pay to the Department 22 the amount of such tax (except as otherwise provided) at the 23 time when he is required to file his return for the period 24 during which such tax was collected, less a discount of 2.1% 25 prior to January 1, 1990 and 1.75% on and after January 1, 26 1990, or $5 per calendar year, whichever is greater, which is 27 allowed to reimburse the serviceman for expenses incurred in 28 collecting the tax, keeping records, preparing and filing 29 returns, remitting the tax and supplying data to the 30 Department on request. A serviceman need not remit that part 31 of any tax collected by him to the extent that he is required 32 to pay and does pay the tax imposed by the Service Occupation 33 Tax Act with respect to his sale of service involving the SB984 Engrossed -31- LRB9208148SMdv 1 incidental transfer by him of the same property. 2 Except as provided hereinafter in this Section, on or 3 before the twentieth day of each calendar month, such 4 serviceman shall file a return for the preceding calendar 5 month in accordance with reasonable Rules and Regulations to 6 be promulgated by the Department. Such return shall be filed 7 on a form prescribed by the Department and shall contain such 8 information as the Department may reasonably require. 9 The Department may require returns to be filed on a 10 quarterly basis. If so required, a return for each calendar 11 quarter shall be filed on or before the twentieth day of the 12 calendar month following the end of such calendar quarter. 13 The taxpayer shall also file a return with the Department for 14 each of the first two months of each calendar quarter, on or 15 before the twentieth day of the following calendar month, 16 stating: 17 1. The name of the seller; 18 2. The address of the principal place of business 19 from which he engages in business as a serviceman in this 20 State; 21 3. The total amount of taxable receipts received by 22 him during the preceding calendar month, including 23 receipts from charge and time sales, but less all 24 deductions allowed by law; 25 4. The amount of credit provided in Section 2d of 26 this Act; 27 5. The amount of tax due; 28 5-5. The signature of the taxpayer; and 29 6. Such other reasonable information as the 30 Department may require. 31 If a taxpayer fails to sign a return within 30 days after 32 the proper notice and demand for signature by the Department, 33 the return shall be considered valid and any amount shown to 34 be due on the return shall be deemed assessed. SB984 Engrossed -32- LRB9208148SMdv 1 Beginning October 1, 1993, a taxpayer who has an average 2 monthly tax liability of $150,000 or more shall make all 3 payments required by rules of the Department by electronic 4 funds transfer. Beginning October 1, 1994, a taxpayer who 5 has an average monthly tax liability of $100,000 or more 6 shall make all payments required by rules of the Department 7 by electronic funds transfer. Beginning October 1, 1995, a 8 taxpayer who has an average monthly tax liability of $50,000 9 or more shall make all payments required by rules of the 10 Department by electronic funds transfer. Beginning October 1, 11 2000, a taxpayer who has an annual tax liability of $200,000 12 or more shall make all payments required by rules of the 13 Department by electronic funds transfer. The term "annual 14 tax liability" shall be the sum of the taxpayer's liabilities 15 under this Act, and under all other State and local 16 occupation and use tax laws administered by the Department, 17 for the immediately preceding calendar year. The term 18 "average monthly tax liability" means the sum of the 19 taxpayer's liabilities under this Act, and under all other 20 State and local occupation and use tax laws administered by 21 the Department, for the immediately preceding calendar year 22 divided by 12. 23 Before August 1 of each year beginning in 1993, the 24 Department shall notify all taxpayers required to make 25 payments by electronic funds transfer. All taxpayers required 26 to make payments by electronic funds transfer shall make 27 those payments for a minimum of one year beginning on October 28 1. 29 Any taxpayer not required to make payments by electronic 30 funds transfer may make payments by electronic funds transfer 31 with the permission of the Department. 32 All taxpayers required to make payment by electronic 33 funds transfer and any taxpayers authorized to voluntarily 34 make payments by electronic funds transfer shall make those SB984 Engrossed -33- LRB9208148SMdv 1 payments in the manner authorized by the Department. 2 The Department shall adopt such rules as are necessary to 3 effectuate a program of electronic funds transfer and the 4 requirements of this Section. 5 If the serviceman is otherwise required to file a monthly 6 return and if the serviceman's average monthly tax liability 7 to the Department does not exceed $200, the Department may 8 authorize his returns to be filed on a quarter annual basis, 9 with the return for January, February and March of a given 10 year being due by April 20 of such year; with the return for 11 April, May and June of a given year being due by July 20 of 12 such year; with the return for July, August and September of 13 a given year being due by October 20 of such year, and with 14 the return for October, November and December of a given year 15 being due by January 20 of the following year. 16 If the serviceman is otherwise required to file a monthly 17 or quarterly return and if the serviceman's average monthly 18 tax liability to the Department does not exceed $50, the 19 Department may authorize his returns to be filed on an annual 20 basis, with the return for a given year being due by January 21 20 of the following year. 22 Such quarter annual and annual returns, as to form and 23 substance, shall be subject to the same requirements as 24 monthly returns. 25 Notwithstanding any other provision in this Act 26 concerning the time within which a serviceman may file his 27 return, in the case of any serviceman who ceases to engage in 28 a kind of business which makes him responsible for filing 29 returns under this Act, such serviceman shall file a final 30 return under this Act with the Department not more than 1 31 month after discontinuing such business. 32 Where a serviceman collects the tax with respect to the 33 selling price of property which he sells and the purchaser 34 thereafter returns such property and the serviceman refunds SB984 Engrossed -34- LRB9208148SMdv 1 the selling price thereof to the purchaser, such serviceman 2 shall also refund, to the purchaser, the tax so collected 3 from the purchaser. When filing his return for the period in 4 which he refunds such tax to the purchaser, the serviceman 5 may deduct the amount of the tax so refunded by him to the 6 purchaser from any other Service Use Tax, Service Occupation 7 Tax, retailers' occupation tax or use tax which such 8 serviceman may be required to pay or remit to the Department, 9 as shown by such return, provided that the amount of the tax 10 to be deducted shall previously have been remitted to the 11 Department by such serviceman. If the serviceman shall not 12 previously have remitted the amount of such tax to the 13 Department, he shall be entitled to no deduction hereunder 14 upon refunding such tax to the purchaser. 15 Any serviceman filing a return hereunder shall also 16 include the total tax upon the selling price of tangible 17 personal property purchased for use by him as an incident to 18 a sale of service, and such serviceman shall remit the amount 19 of such tax to the Department when filing such return. 20 If experience indicates such action to be practicable, 21 the Department may prescribe and furnish a combination or 22 joint return which will enable servicemen, who are required 23 to file returns hereunder and also under the Service 24 Occupation Tax Act, to furnish all the return information 25 required by both Acts on the one form. 26 Where the serviceman has more than one business 27 registered with the Department under separate registration 28 hereunder, such serviceman shall not file each return that is 29 due as a single return covering all such registered 30 businesses, but shall file separate returns for each such 31 registered business. 32 Beginning January 1, 1990, each month the Department 33 shall pay into the State and Local Tax Reform Fund, a special 34 fund in the State Treasury, the net revenue realized for the SB984 Engrossed -35- LRB9208148SMdv 1 preceding month from the 1% tax on sales of food for human 2 consumption which is to be consumed off the premises where it 3 is sold (other than alcoholic beverages, soft drinks and food 4 which has been prepared for immediate consumption) and 5 prescription and nonprescription medicines, drugs, medical 6 appliances and insulin, urine testing materials, syringes and 7 needles used by diabetics. 8 Beginning January 1, 1990, each month the Department 9 shall pay into the State and Local Sales Tax Reform Fund 20% 10 of the net revenue realized for the preceding month from the 11 6.25% general rate on transfers of tangible personal 12 property, other than tangible personal property which is 13 purchased outside Illinois at retail from a retailer and 14 which is titled or registered by an agency of this State's 15 government. 16 Beginning August 1, 2000, each month the Department shall 17 pay into the State and Local Sales Tax Reform Fund 100% of 18 the net revenue realized for the preceding month from the 19 1.25% rate on the selling price of motor fuel and gasohol. 