97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1436

 

Introduced , by Rep. Lisa M. Dugan

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 740/2-3  from Ch. 111 2/3, par. 663
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Downstate Public Transportation Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act. Beginning July 1, 2011, instead of use and occupation tax collections being deposited into the General Revenue Fund and then transferred monthly by the Comptroller from the General Revenue Fund to the Downstate Public Transportation Fund, requires the Department of Revenue to deposit the designated fraction of the net revenue realized from those collections directly into the Downstate Public Transportation Fund. Effective July 1, 2011.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1436LRB097 05200 HLH 45249 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Downstate Public Transportation Act is
5amended by changing Section 2-3 as follows:
 
6    (30 ILCS 740/2-3)  (from Ch. 111 2/3, par. 663)
7    Sec. 2-3. (a) As soon as possible after the first day of
8each month, beginning July 1, 1984, upon certification of the
9Department of Revenue, the Comptroller shall order
10transferred, and the Treasurer shall transfer, from the General
11Revenue Fund to a special fund in the State Treasury which is
12hereby created, to be known as the "Downstate Public
13Transportation Fund", an amount equal to 2/32 (beginning July
141, 2005, 3/32) of the net revenue realized from the "Retailers'
15Occupation Tax Act", as now or hereafter amended, the "Service
16Occupation Tax Act", as now or hereafter amended, the "Use Tax
17Act", as now or hereafter amended, and the "Service Use Tax
18Act", as now or hereafter amended, from persons incurring
19municipal or county retailers' or service occupation tax
20liability for the benefit of any municipality or county located
21wholly within the boundaries of each participant other than any
22Metro-East Transit District participant certified pursuant to
23subsection (c) of this Section during the preceding month,

 

 

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1except that the Department shall pay into the Downstate Public
2Transportation Fund 2/32 (beginning July 1, 2005, 3/32) of 80%
3of the net revenue realized under the State tax Acts named
4above within any municipality or county located wholly within
5the boundaries of each participant, other than any Metro-East
6participant, for tax periods beginning on or after January 1,
71990. Net revenue realized for a month shall be the revenue
8collected by the State pursuant to such Acts during the
9previous month from persons incurring municipal or county
10retailers' or service occupation tax liability for the benefit
11of any municipality or county located wholly within the
12boundaries of a participant, less the amount paid out during
13that same month as refunds or credit memoranda to taxpayers for
14overpayment of liability under such Acts for the benefit of any
15municipality or county located wholly within the boundaries of
16a participant.
17    (b) As soon as possible after the first day of each month,
18beginning July 1, 1989, upon certification of the Department of
19Revenue, the Comptroller shall order transferred, and the
20Treasurer shall transfer, from the General Revenue Fund to a
21special fund in the State Treasury which is hereby created, to
22be known as the "Metro-East Public Transportation Fund", an
23amount equal to 2/32 of the net revenue realized, as above,
24from within the boundaries of Madison, Monroe, and St. Clair
25Counties, except that the Department shall pay into the
26Metro-East Public Transportation Fund 2/32 of 80% of the net

 

 

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1revenue realized under the State tax Acts specified in
2subsection (a) of this Section within the boundaries of
3Madison, Monroe and St. Clair Counties for tax periods
4beginning on or after January 1, 1990. A local match equivalent
5to an amount which could be raised by a tax levy at the rate of
6.05% on the assessed value of property within the boundaries of
7Madison County is required annually to cause a total of 2/32 of
8the net revenue to be deposited in the Metro-East Public
9Transportation Fund. Failure to raise the required local match
10annually shall result in only 1/32 being deposited into the
11Metro-East Public Transportation Fund after July 1, 1989, or
121/32 of 80% of the net revenue realized for tax periods
13beginning on or after January 1, 1990.
14    (b-5) As soon as possible after the first day of each
15month, beginning July 1, 2005, upon certification of the
16Department of Revenue, the Comptroller shall order
17transferred, and the Treasurer shall transfer, from the General
18Revenue Fund to the Downstate Public Transportation Fund, an
19amount equal to 3/32 of 80% of the net revenue realized from
20within the boundaries of Monroe and St. Clair Counties under
21the State Tax Acts specified in subsection (a) of this Section
22and provided further that, beginning July 1, 2005, the
23provisions of subsection (b) shall no longer apply with respect
24to such tax receipts from Monroe and St. Clair Counties.
25    (b-6) As soon as possible after the first day of each
26month, beginning July 1, 2008, upon certification by the

 

 

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1Department of Revenue, the Comptroller shall order transferred
2and the Treasurer shall transfer, from the General Revenue Fund
3to the Downstate Public Transportation Fund, an amount equal to
43/32 of 80% of the net revenue realized from within the
5boundaries of Madison County under the State Tax Acts specified
6in subsection (a) of this Section and provided further that,
7beginning July 1, 2008, the provisions of subsection (b) shall
8no longer apply with respect to such tax receipts from Madison
9County.
10    (b-7) Beginning July 1, 2011, notwithstanding the other
11provisions of this Section, instead of the Comptroller making
12monthly transfers from the General Revenue Fund to the
13Downstate Public Transportation Fund, the Department of
14Revenue shall deposit the designated fraction of the net
15revenue realized from collections under the Retailers'
16Occupation Tax Act, the Service Occupation Tax Act, the Use Tax
17Act, and the Service Use Tax Act directly into the Downstate
18Public Transportation Fund.
19    (c) The Department shall certify to the Department of
20Revenue the eligible participants under this Article and the
21territorial boundaries of such participants for the purposes of
22the Department of Revenue in subsections (a) and (b) of this
23Section.
24    (d) For the purposes of this Article, beginning in fiscal
25year 2009 the General Assembly shall appropriate an amount from
26the Downstate Public Transportation Fund equal to the sum total

 

 

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1funds projected to be paid to the participants pursuant to
2Section 2-7. If the General Assembly fails to make
3appropriations sufficient to cover the amounts projected to be
4paid pursuant to Section 2-7, this Act shall constitute an
5irrevocable and continuing appropriation from the Downstate
6Public Transportation Fund of all amounts necessary for those
7purposes.
8(Source: P.A. 94-70, eff. 6-22-05; 95-708, eff. 1-18-08.)
 
