101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3510

 

Introduced , by Rep. Karina Villa

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.891 new
30 ILCS 105/6z-107 new
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 7% surcharge on firearms and firearm component parts. Amends the State Finance Act. Creates the Student Mental Health Services Fund. Provides that the proceeds from the surcharge shall be deposited into the Fund. Provides that moneys in the Fund shall be used by the State Board of Education to provide mental health services at any public, non-public, or parochial school in the State. Effective immediately.


LRB101 10602 HLH 55708 b

 

 

A BILL FOR

 

HB3510LRB101 10602 HLH 55708 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.891 and 6z-107 as follows:
 
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The Student Mental Health Services Fund.
 
8    (30 ILCS 105/6z-107 new)
9    Sec. 6z-107. Student Mental Health Services Fund;
10creation.
11    (a) The Student Mental Health Services Fund is hereby
12created as a special fund in the State treasury. Moneys in the
13Fund may be used by the State Board of Education to provide
14mental health services at any public, non-public, or parochial
15school in the State.
 
16    Section 10. The Use Tax Act is amended by changing Sections
173-10 and 9 as follows:
 
18    (35 ILCS 105/3-10)
19    Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property functionally
6used or consumed is a by-product or waste product that has been
7refined, manufactured, or produced from property purchased at
8retail, then the tax is imposed on the lower of the fair market
9value, if any, of the specific property so used in this State
10or on the selling price of the property purchased at retail.
11For purposes of this Section "fair market value" means the
12price at which property would change hands between a willing
13buyer and a willing seller, neither being under any compulsion
14to buy or sell and both having reasonable knowledge of the
15relevant facts. The fair market value shall be established by
16Illinois sales by the taxpayer of the same property as that
17functionally used or consumed, or if there are no such sales by
18the taxpayer, then comparable sales or purchases of property of
19like kind and character in Illinois.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with
25respect to sales tax holiday items as defined in Section 3-6 of
26this Act, the tax is imposed at the rate of 1.25%.

 

 

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1    With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before July 1, 2017, and (iii) 100% of the proceeds of sales
6made thereafter. If, at any time, however, the tax under this
7Act on sales of gasohol is imposed at the rate of 1.25%, then
8the tax imposed by this Act applies to 100% of the proceeds of
9sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132023 but applies to 100% of the proceeds of sales made
14thereafter.
15    With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the proceeds of sales made thereafter.
4    With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances, products
9classified as Class III medical devices by the United States
10Food and Drug Administration that are used for cancer treatment
11pursuant to a prescription, as well as any accessories and
12components related to those devices, modifications to a motor
13vehicle for the purpose of rendering it usable by a person with
14a disability, and insulin, urine testing materials, syringes,
15and needles used by diabetics, for human use, the tax is
16imposed at the rate of 1%. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including but not limited to soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23bottle, can, carton, or container, regardless of size; but
24"soft drinks" does not include coffee, tea, non-carbonated
25water, infant formula, milk or milk products as defined in the
26Grade A Pasteurized Milk and Milk Products Act, or drinks

 

 

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1containing 50% or more natural fruit or vegetable juice.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8    Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or other
26ingredients or flavorings in the form of bars, drops, or

 

 

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1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on the effective date of this amendatory Act of
21the 98th General Assembly, "prescription and nonprescription
22medicines and drugs" includes medical cannabis purchased from a
23registered dispensing organization under the Compassionate Use
24of Medical Cannabis Pilot Program Act.
25    Beginning January 1, 2020, in addition to all other rates
26of tax imposed under this Act, a surcharge of 7% is imposed on

 

 

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1the selling price of (1) each firearm purchased in the State
2and (2) each firearm component part that is purchased in the
3State and sold separately from the firearm. "Firearm" has the
4meaning ascribed to that term in Section 1.1 of the Firearm
5Owners Identification Card Act.
6    If the property that is purchased at retail from a retailer
7is acquired outside Illinois and used outside Illinois before
8being brought to Illinois for use here and is taxable under
9this Act, the "selling price" on which the tax is computed
10shall be reduced by an amount that represents a reasonable
11allowance for depreciation for the period of prior out-of-state
12use.
13(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
14100-22, eff. 7-6-17.)
 
15    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
16    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
17and trailers that are required to be registered with an agency
18of this State, each retailer required or authorized to collect
19the tax imposed by this Act shall pay to the Department the
20amount of such tax (except as otherwise provided) at the time
21when he is required to file his return for the period during
22which such tax was collected, less a discount of 2.1% prior to
23January 1, 1990, and 1.75% on and after January 1, 1990, or $5
24per calendar year, whichever is greater, which is allowed to
25reimburse the retailer for expenses incurred in collecting the

 

 

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1tax, keeping records, preparing and filing returns, remitting
2the tax and supplying data to the Department on request. In the
3case of retailers who report and pay the tax on a transaction
4by transaction basis, as provided in this Section, such
5discount shall be taken with each such tax remittance instead
6of when such retailer files his periodic return. The discount
7allowed under this Section is allowed only for returns that are
8filed in the manner required by this Act. The Department may
9disallow the discount for retailers whose certificate of
10registration is revoked at the time the return is filed, but
11only if the Department's decision to revoke the certificate of
12registration has become final. A retailer need not remit that
13part of any tax collected by him to the extent that he is
14required to remit and does remit the tax imposed by the
15Retailers' Occupation Tax Act, with respect to the sale of the
16same property.
17    Where such tangible personal property is sold under a
18conditional sales contract, or under any other form of sale
19wherein the payment of the principal sum, or a part thereof, is
20extended beyond the close of the period for which the return is
21filed, the retailer, in collecting the tax (except as to motor
22vehicles, watercraft, aircraft, and trailers that are required
23to be registered with an agency of this State), may collect for
24each tax return period, only the tax applicable to that part of
25the selling price actually received during such tax return
26period.

 

 

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1    Except as provided in this Section, on or before the
2twentieth day of each calendar month, such retailer shall file
3a return for the preceding calendar month. Such return shall be
4filed on forms prescribed by the Department and shall furnish
5such information as the Department may reasonably require. On
6and after January 1, 2018, except for returns for motor
7vehicles, watercraft, aircraft, and trailers that are required
8to be registered with an agency of this State, with respect to
9retailers whose annual gross receipts average $20,000 or more,
10all returns required to be filed pursuant to this Act shall be
11filed electronically. Retailers who demonstrate that they do
12not have access to the Internet or demonstrate hardship in
13filing electronically may petition the Department to waive the
14electronic filing requirement.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first two months of each calendar quarter, on or before
21the twentieth day of the following calendar month, stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in the business of selling tangible
25    personal property at retail in this State;
26        3. The total amount of taxable receipts received by him

 

 

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1    during the preceding calendar month from sales of tangible
2    personal property by him during such preceding calendar
3    month, including receipts from charge and time sales, but
4    less all deductions allowed by law;
5        4. The amount of credit provided in Section 2d of this
6    Act;
7        5. The amount of tax due;
8        5-5. The signature of the taxpayer; and
9        6. Such other reasonable information as the Department
10    may require.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1995, a taxpayer who has
22an average monthly tax liability of $50,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 2000, a taxpayer who has
25an annual tax liability of $200,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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1funds transfer. The term "annual tax liability" shall be the
2sum of the taxpayer's liabilities under this Act, and under all
3other State and local occupation and use tax laws administered
4by the Department, for the immediately preceding calendar year.
5The term "average monthly tax liability" means the sum of the
6taxpayer's liabilities under this Act, and under all other
7State and local occupation and use tax laws administered by the
8Department, for the immediately preceding calendar year
9divided by 12. Beginning on October 1, 2002, a taxpayer who has
10a tax liability in the amount set forth in subsection (b) of
11Section 2505-210 of the Department of Revenue Law shall make
12all payments required by rules of the Department by electronic
13funds transfer.
14    Before August 1 of each year beginning in 1993, the
15Department shall notify all taxpayers required to make payments
16by electronic funds transfer. All taxpayers required to make
17payments by electronic funds transfer shall make those payments
18for a minimum of one year beginning on October 1.
19    Any taxpayer not required to make payments by electronic
20funds transfer may make payments by electronic funds transfer
21with the permission of the Department.
22    All taxpayers required to make payment by electronic funds
23transfer and any taxpayers authorized to voluntarily make
24payments by electronic funds transfer shall make those payments
25in the manner authorized by the Department.
26    The Department shall adopt such rules as are necessary to

 

 

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1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    Before October 1, 2000, if the taxpayer's average monthly
4tax liability to the Department under this Act, the Retailers'
5Occupation Tax Act, the Service Occupation Tax Act, the Service
6Use Tax Act was $10,000 or more during the preceding 4 complete
7calendar quarters, he shall file a return with the Department
8each month by the 20th day of the month next following the
9month during which such tax liability is incurred and shall
10make payments to the Department on or before the 7th, 15th,
1122nd and last day of the month during which such liability is
12incurred. On and after October 1, 2000, if the taxpayer's
13average monthly tax liability to the Department under this Act,
14the Retailers' Occupation Tax Act, the Service Occupation Tax
15Act, and the Service Use Tax Act was $20,000 or more during the
16preceding 4 complete calendar quarters, he shall file a return
17with the Department each month by the 20th day of the month
18next following the month during which such tax liability is
19incurred and shall make payment to the Department on or before
20the 7th, 15th, 22nd and last day of the month during which such
21liability is incurred. If the month during which such tax
22liability is incurred began prior to January 1, 1985, each
23payment shall be in an amount equal to 1/4 of the taxpayer's
24actual liability for the month or an amount set by the
25Department not to exceed 1/4 of the average monthly liability
26of the taxpayer to the Department for the preceding 4 complete

 

 

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1calendar quarters (excluding the month of highest liability and
2the month of lowest liability in such 4 quarter period). If the
3month during which such tax liability is incurred begins on or
4after January 1, 1985, and prior to January 1, 1987, each
5payment shall be in an amount equal to 22.5% of the taxpayer's
6actual liability for the month or 27.5% of the taxpayer's
7liability for the same calendar month of the preceding year. If
8the month during which such tax liability is incurred begins on
9or after January 1, 1987, and prior to January 1, 1988, each
10payment shall be in an amount equal to 22.5% of the taxpayer's
11actual liability for the month or 26.25% of the taxpayer's
12liability for the same calendar month of the preceding year. If
13the month during which such tax liability is incurred begins on
14or after January 1, 1988, and prior to January 1, 1989, or
15begins on or after January 1, 1996, each payment shall be in an
16amount equal to 22.5% of the taxpayer's actual liability for
17the month or 25% of the taxpayer's liability for the same
18calendar month of the preceding year. If the month during which
19such tax liability is incurred begins on or after January 1,
201989, and prior to January 1, 1996, each payment shall be in an
21amount equal to 22.5% of the taxpayer's actual liability for
22the month or 25% of the taxpayer's liability for the same
23calendar month of the preceding year or 100% of the taxpayer's
24actual liability for the quarter monthly reporting period. The
25amount of such quarter monthly payments shall be credited
26against the final tax liability of the taxpayer's return for

 

 

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1that month. Before October 1, 2000, once applicable, the
2requirement of the making of quarter monthly payments to the
3Department shall continue until such taxpayer's average
4monthly liability to the Department during the preceding 4
5complete calendar quarters (excluding the month of highest
6liability and the month of lowest liability) is less than
7$9,000, or until such taxpayer's average monthly liability to
8the Department as computed for each calendar quarter of the 4
9preceding complete calendar quarter period is less than
10$10,000. However, if a taxpayer can show the Department that a
11substantial change in the taxpayer's business has occurred
12which causes the taxpayer to anticipate that his average
13monthly tax liability for the reasonably foreseeable future
14will fall below the $10,000 threshold stated above, then such
15taxpayer may petition the Department for change in such
16taxpayer's reporting status. On and after October 1, 2000, once
17applicable, the requirement of the making of quarter monthly
18payments to the Department shall continue until such taxpayer's
19average monthly liability to the Department during the
20preceding 4 complete calendar quarters (excluding the month of
21highest liability and the month of lowest liability) is less
22than $19,000 or until such taxpayer's average monthly liability
23to the Department as computed for each calendar quarter of the
244 preceding complete calendar quarter period is less than
25$20,000. However, if a taxpayer can show the Department that a
26substantial change in the taxpayer's business has occurred

 

 

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1which causes the taxpayer to anticipate that his average
2monthly tax liability for the reasonably foreseeable future
3will fall below the $20,000 threshold stated above, then such
4taxpayer may petition the Department for a change in such
5taxpayer's reporting status. The Department shall change such
6taxpayer's reporting status unless it finds that such change is
7seasonal in nature and not likely to be long term. If any such
8quarter monthly payment is not paid at the time or in the
9amount required by this Section, then the taxpayer shall be
10liable for penalties and interest on the difference between the
11minimum amount due and the amount of such quarter monthly
12payment actually and timely paid, except insofar as the
13taxpayer has previously made payments for that month to the
14Department in excess of the minimum payments previously due as
15provided in this Section. The Department shall make reasonable
16rules and regulations to govern the quarter monthly payment
17amount and quarter monthly payment dates for taxpayers who file
18on other than a calendar monthly basis.
19    If any such payment provided for in this Section exceeds
20the taxpayer's liabilities under this Act, the Retailers'
21Occupation Tax Act, the Service Occupation Tax Act and the
22Service Use Tax Act, as shown by an original monthly return,
23the Department shall issue to the taxpayer a credit memorandum
24no later than 30 days after the date of payment, which
25memorandum may be submitted by the taxpayer to the Department
26in payment of tax liability subsequently to be remitted by the

 

 

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1taxpayer to the Department or be assigned by the taxpayer to a
2similar taxpayer under this Act, the Retailers' Occupation Tax
3Act, the Service Occupation Tax Act or the Service Use Tax Act,
4in accordance with reasonable rules and regulations to be
5prescribed by the Department, except that if such excess
6payment is shown on an original monthly return and is made
7after December 31, 1986, no credit memorandum shall be issued,
8unless requested by the taxpayer. If no such request is made,
9the taxpayer may credit such excess payment against tax
10liability subsequently to be remitted by the taxpayer to the
11Department under this Act, the Retailers' Occupation Tax Act,
12the Service Occupation Tax Act or the Service Use Tax Act, in
13accordance with reasonable rules and regulations prescribed by
14the Department. If the Department subsequently determines that
15all or any part of the credit taken was not actually due to the
16taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
17be reduced by 2.1% or 1.75% of the difference between the
18credit taken and that actually due, and the taxpayer shall be
19liable for penalties and interest on such difference.
20    If the retailer is otherwise required to file a monthly
21return and if the retailer's average monthly tax liability to
22the Department does not exceed $200, the Department may
23authorize his returns to be filed on a quarter annual basis,
24with the return for January, February, and March of a given
25year being due by April 20 of such year; with the return for
26April, May and June of a given year being due by July 20 of such

 

 

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1year; with the return for July, August and September of a given
2year being due by October 20 of such year, and with the return
3for October, November and December of a given year being due by
4January 20 of the following year.
5    If the retailer is otherwise required to file a monthly or
6quarterly return and if the retailer's average monthly tax
7liability to the Department does not exceed $50, the Department
8may authorize his returns to be filed on an annual basis, with
9the return for a given year being due by January 20 of the
10following year.
11    Such quarter annual and annual returns, as to form and
12substance, shall be subject to the same requirements as monthly
13returns.
14    Notwithstanding any other provision in this Act concerning
15the time within which a retailer may file his return, in the
16case of any retailer who ceases to engage in a kind of business
17which makes him responsible for filing returns under this Act,
18such retailer shall file a final return under this Act with the
19Department not more than one month after discontinuing such
20business.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, except as otherwise provided in this
24Section, every retailer selling this kind of tangible personal
25property shall file, with the Department, upon a form to be
26prescribed and supplied by the Department, a separate return

 

 