20 Beginning February 1, 2002, each month the Department 21 shall pay into the State and Local Sales Tax Reform Fund 100% 22 of the net revenue realized for the preceding month from the 23 1.25% rate on the selling price of energy efficient 24 appliances. 25 Of the remainder of the moneys received by the Department 26 pursuant to this Act, (a) 1.75% thereof shall be paid into 27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 28 and on and after July 1, 1989, 3.8% thereof shall be paid 29 into the Build Illinois Fund; provided, however, that if in 30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 31 as the case may be, of the moneys received by the Department 32 and required to be paid into the Build Illinois Fund pursuant 33 to Section 3 of the Retailers' Occupation Tax Act, Section 9 34 of the Use Tax Act, Section 9 of the Service Use Tax Act, and SB984 Engrossed -36- LRB9208148SMdv 1 Section 9 of the Service Occupation Tax Act, such Acts being 2 hereinafter called the "Tax Acts" and such aggregate of 2.2% 3 or 3.8%, as the case may be, of moneys being hereinafter 4 called the "Tax Act Amount", and (2) the amount transferred 5 to the Build Illinois Fund from the State and Local Sales Tax 6 Reform Fund shall be less than the Annual Specified Amount 7 (as defined in Section 3 of the Retailers' Occupation Tax 8 Act), an amount equal to the difference shall be immediately 9 paid into the Build Illinois Fund from other moneys received 10 by the Department pursuant to the Tax Acts; and further 11 provided, that if on the last business day of any month the 12 sum of (1) the Tax Act Amount required to be deposited into 13 the Build Illinois Bond Account in the Build Illinois Fund 14 during such month and (2) the amount transferred during such 15 month to the Build Illinois Fund from the State and Local 16 Sales Tax Reform Fund shall have been less than 1/12 of the 17 Annual Specified Amount, an amount equal to the difference 18 shall be immediately paid into the Build Illinois Fund from 19 other moneys received by the Department pursuant to the Tax 20 Acts; and, further provided, that in no event shall the 21 payments required under the preceding proviso result in 22 aggregate payments into the Build Illinois Fund pursuant to 23 this clause (b) for any fiscal year in excess of the greater 24 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 25 for such fiscal year; and, further provided, that the amounts 26 payable into the Build Illinois Fund under this clause (b) 27 shall be payable only until such time as the aggregate amount 28 on deposit under each trust indenture securing Bonds issued 29 and outstanding pursuant to the Build Illinois Bond Act is 30 sufficient, taking into account any future investment income, 31 to fully provide, in accordance with such indenture, for the 32 defeasance of or the payment of the principal of, premium, if 33 any, and interest on the Bonds secured by such indenture and 34 on any Bonds expected to be issued thereafter and all fees SB984 Engrossed -37- LRB9208148SMdv 1 and costs payable with respect thereto, all as certified by 2 the Director of the Bureau of the Budget. If on the last 3 business day of any month in which Bonds are outstanding 4 pursuant to the Build Illinois Bond Act, the aggregate of the 5 moneys deposited in the Build Illinois Bond Account in the 6 Build Illinois Fund in such month shall be less than the 7 amount required to be transferred in such month from the 8 Build Illinois Bond Account to the Build Illinois Bond 9 Retirement and Interest Fund pursuant to Section 13 of the 10 Build Illinois Bond Act, an amount equal to such deficiency 11 shall be immediately paid from other moneys received by the 12 Department pursuant to the Tax Acts to the Build Illinois 13 Fund; provided, however, that any amounts paid to the Build 14 Illinois Fund in any fiscal year pursuant to this sentence 15 shall be deemed to constitute payments pursuant to clause (b) 16 of the preceding sentence and shall reduce the amount 17 otherwise payable for such fiscal year pursuant to clause (b) 18 of the preceding sentence. The moneys received by the 19 Department pursuant to this Act and required to be deposited 20 into the Build Illinois Fund are subject to the pledge, claim 21 and charge set forth in Section 12 of the Build Illinois Bond 22 Act. 23 Subject to payment of amounts into the Build Illinois 24 Fund as provided in the preceding paragraph or in any 25 amendment thereto hereafter enacted, the following specified 26 monthly installment of the amount requested in the 27 certificate of the Chairman of the Metropolitan Pier and 28 Exposition Authority provided under Section 8.25f of the 29 State Finance Act, but not in excess of the sums designated 30 as "Total Deposit", shall be deposited in the aggregate from 31 collections under Section 9 of the Use Tax Act, Section 9 of 32 the Service Use Tax Act, Section 9 of the Service Occupation 33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 34 into the McCormick Place Expansion Project Fund in the SB984 Engrossed -38- LRB9208148SMdv 1 specified fiscal years. 2 Fiscal Year Total Deposit 3 1993 $0 4 1994 53,000,000 5 1995 58,000,000 6 1996 61,000,000 7 1997 64,000,000 8 1998 68,000,000 9 1999 71,000,000 10 2000 75,000,000 11 2001 80,000,000 12 2002 84,000,000 13 2003 89,000,000 14 2004 93,000,000 15 2005 97,000,000 16 2006 102,000,000 17 2007 108,000,000 18 2008 115,000,000 19 2009 120,000,000 20 2010 126,000,000 21 2011 132,000,000 22 2012 138,000,000 23 2013 and 145,000,000 24 each fiscal year 25 thereafter that bonds 26 are outstanding under 27 Section 13.2 of the 28 Metropolitan Pier and 29 Exposition Authority Act, 30 but not after fiscal year 2029. 31 Beginning July 20, 1993 and in each month of each fiscal 32 year thereafter, one-eighth of the amount requested in the 33 certificate of the Chairman of the Metropolitan Pier and 34 Exposition Authority for that fiscal year, less the amount SB984 Engrossed -39- LRB9208148SMdv 1 deposited into the McCormick Place Expansion Project Fund by 2 the State Treasurer in the respective month under subsection 3 (g) of Section 13 of the Metropolitan Pier and Exposition 4 Authority Act, plus cumulative deficiencies in the deposits 5 required under this Section for previous months and years, 6 shall be deposited into the McCormick Place Expansion Project 7 Fund, until the full amount requested for the fiscal year, 8 but not in excess of the amount specified above as "Total 9 Deposit", has been deposited. 10 Subject to payment of amounts into the Build Illinois 11 Fund and the McCormick Place Expansion Project Fund pursuant 12 to the preceding paragraphs or in any amendment thereto 13 hereafter enacted, each month the Department shall pay into 14 the Local Government Distributive Fund 0.4% of the net 15 revenue realized for the preceding month from the 5% general 16 rate or 0.4% of 80% of the net revenue realized for the 17 preceding month from the 6.25% general rate, as the case may 18 be, on the selling price of tangible personal property which 19 amount shall, subject to appropriation, be distributed as 20 provided in Section 2 of the State Revenue Sharing Act. No 21 payments or distributions pursuant to this paragraph shall be 22 made if the tax imposed by this Act on photo processing 23 products is declared unconstitutional, or if the proceeds 24 from such tax are unavailable for distribution because of 25 litigation. 26 Subject to payment of amounts into the Build Illinois 27 Fund, the McCormick Place Expansion Project Fund, and the 28 Local Government Distributive Fund pursuant to the preceding 29 paragraphs or in any amendments thereto hereafter enacted, 30 beginning July 1, 1993, the Department shall each month pay 31 into the Illinois Tax Increment Fund 0.27% of 80% of the net 32 revenue realized for the preceding month from the 6.25% 33 general rate on the selling price of tangible personal 34 property. SB984 Engrossed -40- LRB9208148SMdv 1 All remaining moneys received by the Department pursuant 2 to this Act shall be paid into the General Revenue Fund of 3 the State Treasury. 4 As soon as possible after the first day of each month, 5 upon certification of the Department of Revenue, the 6 Comptroller shall order transferred and the Treasurer shall 7 transfer from the General Revenue Fund to the Motor Fuel Tax 8 Fund an amount equal to 1.7% of 80% of the net revenue 9 realized under this Act for the second preceding month. 10 Beginning April 1, 2000, this transfer is no longer required 11 and shall not be made. 12 Net revenue realized for a month shall be the revenue 13 collected by the State pursuant to this Act, less the amount 14 paid out during that month as refunds to taxpayers for 15 overpayment of liability. 16 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 17 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 18 91-872, eff. 7-1-00.) 