9    Section 10. The Use Tax Act is amended by changing Section
109 as follows:
 
11    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
12    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
13and trailers that are required to be registered with an agency
14of this State, each retailer required or authorized to collect
15the tax imposed by this Act shall pay to the Department the
16amount of such tax (except as otherwise provided) at the time
17when he is required to file his return for the period during
18which such tax was collected, less a discount of 2.1% prior to
19January 1, 1990, and 1.75% on and after January 1, 1990, or $5
20per calendar year, whichever is greater, which is allowed to
21reimburse the retailer for expenses incurred in collecting the
22tax, keeping records, preparing and filing returns, remitting
23the tax and supplying data to the Department on request. In the
24case of retailers who report and pay the tax on a transaction

 

 

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1by transaction basis, as provided in this Section, such
2discount shall be taken with each such tax remittance instead
3of when such retailer files his periodic return. A retailer
4need not remit that part of any tax collected by him to the
5extent that he is required to remit and does remit the tax
6imposed by the Retailers' Occupation Tax Act, with respect to
7the sale of the same property.
8    Where such tangible personal property is sold under a
9conditional sales contract, or under any other form of sale
10wherein the payment of the principal sum, or a part thereof, is
11extended beyond the close of the period for which the return is
12filed, the retailer, in collecting the tax (except as to motor
13vehicles, watercraft, aircraft, and trailers that are required
14to be registered with an agency of this State), may collect for
15each tax return period, only the tax applicable to that part of
16the selling price actually received during such tax return
17period.
18    Except as provided in this Section, on or before the
19twentieth day of each calendar month, such retailer shall file
20a return for the preceding calendar month. Such return shall be
21filed on forms prescribed by the Department and shall furnish
22such information as the Department may reasonably require.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by him
9    during the preceding calendar month from sales of tangible
10    personal property by him during such preceding calendar
11    month, including receipts from charge and time sales, but
12    less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

 

 

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1an average monthly tax liability of $100,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1995, a taxpayer who has
4an average monthly tax liability of $50,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 2000, a taxpayer who has
7an annual tax liability of $200,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. The term "annual tax liability" shall be the
10sum of the taxpayer's liabilities under this Act, and under all
11other State and local occupation and use tax laws administered
12by the Department, for the immediately preceding calendar year.
13The term "average monthly tax liability" means the sum of the
14taxpayer's liabilities under this Act, and under all other
15State and local occupation and use tax laws administered by the
16Department, for the immediately preceding calendar year
17divided by 12. Beginning on October 1, 2002, a taxpayer who has
18a tax liability in the amount set forth in subsection (b) of
19Section 2505-210 of the Department of Revenue Law shall make
20all payments required by rules of the Department by electronic
21funds transfer.
22    Before August 1 of each year beginning in 1993, the
23Department shall notify all taxpayers required to make payments
24by electronic funds transfer. All taxpayers required to make
25payments by electronic funds transfer shall make those payments
26for a minimum of one year beginning on October 1.

 

 

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1    Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4    All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those payments
7in the manner authorized by the Department.
8    The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11    Before October 1, 2000, if the taxpayer's average monthly
12tax liability to the Department under this Act, the Retailers'
13Occupation Tax Act, the Service Occupation Tax Act, the Service
14Use Tax Act was $10,000 or more during the preceding 4 complete
15calendar quarters, he shall file a return with the Department
16each month by the 20th day of the month next following the
17month during which such tax liability is incurred and shall
18make payments to the Department on or before the 7th, 15th,
1922nd and last day of the month during which such liability is
20incurred. On and after October 1, 2000, if the taxpayer's
21average monthly tax liability to the Department under this Act,
22the Retailers' Occupation Tax Act, the Service Occupation Tax
23Act, and the Service Use Tax Act was $20,000 or more during the
24preceding 4 complete calendar quarters, he shall file a return
25with the Department each month by the 20th day of the month
26next following the month during which such tax liability is

 

 

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1incurred and shall make payment to the Department on or before
2the 7th, 15th, 22nd and last day of the month during which such
3liability is incurred. If the month during which such tax
4liability is incurred began prior to January 1, 1985, each
5payment shall be in an amount equal to 1/4 of the taxpayer's
6actual liability for the month or an amount set by the
7Department not to exceed 1/4 of the average monthly liability
8of the taxpayer to the Department for the preceding 4 complete
9calendar quarters (excluding the month of highest liability and
10the month of lowest liability in such 4 quarter period). If the
11month during which such tax liability is incurred begins on or
12after January 1, 1985, and prior to January 1, 1987, each
13payment shall be in an amount equal to 22.5% of the taxpayer's
14actual liability for the month or 27.5% of the taxpayer's
15liability for the same calendar month of the preceding year. If
16the month during which such tax liability is incurred begins on
17or after January 1, 1987, and prior to January 1, 1988, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 26.25% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1988, and prior to January 1, 1989, or
23begins on or after January 1, 1996, each payment shall be in an
24amount equal to 22.5% of the taxpayer's actual liability for
25the month or 25% of the taxpayer's liability for the same
26calendar month of the preceding year. If the month during which

 

 

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1such tax liability is incurred begins on or after January 1,
21989, and prior to January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year or 100% of the taxpayer's
6actual liability for the quarter monthly reporting period. The
7amount of such quarter monthly payments shall be credited
8against the final tax liability of the taxpayer's return for
9that month. Before October 1, 2000, once applicable, the
10requirement of the making of quarter monthly payments to the
11Department shall continue until such taxpayer's average
12monthly liability to the Department during the preceding 4
13complete calendar quarters (excluding the month of highest
14liability and the month of lowest liability) is less than
15$9,000, or until such taxpayer's average monthly liability to
16the Department as computed for each calendar quarter of the 4
17preceding complete calendar quarter period is less than
18$10,000. However, if a taxpayer can show the Department that a
19substantial change in the taxpayer's business has occurred
20which causes the taxpayer to anticipate that his average
21monthly tax liability for the reasonably foreseeable future
22will fall below the $10,000 threshold stated above, then such
23taxpayer may petition the Department for change in such
24taxpayer's reporting status. On and after October 1, 2000, once
25applicable, the requirement of the making of quarter monthly
26payments to the Department shall continue until such taxpayer's