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1for each such item of tangible personal property which the
2retailer sells, except that if, in the same transaction, (i) a
3retailer of aircraft, watercraft, motor vehicles or trailers
4transfers more than one aircraft, watercraft, motor vehicle or
5trailer to another aircraft, watercraft, motor vehicle or
6trailer retailer for the purpose of resale or (ii) a retailer
7of aircraft, watercraft, motor vehicles, or trailers transfers
8more than one aircraft, watercraft, motor vehicle, or trailer
9to a purchaser for use as a qualifying rolling stock as
10provided in Section 3-55 of this Act, then that seller may
11report the transfer of all the aircraft, watercraft, motor
12vehicles or trailers involved in that transaction to the
13Department on the same uniform invoice-transaction reporting
14return form. For purposes of this Section, "watercraft" means a
15Class 2, Class 3, or Class 4 watercraft as defined in Section
163-2 of the Boat Registration and Safety Act, a personal
17watercraft, or any boat equipped with an inboard motor.
18    In addition, with respect to motor vehicles, watercraft,
19aircraft, and trailers that are required to be registered with
20an agency of this State, every person who is engaged in the
21business of leasing or renting such items and who, in
22connection with such business, sells any such item to a
23retailer for the purpose of resale is, notwithstanding any
24other provision of this Section to the contrary, authorized to
25meet the return-filing requirement of this Act by reporting the
26transfer of all the aircraft, watercraft, motor vehicles, or

 

 

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1trailers transferred for resale during a month to the
2Department on the same uniform invoice-transaction reporting
3return form on or before the 20th of the month following the
4month in which the transfer takes place. Notwithstanding any
5other provision of this Act to the contrary, all returns filed
6under this paragraph must be filed by electronic means in the
7manner and form as required by the Department.
8    The transaction reporting return in the case of motor
9vehicles or trailers that are required to be registered with an
10agency of this State, shall be the same document as the Uniform
11Invoice referred to in Section 5-402 of the Illinois Vehicle
12Code and must show the name and address of the seller; the name
13and address of the purchaser; the amount of the selling price
14including the amount allowed by the retailer for traded-in
15property, if any; the amount allowed by the retailer for the
16traded-in tangible personal property, if any, to the extent to
17which Section 2 of this Act allows an exemption for the value
18of traded-in property; the balance payable after deducting such
19trade-in allowance from the total selling price; the amount of
20tax due from the retailer with respect to such transaction; the
21amount of tax collected from the purchaser by the retailer on
22such transaction (or satisfactory evidence that such tax is not
23due in that particular instance, if that is claimed to be the
24fact); the place and date of the sale; a sufficient
25identification of the property sold; such other information as
26is required in Section 5-402 of the Illinois Vehicle Code, and

 

 

HB3510- 20 -LRB101 10602 HLH 55708 b

1such other information as the Department may reasonably
2require.
3    The transaction reporting return in the case of watercraft
4and aircraft must show the name and address of the seller; the
5name and address of the purchaser; the amount of the selling
6price including the amount allowed by the retailer for
7traded-in property, if any; the amount allowed by the retailer
8for the traded-in tangible personal property, if any, to the
9extent to which Section 2 of this Act allows an exemption for
10the value of traded-in property; the balance payable after
11deducting such trade-in allowance from the total selling price;
12the amount of tax due from the retailer with respect to such
13transaction; the amount of tax collected from the purchaser by
14the retailer on such transaction (or satisfactory evidence that
15such tax is not due in that particular instance, if that is
16claimed to be the fact); the place and date of the sale, a
17sufficient identification of the property sold, and such other
18information as the Department may reasonably require.
19    Such transaction reporting return shall be filed not later
20than 20 days after the date of delivery of the item that is
21being sold, but may be filed by the retailer at any time sooner
22than that if he chooses to do so. The transaction reporting
23return and tax remittance or proof of exemption from the tax
24that is imposed by this Act may be transmitted to the
25Department by way of the State agency with which, or State
26officer with whom, the tangible personal property must be

 

 

HB3510- 21 -LRB101 10602 HLH 55708 b

1titled or registered (if titling or registration is required)
2if the Department and such agency or State officer determine
3that this procedure will expedite the processing of
4applications for title or registration.
5    With each such transaction reporting return, the retailer
6shall remit the proper amount of tax due (or shall submit
7satisfactory evidence that the sale is not taxable if that is
8the case), to the Department or its agents, whereupon the
9Department shall issue, in the purchaser's name, a tax receipt
10(or a certificate of exemption if the Department is satisfied
11that the particular sale is tax exempt) which such purchaser
12may submit to the agency with which, or State officer with
13whom, he must title or register the tangible personal property
14that is involved (if titling or registration is required) in
15support of such purchaser's application for an Illinois
16certificate or other evidence of title or registration to such
17tangible personal property.
18    No retailer's failure or refusal to remit tax under this
19Act precludes a user, who has paid the proper tax to the
20retailer, from obtaining his certificate of title or other
21evidence of title or registration (if titling or registration
22is required) upon satisfying the Department that such user has
23paid the proper tax (if tax is due) to the retailer. The
24Department shall adopt appropriate rules to carry out the
25mandate of this paragraph.
26    If the user who would otherwise pay tax to the retailer

 

 

HB3510- 22 -LRB101 10602 HLH 55708 b

1wants the transaction reporting return filed and the payment of
2tax or proof of exemption made to the Department before the
3retailer is willing to take these actions and such user has not
4paid the tax to the retailer, such user may certify to the fact
5of such delay by the retailer, and may (upon the Department
6being satisfied of the truth of such certification) transmit
7the information required by the transaction reporting return
8and the remittance for tax or proof of exemption directly to
9the Department and obtain his tax receipt or exemption
10determination, in which event the transaction reporting return
11and tax remittance (if a tax payment was required) shall be
12credited by the Department to the proper retailer's account
13with the Department, but without the 2.1% or 1.75% discount
14provided for in this Section being allowed. When the user pays
15the tax directly to the Department, he shall pay the tax in the
16same amount and in the same form in which it would be remitted
17if the tax had been remitted to the Department by the retailer.
18    Where a retailer collects the tax with respect to the
19selling price of tangible personal property which he sells and
20the purchaser thereafter returns such tangible personal
21property and the retailer refunds the selling price thereof to
22the purchaser, such retailer shall also refund, to the
23purchaser, the tax so collected from the purchaser. When filing
24his return for the period in which he refunds such tax to the
25purchaser, the retailer may deduct the amount of the tax so
26refunded by him to the purchaser from any other use tax which

 

 

HB3510- 23 -LRB101 10602 HLH 55708 b

1such retailer may be required to pay or remit to the
2Department, as shown by such return, if the amount of the tax
3to be deducted was previously remitted to the Department by
4such retailer. If the retailer has not previously remitted the
5amount of such tax to the Department, he is entitled to no
6deduction under this Act upon refunding such tax to the
7purchaser.
8    Any retailer filing a return under this Section shall also
9include (for the purpose of paying tax thereon) the total tax
10covered by such return upon the selling price of tangible
11personal property purchased by him at retail from a retailer,
12but as to which the tax imposed by this Act was not collected
13from the retailer filing such return, and such retailer shall
14remit the amount of such tax to the Department when filing such
15return.
16    If experience indicates such action to be practicable, the
17Department may prescribe and furnish a combination or joint
18return which will enable retailers, who are required to file
19returns hereunder and also under the Retailers' Occupation Tax
20Act, to furnish all the return information required by both
21Acts on the one form.
22    Where the retailer has more than one business registered
23with the Department under separate registration under this Act,
24such retailer may not file each return that is due as a single
25return covering all such registered businesses, but shall file
26separate returns for each such registered business.

 

 

HB3510- 24 -LRB101 10602 HLH 55708 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund, a special
3fund in the State Treasury which is hereby created, the net
4revenue realized for the preceding month from the 1% tax
5imposed under this Act.
6    Beginning January 1, 1990, each month the Department shall
7pay into the County and Mass Transit District Fund 4% of the
8net revenue realized for the preceding month from the 6.25%
9general rate on the selling price of tangible personal property
10which is purchased outside Illinois at retail from a retailer
11and which is titled or registered by an agency of this State's
12government.
13    Beginning January 1, 1990, each month the Department shall
14pay into the State and Local Sales Tax Reform Fund, a special
15fund in the State Treasury, 20% of the net revenue realized for
16the preceding month from the 6.25% general rate on the selling
17price of tangible personal property, other than tangible
18personal property which is purchased outside Illinois at retail
19from a retailer and which is titled or registered by an agency
20of this State's government.
21    Beginning August 1, 2000, each month the Department shall
22pay into the State and Local Sales Tax Reform Fund 100% of the
23net revenue realized for the preceding month from the 1.25%
24rate on the selling price of motor fuel and gasohol. Beginning
25September 1, 2010, each month the Department shall pay into the
26State and Local Sales Tax Reform Fund 100% of the net revenue

 

 

HB3510- 25 -LRB101 10602 HLH 55708 b

1realized for the preceding month from the 1.25% rate on the
2selling price of sales tax holiday items.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the net revenue
5realized for the preceding month from the 6.25% general rate on
6the selling price of tangible personal property which is
7purchased outside Illinois at retail from a retailer and which
8is titled or registered by an agency of this State's
9government.
10    Beginning October 1, 2009, each month the Department shall
11pay into the Capital Projects Fund an amount that is equal to
12an amount estimated by the Department to represent 80% of the
13net revenue realized for the preceding month from the sale of
14candy, grooming and hygiene products, and soft drinks that had
15been taxed at a rate of 1% prior to September 1, 2009 but that
16are now taxed at 6.25%.
17    Beginning July 1, 2011, each month the Department shall pay
18into the Clean Air Act Permit Fund 80% of the net revenue
19realized for the preceding month from the 6.25% general rate on
20the selling price of sorbents used in Illinois in the process
21of sorbent injection as used to comply with the Environmental
22Protection Act or the federal Clean Air Act, but the total
23payment into the Clean Air Act Permit Fund under this Act and
24the Retailers' Occupation Tax Act shall not exceed $2,000,000
25in any fiscal year.
26    Beginning July 1, 2013, each month the Department shall pay

 

 

HB3510- 26 -LRB101 10602 HLH 55708 b

1into the Underground Storage Tank Fund from the proceeds
2collected under this Act, the Service Use Tax Act, the Service
3Occupation Tax Act, and the Retailers' Occupation Tax Act an
4amount equal to the average monthly deficit in the Underground
5Storage Tank Fund during the prior year, as certified annually
6by the Illinois Environmental Protection Agency, but the total
7payment into the Underground Storage Tank Fund under this Act,
8the Service Use Tax Act, the Service Occupation Tax Act, and
9the Retailers' Occupation Tax Act shall not exceed $18,000,000
10in any State fiscal year. As used in this paragraph, the
11"average monthly deficit" shall be equal to the difference
12between the average monthly claims for payment by the fund and
13the average monthly revenues deposited into the fund, excluding
14payments made pursuant to this paragraph.
15    Beginning July 1, 2015, of the remainder of the moneys
16received by the Department under this Act, the Service Use Tax
17Act, the Service Occupation Tax Act, and the Retailers'
18Occupation Tax Act, each month the Department shall deposit
19$500,000 into the State Crime Laboratory Fund.
20    Beginning January 1, 2020, the Department shall pay into
21the Student Mental Health Services Fund 100% of the net revenue
22realized for the preceding month from the 7% surcharge on the
23selling price of firearms and firearm component parts.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, (a) 1.75% thereof shall be paid into the
26Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

 

 

HB3510- 27 -LRB101 10602 HLH 55708 b

1and after July 1, 1989, 3.8% thereof shall be paid into the
2Build Illinois Fund; provided, however, that if in any fiscal
3year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
4may be, of the moneys received by the Department and required
5to be paid into the Build Illinois Fund pursuant to Section 3
6of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
7Act, Section 9 of the Service Use Tax Act, and Section 9 of the
8Service Occupation Tax Act, such Acts being hereinafter called
9the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
10may be, of moneys being hereinafter called the "Tax Act
11Amount", and (2) the amount transferred to the Build Illinois
12Fund from the State and Local Sales Tax Reform Fund shall be
13less than the Annual Specified Amount (as defined in Section 3
14of the Retailers' Occupation Tax Act), an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and further provided, that if on the last
18business day of any month the sum of (1) the Tax Act Amount
19required to be deposited into the Build Illinois Bond Account
20in the Build Illinois Fund during such month and (2) the amount
21transferred during such month to the Build Illinois Fund from
22the State and Local Sales Tax Reform Fund shall have been less
23than 1/12 of the Annual Specified Amount, an amount equal to
24the difference shall be immediately paid into the Build
25Illinois Fund from other moneys received by the Department
26pursuant to the Tax Acts; and, further provided, that in no

 

 

HB3510- 28 -LRB101 10602 HLH 55708 b

1event shall the payments required under the preceding proviso
2result in aggregate payments into the Build Illinois Fund
3pursuant to this clause (b) for any fiscal year in excess of
4the greater of (i) the Tax Act Amount or (ii) the Annual
5Specified Amount for such fiscal year; and, further provided,
6that the amounts payable into the Build Illinois Fund under
7this clause (b) shall be payable only until such time as the
8aggregate amount on deposit under each trust indenture securing
9Bonds issued and outstanding pursuant to the Build Illinois
10Bond Act is sufficient, taking into account any future
11investment income, to fully provide, in accordance with such
12indenture, for the defeasance of or the payment of the
13principal of, premium, if any, and interest on the Bonds
14secured by such indenture and on any Bonds expected to be
15issued thereafter and all fees and costs payable with respect
16thereto, all as certified by the Director of the Bureau of the
17Budget (now Governor's Office of Management and Budget). If on
18the last business day of any month in which Bonds are
19outstanding pursuant to the Build Illinois Bond Act, the
20aggregate of the moneys deposited in the Build Illinois Bond
21Account in the Build Illinois Fund in such month shall be less
22than the amount required to be transferred in such month from
23the Build Illinois Bond Account to the Build Illinois Bond
24Retirement and Interest Fund pursuant to Section 13 of the
25Build Illinois Bond Act, an amount equal to such deficiency
26shall be immediately paid from other moneys received by the

 

 

HB3510- 29 -LRB101 10602 HLH 55708 b

1Department pursuant to the Tax Acts to the Build Illinois Fund;
2provided, however, that any amounts paid to the Build Illinois
3Fund in any fiscal year pursuant to this sentence shall be
4deemed to constitute payments pursuant to clause (b) of the
5preceding sentence and shall reduce the amount otherwise
6payable for such fiscal year pursuant to clause (b) of the
7preceding sentence. The moneys received by the Department
8pursuant to this Act and required to be deposited into the
9Build Illinois Fund are subject to the pledge, claim and charge
10set forth in Section 12 of the Build Illinois Bond Act.
11    Subject to payment of amounts into the Build Illinois Fund
12as provided in the preceding paragraph or in any amendment
13thereto hereafter enacted, the following specified monthly
14installment of the amount requested in the certificate of the
15Chairman of the Metropolitan Pier and Exposition Authority
16provided under Section 8.25f of the State Finance Act, but not
17in excess of the sums designated as "Total Deposit", shall be
18deposited in the aggregate from collections under Section 9 of
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section
209 of the Service Occupation Tax Act, and Section 3 of the
21Retailers' Occupation Tax Act into the McCormick Place
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000
261995 58,000,000

 

 

HB3510- 30 -LRB101 10602 HLH 55708 b

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021246,000,000

 

 

HB3510- 31 -LRB101 10602 HLH 55708 b

12022260,000,000
22023275,000,000
32024 275,000,000
42025 275,000,000
52026 279,000,000
62027 292,000,000
72028 307,000,000
82029 322,000,000
92030 338,000,000
102031 350,000,000
112032 350,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