19 Section 20. The Service Occupation Tax Act is amended by 20 changing Sections 3-10 and 9 as follows: 21 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 22 Sec. 3-10. Rate of tax. Unless otherwise provided in 23 this Section, the tax imposed by this Act is at the rate of 24 6.25% of the "selling price", as defined in Section 2 of the 25 Service Use Tax Act, of the tangible personal property. For 26 the purpose of computing this tax, in no event shall the 27 "selling price" be less than the cost price to the serviceman 28 of the tangible personal property transferred. The selling 29 price of each item of tangible personal property transferred 30 as an incident of a sale of service may be shown as a 31 distinct and separate item on the serviceman's billing to the 32 service customer. If the selling price is not so shown, the SB984 Engrossed -41- LRB9208148SMdv 1 selling price of the tangible personal property is deemed to 2 be 50% of the serviceman's entire billing to the service 3 customer. When, however, a serviceman contracts to design, 4 develop, and produce special order machinery or equipment, 5 the tax imposed by this Act shall be based on the 6 serviceman's cost price of the tangible personal property 7 transferred incident to the completion of the contract. 8 Beginning on July 1, 2000 and through December 31, 2000, 9 with respect to motor fuel, as defined in Section 1.1 of the 10 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 11 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 12 With respect to gasohol, as defined in the Use Tax Act, 13 the tax imposed by this Act shall apply to 70% of the cost 14 price of property transferred as an incident to the sale of 15 service on or after January 1, 1990, and before July 1, 2003, 16 and to 100% of the cost price thereafter. 17 Beginning January 1, 2002 and through December 31, 2005, 18 with respect to energy efficient appliances, the tax is 19 imposed at the rate of 1.25%. "Energy efficient appliances" 20 are clothes washers, refrigerators, and dishwashers that meet 21 or exceed applicable energy saving efficiency requirements 22 developed by the United States Department of Energy for the 23 Energy Star Program. The Department of Revenue, in 24 consultation with manufacturers, retailers, and public 25 interest groups, must develop public information programs and 26 materials to identify and encourage the sales of products 27 eligible for this tax reduction. 28 At the election of any registered serviceman made for 29 each fiscal year, sales of service in which the aggregate 30 annual cost price of tangible personal property transferred 31 as an incident to the sales of service is less than 35%, or 32 75% in the case of servicemen transferring prescription drugs 33 or servicemen engaged in graphic arts production, of the 34 aggregate annual total gross receipts from all sales of SB984 Engrossed -42- LRB9208148SMdv 1 service, the tax imposed by this Act shall be based on the 2 serviceman's cost price of the tangible personal property 3 transferred incident to the sale of those services. 4 The tax shall be imposed at the rate of 1% on food 5 prepared for immediate consumption and transferred incident 6 to a sale of service subject to this Act or the Service 7 Occupation Tax Act by an entity licensed under the Hospital 8 Licensing Act, the Nursing Home Care Act, or the Child Care 9 Act of 1969. The tax shall also be imposed at the rate of 1% 10 on food for human consumption that is to be consumed off the 11 premises where it is sold (other than alcoholic beverages, 12 soft drinks, and food that has been prepared for immediate 13 consumption and is not otherwise included in this paragraph) 14 and prescription and nonprescription medicines, drugs, 15 medical appliances, modifications to a motor vehicle for the 16 purpose of rendering it usable by a disabled person, and 17 insulin, urine testing materials, syringes, and needles used 18 by diabetics, for human use. For the purposes of this 19 Section, the term "soft drinks" means any complete, finished, 20 ready-to-use, non-alcoholic drink, whether carbonated or not, 21 including but not limited to soda water, cola, fruit juice, 22 vegetable juice, carbonated water, and all other preparations 23 commonly known as soft drinks of whatever kind or description 24 that are contained in any closed or sealed can, carton, or 25 container, regardless of size. "Soft drinks" does not 26 include coffee, tea, non-carbonated water, infant formula, 27 milk or milk products as defined in the Grade A Pasteurized 28 Milk and Milk Products Act, or drinks containing 50% or more 29 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 SB984 Engrossed -43- LRB9208148SMdv 1 location of the vending machine. 2 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 3 91-51, 6-30-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00.) 4 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 5 Sec. 9. Each serviceman required or authorized to 6 collect the tax herein imposed shall pay to the Department 7 the amount of such tax at the time when he is required to 8 file his return for the period during which such tax was 9 collectible, less a discount of 2.1% prior to January 1, 10 1990, and 1.75% on and after January 1, 1990, or $5 per 11 calendar year, whichever is greater, which is allowed to 12 reimburse the serviceman for expenses incurred in collecting 13 the tax, keeping records, preparing and filing returns, 14 remitting the tax and supplying data to the Department on 15 request. 16 Where such tangible personal property is sold under a 17 conditional sales contract, or under any other form of sale 18 wherein the payment of the principal sum, or a part thereof, 19 is extended beyond the close of the period for which the 20 return is filed, the serviceman, in collecting the tax may 21 collect, for each tax return period, only the tax applicable 22 to the part of the selling price actually received during 23 such tax return period. 24 Except as provided hereinafter in this Section, on or 25 before the twentieth day of each calendar month, such 26 serviceman shall file a return for the preceding calendar 27 month in accordance with reasonable rules and regulations to 28 be promulgated by the Department of Revenue. Such return 29 shall be filed on a form prescribed by the Department and 30 shall contain such information as the Department may 31 reasonably require. 32 The Department may require returns to be filed on a 33 quarterly basis. If so required, a return for each calendar SB984 Engrossed -44- LRB9208148SMdv 1 quarter shall be filed on or before the twentieth day of the 2 calendar month following the end of such calendar quarter. 3 The taxpayer shall also file a return with the Department for 4 each of the first two months of each calendar quarter, on or 5 before the twentieth day of the following calendar month, 6 stating: 7 1. The name of the seller; 8 2. The address of the principal place of business 9 from which he engages in business as a serviceman in this 10 State; 11 3. The total amount of taxable receipts received by 12 him during the preceding calendar month, including 13 receipts from charge and time sales, but less all 14 deductions allowed by law; 15 4. The amount of credit provided in Section 2d of 16 this Act; 17 5. The amount of tax due; 18 5-5. The signature of the taxpayer; and 19 6. Such other reasonable information as the 20 Department may require. 21 If a taxpayer fails to sign a return within 30 days after 22 the proper notice and demand for signature by the Department, 23 the return shall be considered valid and any amount shown to 24 be due on the return shall be deemed assessed. 25 A serviceman may accept a Manufacturer's Purchase Credit 26 certification from a purchaser in satisfaction of Service Use 27 Tax as provided in Section 3-70 of the Service Use Tax Act if 28 the purchaser provides the appropriate documentation as 29 required by Section 3-70 of the Service Use Tax Act. A 30 Manufacturer's Purchase Credit certification, accepted by a 31 serviceman as provided in Section 3-70 of the Service Use Tax 32 Act, may be used by that serviceman to satisfy Service 33 Occupation Tax liability in the amount claimed in the 34 certification, not to exceed 6.25% of the receipts subject to SB984 Engrossed -45- LRB9208148SMdv 1 tax from a qualifying purchase. 2 If the serviceman's average monthly tax liability to the 3 Department does not exceed $200, the Department may authorize 4 his returns to be filed on a quarter annual basis, with the 5 return for January, February and March of a given year being 6 due by April 20 of such year; with the return for April, May 7 and June of a given year being due by July 20 of such year; 8 with the return for July, August and September of a given 9 year being due by October 20 of such year, and with the 10 return for October, November and December of a given year 11 being due by January 20 of the following year. 12 If the serviceman's average monthly tax liability to the 13 Department does not exceed $50, the Department may authorize 14 his returns to be filed on an annual basis, with the return 15 for a given year being due by January 20 of the following 16 year. 17 Such quarter annual and annual returns, as to form and 18 substance, shall be subject to the same requirements as 19 monthly returns. 20 Notwithstanding any other provision in this Act 21 concerning the time within which a serviceman may file his 22 return, in the case of any serviceman who ceases to engage in 23 a kind of business which makes him responsible for filing 24 returns under this Act, such serviceman shall file a final 25 return under this Act with the Department not more than 1 26 month after discontinuing such business. 