 

 

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1average monthly liability to the Department during the
2preceding 4 complete calendar quarters (excluding the month of
3highest liability and the month of lowest liability) is less
4than $19,000 or until such taxpayer's average monthly liability
5to the Department as computed for each calendar quarter of the
64 preceding complete calendar quarter period is less than
7$20,000. However, if a taxpayer can show the Department that a
8substantial change in the taxpayer's business has occurred
9which causes the taxpayer to anticipate that his average
10monthly tax liability for the reasonably foreseeable future
11will fall below the $20,000 threshold stated above, then such
12taxpayer may petition the Department for a change in such
13taxpayer's reporting status. The Department shall change such
14taxpayer's reporting status unless it finds that such change is
15seasonal in nature and not likely to be long term. If any such
16quarter monthly payment is not paid at the time or in the
17amount required by this Section, then the taxpayer shall be
18liable for penalties and interest on the difference between the
19minimum amount due and the amount of such quarter monthly
20payment actually and timely paid, except insofar as the
21taxpayer has previously made payments for that month to the
22Department in excess of the minimum payments previously due as
23provided in this Section. The Department shall make reasonable
24rules and regulations to govern the quarter monthly payment
25amount and quarter monthly payment dates for taxpayers who file
26on other than a calendar monthly basis.

 

 

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1    If any such payment provided for in this Section exceeds
2the taxpayer's liabilities under this Act, the Retailers'
3Occupation Tax Act, the Service Occupation Tax Act and the
4Service Use Tax Act, as shown by an original monthly return,
5the Department shall issue to the taxpayer a credit memorandum
6no later than 30 days after the date of payment, which
7memorandum may be submitted by the taxpayer to the Department
8in payment of tax liability subsequently to be remitted by the
9taxpayer to the Department or be assigned by the taxpayer to a
10similar taxpayer under this Act, the Retailers' Occupation Tax
11Act, the Service Occupation Tax Act or the Service Use Tax Act,
12in accordance with reasonable rules and regulations to be
13prescribed by the Department, except that if such excess
14payment is shown on an original monthly return and is made
15after December 31, 1986, no credit memorandum shall be issued,
16unless requested by the taxpayer. If no such request is made,
17the taxpayer may credit such excess payment against tax
18liability subsequently to be remitted by the taxpayer to the
19Department under this Act, the Retailers' Occupation Tax Act,
20the Service Occupation Tax Act or the Service Use Tax Act, in
21accordance with reasonable rules and regulations prescribed by
22the Department. If the Department subsequently determines that
23all or any part of the credit taken was not actually due to the
24taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
25be reduced by 2.1% or 1.75% of the difference between the
26credit taken and that actually due, and the taxpayer shall be

 

 

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

 

 

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1Department not more than one month after discontinuing such
2business.
3    In addition, with respect to motor vehicles, watercraft,
4aircraft, and trailers that are required to be registered with
5an agency of this State, every retailer selling this kind of
6tangible personal property shall file, with the Department,
7upon a form to be prescribed and supplied by the Department, a
8separate return for each such item of tangible personal
9property which the retailer sells, except that if, in the same
10transaction, (i) a retailer of aircraft, watercraft, motor
11vehicles or trailers transfers more than one aircraft,
12watercraft, motor vehicle or trailer to another aircraft,
13watercraft, motor vehicle or trailer retailer for the purpose
14of resale or (ii) a retailer of aircraft, watercraft, motor
15vehicles, or trailers transfers more than one aircraft,
16watercraft, motor vehicle, or trailer to a purchaser for use as
17a qualifying rolling stock as provided in Section 3-55 of this
18Act, then that seller may report the transfer of all the
19aircraft, watercraft, motor vehicles or trailers involved in
20that transaction to the Department on the same uniform
21invoice-transaction reporting return form. For purposes of
22this Section, "watercraft" means a Class 2, Class 3, or Class 4
23watercraft as defined in Section 3-2 of the Boat Registration
24and Safety Act, a personal watercraft, or any boat equipped
25with an inboard motor.
26    The transaction reporting return in the case of motor

 

 

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

 

 

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

 

 

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

 

 

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1the Department and obtain his tax receipt or exemption
2determination, in which event the transaction reporting return
3and tax remittance (if a tax payment was required) shall be
4credited by the Department to the proper retailer's account
5with the Department, but without the 2.1% or 1.75% discount
6provided for in this Section being allowed. When the user pays
7the tax directly to the Department, he shall pay the tax in the
8same amount and in the same form in which it would be remitted
9if the tax had been remitted to the Department by the retailer.
10    Where a retailer collects the tax with respect to the
11selling price of tangible personal property which he sells and
12the purchaser thereafter returns such tangible personal
13property and the retailer refunds the selling price thereof to
14the purchaser, such retailer shall also refund, to the
15purchaser, the tax so collected from the purchaser. When filing
16his return for the period in which he refunds such tax to the
17purchaser, the retailer may deduct the amount of the tax so
18refunded by him to the purchaser from any other use tax which
19such retailer may be required to pay or remit to the
20Department, as shown by such return, if the amount of the tax
21to be deducted was previously remitted to the Department by
22such retailer. If the retailer has not previously remitted the
23amount of such tax to the Department, he is entitled to no
24deduction under this Act upon refunding such tax to the
25purchaser.
26    Any retailer filing a return under this Section shall also

 

 

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1include (for the purpose of paying tax thereon) the total tax
2covered by such return upon the selling price of tangible
3personal property purchased by him at retail from a retailer,
4but as to which the tax imposed by this Act was not collected
5from the retailer filing such return, and such retailer shall
6remit the amount of such tax to the Department when filing such
7return.
8    If experience indicates such action to be practicable, the
9Department may prescribe and furnish a combination or joint
10return which will enable retailers, who are required to file
11returns hereunder and also under the Retailers' Occupation Tax
12Act, to furnish all the return information required by both
13Acts on the one form.
14    Where the retailer has more than one business registered
15with the Department under separate registration under this Act,
16such retailer may not file each return that is due as a single
17return covering all such registered businesses, but shall file
18separate returns for each such registered business.
19    Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund, a special
21fund in the State Treasury which is hereby created, the net
22revenue realized for the preceding month from the 1% tax on
23sales of food for human consumption which is to be consumed off
24the premises where it is sold (other than alcoholic beverages,
25soft drinks and food which has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