HB3510- 32 -LRB101 10602 HLH 55708 b

1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total Deposit",
6has been deposited.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning July 1, 1993 and ending on September 30,
112013, the Department shall each month pay into the Illinois Tax
12Increment Fund 0.27% of 80% of the net revenue realized for the
13preceding month from the 6.25% general rate on the selling
14price of tangible personal property.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning with the receipt of the first report of
19taxes paid by an eligible business and continuing for a 25-year
20period, the Department shall each month pay into the Energy
21Infrastructure Fund 80% of the net revenue realized from the
226.25% general rate on the selling price of Illinois-mined coal
23that was sold to an eligible business. For purposes of this
24paragraph, the term "eligible business" means a new electric
25generating facility certified pursuant to Section 605-332 of
26the Department of Commerce and Economic Opportunity Law of the

 

 

HB3510- 33 -LRB101 10602 HLH 55708 b

1Civil Administrative Code of Illinois.
2    Subject to payment of amounts into the Build Illinois Fund,
3the McCormick Place Expansion Project Fund, the Illinois Tax
4Increment Fund, and the Energy Infrastructure Fund pursuant to
5the preceding paragraphs or in any amendments to this Section
6hereafter enacted, beginning on the first day of the first
7calendar month to occur on or after August 26, 2014 (the
8effective date of Public Act 98-1098), each month, from the
9collections made under Section 9 of the Use Tax Act, Section 9
10of the Service Use Tax Act, Section 9 of the Service Occupation
11Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
12the Department shall pay into the Tax Compliance and
13Administration Fund, to be used, subject to appropriation, to
14fund additional auditors and compliance personnel at the
15Department of Revenue, an amount equal to 1/12 of 5% of 80% of
16the cash receipts collected during the preceding fiscal year by
17the Audit Bureau of the Department under the Use Tax Act, the
18Service Use Tax Act, the Service Occupation Tax Act, the
19Retailers' Occupation Tax Act, and associated local occupation
20and use taxes administered by the Department.
21    Subject to payments of amounts into the Build Illinois
22Fund, the McCormick Place Expansion Project Fund, the Illinois
23Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
24Compliance and Administration Fund as provided in this Section,
25beginning on July 1, 2018 the Department shall pay each month
26into the Downstate Public Transportation Fund the moneys

 

 

HB3510- 34 -LRB101 10602 HLH 55708 b

1required to be so paid under Section 2-3 of the Downstate
2Public Transportation Act.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, 75% thereof shall be paid into the State
5Treasury and 25% shall be reserved in a special account and
6used only for the transfer to the Common School Fund as part of
7the monthly transfer from the General Revenue Fund in
8accordance with Section 8a of the State Finance Act.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20    For greater simplicity of administration, manufacturers,
21importers and wholesalers whose products are sold at retail in
22Illinois by numerous retailers, and who wish to do so, may
23assume the responsibility for accounting and paying to the
24Department all tax accruing under this Act with respect to such
25sales, if the retailers who are affected do not make written
26objection to the Department to this arrangement.

 

 

HB3510- 35 -LRB101 10602 HLH 55708 b

1(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
299-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
37-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
4    Section 15. The Service Use Tax Act is amended by changing
5Sections 3-10 and 9 as follows:
 
6    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9the selling price of tangible personal property transferred as
10an incident to the sale of service, but, for the purpose of
11computing this tax, in no event shall the selling price be less
12than the cost price of the property to the serviceman.
13    Beginning on July 1, 2000 and through December 31, 2000,
14with respect to motor fuel, as defined in Section 1.1 of the
15Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
16the 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, the
18tax imposed by this Act applies to (i) 70% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 1990, and before July 1, 2003, (ii) 80%
21of the selling price of property transferred as an incident to
22the sale of service on or after July 1, 2003 and on or before
23July 1, 2017, and (iii) 100% of the selling price thereafter.
24If, at any time, however, the tax under this Act on sales of

 

 

HB3510- 36 -LRB101 10602 HLH 55708 b

1gasohol, as defined in the Use Tax Act, is imposed at the rate
2of 1.25%, then the tax imposed by this Act applies to 100% of
3the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2023 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of the selling price
26of property transferred as an incident to the sale of service

 

 

HB3510- 37 -LRB101 10602 HLH 55708 b

1on or after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the selling price thereafter.
3    At the election of any registered serviceman made for each
4fiscal year, sales of service in which the aggregate annual
5cost price of tangible personal property transferred as an
6incident to the sales of service is less than 35%, or 75% in
7the case of servicemen transferring prescription drugs or
8servicemen engaged in graphic arts production, of the aggregate
9annual total gross receipts from all sales of service, the tax
10imposed by this Act shall be based on the serviceman's cost
11price of the tangible personal property transferred as an
12incident to the sale of those services.
13    The tax shall be imposed at the rate of 1% on food prepared
14for immediate consumption and transferred incident to a sale of
15service subject to this Act or the Service Occupation Tax Act
16by an entity licensed under the Hospital Licensing Act, the
17Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
18Act, the Specialized Mental Health Rehabilitation Act of 2013,
19or the Child Care Act of 1969. The tax shall also be imposed at
20the rate of 1% on food for human consumption that is to be
21consumed off the premises where it is sold (other than
22alcoholic beverages, soft drinks, and food that has been
23prepared for immediate consumption and is not otherwise
24included in this paragraph) and prescription and
25nonprescription medicines, drugs, medical appliances, products
26classified as Class III medical devices by the United States

 

 

HB3510- 38 -LRB101 10602 HLH 55708 b

1Food and Drug Administration that are used for cancer treatment
2pursuant to a prescription, as well as any accessories and
3components related to those devices, modifications to a motor
4vehicle for the purpose of rendering it usable by a person with
5a disability, and insulin, urine testing materials, syringes,
6and needles used by diabetics, for human use. For the purposes
7of this Section, until September 1, 2009: the term "soft
8drinks" means any complete, finished, ready-to-use,
9non-alcoholic drink, whether carbonated or not, including but
10not limited to soda water, cola, fruit juice, vegetable juice,
11carbonated water, and all other preparations commonly known as
12soft drinks of whatever kind or description that are contained
13in any closed or sealed bottle, can, carton, or container,
14regardless of size; but "soft drinks" does not include coffee,
15tea, non-carbonated water, infant formula, milk or milk
16products as defined in the Grade A Pasteurized Milk and Milk
17Products Act, or drinks containing 50% or more natural fruit or
18vegetable juice.
19    Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "soft drinks" means non-alcoholic
21beverages that contain natural or artificial sweeteners. "Soft
22drinks" do not include beverages that contain milk or milk
23products, soy, rice or similar milk substitutes, or greater
24than 50% of vegetable or fruit juice by volume.
25    Until August 1, 2009, and notwithstanding any other
26provisions of this Act, "food for human consumption that is to

 

 

HB3510- 39 -LRB101 10602 HLH 55708 b

1be consumed off the premises where it is sold" includes all
2food sold through a vending machine, except soft drinks and
3food products that are dispensed hot from a vending machine,
4regardless of the location of the vending machine. Beginning
5August 1, 2009, and notwithstanding any other provisions of
6this Act, "food for human consumption that is to be consumed
7off the premises where it is sold" includes all food sold
8through a vending machine, except soft drinks, candy, and food
9products that are dispensed hot from a vending machine,
10regardless of the location of the vending machine.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "food for human consumption that
13is to be consumed off the premises where it is sold" does not
14include candy. For purposes of this Section, "candy" means a
15preparation of sugar, honey, or other natural or artificial
16sweeteners in combination with chocolate, fruits, nuts or other
17ingredients or flavorings in the form of bars, drops, or
18pieces. "Candy" does not include any preparation that contains
19flour or requires refrigeration.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "nonprescription medicines and
22drugs" does not include grooming and hygiene products. For
23purposes of this Section, "grooming and hygiene products"
24includes, but is not limited to, soaps and cleaning solutions,
25shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
26lotions and screens, unless those products are available by

 

 

HB3510- 40 -LRB101 10602 HLH 55708 b

1prescription only, regardless of whether the products meet the
2definition of "over-the-counter-drugs". For the purposes of
3this paragraph, "over-the-counter-drug" means a drug for human
4use that contains a label that identifies the product as a drug
5as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
6label includes:
7        (A) A "Drug Facts" panel; or
8        (B) A statement of the "active ingredient(s)" with a
9    list of those ingredients contained in the compound,
10    substance or preparation.
11    Beginning on January 1, 2014 (the effective date of Public
12Act 98-122), "prescription and nonprescription medicines and
13drugs" includes medical cannabis purchased from a registered
14dispensing organization under the Compassionate Use of Medical
15Cannabis Pilot Program Act.
16    Beginning January 1, 2020, in addition to all other rates
17of tax imposed under this Act, a surcharge of 7% is imposed on
18the selling price of (1) each firearm purchased in the State
19and (2) each firearm component part that is purchased in the
20State and sold separately from the firearm. "Firearm" has the
21meaning ascribed to that term in Section 1.1 of the Firearm
22Owners Identification Card Act.
23    If the property that is acquired from a serviceman is
24acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

HB3510- 41 -LRB101 10602 HLH 55708 b

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior out-of-state
3use.
4(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
599-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
67-6-17.)
 
7    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
8    Sec. 9. Each serviceman required or authorized to collect
9the tax herein imposed shall pay to the Department the amount
10of such tax (except as otherwise provided) at the time when he
11is required to file his return for the period during which such
12tax was collected, less a discount of 2.1% prior to January 1,
131990 and 1.75% on and after January 1, 1990, or $5 per calendar
14year, whichever is greater, which is allowed to reimburse the
15serviceman for expenses incurred in collecting the tax, keeping
16records, preparing and filing returns, remitting the tax and
17supplying data to the Department on request. The discount
18allowed under this Section is allowed only for returns that are
19filed in the manner required by this Act. The Department may
20disallow the discount for servicemen whose certificate of
21registration is revoked at the time the return is filed, but
22only if the Department's decision to revoke the certificate of
23registration has become final. A serviceman need not remit that
24part of any tax collected by him to the extent that he is
25required to pay and does pay the tax imposed by the Service

 

 

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1Occupation Tax Act with respect to his sale of service
2involving the incidental transfer by him of the same property.
3    Except as provided hereinafter in this Section, on or
4before the twentieth day of each calendar month, such
5serviceman shall file a return for the preceding calendar month
6in accordance with reasonable Rules and Regulations to be
7promulgated by the Department. Such return shall be filed on a
8form prescribed by the Department and shall contain such
9information as the Department may reasonably require. On and
10after January 1, 2018, with respect to servicemen whose annual
11gross receipts average $20,000 or more, all returns required to
12be filed pursuant to this Act shall be filed electronically.
13Servicemen who demonstrate that they do not have access to the
14Internet or demonstrate hardship in filing electronically may
15petition the Department to waive the electronic filing
16requirement.
17    The Department may require returns to be filed on a
18quarterly basis. If so required, a return for each calendar
19quarter shall be filed on or before the twentieth day of the
20calendar month following the end of such calendar quarter. The
21taxpayer shall also file a return with the Department for each
22of the first two months of each calendar quarter, on or before
23the twentieth day of the following calendar month, stating:
24        1. The name of the seller;
25        2. The address of the principal place of business from
26    which he engages in business as a serviceman in this State;

 

 

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1        3. The total amount of taxable receipts received by him
2    during the preceding calendar month, including receipts
3    from charge and time sales, but less all deductions allowed
4    by law;
5        4. The amount of credit provided in Section 2d of this
6    Act;
7        5. The amount of tax due;
8        5-5. The signature of the taxpayer; and
9        6. Such other reasonable information as the Department
10    may require.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Beginning October 1, 1993, a taxpayer who has an average
16monthly tax liability of $150,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1994, a taxpayer who has
19an average monthly tax liability of $100,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1995, a taxpayer who has
22an average monthly tax liability of $50,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 2000, a taxpayer who has
25an annual tax liability of $200,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

HB3510- 44 -LRB101 10602 HLH 55708 b

1funds transfer. The term "annual tax liability" shall be the
2sum of the taxpayer's liabilities under this Act, and under all
3other State and local occupation and use tax laws administered
4by the Department, for the immediately preceding calendar year.
5The term "average monthly tax liability" means the sum of the
6taxpayer's liabilities under this Act, and under all other
7State and local occupation and use tax laws administered by the
8Department, for the immediately preceding calendar year
9divided by 12. Beginning on October 1, 2002, a taxpayer who has
10a tax liability in the amount set forth in subsection (b) of
11Section 2505-210 of the Department of Revenue Law shall make
12all payments required by rules of the Department by electronic
13funds transfer.
14    Before August 1 of each year beginning in 1993, the
15Department shall notify all taxpayers required to make payments
16by electronic funds transfer. All taxpayers required to make
17payments by electronic funds transfer shall make those payments
18for a minimum of one year beginning on October 1.
19    Any taxpayer not required to make payments by electronic
20funds transfer may make payments by electronic funds transfer
21with the permission of the Department.
22    All taxpayers required to make payment by electronic funds
23transfer and any taxpayers authorized to voluntarily make
24payments by electronic funds transfer shall make those payments
25in the manner authorized by the Department.
26    The Department shall adopt such rules as are necessary to

 

 

HB3510- 45 -LRB101 10602 HLH 55708 b

1effectuate a program of electronic funds transfer and the
2requirements of this Section.
3    If the serviceman is otherwise required to file a monthly
4return and if the serviceman's average monthly tax liability to
5the Department does not exceed $200, the Department may
6authorize his returns to be filed on a quarter annual basis,
7with the return for January, February and March of a given year
8being due by April 20 of such year; with the return for April,
9May and June of a given year being due by July 20 of such year;
10with the return for July, August and September of a given year
11being due by October 20 of such year, and with the return for
12October, November and December of a given year being due by
13January 20 of the following year.
14    If the serviceman is otherwise required to file a monthly
15or quarterly return and if the serviceman's average monthly tax
16liability to the Department does not exceed $50, the Department
17may authorize his returns to be filed on an annual basis, with
18the return for a given year being due by January 20 of the
19following year.
20    Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as monthly
22returns.
23    Notwithstanding any other provision in this Act concerning
24the time within which a serviceman may file his return, in the
25case of any serviceman who ceases to engage in a kind of
26business which makes him responsible for filing returns under

 

 

HB3510- 46 -LRB101 10602 HLH 55708 b

1this Act, such serviceman shall file a final return under this
2Act with the Department not more than 1 month after
3discontinuing such business.
4    Where a serviceman collects the tax with respect to the
5selling price of property which he sells and the purchaser
6thereafter returns such property and the serviceman refunds the
7selling price thereof to the purchaser, such serviceman shall
8also refund, to the purchaser, the tax so collected from the
9purchaser. When filing his return for the period in which he
10refunds such tax to the purchaser, the serviceman may deduct
11the amount of the tax so refunded by him to the purchaser from
12any other Service Use Tax, Service Occupation Tax, retailers'
13occupation tax or use tax which such serviceman may be required
14to pay or remit to the Department, as shown by such return,
15provided that the amount of the tax to be deducted shall
16previously have been remitted to the Department by such
17serviceman. If the serviceman shall not previously have
18remitted the amount of such tax to the Department, he shall be
19entitled to no deduction hereunder upon refunding such tax to
20the purchaser.
21    Any serviceman filing a return hereunder shall also include
22the total tax upon the selling price of tangible personal
23property purchased for use by him as an incident to a sale of
24service, and such serviceman shall remit the amount of such tax
25to the Department when filing such return.
26    If experience indicates such action to be practicable, the

 

 

HB3510- 47 -LRB101 10602 HLH 55708 b

1Department may prescribe and furnish a combination or joint
2return which will enable servicemen, who are required to file
3returns hereunder and also under the Service Occupation Tax
4Act, to furnish all the return information required by both
5Acts on the one form.
6    Where the serviceman has more than one business registered
7with the Department under separate registration hereunder,
8such serviceman shall not file each return that is due as a
9single return covering all such registered businesses, but
10shall file separate returns for each such registered business.
11    Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Tax Reform Fund, a special fund in
13the State Treasury, the net revenue realized for the preceding
14month from the 1% tax imposed under this Act.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 20% of the
17net revenue realized for the preceding month from the 6.25%
18general rate on transfers of tangible personal property, other
19than tangible personal property which is purchased outside
20Illinois at retail from a retailer and which is titled or
21registered by an agency of this State's government.
22    Beginning August 1, 2000, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 100% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning October 1, 2009, each month the Department shall

 

 

HB3510- 48 -LRB101 10602 HLH 55708 b

1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service
10Occupation Tax Act, and the Retailers' Occupation Tax Act an
11amount equal to the average monthly deficit in the Underground
12Storage Tank Fund during the prior year, as certified annually
13by the Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Use Tax Act, the Service Occupation Tax Act, and the
16Retailers' Occupation Tax Act shall not exceed $18,000,000 in
17any State fiscal year. As used in this paragraph, the "average
18monthly deficit" shall be equal to the difference between the
19average monthly claims for payment by the fund and the average
20monthly revenues deposited into the fund, excluding payments
21made pursuant to this paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, this Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, each month the Department shall deposit $500,000 into the
26State Crime Laboratory Fund.