27 Beginning October 1, 1993, a taxpayer who has an average 28 monthly tax liability of $150,000 or more shall make all 29 payments required by rules of the Department by electronic 30 funds transfer. Beginning October 1, 1994, a taxpayer who 31 has an average monthly tax liability of $100,000 or more 32 shall make all payments required by rules of the Department 33 by electronic funds transfer. Beginning October 1, 1995, a 34 taxpayer who has an average monthly tax liability of $50,000 SB984 Engrossed -46- LRB9208148SMdv 1 or more shall make all payments required by rules of the 2 Department by electronic funds transfer. Beginning October 3 1, 2000, a taxpayer who has an annual tax liability of 4 $200,000 or more shall make all payments required by rules of 5 the Department by electronic funds transfer. The term 6 "annual tax liability" shall be the sum of the taxpayer's 7 liabilities under this Act, and under all other State and 8 local occupation and use tax laws administered by the 9 Department, for the immediately preceding calendar year. The 10 term "average monthly tax liability" means the sum of the 11 taxpayer's liabilities under this Act, and under all other 12 State and local occupation and use tax laws administered by 13 the Department, for the immediately preceding calendar year 14 divided by 12. 15 Before August 1 of each year beginning in 1993, the 16 Department shall notify all taxpayers required to make 17 payments by electronic funds transfer. All taxpayers 18 required to make payments by electronic funds transfer shall 19 make those payments for a minimum of one year beginning on 20 October 1. 21 Any taxpayer not required to make payments by electronic 22 funds transfer may make payments by electronic funds transfer 23 with the permission of the Department. 24 All taxpayers required to make payment by electronic 25 funds transfer and any taxpayers authorized to voluntarily 26 make payments by electronic funds transfer shall make those 27 payments in the manner authorized by the Department. 28 The Department shall adopt such rules as are necessary to 29 effectuate a program of electronic funds transfer and the 30 requirements of this Section. 31 Where a serviceman collects the tax with respect to the 32 selling price of tangible personal property which he sells 33 and the purchaser thereafter returns such tangible personal 34 property and the serviceman refunds the selling price thereof SB984 Engrossed -47- LRB9208148SMdv 1 to the purchaser, such serviceman shall also refund, to the 2 purchaser, the tax so collected from the purchaser. When 3 filing his return for the period in which he refunds such tax 4 to the purchaser, the serviceman may deduct the amount of the 5 tax so refunded by him to the purchaser from any other 6 Service Occupation Tax, Service Use Tax, Retailers' 7 Occupation Tax or Use Tax which such serviceman may be 8 required to pay or remit to the Department, as shown by such 9 return, provided that the amount of the tax to be deducted 10 shall previously have been remitted to the Department by such 11 serviceman. If the serviceman shall not previously have 12 remitted the amount of such tax to the Department, he shall 13 be entitled to no deduction hereunder upon refunding such tax 14 to the purchaser. 15 If experience indicates such action to be practicable, 16 the Department may prescribe and furnish a combination or 17 joint return which will enable servicemen, who are required 18 to file returns hereunder and also under the Retailers' 19 Occupation Tax Act, the Use Tax Act or the Service Use Tax 20 Act, to furnish all the return information required by all 21 said Acts on the one form. 22 Where the serviceman has more than one business 23 registered with the Department under separate registrations 24 hereunder, such serviceman shall file separate returns for 25 each registered business. 26 Beginning January 1, 1990, each month the Department 27 shall pay into the Local Government Tax Fund the revenue 28 realized for the preceding month from the 1% tax on sales of 29 food for human consumption which is to be consumed off the 30 premises where it is sold (other than alcoholic beverages, 31 soft drinks and food which has been prepared for immediate 32 consumption) and prescription and nonprescription medicines, 33 drugs, medical appliances and insulin, urine testing 34 materials, syringes and needles used by diabetics. SB984 Engrossed -48- LRB9208148SMdv 1 Beginning January 1, 1990, each month the Department 2 shall pay into the County and Mass Transit District Fund 4% 3 of the revenue realized for the preceding month from the 4 6.25% general rate. 5 Beginning August 1, 2000, each month the Department shall 6 pay into the County and Mass Transit District Fund 20% of the 7 net revenue realized for the preceding month from the 1.25% 8 rate on the selling price of motor fuel and gasohol. 9 Beginning February 1, 2002, each month the Department 10 shall pay into the County and Mass Transit District Fund 20% 11 of the net revenue realized for the preceding month from the 12 1.25% rate on the selling price of energy efficient 13 appliances. 14 Beginning January 1, 1990, each month the Department 15 shall pay into the Local Government Tax Fund 16% of the 16 revenue realized for the preceding month from the 6.25% 17 general rate on transfers of tangible personal property. 18 Beginning August 1, 2000, each month the Department shall 19 pay into the Local Government Tax Fund 80% of the net revenue 20 realized for the preceding month from the 1.25% rate on the 21 selling price of motor fuel and gasohol. 22 Beginning February 1, 2002, each month the Department 23 shall pay into the Local Government Tax Fund 80% of the net 24 revenue realized for the preceding month from the 1.25% rate 25 on the selling price of energy efficient appliances. 26 Of the remainder of the moneys received by the Department 27 pursuant to this Act, (a) 1.75% thereof shall be paid into 28 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 29 and on and after July 1, 1989, 3.8% thereof shall be paid 30 into the Build Illinois Fund; provided, however, that if in 31 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 32 as the case may be, of the moneys received by the Department 33 and required to be paid into the Build Illinois Fund pursuant 34 to Section 3 of the Retailers' Occupation Tax Act, Section 9 SB984 Engrossed -49- LRB9208148SMdv 1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 2 Section 9 of the Service Occupation Tax Act, such Acts being 3 hereinafter called the "Tax Acts" and such aggregate of 2.2% 4 or 3.8%, as the case may be, of moneys being hereinafter 5 called the "Tax Act Amount", and (2) the amount transferred 6 to the Build Illinois Fund from the State and Local Sales Tax 7 Reform Fund shall be less than the Annual Specified Amount 8 (as defined in Section 3 of the Retailers' Occupation Tax 9 Act), an amount equal to the difference shall be immediately 10 paid into the Build Illinois Fund from other moneys received 11 by the Department pursuant to the Tax Acts; and further 12 provided, that if on the last business day of any month the 13 sum of (1) the Tax Act Amount required to be deposited into 14 the Build Illinois Account in the Build Illinois Fund during 15 such month and (2) the amount transferred during such month 16 to the Build Illinois Fund from the State and Local Sales Tax 17 Reform Fund shall have been less than 1/12 of the Annual 18 Specified Amount, an amount equal to the difference shall be 19 immediately paid into the Build Illinois Fund from other 20 moneys received by the Department pursuant to the Tax Acts; 21 and, further provided, that in no event shall the payments 22 required under the preceding proviso result in aggregate 23 payments into the Build Illinois Fund pursuant to this clause 24 (b) for any fiscal year in excess of the greater of (i) the 25 Tax Act Amount or (ii) the Annual Specified Amount for such 26 fiscal year; and, further provided, that the amounts payable 27 into the Build Illinois Fund under this clause (b) shall be 28 payable only until such time as the aggregate amount on 29 deposit under each trust indenture securing Bonds issued and 30 outstanding pursuant to the Build Illinois Bond Act is 31 sufficient, taking into account any future investment income, 32 to fully provide, in accordance with such indenture, for the 33 defeasance of or the payment of the principal of, premium, if 34 any, and interest on the Bonds secured by such indenture and SB984 Engrossed -50- LRB9208148SMdv 1 on any Bonds expected to be issued thereafter and all fees 2 and costs payable with respect thereto, all as certified by 3 the Director of the Bureau of the Budget. If on the last 4 business day of any month in which Bonds are outstanding 5 pursuant to the Build Illinois Bond Act, the aggregate of the 6 moneys deposited in the Build Illinois Bond Account in the 7 Build Illinois Fund in such month shall be less than the 8 amount required to be transferred in such month from the 9 Build Illinois Bond Account to the Build Illinois Bond 10 Retirement and Interest Fund pursuant to Section 13 of the 11 Build Illinois Bond Act, an amount equal to such deficiency 12 shall be immediately paid from other moneys received by the 13 Department pursuant to the Tax Acts to the Build Illinois 14 Fund; provided, however, that any amounts paid to the Build 15 Illinois Fund in any fiscal year pursuant to this sentence 16 shall be deemed to constitute payments pursuant to clause (b) 17 of the preceding sentence and shall reduce the amount 18 otherwise payable for such fiscal year pursuant to clause (b) 19 of the preceding sentence. The moneys received by the 20 Department pursuant to this Act and required to be deposited 21 into the Build Illinois Fund are subject to the pledge, claim 22 and charge set forth in Section 12 of the Build Illinois Bond 23 Act. 24 Subject to payment of amounts into the Build Illinois 25 Fund as provided in the preceding paragraph or in any 26 amendment thereto hereafter enacted, the following specified 27 monthly installment of the amount requested in the 28 certificate of the Chairman of the Metropolitan Pier and 29 Exposition Authority provided under Section 8.25f of the 30 State Finance Act, but not in excess of the sums designated 31 as "Total Deposit", shall be deposited in the aggregate from 32 collections under Section 9 of the Use Tax Act, Section 9 of 33 the Service Use Tax Act, Section 9 of the Service Occupation 34 Tax Act, and Section 3 of the Retailers' Occupation Tax Act SB984 Engrossed -51- LRB9208148SMdv 1 into the McCormick Place Expansion Project Fund in the 2 specified fiscal years. 