 

 

HB1436- 21 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 22 -LRB097 05200 HLH 45249 b

1pay into the Local Government Tax Fund 16% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of tangible personal property which is
4purchased outside Illinois at retail from a retailer and which
5is titled or registered by an agency of this State's
6government.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13is now taxed at 6.25%.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, (a) 1.75% thereof shall be paid into the
16Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17and after July 1, 1989, 3.8% thereof shall be paid into the
18Build Illinois Fund; provided, however, that if in any fiscal
19year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20may be, of the moneys received by the Department and required
21to be paid into the Build Illinois Fund pursuant to Section 3
22of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
23Act, Section 9 of the Service Use Tax Act, and Section 9 of the
24Service Occupation Tax Act, such Acts being hereinafter called
25the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
26may be, of moneys being hereinafter called the "Tax Act

 

 

HB1436- 23 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 24 -LRB097 05200 HLH 45249 b

1investment income, to fully provide, in accordance with such
2indenture, for the defeasance of or the payment of the
3principal of, premium, if any, and interest on the Bonds
4secured by such indenture and on any Bonds expected to be
5issued thereafter and all fees and costs payable with respect
6thereto, all as certified by the Director of the Bureau of the
7Budget (now Governor's Office of Management and Budget). If on
8the last business day of any month in which Bonds are
9outstanding pursuant to the Build Illinois Bond Act, the
10aggregate of the moneys deposited in the Build Illinois Bond
11Account in the Build Illinois Fund in such month shall be less
12than the amount required to be transferred in such month from
13the Build Illinois Bond Account to the Build Illinois Bond
14Retirement and Interest Fund pursuant to Section 13 of the
15Build Illinois Bond Act, an amount equal to such deficiency
16shall be immediately paid from other moneys received by the
17Department pursuant to the Tax Acts to the Build Illinois Fund;
18provided, however, that any amounts paid to the Build Illinois
19Fund in any fiscal year pursuant to this sentence shall be
20deemed to constitute payments pursuant to clause (b) of the
21preceding sentence and shall reduce the amount otherwise
22payable for such fiscal year pursuant to clause (b) of the
23preceding sentence. The moneys received by the Department
24pursuant to this Act and required to be deposited into the
25Build Illinois Fund are subject to the pledge, claim and charge
26set forth in Section 12 of the Build Illinois Bond Act.

 

 

HB1436- 25 -LRB097 05200 HLH 45249 b

1    Subject to payment of amounts into the Build Illinois Fund
2as provided in the preceding paragraph or in any amendment
3thereto hereafter enacted, the following specified monthly
4installment of the amount requested in the certificate of the
5Chairman of the Metropolitan Pier and Exposition Authority
6provided under Section 8.25f of the State Finance Act, but not
7in excess of the sums designated as "Total Deposit", shall be
8deposited in the aggregate from collections under Section 9 of
9the Use Tax Act, Section 9 of the Service Use Tax Act, Section
109 of the Service Occupation Tax Act, and Section 3 of the
11Retailers' Occupation Tax Act into the McCormick Place
12Expansion Project Fund in the specified fiscal years.
13Fiscal YearTotal Deposit
141993         $0
151994 53,000,000
161995 58,000,000
171996 61,000,000
181997 64,000,000
191998 68,000,000
201999 71,000,000
212000 75,000,000
222001 80,000,000
232002 93,000,000
242003 99,000,000
252004103,000,000

 

 

HB1436- 26 -LRB097 05200 HLH 45249 b

12005108,000,000
22006113,000,000
32007119,000,000
42008126,000,000
52009132,000,000
62010139,000,000
72011146,000,000
82012153,000,000
92013161,000,000
102014170,000,000
112015179,000,000
122016189,000,000
132017199,000,000
142018210,000,000
152019221,000,000
162020233,000,000
172021246,000,000
182022260,000,000
192023275,000,000
202024 275,000,000
212025 275,000,000
222026 279,000,000
232027 292,000,000
242028 307,000,000
252029 322,000,000
262030 338,000,000

 

 

HB1436- 27 -LRB097 05200 HLH 45249 b

12031 350,000,000
22032 350,000,000
3and
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11    Beginning July 20, 1993 and in each month of each fiscal
12year thereafter, one-eighth of the amount requested in the
13certificate of the Chairman of the Metropolitan Pier and
14Exposition Authority for that fiscal year, less the amount
15deposited into the McCormick Place Expansion Project Fund by
16the State Treasurer in the respective month under subsection
17(g) of Section 13 of the Metropolitan Pier and Exposition
18Authority Act, plus cumulative deficiencies in the deposits
19required under this Section for previous months and years,
20shall be deposited into the McCormick Place Expansion Project
21Fund, until the full amount requested for the fiscal year, but
22not in excess of the amount specified above as "Total Deposit",
23has been deposited.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB1436- 28 -LRB097 05200 HLH 45249 b

1enacted, beginning July 1, 1993, the Department shall each
2month pay into the Illinois Tax Increment Fund 0.27% of 80% of
3the net revenue realized for the preceding month from the 6.25%
4general rate on the selling price of tangible personal
5property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a 25-year
11period, the Department shall each month pay into the Energy
12Infrastructure Fund 80% of the net revenue realized from the
136.25% general rate on the selling price of Illinois-mined coal
14that was sold to an eligible business. For purposes of this
15paragraph, the term "eligible business" means a new electric
16generating facility certified pursuant to Section 605-332 of
17the Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    Subject to payments of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund as provided in
21this Section, beginning on July 1, 2011 the Department shall
22pay each month into the Downstate Public Transportation Fund
23the moneys required to be so paid under Section 2-3 of the
24Downstate Public Transportation Act.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, 75% thereof shall be paid into the State

 

 

HB1436- 29 -LRB097 05200 HLH 45249 b

1Treasury and 25% shall be reserved in a special account and
2used only for the transfer to the Common School Fund as part of
3the monthly transfer from the General Revenue Fund in
4accordance with Section 8a of the State Finance Act.
5    As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12    Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16    For greater simplicity of administration, manufacturers,
17importers and wholesalers whose products are sold at retail in
18Illinois by numerous retailers, and who wish to do so, may
19assume the responsibility for accounting and paying to the
20Department all tax accruing under this Act with respect to such
21sales, if the retailers who are affected do not make written
22objection to the Department to this arrangement.
23(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
24eff. 5-27-10; 96-1012, eff. 7-7-10; revised 7-22-10.)
 