 

 

HB3510- 49 -LRB101 10602 HLH 55708 b

1    Beginning January 1, 2020, the Department shall pay into
2the Student Mental Health Services Fund 100% of the net revenue
3realized for the preceding month from the 3.75% surcharge on
4the selling price of firearms and firearm component parts.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, (a) 1.75% thereof shall be paid into the
7Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
8and after July 1, 1989, 3.8% thereof shall be paid into the
9Build Illinois Fund; provided, however, that if in any fiscal
10year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
11may be, of the moneys received by the Department and required
12to be paid into the Build Illinois Fund pursuant to Section 3
13of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
14Act, Section 9 of the Service Use Tax Act, and Section 9 of the
15Service Occupation Tax Act, such Acts being hereinafter called
16the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
17may be, of moneys being hereinafter called the "Tax Act
18Amount", and (2) the amount transferred to the Build Illinois
19Fund from the State and Local Sales Tax Reform Fund shall be
20less than the Annual Specified Amount (as defined in Section 3
21of the Retailers' Occupation Tax Act), an amount equal to the
22difference shall be immediately paid into the Build Illinois
23Fund from other moneys received by the Department pursuant to
24the Tax Acts; and further provided, that if on the last
25business day of any month the sum of (1) the Tax Act Amount
26required to be deposited into the Build Illinois Bond Account

 

 

HB3510- 50 -LRB101 10602 HLH 55708 b

1in the Build Illinois Fund during such month and (2) the amount
2transferred during such month to the Build Illinois Fund from
3the State and Local Sales Tax Reform Fund shall have been less
4than 1/12 of the Annual Specified Amount, an amount equal to
5the difference shall be immediately paid into the Build
6Illinois Fund from other moneys received by the Department
7pursuant to the Tax Acts; and, further provided, that in no
8event shall the payments required under the preceding proviso
9result in aggregate payments into the Build Illinois Fund
10pursuant to this clause (b) for any fiscal year in excess of
11the greater of (i) the Tax Act Amount or (ii) the Annual
12Specified Amount for such fiscal year; and, further provided,
13that the amounts payable into the Build Illinois Fund under
14this clause (b) shall be payable only until such time as the
15aggregate amount on deposit under each trust indenture securing
16Bonds issued and outstanding pursuant to the Build Illinois
17Bond Act is sufficient, taking into account any future
18investment income, to fully provide, in accordance with such
19indenture, for the defeasance of or the payment of the
20principal of, premium, if any, and interest on the Bonds
21secured by such indenture and on any Bonds expected to be
22issued thereafter and all fees and costs payable with respect
23thereto, all as certified by the Director of the Bureau of the
24Budget (now Governor's Office of Management and Budget). If on
25the last business day of any month in which Bonds are
26outstanding pursuant to the Build Illinois Bond Act, the

 

 

HB3510- 51 -LRB101 10602 HLH 55708 b

1aggregate of the moneys deposited in the Build Illinois Bond
2Account in the Build Illinois Fund in such month shall be less
3than the amount required to be transferred in such month from
4the Build Illinois Bond Account to the Build Illinois Bond
5Retirement and Interest Fund pursuant to Section 13 of the
6Build Illinois Bond Act, an amount equal to such deficiency
7shall be immediately paid from other moneys received by the
8Department pursuant to the Tax Acts to the Build Illinois Fund;
9provided, however, that any amounts paid to the Build Illinois
10Fund in any fiscal year pursuant to this sentence shall be
11deemed to constitute payments pursuant to clause (b) of the
12preceding sentence and shall reduce the amount otherwise
13payable for such fiscal year pursuant to clause (b) of the
14preceding sentence. The moneys received by the Department
15pursuant to this Act and required to be deposited into the
16Build Illinois Fund are subject to the pledge, claim and charge
17set forth in Section 12 of the Build Illinois Bond Act.
18    Subject to payment of amounts into the Build Illinois Fund
19as provided in the preceding paragraph or in any amendment
20thereto hereafter enacted, the following specified monthly
21installment of the amount requested in the certificate of the
22Chairman of the Metropolitan Pier and Exposition Authority
23provided under Section 8.25f of the State Finance Act, but not
24in excess of the sums designated as "Total Deposit", shall be
25deposited in the aggregate from collections under Section 9 of
26the Use Tax Act, Section 9 of the Service Use Tax Act, Section

 

 

HB3510- 52 -LRB101 10602 HLH 55708 b

19 of the Service Occupation Tax Act, and Section 3 of the
2Retailers' Occupation Tax Act into the McCormick Place
3Expansion Project Fund in the specified fiscal years.
4Fiscal YearTotal Deposit
51993         $0
61994 53,000,000
71995 58,000,000
81996 61,000,000
91997 64,000,000
101998 68,000,000
111999 71,000,000
122000 75,000,000
132001 80,000,000
142002 93,000,000
152003 99,000,000
162004103,000,000
172005108,000,000
182006113,000,000
192007119,000,000
202008126,000,000
212009132,000,000
222010139,000,000
232011146,000,000
242012153,000,000
252013161,000,000

 

 

HB3510- 53 -LRB101 10602 HLH 55708 b

12014170,000,000
22015179,000,000
32016189,000,000
42017199,000,000
52018210,000,000
62019221,000,000
72020233,000,000
82021246,000,000
92022260,000,000
102023275,000,000
112024 275,000,000
122025 275,000,000
132026 279,000,000
142027 292,000,000
152028 307,000,000
162029 322,000,000
172030 338,000,000
182031 350,000,000
192032 350,000,000
20and
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,

 

 

HB3510- 54 -LRB101 10602 HLH 55708 b

1but not after fiscal year 2060.
2    Beginning July 20, 1993 and in each month of each fiscal
3year thereafter, one-eighth of the amount requested in the
4certificate of the Chairman of the Metropolitan Pier and
5Exposition Authority for that fiscal year, less the amount
6deposited into the McCormick Place Expansion Project Fund by
7the State Treasurer in the respective month under subsection
8(g) of Section 13 of the Metropolitan Pier and Exposition
9Authority Act, plus cumulative deficiencies in the deposits
10required under this Section for previous months and years,
11shall be deposited into the McCormick Place Expansion Project
12Fund, until the full amount requested for the fiscal year, but
13not in excess of the amount specified above as "Total Deposit",
14has been deposited.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning July 1, 1993 and ending on September 30,
192013, the Department shall each month pay into the Illinois Tax
20Increment Fund 0.27% of 80% of the net revenue realized for the
21preceding month from the 6.25% general rate on the selling
22price of tangible personal property.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning with the receipt of the first report of

 

 

HB3510- 55 -LRB101 10602 HLH 55708 b

1taxes paid by an eligible business and continuing for a 25-year
2period, the Department shall each month pay into the Energy
3Infrastructure Fund 80% of the net revenue realized from the
46.25% general rate on the selling price of Illinois-mined coal
5that was sold to an eligible business. For purposes of this
6paragraph, the term "eligible business" means a new electric
7generating facility certified pursuant to Section 605-332 of
8the Department of Commerce and Economic Opportunity Law of the
9Civil Administrative Code of Illinois.
10    Subject to payment of amounts into the Build Illinois Fund,
11the McCormick Place Expansion Project Fund, the Illinois Tax
12Increment Fund, and the Energy Infrastructure Fund pursuant to
13the preceding paragraphs or in any amendments to this Section
14hereafter enacted, beginning on the first day of the first
15calendar month to occur on or after August 26, 2014 (the
16effective date of Public Act 98-1098), each month, from the
17collections made under Section 9 of the Use Tax Act, Section 9
18of the Service Use Tax Act, Section 9 of the Service Occupation
19Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
20the Department shall pay into the Tax Compliance and
21Administration Fund, to be used, subject to appropriation, to
22fund additional auditors and compliance personnel at the
23Department of Revenue, an amount equal to 1/12 of 5% of 80% of
24the cash receipts collected during the preceding fiscal year by
25the Audit Bureau of the Department under the Use Tax Act, the
26Service Use Tax Act, the Service Occupation Tax Act, the

 

 

HB3510- 56 -LRB101 10602 HLH 55708 b

1Retailers' Occupation Tax Act, and associated local occupation
2and use taxes administered by the Department.
3    Subject to payments of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
6Compliance and Administration Fund as provided in this Section,
7beginning on July 1, 2018 the Department shall pay each month
8into the Downstate Public Transportation Fund the moneys
9required to be so paid under Section 2-3 of the Downstate
10Public Transportation Act.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% thereof shall be paid into the
13General Revenue Fund of the State Treasury and 25% shall be
14reserved in a special account and used only for the transfer to
15the Common School Fund as part of the monthly transfer from the
16General Revenue Fund in accordance with Section 8a of the State
17Finance Act.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

HB3510- 57 -LRB101 10602 HLH 55708 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
4100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
58-14-18; 100-1171, eff. 1-4-19.)
 
6    Section 20. The Service Occupation Tax Act is amended by
7changing Sections 3-10 and 9 as follows:
 
8    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the "selling price", as defined in Section 2 of the Service Use
12Tax Act, of the tangible personal property. For the purpose of
13computing this tax, in no event shall the "selling price" be
14less than the cost price to the serviceman of the tangible
15personal property transferred. The selling price of each item
16of tangible personal property transferred as an incident of a
17sale of service may be shown as a distinct and separate item on
18the serviceman's billing to the service customer. If the
19selling price is not so shown, the selling price of the
20tangible personal property is deemed to be 50% of the
21serviceman's entire billing to the service customer. When,
22however, a serviceman contracts to design, develop, and produce
23special order machinery or equipment, the tax imposed by this
24Act shall be based on the serviceman's cost price of the

 

 

HB3510- 58 -LRB101 10602 HLH 55708 b

1tangible personal property transferred incident to the
2completion of the contract.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act shall apply to (i) 70% of the cost
9price of property transferred as an incident to the sale of
10service on or after January 1, 1990, and before July 1, 2003,
11(ii) 80% of the selling price of property transferred as an
12incident to the sale of service on or after July 1, 2003 and on
13or before July 1, 2017, and (iii) 100% of the cost price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2023 but applies to 100% of the selling price
23thereafter.
24    With respect to biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel, the
26tax imposed by this Act applies to (i) 80% of the selling price

 

 

HB3510- 59 -LRB101 10602 HLH 55708 b

1of property transferred as an incident to the sale of service
2on or after July 1, 2003 and on or before December 31, 2018 and
3(ii) 100% of the proceeds of the selling price thereafter. If,
4at any time, however, the tax under this Act on sales of
5biodiesel blends, as defined in the Use Tax Act, with no less
6than 1% and no more than 10% biodiesel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of biodiesel blends with no less than 1%
9and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel material, the tax
13imposed by this Act does not apply to the proceeds of the
14selling price of property transferred as an incident to the
15sale of service on or after July 1, 2003 and on or before
16December 31, 2023 but applies to 100% of the selling price
17thereafter.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the aggregate
24annual total gross receipts from all sales of service, the tax
25imposed by this Act shall be based on the serviceman's cost
26price of the tangible personal property transferred incident to

 

 

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1the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
7Act, the Specialized Mental Health Rehabilitation Act of 2013,
8or the Child Care Act of 1969. The tax shall also be imposed at
9the rate of 1% on food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption and is not otherwise
13included in this paragraph) and prescription and
14nonprescription medicines, drugs, medical appliances, products
15classified as Class III medical devices by the United States
16Food and Drug Administration that are used for cancer treatment
17pursuant to a prescription, as well as any accessories and
18components related to those devices, modifications to a motor
19vehicle for the purpose of rendering it usable by a person with
20a disability, and insulin, urine testing materials, syringes,
21and needles used by diabetics, for human use. For the purposes
22of this Section, until September 1, 2009: the term "soft
23drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including but
25not limited to soda water, cola, fruit juice, vegetable juice,
26carbonated water, and all other preparations commonly known as

 

 

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1soft drinks of whatever kind or description that are contained
2in any closed or sealed can, carton, or container, regardless
3of size; but "soft drinks" does not include coffee, tea,
4non-carbonated water, infant formula, milk or milk products as
5defined in the Grade A Pasteurized Milk and Milk Products Act,
6or drinks containing 50% or more natural fruit or vegetable
7juice.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "soft drinks" means non-alcoholic
10beverages that contain natural or artificial sweeteners. "Soft
11drinks" do not include beverages that contain milk or milk
12products, soy, rice or similar milk substitutes, or greater
13than 50% of vegetable or fruit juice by volume.
14    Until August 1, 2009, and notwithstanding any other
15provisions of this Act, "food for human consumption that is to
16be consumed off the premises where it is sold" includes all
17food sold through a vending machine, except soft drinks and
18food products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine. Beginning
20August 1, 2009, and notwithstanding any other provisions of
21this Act, "food for human consumption that is to be consumed
22off the premises where it is sold" includes all food sold
23through a vending machine, except soft drinks, candy, and food
24products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "food for human consumption that
2is to be consumed off the premises where it is sold" does not
3include candy. For purposes of this Section, "candy" means a
4preparation of sugar, honey, or other natural or artificial
5sweeteners in combination with chocolate, fruits, nuts or other
6ingredients or flavorings in the form of bars, drops, or
7pieces. "Candy" does not include any preparation that contains
8flour or requires refrigeration.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "nonprescription medicines and
11drugs" does not include grooming and hygiene products. For
12purposes of this Section, "grooming and hygiene products"
13includes, but is not limited to, soaps and cleaning solutions,
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15lotions and screens, unless those products are available by
16prescription only, regardless of whether the products meet the
17definition of "over-the-counter-drugs". For the purposes of
18this paragraph, "over-the-counter-drug" means a drug for human
19use that contains a label that identifies the product as a drug
20as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
21label includes:
22        (A) A "Drug Facts" panel; or
23        (B) A statement of the "active ingredient(s)" with a
24    list of those ingredients contained in the compound,
25    substance or preparation.
26    Beginning on January 1, 2014 (the effective date of Public

 

 

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1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Pilot Program Act.
5    Beginning January 1, 2020, in addition to all other rates
6of tax imposed under this Act, a surcharge of 7% is imposed on
7the selling price of (1) each firearm purchased in the State
8and (2) each firearm component part that is purchased in the
9State and sold separately from the firearm. "Firearm" has the
10meaning ascribed to that term in Section 1.1 of the Firearm
11Owners Identification Card Act.
12(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1399-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
147-6-17.)
 