3 Fiscal Year Total Deposit 4 1993 $0 5 1994 53,000,000 6 1995 58,000,000 7 1996 61,000,000 8 1997 64,000,000 9 1998 68,000,000 10 1999 71,000,000 11 2000 75,000,000 12 2001 80,000,000 13 2002 84,000,000 14 2003 89,000,000 15 2004 93,000,000 16 2005 97,000,000 17 2006 102,000,000 18 2007 108,000,000 19 2008 115,000,000 20 2009 120,000,000 21 2010 126,000,000 22 2011 132,000,000 23 2012 138,000,000 24 2013 and 145,000,000 25 each fiscal year 26 thereafter that bonds 27 are outstanding under 28 Section 13.2 of the 29 Metropolitan Pier and 30 Exposition Authority 31 Act, but not after fiscal year 2029. 32 Beginning July 20, 1993 and in each month of each fiscal 33 year thereafter, one-eighth of the amount requested in the 34 certificate of the Chairman of the Metropolitan Pier and SB984 Engrossed -52- LRB9208148SMdv 1 Exposition Authority for that fiscal year, less the amount 2 deposited into the McCormick Place Expansion Project Fund by 3 the State Treasurer in the respective month under subsection 4 (g) of Section 13 of the Metropolitan Pier and Exposition 5 Authority Act, plus cumulative deficiencies in the deposits 6 required under this Section for previous months and years, 7 shall be deposited into the McCormick Place Expansion Project 8 Fund, until the full amount requested for the fiscal year, 9 but not in excess of the amount specified above as "Total 10 Deposit", has been deposited. 11 Subject to payment of amounts into the Build Illinois 12 Fund and the McCormick Place Expansion Project Fund pursuant 13 to the preceding paragraphs or in any amendment thereto 14 hereafter enacted, each month the Department shall pay into 15 the Local Government Distributive Fund 0.4% of the net 16 revenue realized for the preceding month from the 5% general 17 rate or 0.4% of 80% of the net revenue realized for the 18 preceding month from the 6.25% general rate, as the case may 19 be, on the selling price of tangible personal property which 20 amount shall, subject to appropriation, be distributed as 21 provided in Section 2 of the State Revenue Sharing Act. No 22 payments or distributions pursuant to this paragraph shall be 23 made if the tax imposed by this Act on photoprocessing 24 products is declared unconstitutional, or if the proceeds 25 from such tax are unavailable for distribution because of 26 litigation. 27 Subject to payment of amounts into the Build Illinois 28 Fund, the McCormick Place Expansion Project Fund, and the 29 Local Government Distributive Fund pursuant to the preceding 30 paragraphs or in any amendments thereto hereafter enacted, 31 beginning July 1, 1993, the Department shall each month pay 32 into the Illinois Tax Increment Fund 0.27% of 80% of the net 33 revenue realized for the preceding month from the 6.25% 34 general rate on the selling price of tangible personal SB984 Engrossed -53- LRB9208148SMdv 1 property. 2 Remaining moneys received by the Department pursuant to 3 this Act shall be paid into the General Revenue Fund of the 4 State Treasury. 5 The Department may, upon separate written notice to a 6 taxpayer, require the taxpayer to prepare and file with the 7 Department on a form prescribed by the Department within not 8 less than 60 days after receipt of the notice an annual 9 information return for the tax year specified in the notice. 10 Such annual return to the Department shall include a 11 statement of gross receipts as shown by the taxpayer's last 12 Federal income tax return. If the total receipts of the 13 business as reported in the Federal income tax return do not 14 agree with the gross receipts reported to the Department of 15 Revenue for the same period, the taxpayer shall attach to his 16 annual return a schedule showing a reconciliation of the 2 17 amounts and the reasons for the difference. The taxpayer's 18 annual return to the Department shall also disclose the cost 19 of goods sold by the taxpayer during the year covered by such 20 return, opening and closing inventories of such goods for 21 such year, cost of goods used from stock or taken from stock 22 and given away by the taxpayer during such year, pay roll 23 information of the taxpayer's business during such year and 24 any additional reasonable information which the Department 25 deems would be helpful in determining the accuracy of the 26 monthly, quarterly or annual returns filed by such taxpayer 27 as hereinbefore provided for in this Section. 28 If the annual information return required by this Section 29 is not filed when and as required, the taxpayer shall be 30 liable as follows: 31 (i) Until January 1, 1994, the taxpayer shall be 32 liable for a penalty equal to 1/6 of 1% of the tax due 33 from such taxpayer under this Act during the period to be 34 covered by the annual return for each month or fraction SB984 Engrossed -54- LRB9208148SMdv 1 of a month until such return is filed as required, the 2 penalty to be assessed and collected in the same manner 3 as any other penalty provided for in this Act. 4 (ii) On and after January 1, 1994, the taxpayer 5 shall be liable for a penalty as described in Section 3-4 6 of the Uniform Penalty and Interest Act. 7 The chief executive officer, proprietor, owner or highest 8 ranking manager shall sign the annual return to certify the 9 accuracy of the information contained therein. Any person 10 who willfully signs the annual return containing false or 11 inaccurate information shall be guilty of perjury and 12 punished accordingly. The annual return form prescribed by 13 the Department shall include a warning that the person 14 signing the return may be liable for perjury. 15 The foregoing portion of this Section concerning the 16 filing of an annual information return shall not apply to a 17 serviceman who is not required to file an income tax return 18 with the United States Government. 19 As soon as possible after the first day of each month, 20 upon certification of the Department of Revenue, the 21 Comptroller shall order transferred and the Treasurer shall 22 transfer from the General Revenue Fund to the Motor Fuel Tax 23 Fund an amount equal to 1.7% of 80% of the net revenue 24 realized under this Act for the second preceding month. 25 Beginning April 1, 2000, this transfer is no longer required 26 and shall not be made. 27 Net revenue realized for a month shall be the revenue 28 collected by the State pursuant to this Act, less the amount 29 paid out during that month as refunds to taxpayers for 30 overpayment of liability. 31 For greater simplicity of administration, it shall be 32 permissible for manufacturers, importers and wholesalers 33 whose products are sold by numerous servicemen in Illinois, 34 and who wish to do so, to assume the responsibility for SB984 Engrossed -55- LRB9208148SMdv 1 accounting and paying to the Department all tax accruing 2 under this Act with respect to such sales, if the servicemen 3 who are affected do not make written objection to the 4 Department to this arrangement. 5 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 6 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 7 91-872, eff. 7-1-00.) 8 Section 25. The Retailers' Occupation Tax Act is amended 9 by changing Sections 2-10 and 3 as follows: 10 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 11 Sec. 2-10. Rate of tax. Unless otherwise provided in 12 this Section, the tax imposed by this Act is at the rate of 13 6.25% of gross receipts from sales of tangible personal 14 property made in the course of business. 15 Beginning on July 1, 2000 and through December 31, 2000, 16 with respect to motor fuel, as defined in Section 1.1 of the 17 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 18 of the Use Tax Act, the tax is imposed at the rate of 1.25%. 19 Within 14 days after the effective date of this 20 amendatory Act of the 91st General Assembly, each retailer of 21 motor fuel and gasohol shall cause the following notice to be 22 posted in a prominently visible place on each retail 23 dispensing device that is used to dispense motor fuel or 24 gasohol in the State of Illinois: "As of July 1, 2000, the 25 State of Illinois has eliminated the State's share of sales 26 tax on motor fuel and gasohol through December 31, 2000. The 27 price on this pump should reflect the elimination of the 28 tax." The notice shall be printed in bold print on a sign 29 that is no smaller than 4 inches by 8 inches. The sign shall 30 be clearly visible to customers. Any retailer who fails to 31 post or maintain a required sign through December 31, 2000 is 32 guilty of a petty offense for which the fine shall be $500 SB984 Engrossed -56- LRB9208148SMdv 1 per day per each retail premises where a violation occurs. 