25    Section 15. The Service Use Tax Act is amended by changing

 

 

HB1436- 30 -LRB097 05200 HLH 45249 b

1Section 9 as follows:
 
2    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
3    Sec. 9. Each serviceman required or authorized to collect
4the tax herein imposed shall pay to the Department the amount
5of such tax (except as otherwise provided) at the time when he
6is required to file his return for the period during which such
7tax was collected, less a discount of 2.1% prior to January 1,
81990 and 1.75% on and after January 1, 1990, or $5 per calendar
9year, whichever is greater, which is allowed to reimburse the
10serviceman for expenses incurred in collecting the tax, keeping
11records, preparing and filing returns, remitting the tax and
12supplying data to the Department on request. A serviceman need
13not remit that part of any tax collected by him to the extent
14that he is required to pay and does pay the tax imposed by the
15Service Occupation Tax Act with respect to his sale of service
16involving the incidental transfer by him of the same property.
17    Except as provided hereinafter in this Section, on or
18before the twentieth day of each calendar month, such
19serviceman shall file a return for the preceding calendar month
20in accordance with reasonable Rules and Regulations to be
21promulgated by the Department. Such return shall be filed on a
22form prescribed by the Department and shall contain such
23information as the Department may reasonably require.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar

 

 

HB1436- 31 -LRB097 05200 HLH 45249 b

1quarter shall be filed on or before the twentieth day of the
2calendar month following the end of such calendar quarter. The
3taxpayer shall also file a return with the Department for each
4of the first two months of each calendar quarter, on or before
5the twentieth day of the following calendar month, stating:
6        1. The name of the seller;
7        2. The address of the principal place of business from
8    which he engages in business as a serviceman in this State;
9        3. The total amount of taxable receipts received by him
10    during the preceding calendar month, including receipts
11    from charge and time sales, but less all deductions allowed
12    by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    Beginning October 1, 1993, a taxpayer who has an average
24monthly tax liability of $150,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1994, a taxpayer who has

 

 

HB1436- 32 -LRB097 05200 HLH 45249 b

1an average monthly tax liability of $100,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 1995, a taxpayer who has
4an average monthly tax liability of $50,000 or more shall make
5all payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 2000, a taxpayer who has
7an annual tax liability of $200,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. The term "annual tax liability" shall be the
10sum of the taxpayer's liabilities under this Act, and under all
11other State and local occupation and use tax laws administered
12by the Department, for the immediately preceding calendar year.
13The term "average monthly tax liability" means the sum of the
14taxpayer's liabilities under this Act, and under all other
15State and local occupation and use tax laws administered by the
16Department, for the immediately preceding calendar year
17divided by 12. Beginning on October 1, 2002, a taxpayer who has
18a tax liability in the amount set forth in subsection (b) of
19Section 2505-210 of the Department of Revenue Law shall make
20all payments required by rules of the Department by electronic
21funds transfer.
22    Before August 1 of each year beginning in 1993, the
23Department shall notify all taxpayers required to make payments
24by electronic funds transfer. All taxpayers required to make
25payments by electronic funds transfer shall make those payments
26for a minimum of one year beginning on October 1.

 

 

HB1436- 33 -LRB097 05200 HLH 45249 b

1    Any taxpayer not required to make payments by electronic
2funds transfer may make payments by electronic funds transfer
3with the permission of the Department.
4    All taxpayers required to make payment by electronic funds
5transfer and any taxpayers authorized to voluntarily make
6payments by electronic funds transfer shall make those payments
7in the manner authorized by the Department.
8    The Department shall adopt such rules as are necessary to
9effectuate a program of electronic funds transfer and the
10requirements of this Section.
11    If the serviceman is otherwise required to file a monthly
12return and if the serviceman's average monthly tax liability to
13the Department does not exceed $200, the Department may
14authorize his returns to be filed on a quarter annual basis,
15with the return for January, February and March of a given year
16being due by April 20 of such year; with the return for April,
17May and June of a given year being due by July 20 of such year;
18with the return for July, August and September of a given year
19being due by October 20 of such year, and with the return for
20October, November and December of a given year being due by
21January 20 of the following year.
22    If the serviceman is otherwise required to file a monthly
23or quarterly return and if the serviceman's average monthly tax
24liability to the Department does not exceed $50, the Department
25may authorize his returns to be filed on an annual basis, with
26the return for a given year being due by January 20 of the

 

 

HB1436- 34 -LRB097 05200 HLH 45249 b

1following year.
2    Such quarter annual and annual returns, as to form and
3substance, shall be subject to the same requirements as monthly
4returns.
5    Notwithstanding any other provision in this Act concerning
6the time within which a serviceman may file his return, in the
7case of any serviceman who ceases to engage in a kind of
8business which makes him responsible for filing returns under
9this Act, such serviceman shall file a final return under this
10Act with the Department not more than 1 month after
11discontinuing such business.
12    Where a serviceman collects the tax with respect to the
13selling price of property which he sells and the purchaser
14thereafter returns such property and the serviceman refunds the
15selling price thereof to the purchaser, such serviceman shall
16also refund, to the purchaser, the tax so collected from the
17purchaser. When filing his return for the period in which he
18refunds such tax to the purchaser, the serviceman may deduct
19the amount of the tax so refunded by him to the purchaser from
20any other Service Use Tax, Service Occupation Tax, retailers'
21occupation tax or use tax which such serviceman may be required
22to pay or remit to the Department, as shown by such return,
23provided that the amount of the tax to be deducted shall
24previously have been remitted to the Department by such
25serviceman. If the serviceman shall not previously have
26remitted the amount of such tax to the Department, he shall be

 

 