15    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
16    Sec. 9. Each serviceman required or authorized to collect
17the tax herein imposed shall pay to the Department the amount
18of such tax at the time when he is required to file his return
19for the period during which such tax was collectible, less a
20discount of 2.1% prior to January 1, 1990, and 1.75% on and
21after January 1, 1990, or $5 per calendar year, whichever is
22greater, which is allowed to reimburse the serviceman for
23expenses incurred in collecting the tax, keeping records,
24preparing and filing returns, remitting the tax and supplying
25data to the Department on request. The discount allowed under

 

 

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1this Section is allowed only for returns that are filed in the
2manner required by this Act. The Department may disallow the
3discount for servicemen whose certificate of registration is
4revoked at the time the return is filed, but only if the
5Department's decision to revoke the certificate of
6registration has become final.
7    Where such tangible personal property is sold under a
8conditional sales contract, or under any other form of sale
9wherein the payment of the principal sum, or a part thereof, is
10extended beyond the close of the period for which the return is
11filed, the serviceman, in collecting the tax may collect, for
12each tax return period, only the tax applicable to the part of
13the selling price actually received during such tax return
14period.
15    Except as provided hereinafter in this Section, on or
16before the twentieth day of each calendar month, such
17serviceman shall file a return for the preceding calendar month
18in accordance with reasonable rules and regulations to be
19promulgated by the Department of Revenue. Such return shall be
20filed on a form prescribed by the Department and shall contain
21such information as the Department may reasonably require. On
22and after January 1, 2018, with respect to servicemen whose
23annual gross receipts average $20,000 or more, all returns
24required to be filed pursuant to this Act shall be filed
25electronically. Servicemen who demonstrate that they do not
26have access to the Internet or demonstrate hardship in filing

 

 

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1electronically may petition the Department to waive the
2electronic filing requirement.
3    The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10        1. The name of the seller;
11        2. The address of the principal place of business from
12    which he engages in business as a serviceman in this State;
13        3. The total amount of taxable receipts received by him
14    during the preceding calendar month, including receipts
15    from charge and time sales, but less all deductions allowed
16    by law;
17        4. The amount of credit provided in Section 2d of this
18    Act;
19        5. The amount of tax due;
20        5-5. The signature of the taxpayer; and
21        6. Such other reasonable information as the Department
22    may require.
23    If a taxpayer fails to sign a return within 30 days after
24the proper notice and demand for signature by the Department,
25the return shall be considered valid and any amount shown to be
26due on the return shall be deemed assessed.

 

 

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1    Prior to October 1, 2003, and on and after September 1,
22004 a serviceman may accept a Manufacturer's Purchase Credit
3certification from a purchaser in satisfaction of Service Use
4Tax as provided in Section 3-70 of the Service Use Tax Act if
5the purchaser provides the appropriate documentation as
6required by Section 3-70 of the Service Use Tax Act. A
7Manufacturer's Purchase Credit certification, accepted prior
8to October 1, 2003 or on or after September 1, 2004 by a
9serviceman as provided in Section 3-70 of the Service Use Tax
10Act, may be used by that serviceman to satisfy Service
11Occupation Tax liability in the amount claimed in the
12certification, not to exceed 6.25% of the receipts subject to
13tax from a qualifying purchase. A Manufacturer's Purchase
14Credit reported on any original or amended return filed under
15this Act after October 20, 2003 for reporting periods prior to
16September 1, 2004 shall be disallowed. Manufacturer's Purchase
17Credit reported on annual returns due on or after January 1,
182005 will be disallowed for periods prior to September 1, 2004.
19No Manufacturer's Purchase Credit may be used after September
2030, 2003 through August 31, 2004 to satisfy any tax liability
21imposed under this Act, including any audit liability.
22    If the serviceman's average monthly tax liability to the
23Department does not exceed $200, the Department may authorize
24his returns to be filed on a quarter annual basis, with the
25return for January, February and March of a given year being
26due by April 20 of such year; with the return for April, May

 

 

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1and June of a given year being due by July 20 of such year; with
2the return for July, August and September of a given year being
3due by October 20 of such year, and with the return for
4October, November and December of a given year being due by
5January 20 of the following year.
6    If the serviceman's average monthly tax liability to the
7Department does not exceed $50, the Department may authorize
8his returns to be filed on an annual basis, with the return for
9a given year being due by January 20 of the following year.
10    Such quarter annual and annual returns, as to form and
11substance, shall be subject to the same requirements as monthly
12returns.
13    Notwithstanding any other provision in this Act concerning
14the time within which a serviceman may file his return, in the
15case of any serviceman who ceases to engage in a kind of
16business which makes him responsible for filing returns under
17this Act, such serviceman shall file a final return under this
18Act with the Department not more than 1 month after
19discontinuing such business.
20    Beginning October 1, 1993, a taxpayer who has an average
21monthly tax liability of $150,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1994, a taxpayer who has
24an average monthly tax liability of $100,000 or more shall make
25all payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1995, a taxpayer who has

 

 

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1an average monthly tax liability of $50,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 2000, a taxpayer who has
4an annual tax liability of $200,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. The term "annual tax liability" shall be the
7sum of the taxpayer's liabilities under this Act, and under all
8other State and local occupation and use tax laws administered
9by the Department, for the immediately preceding calendar year.
10The term "average monthly tax liability" means the sum of the
11taxpayer's liabilities under this Act, and under all other
12State and local occupation and use tax laws administered by the
13Department, for the immediately preceding calendar year
14divided by 12. Beginning on October 1, 2002, a taxpayer who has
15a tax liability in the amount set forth in subsection (b) of
16Section 2505-210 of the Department of Revenue Law shall make
17all payments required by rules of the Department by electronic
18funds transfer.
19    Before August 1 of each year beginning in 1993, the
20Department shall notify all taxpayers required to make payments
21by electronic funds transfer. All taxpayers required to make
22payments by electronic funds transfer shall make those payments
23for a minimum of one year beginning on October 1.
24    Any taxpayer not required to make payments by electronic
25funds transfer may make payments by electronic funds transfer
26with the permission of the Department.

 

 

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1    All taxpayers required to make payment by electronic funds
2transfer and any taxpayers authorized to voluntarily make
3payments by electronic funds transfer shall make those payments
4in the manner authorized by the Department.
5    The Department shall adopt such rules as are necessary to
6effectuate a program of electronic funds transfer and the
7requirements of this Section.
8    Where a serviceman collects the tax with respect to the
9selling price of tangible personal property which he sells and
10the purchaser thereafter returns such tangible personal
11property and the serviceman refunds the selling price thereof
12to the purchaser, such serviceman shall also refund, to the
13purchaser, the tax so collected from the purchaser. When filing
14his return for the period in which he refunds such tax to the
15purchaser, the serviceman may deduct the amount of the tax so
16refunded by him to the purchaser from any other Service
17Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
18Use Tax which such serviceman may be required to pay or remit
19to the Department, as shown by such return, provided that the
20amount of the tax to be deducted shall previously have been
21remitted to the Department by such serviceman. If the
22serviceman shall not previously have remitted the amount of
23such tax to the Department, he shall be entitled to no
24deduction hereunder upon refunding such tax to the purchaser.
25    If experience indicates such action to be practicable, the
26Department may prescribe and furnish a combination or joint

 

 

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1return which will enable servicemen, who are required to file
2returns hereunder and also under the Retailers' Occupation Tax
3Act, the Use Tax Act or the Service Use Tax Act, to furnish all
4the return information required by all said Acts on the one
5form.
6    Where the serviceman has more than one business registered
7with the Department under separate registrations hereunder,
8such serviceman shall file separate returns for each registered
9business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund the revenue realized for
12the preceding month from the 1% tax imposed under this Act.
13    Beginning January 1, 1990, each month the Department shall
14pay into the County and Mass Transit District Fund 4% of the
15revenue realized for the preceding month from the 6.25% general
16rate.
17    Beginning August 1, 2000, each month the Department shall
18pay into the County and Mass Transit District Fund 20% of the
19net revenue realized for the preceding month from the 1.25%
20rate on the selling price of motor fuel and gasohol.
21    Beginning January 1, 1990, each month the Department shall
22pay into the Local Government Tax Fund 16% of the revenue
23realized for the preceding month from the 6.25% general rate on
24transfers of tangible personal property.
25    Beginning August 1, 2000, each month the Department shall
26pay into the Local Government Tax Fund 80% of the net revenue

 

 

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1realized for the preceding month from the 1.25% rate on the
2selling price of motor fuel and gasohol.
3    Beginning October 1, 2009, each month the Department shall
4pay into the Capital Projects Fund an amount that is equal to
5an amount estimated by the Department to represent 80% of the
6net revenue realized for the preceding month from the sale of
7candy, grooming and hygiene products, and soft drinks that had
8been taxed at a rate of 1% prior to September 1, 2009 but that
9are now taxed at 6.25%.
10    Beginning July 1, 2013, each month the Department shall pay
11into the Underground Storage Tank Fund from the proceeds
12collected under this Act, the Use Tax Act, the Service Use Tax
13Act, and the Retailers' Occupation Tax Act an amount equal to
14the average monthly deficit in the Underground Storage Tank
15Fund during the prior year, as certified annually by the
16Illinois Environmental Protection Agency, but the total
17payment into the Underground Storage Tank Fund under this Act,
18the Use Tax Act, the Service Use Tax Act, and the Retailers'
19Occupation Tax Act shall not exceed $18,000,000 in any State
20fiscal year. As used in this paragraph, the "average monthly
21deficit" shall be equal to the difference between the average
22monthly claims for payment by the fund and the average monthly
23revenues deposited into the fund, excluding payments made
24pursuant to this paragraph.
25    Beginning July 1, 2015, of the remainder of the moneys
26received by the Department under the Use Tax Act, the Service

 

 

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1Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
2each month the Department shall deposit $500,000 into the State
3Crime Laboratory Fund.
4    Beginning January 1, 2020, the Department shall pay into
5the Student Mental Health Services Fund 100% of the net revenue
6realized for the preceding month from the 7% surcharge on the
7selling price of firearms and firearm component parts.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

HB3510- 73 -LRB101 10602 HLH 55708 b

1the Tax Acts; and further provided, that if on the last
2business day of any month the sum of (1) the Tax Act Amount
3required to be deposited into the Build Illinois Account in the
4Build Illinois Fund during such month and (2) the amount
5transferred during such month to the Build Illinois Fund from
6the State and Local Sales Tax Reform Fund shall have been less
7than 1/12 of the Annual Specified Amount, an amount equal to
8the difference shall be immediately paid into the Build
9Illinois Fund from other moneys received by the Department
10pursuant to the Tax Acts; and, further provided, that in no
11event shall the payments required under the preceding proviso
12result in aggregate payments into the Build Illinois Fund
13pursuant to this clause (b) for any fiscal year in excess of
14the greater of (i) the Tax Act Amount or (ii) the Annual
15Specified Amount for such fiscal year; and, further provided,
16that the amounts payable into the Build Illinois Fund under
17this clause (b) shall be payable only until such time as the
18aggregate amount on deposit under each trust indenture securing
19Bonds issued and outstanding pursuant to the Build Illinois
20Bond Act is sufficient, taking into account any future
21investment income, to fully provide, in accordance with such
22indenture, for the defeasance of or the payment of the
23principal of, premium, if any, and interest on the Bonds
24secured by such indenture and on any Bonds expected to be
25issued thereafter and all fees and costs payable with respect
26thereto, all as certified by the Director of the Bureau of the

 

 

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1Budget (now Governor's Office of Management and Budget). If on
2the last business day of any month in which Bonds are
3outstanding pursuant to the Build Illinois Bond Act, the
4aggregate of the moneys deposited in the Build Illinois Bond
5Account in the Build Illinois Fund in such month shall be less
6than the amount required to be transferred in such month from
7the Build Illinois Bond Account to the Build Illinois Bond
8Retirement and Interest Fund pursuant to Section 13 of the
9Build Illinois Bond Act, an amount equal to such deficiency
10shall be immediately paid from other moneys received by the
11Department pursuant to the Tax Acts to the Build Illinois Fund;
12provided, however, that any amounts paid to the Build Illinois
13Fund in any fiscal year pursuant to this sentence shall be
14deemed to constitute payments pursuant to clause (b) of the
15preceding sentence and shall reduce the amount otherwise
16payable for such fiscal year pursuant to clause (b) of the
17preceding sentence. The moneys received by the Department
18pursuant to this Act and required to be deposited into the
19Build Illinois Fund are subject to the pledge, claim and charge
20set forth in Section 12 of the Build Illinois Bond Act.
21    Subject to payment of amounts into the Build Illinois Fund
22as provided in the preceding paragraph or in any amendment
23thereto hereafter enacted, the following specified monthly
24installment of the amount requested in the certificate of the
25Chairman of the Metropolitan Pier and Exposition Authority
26provided under Section 8.25f of the State Finance Act, but not

 

 

HB3510- 75 -LRB101 10602 HLH 55708 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000

 

 

HB3510- 76 -LRB101 10602 HLH 55708 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021246,000,000
122022260,000,000
132023275,000,000
142024 275,000,000
152025 275,000,000
162026 279,000,000
172027 292,000,000
182028 307,000,000
192029 322,000,000
202030 338,000,000
212031 350,000,000
222032 350,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

HB3510- 77 -LRB101 10602 HLH 55708 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total Deposit",
17has been deposited.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois Tax
23Increment Fund 0.27% of 80% of the net revenue realized for the
24preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB3510- 78 -LRB101 10602 HLH 55708 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning with the receipt of the first report of
4taxes paid by an eligible business and continuing for a 25-year
5period, the Department shall each month pay into the Energy
6Infrastructure Fund 80% of the net revenue realized from the
76.25% general rate on the selling price of Illinois-mined coal
8that was sold to an eligible business. For purposes of this
9paragraph, the term "eligible business" means a new electric
10generating facility certified pursuant to Section 605-332 of
11the Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    Subject to payment of amounts into the Build Illinois Fund,
14the McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Energy Infrastructure Fund pursuant to
16the preceding paragraphs or in any amendments to this Section
17hereafter enacted, beginning on the first day of the first
18calendar month to occur on or after August 26, 2014 (the
19effective date of Public Act 98-1098), each month, from the
20collections made under Section 9 of the Use Tax Act, Section 9
21of the Service Use Tax Act, Section 9 of the Service Occupation
22Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
23the Department shall pay into the Tax Compliance and
24Administration Fund, to be used, subject to appropriation, to
25fund additional auditors and compliance personnel at the
26Department of Revenue, an amount equal to 1/12 of 5% of 80% of

 

 

HB3510- 79 -LRB101 10602 HLH 55708 b

1the cash receipts collected during the preceding fiscal year by
2the Audit Bureau of the Department under the Use Tax Act, the
3Service Use Tax Act, the Service Occupation Tax Act, the
4Retailers' Occupation Tax Act, and associated local occupation
5and use taxes administered by the Department.
6    Subject to payments of amounts into the Build Illinois
7Fund, the McCormick Place Expansion Project Fund, the Illinois
8Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
9Compliance and Administration Fund as provided in this Section,
10beginning on July 1, 2018 the Department shall pay each month
11into the Downstate Public Transportation Fund the moneys
12required to be so paid under Section 2-3 of the Downstate
13Public Transportation Act.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% shall be paid into the General
16Revenue Fund of the State Treasury and 25% shall be reserved in
17a special account and used only for the transfer to the Common
18School Fund as part of the monthly transfer from the General
19Revenue Fund in accordance with Section 8a of the State Finance
20Act.
21    The Department may, upon separate written notice to a
22taxpayer, require the taxpayer to prepare and file with the
23Department on a form prescribed by the Department within not
24less than 60 days after receipt of the notice an annual
25information return for the tax year specified in the notice.
26Such annual return to the Department shall include a statement

 

 