2 With respect to gasohol, as defined in the Use Tax Act, 3 the tax imposed by this Act applies to 70% of the proceeds of 4 sales made on or after January 1, 1990, and before July 1, 5 2003, and to 100% of the proceeds of sales made thereafter. 6 Beginning January 1, 2002 and through December 31, 2005, 7 with respect to energy efficient appliances, the tax is 8 imposed at the rate of 1.25%. "Energy efficient appliances" 9 are clothes washers, refrigerators, and dishwashers that meet 10 or exceed applicable energy saving efficiency requirements 11 developed by the United States Department of Energy for the 12 Energy Star Program. The Department of Revenue, in 13 consultation with manufacturers, retailers, and public 14 interest groups, must develop public information programs and 15 materials to identify and encourage the sales of products 16 eligible for this tax reduction. 17 With respect to food for human consumption that is to be 18 consumed off the premises where it is sold (other than 19 alcoholic beverages, soft drinks, and food that has been 20 prepared for immediate consumption) and prescription and 21 nonprescription medicines, drugs, medical appliances, 22 modifications to a motor vehicle for the purpose of rendering 23 it usable by a disabled person, and insulin, urine testing 24 materials, syringes, and needles used by diabetics, for human 25 use, the tax is imposed at the rate of 1%. For the purposes 26 of this Section, the term "soft drinks" means any complete, 27 finished, ready-to-use, non-alcoholic drink, whether 28 carbonated or not, including but not limited to soda water, 29 cola, fruit juice, vegetable juice, carbonated water, and all 30 other preparations commonly known as soft drinks of whatever 31 kind or description that are contained in any closed or 32 sealed bottle, can, carton, or container, regardless of size. 33 "Soft drinks" does not include coffee, tea, non-carbonated 34 water, infant formula, milk or milk products as defined in SB984 Engrossed -57- LRB9208148SMdv 1 the Grade A Pasteurized Milk and Milk Products Act, or drinks 2 containing 50% or more natural fruit or vegetable juice. 3 Notwithstanding any other provisions of this Act, "food 4 for human consumption that is to be consumed off the premises 5 where it is sold" includes all food sold through a vending 6 machine, except soft drinks and food products that are 7 dispensed hot from a vending machine, regardless of the 8 location of the vending machine. 9 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 10 91-51, eff. 6-30-99; 91-872, eff. 7-1-00.) 11 (35 ILCS 120/3) (from Ch. 120, par. 442) 12 Sec. 3. Except as provided in this Section, on or before 13 the twentieth day of each calendar month, every person 14 engaged in the business of selling tangible personal property 15 at retail in this State during the preceding calendar month 16 shall file a return with the Department, stating: 17 1. The name of the seller; 18 2. His residence address and the address of his 19 principal place of business and the address of the 20 principal place of business (if that is a different 21 address) from which he engages in the business of selling 22 tangible personal property at retail in this State; 23 3. Total amount of receipts received by him during 24 the preceding calendar month or quarter, as the case may 25 be, from sales of tangible personal property, and from 26 services furnished, by him during such preceding calendar 27 month or quarter; 28 4. Total amount received by him during the 29 preceding calendar month or quarter on charge and time 30 sales of tangible personal property, and from services 31 furnished, by him prior to the month or quarter for which 32 the return is filed; 33 5. Deductions allowed by law; SB984 Engrossed -58- LRB9208148SMdv 1 6. Gross receipts which were received by him during 2 the preceding calendar month or quarter and upon the 3 basis of which the tax is imposed; 4 7. The amount of credit provided in Section 2d of 5 this Act; 6 8. The amount of tax due; 7 9. The signature of the taxpayer; and 8 10. Such other reasonable information as the 9 Department may require. 10 If a taxpayer fails to sign a return within 30 days after 11 the proper notice and demand for signature by the Department, 12 the return shall be considered valid and any amount shown to 13 be due on the return shall be deemed assessed. 14 Each return shall be accompanied by the statement of 15 prepaid tax issued pursuant to Section 2e for which credit is 16 claimed. 17 A retailer may accept a Manufacturer's Purchase Credit 18 certification from a purchaser in satisfaction of Use Tax as 19 provided in Section 3-85 of the Use Tax Act if the purchaser 20 provides the appropriate documentation as required by Section 21 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 22 certification, accepted by a retailer as provided in Section 23 3-85 of the Use Tax Act, may be used by that retailer to 24 satisfy Retailers' Occupation Tax liability in the amount 25 claimed in the certification, not to exceed 6.25% of the 26 receipts subject to tax from a qualifying purchase. 27 The Department may require returns to be filed on a 28 quarterly basis. If so required, a return for each calendar 29 quarter shall be filed on or before the twentieth day of the 30 calendar month following the end of such calendar quarter. 31 The taxpayer shall also file a return with the Department for 32 each of the first two months of each calendar quarter, on or 33 before the twentieth day of the following calendar month, 34 stating: SB984 Engrossed -59- LRB9208148SMdv 1 1. The name of the seller; 2 2. The address of the principal place of business 3 from which he engages in the business of selling tangible 4 personal property at retail in this State; 5 3. The total amount of taxable receipts received by 6 him during the preceding calendar month from sales of 7 tangible personal property by him during such preceding 8 calendar month, including receipts from charge and time 9 sales, but less all deductions allowed by law; 10 4. The amount of credit provided in Section 2d of 11 this Act; 12 5. The amount of tax due; and 13 6. Such other reasonable information as the 14 Department may require. 15 If a total amount of less than $1 is payable, refundable 16 or creditable, such amount shall be disregarded if it is less 17 than 50 cents and shall be increased to $1 if it is 50 cents 18 or more. 19 Beginning October 1, 1993, a taxpayer who has an average 20 monthly tax liability of $150,000 or more shall make all 21 payments required by rules of the Department by electronic 22 funds transfer. Beginning October 1, 1994, a taxpayer who 23 has an average monthly tax liability of $100,000 or more 24 shall make all payments required by rules of the Department 25 by electronic funds transfer. Beginning October 1, 1995, a 26 taxpayer who has an average monthly tax liability of $50,000 27 or more shall make all payments required by rules of the 28 Department by electronic funds transfer. Beginning October 29 1, 2000, a taxpayer who has an annual tax liability of 30 $200,000 or more shall make all payments required by rules of 31 the Department by electronic funds transfer. The term 32 "annual tax liability" shall be the sum of the taxpayer's 33 liabilities under this Act, and under all other State and 34 local occupation and use tax laws administered by the SB984 Engrossed -60- LRB9208148SMdv 1 Department, for the immediately preceding calendar year. The 2 term "average monthly tax liability" shall be the sum of the 3 taxpayer's liabilities under this Act, and under all other 4 State and local occupation and use tax laws administered by 5 the Department, for the immediately preceding calendar year 6 divided by 12. 7 Before August 1 of each year beginning in 1993, the 8 Department shall notify all taxpayers required to make 9 payments by electronic funds transfer. All taxpayers 10 required to make payments by electronic funds transfer shall 11 make those payments for a minimum of one year beginning on 12 October 1. 13 Any taxpayer not required to make payments by electronic 14 funds transfer may make payments by electronic funds transfer 15 with the permission of the Department. 16 All taxpayers required to make payment by electronic 17 funds transfer and any taxpayers authorized to voluntarily 18 make payments by electronic funds transfer shall make those 19 payments in the manner authorized by the Department. 20 The Department shall adopt such rules as are necessary to 21 effectuate a program of electronic funds transfer and the 22 requirements of this Section. 23 Any amount which is required to be shown or reported on 24 any return or other document under this Act shall, if such 25 amount is not a whole-dollar amount, be increased to the 26 nearest whole-dollar amount in any case where the fractional 27 part of a dollar is 50 cents or more, and decreased to the 28 nearest whole-dollar amount where the fractional part of a 29 dollar is less than 50 cents. 