HB1436- 35 -LRB097 05200 HLH 45249 b

1entitled to no deduction hereunder upon refunding such tax to
2the purchaser.
3    Any serviceman filing a return hereunder shall also include
4the total tax upon the selling price of tangible personal
5property purchased for use by him as an incident to a sale of
6service, and such serviceman shall remit the amount of such tax
7to the Department when filing such return.
8    If experience indicates such action to be practicable, the
9Department may prescribe and furnish a combination or joint
10return which will enable servicemen, who are required to file
11returns hereunder and also under the Service Occupation Tax
12Act, to furnish all the return information required by both
13Acts on the one form.
14    Where the serviceman has more than one business registered
15with the Department under separate registration hereunder,
16such serviceman shall not file each return that is due as a
17single return covering all such registered businesses, but
18shall file separate returns for each such registered business.
19    Beginning January 1, 1990, each month the Department shall
20pay into the State and Local Tax Reform Fund, a special fund in
21the State Treasury, the net revenue realized for the preceding
22month from the 1% tax on sales of food for human consumption
23which is to be consumed off the premises where it is sold
24(other than alcoholic beverages, soft drinks and food which has
25been prepared for immediate consumption) and prescription and
26nonprescription medicines, drugs, medical appliances and

 

 

HB1436- 36 -LRB097 05200 HLH 45249 b

1insulin, urine testing materials, syringes and needles used by
2diabetics.
3    Beginning January 1, 1990, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund 20% of the
5net revenue realized for the preceding month from the 6.25%
6general rate on transfers of tangible personal property, other
7than tangible personal property which is purchased outside
8Illinois at retail from a retailer and which is titled or
9registered by an agency of this State's government.
10    Beginning August 1, 2000, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 100% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20is now taxed at 6.25%.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, (a) 1.75% thereof shall be paid into the
23Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24and after July 1, 1989, 3.8% thereof shall be paid into the
25Build Illinois Fund; provided, however, that if in any fiscal
26year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

 

 

HB1436- 37 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 38 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 39 -LRB097 05200 HLH 45249 b

1deemed to constitute payments pursuant to clause (b) of the
2preceding sentence and shall reduce the amount otherwise
3payable for such fiscal year pursuant to clause (b) of the
4preceding sentence. The moneys received by the Department
5pursuant to this Act and required to be deposited into the
6Build Illinois Fund are subject to the pledge, claim and charge
7set forth in Section 12 of the Build Illinois Bond Act.
8    Subject to payment of amounts into the Build Illinois Fund
9as provided in the preceding paragraph or in any amendment
10thereto hereafter enacted, the following specified monthly
11installment of the amount requested in the certificate of the
12Chairman of the Metropolitan Pier and Exposition Authority
13provided under Section 8.25f of the State Finance Act, but not
14in excess of the sums designated as "Total Deposit", shall be
15deposited in the aggregate from collections under Section 9 of
16the Use Tax Act, Section 9 of the Service Use Tax Act, Section
179 of the Service Occupation Tax Act, and Section 3 of the
18Retailers' Occupation Tax Act into the McCormick Place
19Expansion Project Fund in the specified fiscal years.
20Fiscal YearTotal Deposit
211993         $0
221994 53,000,000
231995 58,000,000
241996 61,000,000
251997 64,000,000

 

 

HB1436- 40 -LRB097 05200 HLH 45249 b

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021246,000,000
252022260,000,000
262023275,000,000

 

 

HB1436- 41 -LRB097 05200 HLH 45249 b

12024 275,000,000
22025 275,000,000
32026 279,000,000
42027 292,000,000
52028 307,000,000
62029 322,000,000
72030 338,000,000
82031 350,000,000
92032 350,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18    Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

 

 

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1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total Deposit",
4has been deposited.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993, the Department shall each
9month pay into the Illinois Tax Increment Fund 0.27% of 80% of
10the net revenue realized for the preceding month from the 6.25%
11general rate on the selling price of tangible personal
12property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a 25-year
18period, the Department shall each month pay into the Energy
19Infrastructure Fund 80% of the net revenue realized from the
206.25% general rate on the selling price of Illinois-mined coal
21that was sold to an eligible business. For purposes of this
22paragraph, the term "eligible business" means a new electric
23generating facility certified pursuant to Section 605-332 of
24the Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    Subject to payments of amounts into the Build Illinois Fund

 

 

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1and the McCormick Place Expansion Project Fund as provided in
2this Section, beginning on July 1, 2011 the Department shall
3pay each month into the Downstate Public Transportation Fund
4the moneys required to be so paid under Section 2-3 of the
5Downstate Public Transportation Act.
6    All remaining moneys received by the Department pursuant to
7this Act shall be paid into the General Revenue Fund of the
8State Treasury.
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(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
21eff. 5-27-10.)
 
22    Section 20. The Service Occupation Tax Act is amended by
23changing Section 9 as follows:
 
24    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)

 

 

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1    Sec. 9. Each serviceman required or authorized to collect
2the tax herein imposed shall pay to the Department the amount
3of such tax at the time when he is required to file his return
4for the period during which such tax was collectible, less a
5discount of 2.1% prior to January 1, 1990, and 1.75% on and
6after January 1, 1990, or $5 per calendar year, whichever is
7greater, which is allowed to reimburse the serviceman for
8expenses incurred in collecting the tax, keeping records,
9preparing and filing returns, remitting the tax and supplying
10data to the Department on request.
11    Where such tangible personal property is sold under a
12conditional sales contract, or under any other form of sale
13wherein the payment of the principal sum, or a part thereof, is
14extended beyond the close of the period for which the return is
15filed, the serviceman, in collecting the tax may collect, for
16each tax return period, only the tax applicable to the part of
17the selling price actually received during such tax return
18period.
19    Except as provided hereinafter in this Section, on or
20before the twentieth day of each calendar month, such
21serviceman shall file a return for the preceding calendar month
22in accordance with reasonable rules and regulations to be
23promulgated by the Department of Revenue. Such return shall be
24filed on a form prescribed by the Department and shall contain
25such information as the Department may reasonably require.
26    The Department may require returns to be filed on a

 

 