HB3510- 80 -LRB101 10602 HLH 55708 b

1of gross receipts as shown by the taxpayer's last Federal
2income tax return. If the total receipts of the business as
3reported in the Federal income tax return do not agree with the
4gross receipts reported to the Department of Revenue for the
5same period, the taxpayer shall attach to his annual return a
6schedule showing a reconciliation of the 2 amounts and the
7reasons for the difference. The taxpayer's annual return to the
8Department shall also disclose the cost of goods sold by the
9taxpayer during the year covered by such return, opening and
10closing inventories of such goods for such year, cost of goods
11used from stock or taken from stock and given away by the
12taxpayer during such year, pay roll information of the
13taxpayer's business during such year and any additional
14reasonable information which the Department deems would be
15helpful in determining the accuracy of the monthly, quarterly
16or annual returns filed by such taxpayer as hereinbefore
17provided for in this Section.
18    If the annual information return required by this Section
19is not filed when and as required, the taxpayer shall be liable
20as follows:
21        (i) Until January 1, 1994, the taxpayer shall be liable
22    for a penalty equal to 1/6 of 1% of the tax due from such
23    taxpayer under this Act during the period to be covered by
24    the annual return for each month or fraction of a month
25    until such return is filed as required, the penalty to be
26    assessed and collected in the same manner as any other

 

 

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1    penalty provided for in this Act.
2        (ii) On and after January 1, 1994, the taxpayer shall
3    be liable for a penalty as described in Section 3-4 of the
4    Uniform Penalty and Interest Act.
5    The chief executive officer, proprietor, owner or highest
6ranking manager shall sign the annual return to certify the
7accuracy of the information contained therein. Any person who
8willfully signs the annual return containing false or
9inaccurate information shall be guilty of perjury and punished
10accordingly. The annual return form prescribed by the
11Department shall include a warning that the person signing the
12return may be liable for perjury.
13    The foregoing portion of this Section concerning the filing
14of an annual information return shall not apply to a serviceman
15who is not required to file an income tax return with the
16United States Government.
17    As soon as possible after the first day of each month, upon
18certification of the Department of Revenue, the Comptroller
19shall order transferred and the Treasurer shall transfer from
20the General Revenue Fund to the Motor Fuel Tax Fund an amount
21equal to 1.7% of 80% of the net revenue realized under this Act
22for the second preceding month. Beginning April 1, 2000, this
23transfer is no longer required and shall not be made.
24    Net revenue realized for a month shall be the revenue
25collected by the State pursuant to this Act, less the amount
26paid out during that month as refunds to taxpayers for

 

 

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1overpayment of liability.
2    For greater simplicity of administration, it shall be
3permissible for manufacturers, importers and wholesalers whose
4products are sold by numerous servicemen in Illinois, and who
5wish to do so, to assume the responsibility for accounting and
6paying to the Department all tax accruing under this Act with
7respect to such sales, if the servicemen who are affected do
8not make written objection to the Department to this
9arrangement.
10(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
11100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
128-14-18; 100-1171, eff. 1-4-19.)
 
13    Section 25. The Retailers' Occupation Tax Act is amended by
14changing Sections 2-10 and 3 as follows:
 
15    (35 ILCS 120/2-10)
16    Sec. 2-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18gross receipts from sales of tangible personal property made in
19the course of business.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with

 

 

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1respect to sales tax holiday items as defined in Section 2-8 of
2this Act, the tax is imposed at the rate of 1.25%.
3    Within 14 days after the effective date of this amendatory
4Act of the 91st General Assembly, each retailer of motor fuel
5and gasohol shall cause the following notice to be posted in a
6prominently visible place on each retail dispensing device that
7is used to dispense motor fuel or gasohol in the State of
8Illinois: "As of July 1, 2000, the State of Illinois has
9eliminated the State's share of sales tax on motor fuel and
10gasohol through December 31, 2000. The price on this pump
11should reflect the elimination of the tax." The notice shall be
12printed in bold print on a sign that is no smaller than 4
13inches by 8 inches. The sign shall be clearly visible to
14customers. Any retailer who fails to post or maintain a
15required sign through December 31, 2000 is guilty of a petty
16offense for which the fine shall be $500 per day per each
17retail premises where a violation occurs.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the proceeds of
20sales made on or after January 1, 1990, and before July 1,
212003, (ii) 80% of the proceeds of sales made on or after July
221, 2003 and on or before July 1, 2017, and (iii) 100% of the
23proceeds of sales made thereafter. If, at any time, however,
24the tax under this Act on sales of gasohol, as defined in the
25Use Tax Act, is imposed at the rate of 1.25%, then the tax
26imposed by this Act applies to 100% of the proceeds of sales of

 

 

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1gasohol made during that time.
2    With respect to majority blended ethanol fuel, as defined
3in the Use Tax Act, the tax imposed by this Act does not apply
4to the proceeds of sales made on or after July 1, 2003 and on or
5before December 31, 2023 but applies to 100% of the proceeds of
6sales made thereafter.
7    With respect to biodiesel blends, as defined in the Use Tax
8Act, with no less than 1% and no more than 10% biodiesel, the
9tax imposed by this Act applies to (i) 80% of the proceeds of
10sales made on or after July 1, 2003 and on or before December
1131, 2018 and (ii) 100% of the proceeds of sales made
12thereafter. If, at any time, however, the tax under this Act on
13sales of biodiesel blends, as defined in the Use Tax Act, with
14no less than 1% and no more than 10% biodiesel is imposed at
15the rate of 1.25%, then the tax imposed by this Act applies to
16100% of the proceeds of sales of biodiesel blends with no less
17than 1% and no more than 10% biodiesel made during that time.
18    With respect to 100% biodiesel, as defined in the Use Tax
19Act, and biodiesel blends, as defined in the Use Tax Act, with
20more than 10% but no more than 99% biodiesel, the tax imposed
21by this Act does not apply to the proceeds of sales made on or
22after July 1, 2003 and on or before December 31, 2023 but
23applies to 100% of the proceeds of sales made thereafter.
24    With respect to food for human consumption that is to be
25consumed off the premises where it is sold (other than
26alcoholic beverages, soft drinks, and food that has been

 

 

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1prepared for immediate consumption) and prescription and
2nonprescription medicines, drugs, medical appliances, products
3classified as Class III medical devices by the United States
4Food and Drug Administration that are used for cancer treatment
5pursuant to a prescription, as well as any accessories and
6components related to those devices, modifications to a motor
7vehicle for the purpose of rendering it usable by a person with
8a disability, and insulin, urine testing materials, syringes,
9and needles used by diabetics, for human use, the tax is
10imposed at the rate of 1%. For the purposes of this Section,
11until September 1, 2009: the term "soft drinks" means any
12complete, finished, ready-to-use, non-alcoholic drink, whether
13carbonated or not, including but not limited to soda water,
14cola, fruit juice, vegetable juice, carbonated water, and all
15other preparations commonly known as soft drinks of whatever
16kind or description that are contained in any closed or sealed
17bottle, can, carton, or container, regardless of size; but
18"soft drinks" does not include coffee, tea, non-carbonated
19water, infant formula, milk or milk products as defined in the
20Grade A Pasteurized Milk and Milk Products Act, or drinks
21containing 50% or more natural fruit or vegetable juice.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "soft drinks" means non-alcoholic
24beverages that contain natural or artificial sweeteners. "Soft
25drinks" do not include beverages that contain milk or milk
26products, soy, rice or similar milk substitutes, or greater

 

 

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1than 50% of vegetable or fruit juice by volume.
2    Until August 1, 2009, and notwithstanding any other
3provisions of this Act, "food for human consumption that is to
4be consumed off the premises where it is sold" includes all
5food sold through a vending machine, except soft drinks and
6food products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine. Beginning
8August 1, 2009, and notwithstanding any other provisions of
9this Act, "food for human consumption that is to be consumed
10off the premises where it is sold" includes all food sold
11through a vending machine, except soft drinks, candy, and food
12products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine.
14    Notwithstanding any other provisions of this Act,
15beginning September 1, 2009, "food for human consumption that
16is to be consumed off the premises where it is sold" does not
17include candy. For purposes of this Section, "candy" means a
18preparation of sugar, honey, or other natural or artificial
19sweeteners in combination with chocolate, fruits, nuts or other
20ingredients or flavorings in the form of bars, drops, or
21pieces. "Candy" does not include any preparation that contains
22flour or requires refrigeration.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "nonprescription medicines and
25drugs" does not include grooming and hygiene products. For
26purposes of this Section, "grooming and hygiene products"

 

 

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1includes, but is not limited to, soaps and cleaning solutions,
2shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
3lotions and screens, unless those products are available by
4prescription only, regardless of whether the products meet the
5definition of "over-the-counter-drugs". For the purposes of
6this paragraph, "over-the-counter-drug" means a drug for human
7use that contains a label that identifies the product as a drug
8as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
9label includes:
10        (A) A "Drug Facts" panel; or
11        (B) A statement of the "active ingredient(s)" with a
12    list of those ingredients contained in the compound,
13    substance or preparation.
14    Beginning on the effective date of this amendatory Act of
15the 98th General Assembly, "prescription and nonprescription
16medicines and drugs" includes medical cannabis purchased from a
17registered dispensing organization under the Compassionate Use
18of Medical Cannabis Pilot Program Act.
19    Beginning January 1, 2020, in addition to all other rates
20of tax imposed under this Act, a surcharge of 7% is imposed on
21the selling price of (1) each firearm purchased in the State
22and (2) each firearm component part that is purchased in the
23State and sold separately from the firearm. "Firearm" has the
24meaning ascribed to that term in Section 1.1 of the Firearm
25Owners Identification Card Act.
26(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;

 

 

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1100-22, eff. 7-6-17.)
 
2    (35 ILCS 120/3)  (from Ch. 120, par. 442)
3    Sec. 3. Except as provided in this Section, on or before
4the twentieth day of each calendar month, every person engaged
5in the business of selling tangible personal property at retail
6in this State during the preceding calendar month shall file a
7return with the Department, stating:
8        1. The name of the seller;
9        2. His residence address and the address of his
10    principal place of business and the address of the
11    principal place of business (if that is a different
12    address) from which he engages in the business of selling
13    tangible personal property at retail in this State;
14        3. Total amount of receipts received by him during the
15    preceding calendar month or quarter, as the case may be,
16    from sales of tangible personal property, and from services
17    furnished, by him during such preceding calendar month or
18    quarter;
19        4. Total amount received by him during the preceding
20    calendar month or quarter on charge and time sales of
21    tangible personal property, and from services furnished,
22    by him prior to the month or quarter for which the return
23    is filed;
24        5. Deductions allowed by law;
25        6. Gross receipts which were received by him during the

 

 

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1    preceding calendar month or quarter and upon the basis of
2    which the tax is imposed;
3        7. The amount of credit provided in Section 2d of this
4    Act;
5        8. The amount of tax due;
6        9. The signature of the taxpayer; and
7        10. Such other reasonable information as the
8    Department may require.
9    On and after January 1, 2018, except for returns for motor
10vehicles, watercraft, aircraft, and trailers that are required
11to be registered with an agency of this State, with respect to
12retailers whose annual gross receipts average $20,000 or more,
13all returns required to be filed pursuant to this Act shall be
14filed electronically. Retailers who demonstrate that they do
15not have access to the Internet or demonstrate hardship in
16filing electronically may petition the Department to waive the
17electronic filing requirement.
18    If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22    Each return shall be accompanied by the statement of
23prepaid tax issued pursuant to Section 2e for which credit is
24claimed.
25    Prior to October 1, 2003, and on and after September 1,
262004 a retailer may accept a Manufacturer's Purchase Credit

 

 

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1certification from a purchaser in satisfaction of Use Tax as
2provided in Section 3-85 of the Use Tax Act if the purchaser
3provides the appropriate documentation as required by Section
43-85 of the Use Tax Act. A Manufacturer's Purchase Credit
5certification, accepted by a retailer prior to October 1, 2003
6and on and after September 1, 2004 as provided in Section 3-85
7of the Use Tax Act, may be used by that retailer to satisfy
8Retailers' Occupation Tax liability in the amount claimed in
9the certification, not to exceed 6.25% of the receipts subject
10to tax from a qualifying purchase. A Manufacturer's Purchase
11Credit reported on any original or amended return filed under
12this Act after October 20, 2003 for reporting periods prior to
13September 1, 2004 shall be disallowed. Manufacturer's
14Purchaser Credit reported on annual returns due on or after
15January 1, 2005 will be disallowed for periods prior to
16September 1, 2004. No Manufacturer's Purchase Credit may be
17used after September 30, 2003 through August 31, 2004 to
18satisfy any tax liability imposed under this Act, including any
19audit liability.
20    The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

 

 

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1        1. The name of the seller;
2        2. The address of the principal place of business from
3    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 him
6    during the preceding calendar month from sales of tangible
7    personal property by him during such preceding calendar
8    month, including receipts from charge and time sales, but
9    less all deductions allowed by law;
10        4. The amount of credit provided in Section 2d of this
11    Act;
12        5. The amount of tax due; and
13        6. Such other reasonable information as the Department
14    may require.
15    Beginning on October 1, 2003, any person who is not a
16licensed distributor, importing distributor, or manufacturer,
17as defined in the Liquor Control Act of 1934, but is engaged in
18the business of selling, at retail, alcoholic liquor shall file
19a statement with the Department of Revenue, in a format and at
20a time prescribed by the Department, showing the total amount
21paid for alcoholic liquor purchased during the preceding month
22and such other information as is reasonably required by the
23Department. The Department may adopt rules to require that this
24statement be filed in an electronic or telephonic format. Such
25rules may provide for exceptions from the filing requirements
26of this paragraph. For the purposes of this paragraph, the term

 

 

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1"alcoholic liquor" shall have the meaning prescribed in the
2Liquor Control Act of 1934.
3    Beginning on October 1, 2003, every distributor, importing
4distributor, and manufacturer of alcoholic liquor as defined in
5the Liquor Control Act of 1934, shall file a statement with the
6Department of Revenue, no later than the 10th day of the month
7for the preceding month during which transactions occurred, by
8electronic means, showing the total amount of gross receipts
9from the sale of alcoholic liquor sold or distributed during
10the preceding month to purchasers; identifying the purchaser to
11whom it was sold or distributed; the purchaser's tax
12registration number; and such other information reasonably
13required by the Department. A distributor, importing
14distributor, or manufacturer of alcoholic liquor must
15personally deliver, mail, or provide by electronic means to
16each retailer listed on the monthly statement a report
17containing a cumulative total of that distributor's, importing
18distributor's, or manufacturer's total sales of alcoholic
19liquor to that retailer no later than the 10th day of the month
20for the preceding month during which the transaction occurred.
21The distributor, importing distributor, or manufacturer shall
22notify the retailer as to the method by which the distributor,
23importing distributor, or manufacturer will provide the sales
24information. If the retailer is unable to receive the sales
25information by electronic means, the distributor, importing
26distributor, or manufacturer shall furnish the sales

 

 

HB3510- 93 -LRB101 10602 HLH 55708 b

1information by personal delivery or by mail. For purposes of
2this paragraph, the term "electronic means" includes, but is
3not limited to, the use of a secure Internet website, e-mail,
4or facsimile.
5    If a total amount of less than $1 is payable, refundable or
6creditable, such amount shall be disregarded if it is less than
750 cents and shall be increased to $1 if it is 50 cents or more.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall make
13all payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1995, a taxpayer who has
15an average monthly tax liability of $50,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 2000, a taxpayer who has
18an annual tax liability of $200,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. The term "annual tax liability" shall be the
21sum of the taxpayer's liabilities under this Act, and under all
22other State and local occupation and use tax laws administered
23by the Department, for the immediately preceding calendar year.
24The term "average monthly tax liability" shall be the sum of
25the taxpayer's liabilities under this Act, and under all other
26State and local occupation and use tax laws administered by the

 

 

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1Department, for the immediately preceding calendar year
2divided by 12. Beginning on October 1, 2002, a taxpayer who has
3a tax liability in the amount set forth in subsection (b) of
4Section 2505-210 of the Department of Revenue Law shall make
5all payments required by rules of the Department by electronic
6funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make payments
9by electronic funds transfer. All taxpayers required to make
10payments by electronic funds transfer shall make those payments
11for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those payments
18in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Any amount which is required to be shown or reported on any
23return or other document under this Act shall, if such amount
24is not a whole-dollar amount, be increased to the nearest
25whole-dollar amount in any case where the fractional part of a
26dollar is 50 cents or more, and decreased to the nearest