30 If the retailer is otherwise required to file a monthly 31 return and if the retailer's average monthly tax liability to 32 the Department does not exceed $200, the Department may 33 authorize his returns to be filed on a quarter annual basis, 34 with the return for January, February and March of a given SB984 Engrossed -61- LRB9208148SMdv 1 year being due by April 20 of such year; with the return for 2 April, May and June of a given year being due by July 20 of 3 such year; with the return for July, August and September of 4 a given year being due by October 20 of such year, and with 5 the return for October, November and December of a given year 6 being due by January 20 of the following year. 7 If the retailer is otherwise required to file a monthly 8 or quarterly return and if the retailer's average monthly tax 9 liability with the Department does not exceed $50, the 10 Department may authorize his returns to be filed on an annual 11 basis, with the return for a given year being due by January 12 20 of the following year. 13 Such quarter annual and annual returns, as to form and 14 substance, shall be subject to the same requirements as 15 monthly returns. 16 Notwithstanding any other provision in this Act 17 concerning the time within which a retailer may file his 18 return, in the case of any retailer who ceases to engage in a 19 kind of business which makes him responsible for filing 20 returns under this Act, such retailer shall file a final 21 return under this Act with the Department not more than one 22 month after discontinuing such business. 23 Where the same person has more than one business 24 registered with the Department under separate registrations 25 under this Act, such person may not file each return that is 26 due as a single return covering all such registered 27 businesses, but shall file separate returns for each such 28 registered business. 29 In addition, with respect to motor vehicles, watercraft, 30 aircraft, and trailers that are required to be registered 31 with an agency of this State, every retailer selling this 32 kind of tangible personal property shall file, with the 33 Department, upon a form to be prescribed and supplied by the 34 Department, a separate return for each such item of tangible SB984 Engrossed -62- LRB9208148SMdv 1 personal property which the retailer sells, except that if, 2 in the same transaction, (i) a retailer of aircraft, 3 watercraft, motor vehicles or trailers transfers more than 4 one aircraft, watercraft, motor vehicle or trailer to another 5 aircraft, watercraft, motor vehicle retailer or trailer 6 retailer for the purpose of resale or (ii) a retailer of 7 aircraft, watercraft, motor vehicles, or trailers transfers 8 more than one aircraft, watercraft, motor vehicle, or trailer 9 to a purchaser for use as a qualifying rolling stock as 10 provided in Section 2-5 of this Act, then that seller may 11 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 SB984 Engrossed -63- LRB9208148SMdv 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 SB984 Engrossed -64- LRB9208148SMdv 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 SB984 Engrossed -65- LRB9208148SMdv 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 SB984 Engrossed -66- LRB9208148SMdv 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, SB984 Engrossed -67- LRB9208148SMdv 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. SB984 Engrossed -68- LRB9208148SMdv 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 SB984 Engrossed -69- LRB9208148SMdv 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 SB984 Engrossed -70- LRB9208148SMdv 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 SB984 Engrossed -71- LRB9208148SMdv 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 February 1, 2002, each month the Department 32 shall pay into the County and Mass Transit District Fund 20% 33 of the net revenue realized for the preceding month from the 34 1.25% rate on the selling price of energy efficient SB984 Engrossed -72- LRB9208148SMdv 1 appliances. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the Local Government Tax Fund 16% 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 Beginning August 1, 2000, each month the Department shall 8 pay into the Local Government Tax Fund 80% of the net revenue 9 realized for the preceding month from the 1.25% rate on the 10 selling price of motor fuel and gasohol. 11 Beginning February 1, 2002, each month the Department 12 shall pay into the Local Government Tax Fund 80% of the net 13 revenue realized for the preceding month from the 1.25% rate 14 on the selling price of energy efficient appliances. 15 Of the remainder of the moneys received by the Department 16 pursuant to this Act, (a) 1.75% thereof shall be paid into 17 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 18 and on and after July 1, 1989, 3.8% thereof shall be paid 19 into the Build Illinois Fund; provided, however, that if in 20 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 21 as the case may be, of the moneys received by the Department 22 and required to be paid into the Build Illinois Fund pursuant 23 to this Act, Section 9 of the Use Tax Act, Section 9 of the 24 Service Use Tax Act, and Section 9 of the Service Occupation 25 Tax Act, such Acts being hereinafter called the "Tax Acts" 26 and such aggregate of 2.2% or 3.8%, as the case may be, of 27 moneys being hereinafter called the "Tax Act Amount", and (2) 28 the amount transferred to the Build Illinois Fund from the 29 State and Local Sales Tax Reform Fund shall be less than the 30 Annual Specified Amount (as hereinafter defined), an amount 31 equal to the difference shall be immediately paid into the 32 Build Illinois Fund from other moneys received by the 33 Department pursuant to the Tax Acts; the "Annual Specified 34 Amount" means the amounts specified below for fiscal years SB984 Engrossed -73- LRB9208148SMdv 1 1986 through 1993: 2 Fiscal Year Annual Specified Amount 3 1986 $54,800,000 4 1987 $76,650,000 5 1988 $80,480,000 6 1989 $88,510,000 7 1990 $115,330,000 8 1991 $145,470,000 9 1992 $182,730,000 10 1993 $206,520,000; 11 and means the Certified Annual Debt Service Requirement (as 12 defined in Section 13 of the Build Illinois Bond Act) or the 13 Tax Act Amount, whichever is greater, for fiscal year 1994 14 and each fiscal year thereafter; and further provided, that 15 if on the last business day of any month the sum of (1) the 16 Tax Act Amount required to be deposited into the Build 17 Illinois Bond Account in the Build Illinois Fund during such 18 month and (2) the amount transferred to the Build Illinois 19 Fund from the State and Local Sales Tax Reform Fund shall 20 have been less than 1/12 of the Annual Specified Amount, an 21 amount equal to the difference shall be immediately paid into 22 the Build Illinois Fund from other moneys received by the 23 Department pursuant to the Tax Acts; and, further provided, 24 that in no event shall the payments required under the 25 preceding proviso result in aggregate payments into the Build 26 Illinois Fund pursuant to this clause (b) for any fiscal year 27 in excess of the greater of (i) the Tax Act Amount or (ii) 28 the Annual Specified Amount for such fiscal year. The 29 amounts payable into the Build Illinois Fund under clause (b) 30 of the first sentence in this paragraph shall be payable only 31 until such time as the aggregate amount on deposit under each 32 trust indenture securing Bonds issued and outstanding 33 pursuant to the Build Illinois Bond Act is sufficient, taking 34 into account any future investment income, to fully provide, SB984 Engrossed -74- LRB9208148SMdv 1 in accordance with such indenture, for the defeasance of or 2 the payment of the principal of, premium, if any, and 3 interest on the Bonds secured by such indenture and on any 4 Bonds expected to be issued thereafter and all fees and costs 5 payable with respect thereto, all as certified by the 6 Director of the Bureau of the Budget. If on the last 7 business day of any month in which Bonds are outstanding 8 pursuant to the Build Illinois Bond Act, the aggregate of 9 moneys deposited in the Build Illinois Bond Account in the 10 Build Illinois Fund in such month shall be less than the 11 amount required to be transferred in such month from the 12 Build Illinois Bond Account to the Build Illinois Bond 13 Retirement and Interest Fund pursuant to Section 13 of the 14 Build Illinois Bond Act, an amount equal to such deficiency 15 shall be immediately paid from other moneys received by the 16 Department pursuant to the Tax Acts to the Build Illinois 17 Fund; provided, however, that any amounts paid to the Build 18 Illinois Fund in any fiscal year pursuant to this sentence 19 shall be deemed to constitute payments pursuant to clause (b) 20 of the first sentence of this paragraph and shall reduce the 21 amount otherwise payable for such fiscal year pursuant to 22 that clause (b). The moneys received by the Department 23 pursuant to this Act and required to be deposited into the 24 Build Illinois Fund are subject to the pledge, claim and 25 charge set forth in Section 12 of the Build Illinois Bond 26 Act. 27 Subject to payment of amounts into the Build Illinois 28 Fund as provided in the preceding paragraph or in any 29 amendment thereto hereafter enacted, the following specified 30 monthly installment of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority provided under Section 8.25f of the 33 State Finance Act, but not in excess of sums designated as 34 "Total Deposit", shall be deposited in the aggregate from SB984 Engrossed -75- LRB9208148SMdv 1 collections under Section 9 of the Use Tax Act, Section 9 of 2 the Service Use Tax Act, Section 9 of the Service Occupation 3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 4 into the McCormick Place Expansion Project Fund in the 5 specified fiscal years. 