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1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in business as a serviceman in this State;
10        3. The total amount of taxable receipts received by him
11    during the preceding calendar month, including receipts
12    from charge and time sales, but less all deductions allowed
13    by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due;
17        5-5. The signature of the taxpayer; and
18        6. Such other reasonable information as the Department
19    may require.
20    If a taxpayer fails to sign a return within 30 days after
21the proper notice and demand for signature by the Department,
22the return shall be considered valid and any amount shown to be
23due on the return shall be deemed assessed.
24    Prior to October 1, 2003, and on and after September 1,
252004 a serviceman may accept a Manufacturer's Purchase Credit
26certification from a purchaser in satisfaction of Service Use

 

 

HB1436- 46 -LRB097 05200 HLH 45249 b

1Tax as provided in Section 3-70 of the Service Use Tax Act if
2the purchaser provides the appropriate documentation as
3required by Section 3-70 of the Service Use Tax Act. A
4Manufacturer's Purchase Credit certification, accepted prior
5to October 1, 2003 or on or after September 1, 2004 by a
6serviceman as provided in Section 3-70 of the Service Use Tax
7Act, may be used by that serviceman to satisfy Service
8Occupation Tax liability in the amount claimed in the
9certification, not to exceed 6.25% of the receipts subject to
10tax 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 Purchase
14Credit reported on annual returns due on or after January 1,
152005 will be disallowed for periods prior to September 1, 2004.
16No Manufacturer's Purchase Credit may be used after September
1730, 2003 through August 31, 2004 to satisfy any tax liability
18imposed under this Act, including any audit liability.
19    If the serviceman's average monthly tax liability to the
20Department does not exceed $200, the Department may authorize
21his returns to be filed on a quarter annual basis, with the
22return for January, February and March of a given year being
23due by April 20 of such year; with the return for April, May
24and June of a given year being due by July 20 of such year; with
25the return for July, August and September of a given year being
26due by October 20 of such year, and with the return for

 

 

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1October, November and December of a given year being due by
2January 20 of the following year.
3    If the serviceman's average monthly tax liability to the
4Department does not exceed $50, the Department may authorize
5his returns to be filed on an annual basis, with the return for
6a given year being due by January 20 of the following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a serviceman may file his return, in the
12case of any serviceman who ceases to engage in a kind of
13business which makes him responsible for filing returns under
14this Act, such serviceman shall file a final return under this
15Act with the Department not more than 1 month after
16discontinuing such business.
17    Beginning October 1, 1993, a taxpayer who has an average
18monthly tax liability of $150,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1994, a taxpayer who has
21an average monthly tax liability of $100,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1995, a taxpayer who has
24an average monthly tax liability of $50,000 or more shall make
25all payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 2000, a taxpayer who has

 

 

HB1436- 48 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 49 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 50 -LRB097 05200 HLH 45249 b

1the return information required by all said Acts on the one
2form.
3    Where the serviceman has more than one business registered
4with the Department under separate registrations hereunder,
5such serviceman shall file separate returns for each registered
6business.
7    Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund the revenue realized for
9the preceding month from the 1% tax on sales of food for human
10consumption which is to be consumed off the premises where it
11is sold (other than alcoholic beverages, soft drinks and food
12which has been prepared for immediate consumption) and
13prescription and nonprescription medicines, drugs, medical
14appliances and insulin, urine testing materials, syringes and
15needles used by diabetics.
16    Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund 4% of the
18revenue realized for the preceding month from the 6.25% general
19rate.
20    Beginning August 1, 2000, each month the Department shall
21pay into the County and Mass Transit District Fund 20% of the
22net revenue realized for the preceding month from the 1.25%
23rate on the selling price of motor fuel and gasohol.
24    Beginning January 1, 1990, each month the Department shall
25pay into the Local Government Tax Fund 16% of the revenue
26realized for the preceding month from the 6.25% general rate on

 

 

HB1436- 51 -LRB097 05200 HLH 45249 b

1transfers of tangible personal property.
2    Beginning August 1, 2000, each month the Department shall
3pay into the Local Government Tax Fund 80% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of motor fuel and gasohol.
6    Beginning October 1, 2009, each month the Department shall
7pay into the Capital Projects Fund an amount that is equal to
8an amount estimated by the Department to represent 80% of the
9net revenue realized for the preceding month from the sale of
10candy, grooming and hygiene products, and soft drinks that had
11been taxed at a rate of 1% prior to September 1, 2009 but that
12is now taxed at 6.25%.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, (a) 1.75% thereof shall be paid into the
15Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16and after July 1, 1989, 3.8% thereof shall be paid into the
17Build Illinois Fund; provided, however, that if in any fiscal
18year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19may be, of the moneys received by the Department and required
20to be paid into the Build Illinois Fund pursuant to Section 3
21of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23Service Occupation Tax Act, such Acts being hereinafter called
24the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25may be, of moneys being hereinafter called the "Tax Act
26Amount", and (2) the amount transferred to the Build Illinois

 

 

HB1436- 52 -LRB097 05200 HLH 45249 b

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

 

 

HB1436- 53 -LRB097 05200 HLH 45249 b

1indenture, for the defeasance of or the payment of the
2principal of, premium, if any, and interest on the Bonds
3secured by such indenture and on any Bonds expected to be
4issued thereafter and all fees and costs payable with respect
5thereto, all as certified by the Director of the Bureau of the
6Budget (now Governor's Office of Management and Budget). If on
7the last business day of any month in which Bonds are
8outstanding pursuant to the Build Illinois Bond Act, the
9aggregate of the moneys deposited in the Build Illinois Bond
10Account in the Build Illinois Fund in such month shall be less
11than the amount required to be transferred in such month from
12the Build Illinois Bond Account to the Build Illinois Bond
13Retirement and Interest Fund pursuant to Section 13 of the
14Build Illinois Bond Act, an amount equal to such deficiency
15shall be immediately paid from other moneys received by the
16Department pursuant to the Tax Acts to the Build Illinois Fund;
17provided, however, that any amounts paid to the Build Illinois
18Fund in any fiscal year pursuant to this sentence shall be
19deemed to constitute payments pursuant to clause (b) of the
20preceding sentence and shall reduce the amount otherwise
21payable for such fiscal year pursuant to clause (b) of the
22preceding sentence. The moneys received by the Department
23pursuant to this Act and required to be deposited into the
24Build Illinois Fund are subject to the pledge, claim and charge
25set forth in Section 12 of the Build Illinois Bond Act.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB1436- 54 -LRB097 05200 HLH 45249 b