 

 

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1whole-dollar amount where the fractional part of a dollar is
2less than 50 cents.
3    If the retailer is otherwise required to file a monthly
4return and if the retailer's average monthly tax liability to
5the Department does not exceed $200, the Department may
6authorize his returns to be filed on a quarter annual basis,
7with the return for January, February and March of a given year
8being due by April 20 of such year; with the return for April,
9May and June of a given year being due by July 20 of such year;
10with the return for July, August and September of a given year
11being due by October 20 of such year, and with the return for
12October, November and December of a given year being due by
13January 20 of the following year.
14    If the retailer is otherwise required to file a monthly or
15quarterly return and if the retailer's average monthly tax
16liability with the Department does not exceed $50, the
17Department may authorize his returns to be filed on an annual
18basis, with the return for a given year being due by January 20
19of the following year.
20    Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as monthly
22returns.
23    Notwithstanding any other provision in this Act concerning
24the time within which a retailer may file his return, in the
25case of any retailer who ceases to engage in a kind of business
26which makes him responsible for filing returns under this Act,

 

 

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4    Where the same person has more than one business registered
5with the Department under separate registrations under this
6Act, such person may not file each return that is due as a
7single return covering all such registered businesses, but
8shall file separate returns for each such registered business.
9    In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, except as otherwise provided in this
12Section, every retailer selling this kind of tangible personal
13property shall file, with the Department, upon a form to be
14prescribed and supplied by the Department, a separate return
15for each such item of tangible personal property which the
16retailer sells, except that if, in the same transaction, (i) a
17retailer of aircraft, watercraft, motor vehicles or trailers
18transfers more than one aircraft, watercraft, motor vehicle or
19trailer to another aircraft, watercraft, motor vehicle
20retailer or trailer retailer for the purpose of resale or (ii)
21a retailer of aircraft, watercraft, motor vehicles, or trailers
22transfers more than one aircraft, watercraft, motor vehicle, or
23trailer to a purchaser for use as a qualifying rolling stock as
24provided in Section 2-5 of this Act, then that seller may
25report the transfer of all aircraft, watercraft, motor vehicles
26or trailers involved in that transaction to the Department on

 

 

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1the same uniform invoice-transaction reporting return form.
2For purposes of this Section, "watercraft" means a Class 2,
3Class 3, or Class 4 watercraft as defined in Section 3-2 of the
4Boat Registration and Safety Act, a personal watercraft, or any
5boat equipped with an inboard motor.
6    In addition, with respect to motor vehicles, watercraft,
7aircraft, and trailers that are required to be registered with
8an agency of this State, every person who is engaged in the
9business of leasing or renting such items and who, in
10connection with such business, sells any such item to a
11retailer for the purpose of resale is, notwithstanding any
12other provision of this Section to the contrary, authorized to
13meet the return-filing requirement of this Act by reporting the
14transfer of all the aircraft, watercraft, motor vehicles, or
15trailers transferred for resale during a month to the
16Department on the same uniform invoice-transaction reporting
17return form on or before the 20th of the month following the
18month in which the transfer takes place. Notwithstanding any
19other provision of this Act to the contrary, all returns filed
20under this paragraph must be filed by electronic means in the
21manner and form as required by the Department.
22    Any retailer who sells only motor vehicles, watercraft,
23aircraft, or trailers that are required to be registered with
24an agency of this State, so that all retailers' occupation tax
25liability is required to be reported, and is reported, on such
26transaction reporting returns and who is not otherwise required

 

 

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1to file monthly or quarterly returns, need not file monthly or
2quarterly returns. However, those retailers shall be required
3to file returns on an annual basis.
4    The transaction reporting return, in the case of motor
5vehicles or trailers that are required to be registered with an
6agency of this State, shall be the same document as the Uniform
7Invoice referred to in Section 5-402 of the Illinois Vehicle
8Code and must show the name and address of the seller; the name
9and address of the purchaser; the amount of the selling price
10including the amount allowed by the retailer for traded-in
11property, if any; the amount allowed by the retailer for the
12traded-in tangible personal property, if any, to the extent to
13which Section 1 of this Act allows an exemption for the value
14of traded-in property; the balance payable after deducting such
15trade-in allowance from the total selling price; the amount of
16tax due from the retailer with respect to such transaction; the
17amount of tax collected from the purchaser by the retailer on
18such transaction (or satisfactory evidence that such tax is not
19due in that particular instance, if that is claimed to be the
20fact); the place and date of the sale; a sufficient
21identification of the property sold; such other information as
22is required in Section 5-402 of the Illinois Vehicle Code, and
23such other information as the Department may reasonably
24require.
25    The transaction reporting return in the case of watercraft
26or aircraft must show the name and address of the seller; the

 

 

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1name and address of the purchaser; the amount of the selling
2price including the amount allowed by the retailer for
3traded-in property, if any; the amount allowed by the retailer
4for the traded-in tangible personal property, if any, to the
5extent to which Section 1 of this Act allows an exemption for
6the value of traded-in property; the balance payable after
7deducting such trade-in allowance from the total selling price;
8the amount of tax due from the retailer with respect to such
9transaction; the amount of tax collected from the purchaser by
10the retailer on such transaction (or satisfactory evidence that
11such tax is not due in that particular instance, if that is
12claimed to be the fact); the place and date of the sale, a
13sufficient identification of the property sold, and such other
14information as the Department may reasonably require.
15    Such transaction reporting return shall be filed not later
16than 20 days after the day of delivery of the item that is
17being sold, but may be filed by the retailer at any time sooner
18than that if he chooses to do so. The transaction reporting
19return and tax remittance or proof of exemption from the
20Illinois use tax may be transmitted to the Department by way of
21the State agency with which, or State officer with whom the
22tangible personal property must be titled or registered (if
23titling or registration is required) if the Department and such
24agency or State officer determine that this procedure will
25expedite the processing of applications for title or
26registration.

 

 

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1    With each such transaction reporting return, the retailer
2shall remit the proper amount of tax due (or shall submit
3satisfactory evidence that the sale is not taxable if that is
4the case), to the Department or its agents, whereupon the
5Department shall issue, in the purchaser's name, a use tax
6receipt (or a certificate of exemption if the Department is
7satisfied that the particular sale is tax exempt) which such
8purchaser may submit to the agency with which, or State officer
9with whom, he must title or register the tangible personal
10property that is involved (if titling or registration is
11required) in support of such purchaser's application for an
12Illinois certificate or other evidence of title or registration
13to such tangible personal property.
14    No retailer's failure or refusal to remit tax under this
15Act precludes a user, who has paid the proper tax to the
16retailer, from obtaining his certificate of title or other
17evidence of title or registration (if titling or registration
18is required) upon satisfying the Department that such user has
19paid the proper tax (if tax is due) to the retailer. The
20Department shall adopt appropriate rules to carry out the
21mandate of this paragraph.
22    If the user who would otherwise pay tax to the retailer
23wants the transaction reporting return filed and the payment of
24the tax or proof of exemption made to the Department before the
25retailer is willing to take these actions and such user has not
26paid the tax to the retailer, such user may certify to the fact

 

 

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1of such delay by the retailer and may (upon the Department
2being satisfied of the truth of such certification) transmit
3the information required by the transaction reporting return
4and the remittance for tax or proof of exemption directly to
5the Department and obtain his tax receipt or exemption
6determination, in which event the transaction reporting return
7and tax remittance (if a tax payment was required) shall be
8credited by the Department to the proper retailer's account
9with the Department, but without the 2.1% or 1.75% discount
10provided for in this Section being allowed. When the user pays
11the tax directly to the Department, he shall pay the tax in the
12same amount and in the same form in which it would be remitted
13if the tax had been remitted to the Department by the retailer.
14    Refunds made by the seller during the preceding return
15period to purchasers, on account of tangible personal property
16returned to the seller, shall be allowed as a deduction under
17subdivision 5 of his monthly or quarterly return, as the case
18may be, in case the seller had theretofore included the
19receipts from the sale of such tangible personal property in a
20return filed by him and had paid the tax imposed by this Act
21with respect to such receipts.
22    Where the seller is a corporation, the return filed on
23behalf of such corporation shall be signed by the president,
24vice-president, secretary or treasurer or by the properly
25accredited agent of such corporation.
26    Where the seller is a limited liability company, the return

 

 

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1filed on behalf of the limited liability company shall be
2signed by a manager, member, or properly accredited agent of
3the limited liability company.
4    Except as provided in this Section, the retailer filing the
5return under this Section shall, at the time of filing such
6return, pay to the Department the amount of tax imposed by this
7Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
8on and after January 1, 1990, or $5 per calendar year,
9whichever is greater, which is allowed to reimburse the
10retailer for the expenses incurred in keeping records,
11preparing and filing returns, remitting the tax and supplying
12data to the Department on request. Any prepayment made pursuant
13to Section 2d of this Act shall be included in the amount on
14which such 2.1% or 1.75% discount is computed. In the case of
15retailers who report and pay the tax on a transaction by
16transaction basis, as provided in this Section, such discount
17shall be taken with each such tax remittance instead of when
18such retailer files his periodic return. The discount allowed
19under this Section is allowed only for returns that are filed
20in the manner required by this Act. The Department may disallow
21the discount for retailers whose certificate of registration is
22revoked at the time the return is filed, but only if the
23Department's decision to revoke the certificate of
24registration has become final.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Use Tax

 

 

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1Act, the Service Occupation Tax Act, and the Service Use Tax
2Act, excluding any liability for prepaid sales tax to be
3remitted in accordance with Section 2d of this Act, was $10,000
4or more during the preceding 4 complete calendar quarters, he
5shall file a return with the Department each month by the 20th
6day of the month next following the month during which such tax
7liability is incurred and shall make payments to the Department
8on or before the 7th, 15th, 22nd and last day of the month
9during which such liability is incurred. On and after October
101, 2000, if the taxpayer's average monthly tax liability to the
11Department under this Act, the Use Tax Act, the Service
12Occupation Tax Act, and the Service Use Tax Act, excluding any
13liability for prepaid sales tax to be remitted in accordance
14with Section 2d of this Act, was $20,000 or more during the
15preceding 4 complete calendar quarters, he shall file a return
16with the Department each month by the 20th day of the month
17next following the month during which such tax liability is
18incurred and shall make payment to the Department on or before
19the 7th, 15th, 22nd and last day of the month during which such
20liability is incurred. If the month during which such tax
21liability is incurred began prior to January 1, 1985, each
22payment shall be in an amount equal to 1/4 of the taxpayer's
23actual liability for the month or an amount set by the
24Department not to exceed 1/4 of the average monthly liability
25of the taxpayer to the Department for the preceding 4 complete
26calendar quarters (excluding the month of highest liability and

 

 

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1the month of lowest liability in such 4 quarter period). If the
2month during which such tax liability is incurred begins on or
3after January 1, 1985 and prior to January 1, 1987, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 27.5% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1987 and prior to January 1, 1988, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 26.25% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1988, and prior to January 1, 1989, or
14begins on or after January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year. If the month during which
18such tax liability is incurred begins on or after January 1,
191989, and prior to January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year or 100% of the taxpayer's
23actual liability for the quarter monthly reporting period. The
24amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month. Before October 1, 2000, once applicable, the

 

 

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1requirement of the making of quarter monthly payments to the
2Department by taxpayers having an average monthly tax liability
3of $10,000 or more as determined in the manner provided above
4shall continue until such taxpayer's average monthly liability
5to the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $9,000, or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $10,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $10,000
15threshold stated above, then such taxpayer may petition the
16Department for a change in such taxpayer's reporting status. On
17and after October 1, 2000, once applicable, the requirement of
18the making of quarter monthly payments to the Department by
19taxpayers having an average monthly tax liability of $20,000 or
20more as determined in the manner provided above shall continue
21until such taxpayer's average monthly liability to the
22Department during the preceding 4 complete calendar quarters
23(excluding the month of highest liability and the month of
24lowest liability) is less than $19,000 or until such taxpayer's
25average monthly liability to the Department as computed for
26each calendar quarter of the 4 preceding complete calendar

 

 

HB3510- 106 -LRB101 10602 HLH 55708 b

1quarter period is less than $20,000. However, if a taxpayer can
2show the Department that a substantial change in the taxpayer's
3business has occurred which causes the taxpayer to anticipate
4that his average monthly tax liability for the reasonably
5foreseeable future will fall below the $20,000 threshold stated
6above, then such taxpayer may petition the Department for a
7change in such taxpayer's reporting status. The Department
8shall change such taxpayer's reporting status unless it finds
9that such change is seasonal in nature and not likely to be
10long term. If any such quarter monthly payment is not paid at
11the time or in the amount required by this Section, then the
12taxpayer shall be liable for penalties and interest on the
13difference between the minimum amount due as a payment and the
14amount of such quarter monthly payment actually and timely
15paid, except insofar as the taxpayer has previously made
16payments for that month to the Department in excess of the
17minimum payments previously due as provided in this Section.
18The Department shall make reasonable rules and regulations to
19govern the quarter monthly payment amount and quarter monthly
20payment dates for taxpayers who file on other than a calendar
21monthly basis.
22    The provisions of this paragraph apply before October 1,
232001. Without regard to whether a taxpayer is required to make
24quarter monthly payments as specified above, any taxpayer who
25is required by Section 2d of this Act to collect and remit
26prepaid taxes and has collected prepaid taxes which average in

 

 

HB3510- 107 -LRB101 10602 HLH 55708 b

1excess of $25,000 per month during the preceding 2 complete
2calendar quarters, shall file a return with the Department as
3required by Section 2f and shall make payments to the
4Department on or before the 7th, 15th, 22nd and last day of the
5month during which such liability is incurred. If the month
6during which such tax liability is incurred began prior to
7September 1, 1985 (the effective date of Public Act 84-221),
8each payment shall be in an amount not less than 22.5% of the
9taxpayer's actual liability under Section 2d. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1986, each payment shall be in an amount equal to
1222.5% of the taxpayer's actual liability for the month or 27.5%
13of the taxpayer's liability for the same calendar month of the
14preceding calendar year. If the month during which such tax
15liability is incurred begins on or after January 1, 1987, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 26.25% of the taxpayer's
18liability for the same calendar month of the preceding year.
19The amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month filed under this Section or Section 2f, as the case
22may be. Once applicable, the requirement of the making of
23quarter monthly payments to the Department pursuant to this
24paragraph shall continue until such taxpayer's average monthly
25prepaid tax collections during the preceding 2 complete
26calendar quarters is $25,000 or less. If any such quarter

 

 

HB3510- 108 -LRB101 10602 HLH 55708 b

1monthly payment is not paid at the time or in the amount
2required, the taxpayer shall be liable for penalties and
3interest on such difference, except insofar as the taxpayer has
4previously made payments for that month in excess of the
5minimum payments previously due.
6    The provisions of this paragraph apply on and after October
71, 2001. Without regard to whether a taxpayer is required to
8make quarter monthly payments as specified above, any taxpayer
9who is required by Section 2d of this Act to collect and remit
10prepaid taxes and has collected prepaid taxes that average in
11excess of $20,000 per month during the preceding 4 complete
12calendar quarters shall file a return with the Department as
13required by Section 2f and shall make payments to the
14Department on or before the 7th, 15th, 22nd and last day of the
15month during which the liability is incurred. Each payment
16shall be in an amount equal to 22.5% of the taxpayer's actual
17liability for the month or 25% of the taxpayer's liability for
18the same calendar month of the preceding year. The amount of
19the quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month
21filed under this Section or Section 2f, as the case may be.
22Once applicable, the requirement of the making of quarter
23monthly payments to the Department pursuant to this paragraph
24shall continue until the taxpayer's average monthly prepaid tax
25collections during the preceding 4 complete calendar quarters
26(excluding the month of highest liability and the month of