6 Fiscal Year Total Deposit 7 1993 $0 8 1994 53,000,000 9 1995 58,000,000 10 1996 61,000,000 11 1997 64,000,000 12 1998 68,000,000 13 1999 71,000,000 14 2000 75,000,000 15 2001 80,000,000 16 2002 84,000,000 17 2003 89,000,000 18 2004 93,000,000 19 2005 97,000,000 20 2006 102,000,000 21 2007 108,000,000 22 2008 115,000,000 23 2009 120,000,000 24 2010 126,000,000 25 2011 132,000,000 26 2012 138,000,000 27 2013 and 145,000,000 28 each fiscal year 29 thereafter that bonds 30 are outstanding under 31 Section 13.2 of the 32 Metropolitan Pier and 33 Exposition Authority 34 Act, but not after fiscal year 2029. SB984 Engrossed -76- LRB9208148SMdv 1 Beginning July 20, 1993 and in each month of each fiscal 2 year thereafter, one-eighth of the amount requested in the 3 certificate of the Chairman of the Metropolitan Pier and 4 Exposition Authority for that fiscal year, less the amount 5 deposited into the McCormick Place Expansion Project Fund by 6 the State Treasurer in the respective month under subsection 7 (g) of Section 13 of the Metropolitan Pier and Exposition 8 Authority Act, plus cumulative deficiencies in the deposits 9 required under this Section for previous months and years, 10 shall be deposited into the McCormick Place Expansion Project 11 Fund, until the full amount requested for the fiscal year, 12 but not in excess of the amount specified above as "Total 13 Deposit", has been deposited. 14 Subject to payment of amounts into the Build Illinois 15 Fund and the McCormick Place Expansion Project Fund pursuant 16 to the preceding paragraphs or in any amendment thereto 17 hereafter enacted, each month the Department shall pay into 18 the Local Government Distributive Fund 0.4% of the net 19 revenue realized for the preceding month from the 5% general 20 rate or 0.4% of 80% of the net revenue realized for the 21 preceding month from the 6.25% general rate, as the case may 22 be, on the selling price of tangible personal property which 23 amount shall, subject to appropriation, be distributed as 24 provided in Section 2 of the State Revenue Sharing Act. No 25 payments or distributions pursuant to this paragraph shall be 26 made if the tax imposed by this Act on photoprocessing 27 products is declared unconstitutional, or if the proceeds 28 from such tax are unavailable for distribution because of 29 litigation. 30 Subject to payment of amounts into the Build Illinois 31 Fund, the McCormick Place Expansion Project Fund, and the 32 Local Government Distributive Fund pursuant to the preceding 33 paragraphs or in any amendments thereto hereafter enacted, 34 beginning July 1, 1993, the Department shall each month pay SB984 Engrossed -77- LRB9208148SMdv 1 into the Illinois Tax Increment Fund 0.27% of 80% of the net 2 revenue realized for the preceding month from the 6.25% 3 general rate on the selling price of tangible personal 4 property. 5 Of the remainder of the moneys received by the Department 6 pursuant to this Act, 75% thereof shall be paid into the 7 State Treasury and 25% shall be reserved in a special account 8 and used only for the transfer to the Common School Fund as 9 part of the monthly transfer from the General Revenue Fund in 10 accordance with Section 8a of the State Finance Act. 11 The Department may, upon separate written notice to a 12 taxpayer, require the taxpayer to prepare and file with the 13 Department on a form prescribed by the Department within not 14 less than 60 days after receipt of the notice an annual 15 information return for the tax year specified in the notice. 16 Such annual return to the Department shall include a 17 statement of gross receipts as shown by the retailer's last 18 Federal income tax return. If the total receipts of the 19 business as reported in the Federal income tax return do not 20 agree with the gross receipts reported to the Department of 21 Revenue for the same period, the retailer shall attach to his 22 annual return a schedule showing a reconciliation of the 2 23 amounts and the reasons for the difference. The retailer's 24 annual return to the Department shall also disclose the cost 25 of goods sold by the retailer during the year covered by such 26 return, opening and closing inventories of such goods for 27 such year, costs of goods used from stock or taken from stock 28 and given away by the retailer during such year, payroll 29 information of the retailer's business during such year and 30 any additional reasonable information which the Department 31 deems would be helpful in determining the accuracy of the 32 monthly, quarterly or annual returns filed by such retailer 33 as provided for in this Section. 34 If the annual information return required by this Section SB984 Engrossed -78- LRB9208148SMdv 1 is not filed when and as required, the taxpayer shall be 2 liable as follows: 3 (i) Until January 1, 1994, the taxpayer shall be 4 liable for a penalty equal to 1/6 of 1% of the tax due 5 from such taxpayer under this Act during the period to be 6 covered by the annual return for each month or fraction 7 of a month until such return is filed as required, the 8 penalty to be assessed and collected in the same manner 9 as any other penalty provided for in this Act. 10 (ii) On and after January 1, 1994, the taxpayer 11 shall be liable for a penalty as described in Section 3-4 12 of the Uniform Penalty and Interest Act. 13 The chief executive officer, proprietor, owner or highest 14 ranking manager shall sign the annual return to certify the 15 accuracy of the information contained therein. Any person 16 who willfully signs the annual return containing false or 17 inaccurate information shall be guilty of perjury and 18 punished accordingly. The annual return form prescribed by 19 the Department shall include a warning that the person 20 signing the return may be liable for perjury. 21 The provisions of this Section concerning the filing of 22 an annual information return do not apply to a retailer who 23 is not required to file an income tax return with the United 24 States Government. 25 As soon as possible after the first day of each month, 26 upon certification of the Department of Revenue, the 27 Comptroller shall order transferred and the Treasurer shall 28 transfer from the General Revenue Fund to the Motor Fuel Tax 29 Fund an amount equal to 1.7% of 80% of the net revenue 30 realized under this Act for the second preceding month. 31 Beginning April 1, 2000, this transfer is no longer required 32 and shall not be made. 33 Net revenue realized for a month shall be the revenue 34 collected by the State pursuant to this Act, less the amount SB984 Engrossed -79- LRB9208148SMdv 1 paid out during that month as refunds to taxpayers for 2 overpayment of liability. 3 For greater simplicity of administration, manufacturers, 4 importers and wholesalers whose products are sold at retail 5 in Illinois by numerous retailers, and who wish to do so, may 6 assume the responsibility for accounting and paying to the 7 Department all tax accruing under this Act with respect to 8 such sales, if the retailers who are affected do not make 9 written objection to the Department to this arrangement. 10 Any person who promotes, organizes, provides retail 11 selling space for concessionaires or other types of sellers 12 at the Illinois State Fair, DuQuoin State Fair, county fairs, 13 local fairs, art shows, flea markets and similar exhibitions 14 or events, including any transient merchant as defined by 15 Section 2 of the Transient Merchant Act of 1987, is required 16 to file a report with the Department providing the name of 17 the merchant's business, the name of the person or persons 18 engaged in merchant's business, the permanent address and 19 Illinois Retailers Occupation Tax Registration Number of the 20 merchant, the dates and location of the event and other 21 reasonable information that the Department may require. The 22 report must be filed not later than the 20th day of the month 23 next following the month during which the event with retail 24 sales was held. Any person who fails to file a report 25 required by this Section commits a business offense and is 26 subject to a fine not to exceed $250. 27 Any person engaged in the business of selling tangible 28 personal property at retail as a concessionaire or other type 29 of seller at the Illinois State Fair, county fairs, art 30 shows, flea markets and similar exhibitions or events, or any 31 transient merchants, as defined by Section 2 of the Transient 32 Merchant Act of 1987, may be required to make a daily report 33 of the amount of such sales to the Department and to make a 34 daily payment of the full amount of tax due. The Department SB984 Engrossed -80- LRB9208148SMdv 1 shall impose this requirement when it finds that there is a 2 significant risk of loss of revenue to the State at such an 3 exhibition or event. Such a finding shall be based on 4 evidence that a substantial number of concessionaires or 5 other sellers who are not residents of Illinois will be 6 engaging in the business of selling tangible personal 7 property at retail at the exhibition or event, or other 8 evidence of a significant risk of loss of revenue to the 9 State. The Department shall notify concessionaires and other 10 sellers affected by the imposition of this requirement. In 11 the absence of notification by the Department, the 12 concessionaires and other sellers shall file their returns as 13 otherwise required in this Section. 14 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 15 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 16 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 7-1-00; 91-901, 17 eff. 1-1-01; revised 1-15-01.) 18 Section 99. Effective date. This Act takes effect on 19 January 1, 2002.