 

 

HB3510- 109 -LRB101 10602 HLH 55708 b

1lowest liability) is less than $19,000 or until such taxpayer's
2average monthly liability to the Department as computed for
3each calendar quarter of the 4 preceding complete calendar
4quarters is less than $20,000. If any such quarter monthly
5payment is not paid at the time or in the amount required, the
6taxpayer shall be liable for penalties and interest on such
7difference, except insofar as the taxpayer has previously made
8payments for that month in excess of the minimum payments
9previously due.
10    If any payment provided for in this Section exceeds the
11taxpayer's liabilities under this Act, the Use Tax Act, the
12Service Occupation Tax Act and the Service Use Tax Act, as
13shown on an original monthly return, the Department shall, if
14requested by the taxpayer, issue to the taxpayer a credit
15memorandum no later than 30 days after the date of payment. The
16credit evidenced by such credit memorandum may be assigned by
17the taxpayer to a similar taxpayer under this Act, the Use Tax
18Act, the Service Occupation Tax Act or the Service Use Tax Act,
19in accordance with reasonable rules and regulations to be
20prescribed by the Department. If no such request is made, the
21taxpayer may credit such excess payment against tax liability
22subsequently to be remitted to the Department under this Act,
23the Use Tax Act, the Service Occupation Tax Act or the Service
24Use Tax Act, in accordance with reasonable rules and
25regulations prescribed by the Department. If the Department
26subsequently determined that all or any part of the credit

 

 

HB3510- 110 -LRB101 10602 HLH 55708 b

1taken was not actually due to the taxpayer, the taxpayer's 2.1%
2and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
3of the difference between the credit taken and that actually
4due, and that taxpayer shall be liable for penalties and
5interest on such difference.
6    If a retailer of motor fuel is entitled to a credit under
7Section 2d of this Act which exceeds the taxpayer's liability
8to the Department under this Act for the month which the
9taxpayer is filing a return, the Department shall issue the
10taxpayer a credit memorandum for the excess.
11    Beginning January 1, 1990, each month the Department shall
12pay into the Local Government Tax Fund, a special fund in the
13State treasury which is hereby created, the net revenue
14realized for the preceding month from the 1% tax imposed under
15this Act.
16    Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund, a special
18fund in the State treasury which is hereby created, 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate.
21    Beginning August 1, 2000, each month the Department shall
22pay into the County and Mass Transit District Fund 20% of the
23net revenue realized for the preceding month from the 1.25%
24rate on the selling price of motor fuel and gasohol. Beginning
25September 1, 2010, each month the Department shall pay into the
26County and Mass Transit District Fund 20% of the net revenue

 

 

HB3510- 111 -LRB101 10602 HLH 55708 b

1realized for the preceding month from the 1.25% rate on the
2selling price of sales tax holiday items.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund 16% of the net revenue
5realized for the preceding month from the 6.25% general rate on
6the selling price of tangible personal property.
7    Beginning August 1, 2000, each month the Department shall
8pay into the Local Government Tax Fund 80% of the net revenue
9realized for the preceding month from the 1.25% rate on the
10selling price of motor fuel and gasohol. Beginning September 1,
112010, each month the Department shall pay into the Local
12Government Tax Fund 80% of the net revenue realized for the
13preceding month from the 1.25% rate on the selling price of
14sales tax holiday items.
15    Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22    Beginning July 1, 2011, each month the Department shall pay
23into the Clean Air Act Permit Fund 80% of the net revenue
24realized for the preceding month from the 6.25% general rate on
25the selling price of sorbents used in Illinois in the process
26of sorbent injection as used to comply with the Environmental

 

 

HB3510- 112 -LRB101 10602 HLH 55708 b

1Protection Act or the federal Clean Air Act, but the total
2payment into the Clean Air Act Permit Fund under this Act and
3the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
4    Beginning July 1, 2013, each month the Department shall pay
5into the Underground Storage Tank Fund from the proceeds
6collected under this Act, the Use Tax Act, the Service Use Tax
7Act, and the Service Occupation Tax Act an amount equal to the
8average monthly deficit in the Underground Storage Tank Fund
9during the prior year, as certified annually by the Illinois
10Environmental Protection Agency, but the total payment into the
11Underground Storage Tank Fund under this Act, the Use Tax Act,
12the Service Use Tax Act, and the Service Occupation Tax Act
13shall not exceed $18,000,000 in any State fiscal year. As used
14in this paragraph, the "average monthly deficit" shall be equal
15to the difference between the average monthly claims for
16payment by the fund and the average monthly revenues deposited
17into the fund, excluding payments made pursuant to this
18paragraph.
19    Beginning July 1, 2015, of the remainder of the moneys
20received by the Department under the Use Tax Act, the Service
21Use Tax Act, the Service Occupation Tax Act, and this Act, each
22month the Department shall deposit $500,000 into the State
23Crime Laboratory Fund.
24    Beginning January 1, 2020, the Department shall pay into
25the Student Mental Health Services Fund 100% of the net revenue
26realized for the preceding month from the 7% surcharge on the

 

 

HB3510- 113 -LRB101 10602 HLH 55708 b

1selling price of firearms and firearm component parts.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, (a) 1.75% thereof shall be paid into the
4Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
5and after July 1, 1989, 3.8% thereof shall be paid into the
6Build Illinois Fund; provided, however, that if in any fiscal
7year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
8may be, of the moneys received by the Department and required
9to be paid into the Build Illinois Fund pursuant to this Act,
10Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
11Act, and Section 9 of the Service Occupation Tax Act, such Acts
12being hereinafter called the "Tax Acts" and such aggregate of
132.2% or 3.8%, as the case may be, of moneys being hereinafter
14called the "Tax Act Amount", and (2) the amount transferred to
15the Build Illinois Fund from the State and Local Sales Tax
16Reform Fund shall be less than the Annual Specified Amount (as
17hereinafter defined), an amount equal to the difference shall
18be immediately paid into the Build Illinois Fund from other
19moneys received by the Department pursuant to the Tax Acts; the
20"Annual Specified Amount" means the amounts specified below for
21fiscal years 1986 through 1993:
22Fiscal YearAnnual Specified Amount
231986$54,800,000
241987$76,650,000
251988$80,480,000
261989$88,510,000

 

 

HB3510- 114 -LRB101 10602 HLH 55708 b

11990$115,330,000
21991$145,470,000
31992$182,730,000
41993$206,520,000;
5and means the Certified Annual Debt Service Requirement (as
6defined in Section 13 of the Build Illinois Bond Act) or the
7Tax Act Amount, whichever is greater, for fiscal year 1994 and
8each fiscal year thereafter; and further provided, that if on
9the last business day of any month the sum of (1) the Tax Act
10Amount required to be deposited into the Build Illinois Bond
11Account in the Build Illinois Fund during such month and (2)
12the amount transferred to the Build Illinois Fund from the
13State and Local Sales Tax Reform Fund shall have been less than
141/12 of the Annual Specified Amount, an amount equal to the
15difference shall be immediately paid into the Build Illinois
16Fund from other moneys received by the Department pursuant to
17the Tax Acts; and, further provided, that in no event shall the
18payments required under the preceding proviso result in
19aggregate payments into the Build Illinois Fund pursuant to
20this clause (b) for any fiscal year in excess of the greater of
21(i) the Tax Act Amount or (ii) the Annual Specified Amount for
22such fiscal year. The amounts payable into the Build Illinois
23Fund under clause (b) of the first sentence in this paragraph
24shall be payable only until such time as the aggregate amount
25on deposit under each trust indenture securing Bonds issued and
26outstanding pursuant to the Build Illinois Bond Act is

 

 

HB3510- 115 -LRB101 10602 HLH 55708 b

1sufficient, taking into account any future investment income,
2to fully provide, in accordance with such indenture, for the
3defeasance of or the payment of the principal of, premium, if
4any, and interest on the Bonds secured by such indenture and on
5any Bonds expected to be issued thereafter and all fees and
6costs payable with respect thereto, all as certified by the
7Director of the Bureau of the Budget (now Governor's Office of
8Management and Budget). If on the last business day of any
9month in which Bonds are outstanding pursuant to the Build
10Illinois Bond Act, the aggregate of moneys deposited in the
11Build Illinois Bond Account in the Build Illinois Fund in such
12month shall be less than the amount required to be transferred
13in such month from the Build Illinois Bond Account to the Build
14Illinois Bond Retirement and Interest Fund pursuant to Section
1513 of the Build Illinois Bond Act, an amount equal to such
16deficiency shall be immediately paid from other moneys received
17by the Department pursuant to the Tax Acts to the Build
18Illinois Fund; provided, however, that any amounts paid to the
19Build Illinois Fund in any fiscal year pursuant to this
20sentence shall be deemed to constitute payments pursuant to
21clause (b) of the first sentence of this paragraph and shall
22reduce the amount otherwise payable for such fiscal year
23pursuant to that clause (b). The moneys received by the
24Department pursuant to this Act and required to be deposited
25into the Build Illinois Fund are subject to the pledge, claim
26and charge set forth in Section 12 of the Build Illinois Bond

 

 

HB3510- 116 -LRB101 10602 HLH 55708 b

1Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

 

 

HB3510- 117 -LRB101 10602 HLH 55708 b

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

 

 

HB3510- 118 -LRB101 10602 HLH 55708 b

12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

HB3510- 119 -LRB101 10602 HLH 55708 b

1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois Tax
4Increment Fund 0.27% of 80% of the net revenue realized for the
5preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a 25-year
12period, the Department shall each month pay into the Energy
13Infrastructure Fund 80% of the net revenue realized from the
146.25% general rate on the selling price of Illinois-mined coal
15that was sold to an eligible business. For purposes of this
16paragraph, the term "eligible business" means a new electric
17generating facility certified pursuant to Section 605-332 of
18the Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    Subject to payment of amounts into the Build Illinois Fund,
21the McCormick Place Expansion Project Fund, the Illinois Tax
22Increment Fund, and the Energy Infrastructure Fund pursuant to
23the preceding paragraphs or in any amendments to this Section
24hereafter enacted, beginning on the first day of the first
25calendar month to occur on or after August 26, 2014 (the
26effective date of Public Act 98-1098), each month, from the

 

 

HB3510- 120 -LRB101 10602 HLH 55708 b

1collections made under Section 9 of the Use Tax Act, Section 9
2of the Service Use Tax Act, Section 9 of the Service Occupation
3Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
4the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Subject to payments of amounts into the Build Illinois
14Fund, the McCormick Place Expansion Project Fund, the Illinois
15Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
16Compliance and Administration Fund as provided in this Section,
17beginning on July 1, 2018 the Department shall pay each month
18into the Downstate Public Transportation Fund the moneys
19required to be so paid under Section 2-3 of the Downstate
20Public Transportation Act.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, 75% thereof shall be paid into the State
23Treasury and 25% shall be reserved in a special account and
24used only for the transfer to the Common School Fund as part of
25the monthly transfer from the General Revenue Fund in
26accordance with Section 8a of the State Finance Act.

 

 

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1    The Department may, upon separate written notice to a
2taxpayer, require the taxpayer to prepare and file with the
3Department on a form prescribed by the Department within not
4less than 60 days after receipt of the notice an annual
5information return for the tax year specified in the notice.
6Such annual return to the Department shall include a statement
7of gross receipts as shown by the retailer's last Federal
8income tax return. If the total receipts of the business as
9reported in the Federal income tax return do not agree with the
10gross receipts reported to the Department of Revenue for the
11same period, the retailer shall attach to his annual return a
12schedule showing a reconciliation of the 2 amounts and the
13reasons for the difference. The retailer's annual return to the
14Department shall also disclose the cost of goods sold by the
15retailer during the year covered by such return, opening and
16closing inventories of such goods for such year, costs of goods
17used from stock or taken from stock and given away by the
18retailer during such year, payroll information of the
19retailer's business during such year and any additional
20reasonable information which the Department deems would be
21helpful in determining the accuracy of the monthly, quarterly
22or annual returns filed by such retailer as provided for in
23this Section.
24    If the annual information return required by this Section
25is not filed when and as required, the taxpayer shall be liable
26as follows:

 

 

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1        (i) Until January 1, 1994, the taxpayer shall be liable
2    for a penalty equal to 1/6 of 1% of the tax due from such
3    taxpayer under this Act during the period to be covered by
4    the annual return for each month or fraction of a month
5    until such return is filed as required, the penalty to be
6    assessed and collected in the same manner as any other
7    penalty provided for in this Act.
8        (ii) On and after January 1, 1994, the taxpayer shall
9    be liable for a penalty as described in Section 3-4 of the
10    Uniform Penalty and Interest Act.
11    The chief executive officer, proprietor, owner or highest
12ranking manager shall sign the annual return to certify the
13accuracy of the information contained therein. Any person who
14willfully signs the annual return containing false or
15inaccurate information shall be guilty of perjury and punished
16accordingly. The annual return form prescribed by the
17Department shall include a warning that the person signing the
18return may be liable for perjury.
19    The provisions of this Section concerning the filing of an
20annual information return do not apply to a retailer who is not
21required to file an income tax return with the United States
22Government.
23    As soon as possible after the first day of each month, upon
24certification of the Department of Revenue, the Comptroller
25shall order transferred and the Treasurer shall transfer from
26the General Revenue Fund to the Motor Fuel Tax Fund an amount

 

 

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1equal to 1.7% of 80% of the net revenue realized under this Act
2for the second preceding month. Beginning April 1, 2000, this
3transfer is no longer required and shall not be made.
4    Net revenue realized for a month shall be the revenue
5collected by the State pursuant to this Act, less the amount
6paid out during that month as refunds to taxpayers for
7overpayment of liability.
8    For greater simplicity of administration, manufacturers,
9importers and wholesalers whose products are sold at retail in
10Illinois by numerous retailers, and who wish to do so, may
11assume the responsibility for accounting and paying to the
12Department all tax accruing under this Act with respect to such
13sales, if the retailers who are affected do not make written
14objection to the Department to this arrangement.
15    Any person who promotes, organizes, provides retail
16selling space for concessionaires or other types of sellers at
17the Illinois State Fair, DuQuoin State Fair, county fairs,
18local fairs, art shows, flea markets and similar exhibitions or
19events, including any transient merchant as defined by Section
202 of the Transient Merchant Act of 1987, is required to file a
21report with the Department providing the name of the merchant's
22business, the name of the person or persons engaged in
23merchant's business, the permanent address and Illinois
24Retailers Occupation Tax Registration Number of the merchant,
25the dates and location of the event and other reasonable
26information that the Department may require. The report must be

 

 

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1filed not later than the 20th day of the month next following
2the month during which the event with retail sales was held.
3Any person who fails to file a report required by this Section
4commits a business offense and is subject to a fine not to
5exceed $250.
6    Any person engaged in the business of selling tangible
7personal property at retail as a concessionaire or other type
8of seller at the Illinois State Fair, county fairs, art shows,
9flea markets and similar exhibitions or events, or any
10transient merchants, as defined by Section 2 of the Transient
11Merchant Act of 1987, may be required to make a daily report of
12the amount of such sales to the Department and to make a daily
13payment of the full amount of tax due. The Department shall
14impose this requirement when it finds that there is a
15significant risk of loss of revenue to the State at such an
16exhibition or event. Such a finding shall be based on evidence
17that a substantial number of concessionaires or other sellers
18who are not residents of Illinois will be engaging in the
19business of selling tangible personal property at retail at the
20exhibition or event, or other evidence of a significant risk of
21loss of revenue to the State. The Department shall notify
22concessionaires and other sellers affected by the imposition of
23this requirement. In the absence of notification by the
24Department, the concessionaires and other sellers shall file
25their returns as otherwise required in this Section.
26(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;

 

 

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199-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
27-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.