1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of the sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000

 

 

HB1436- 55 -LRB097 05200 HLH 45249 b

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

HB1436- 56 -LRB097 05200 HLH 45249 b

12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
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 July 1, 1993, the Department shall each

 

 

HB1436- 57 -LRB097 05200 HLH 45249 b

1month pay into the Illinois Tax Increment Fund 0.27% of 80% of
2the net revenue realized for the preceding month from the 6.25%
3general rate on the selling price of tangible personal
4property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning with the receipt of the first report of
9taxes paid by an eligible business and continuing for a 25-year
10period, the Department shall each month pay into the Energy
11Infrastructure Fund 80% of the net revenue realized from the
126.25% general rate on the selling price of Illinois-mined coal
13that was sold to an eligible business. For purposes of this
14paragraph, the term "eligible business" means a new electric
15generating facility certified pursuant to Section 605-332 of
16the Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    Subject to payments of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund as provided in
20this Section, beginning on July 1, 2011 the Department shall
21pay each month into the Downstate Public Transportation Fund
22the moneys required to be so paid under Section 2-3 of the
23Downstate Public Transportation Act.
24    Remaining moneys received by the Department pursuant to
25this Act shall be paid into the General Revenue Fund of the
26State Treasury.

 

 

HB1436- 58 -LRB097 05200 HLH 45249 b

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 taxpayer'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 taxpayer shall attach to his annual return a
12schedule showing a reconciliation of the 2 amounts and the
13reasons for the difference. The taxpayer's annual return to the
14Department shall also disclose the cost of goods sold by the
15taxpayer during the year covered by such return, opening and
16closing inventories of such goods for such year, cost of goods
17used from stock or taken from stock and given away by the
18taxpayer during such year, pay roll information of the
19taxpayer'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 taxpayer as hereinbefore
23provided for in this 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:

 

 

HB1436- 59 -LRB097 05200 HLH 45249 b

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 foregoing portion of this Section concerning the filing
20of an annual information return shall not apply to a serviceman
21who is not required to file an income tax return with the
22United States Government.
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

 

 

HB1436- 60 -LRB097 05200 HLH 45249 b

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, it shall be
9permissible for manufacturers, importers and wholesalers whose
10products are sold by numerous servicemen in Illinois, and who
11wish to do so, to assume the responsibility for accounting and
12paying to the Department all tax accruing under this Act with
13respect to such sales, if the servicemen who are affected do
14not make written objection to the Department to this
15arrangement.
16(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
17eff. 5-27-10.)
 
18    Section 25. The Retailers' Occupation Tax Act is amended by
19changing Section 3 as follows:
 
20    (35 ILCS 120/3)  (from Ch. 120, par. 442)
21    Sec. 3. Except as provided in this Section, on or before
22the twentieth day of each calendar month, every person engaged
23in the business of selling tangible personal property at retail
24in this State during the preceding calendar month shall file a

 

 

HB1436- 61 -LRB097 05200 HLH 45249 b

1return with the Department, stating:
2        1. The name of the seller;
3        2. His residence address and the address of his
4    principal place of business and the address of the
5    principal place of business (if that is a different
6    address) from which he engages in the business of selling
7    tangible personal property at retail in this State;
8        3. Total amount of receipts received by him during the
9    preceding calendar month or quarter, as the case may be,
10    from sales of tangible personal property, and from services
11    furnished, by him during such preceding calendar month or
12    quarter;
13        4. Total amount received by him during the preceding
14    calendar month or quarter on charge and time sales of
15    tangible personal property, and from services furnished,
16    by him prior to the month or quarter for which the return
17    is filed;
18        5. Deductions allowed by law;
19        6. Gross receipts which were received by him during the
20    preceding calendar month or quarter and upon the basis of
21    which the tax is imposed;
22        7. The amount of credit provided in Section 2d of this
23    Act;
24        8. The amount of tax due;
25        9. The signature of the taxpayer; and
26        10. Such other reasonable information as the

 

 

HB1436- 62 -LRB097 05200 HLH 45249 b

1    Department may require.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Each return shall be accompanied by the statement of
7prepaid tax issued pursuant to Section 2e for which credit is
8claimed.
9    Prior to October 1, 2003, and on and after September 1,
102004 a retailer may accept a Manufacturer's Purchase Credit
11certification from a purchaser in satisfaction of Use Tax as
12provided in Section 3-85 of the Use Tax Act if the purchaser
13provides the appropriate documentation as required by Section
143-85 of the Use Tax Act. A Manufacturer's Purchase Credit
15certification, accepted by a retailer prior to October 1, 2003
16and on and after September 1, 2004 as provided in Section 3-85
17of the Use Tax Act, may be used by that retailer to satisfy
18Retailers' Occupation Tax liability in the amount claimed in
19the certification, not to exceed 6.25% of the receipts subject
20to tax from a qualifying purchase. A Manufacturer's Purchase
21Credit reported on any original or amended return filed under
22this Act after October 20, 2003 for reporting periods prior to
23September 1, 2004 shall be disallowed. Manufacturer's
24Purchaser Credit reported on annual returns due on or after
25January 1, 2005 will be disallowed for periods prior to
26September 1, 2004. No Manufacturer's Purchase Credit may be

 

 

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1used after September 30, 2003 through August 31, 2004 to
2satisfy any tax liability imposed under this Act, including any
3audit liability.
4    The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11        1. The name of the seller;
12        2. The address of the principal place of business from
13    which he engages in the business of selling tangible
14    personal property at retail in this State;
15        3. The total amount of taxable receipts received by him
16    during the preceding calendar month from sales of tangible
17    personal property by him during such preceding calendar
18    month, including receipts from charge and time sales, but
19    less all deductions allowed by law;
20        4. The amount of credit provided in Section 2d of this
21    Act;
22        5. The amount of tax due; and
23        6. Such other reasonable information as the Department
24    may require.
25    Beginning on October 1, 2003, any person who is not a
26licensed distributor, importing distributor, or manufacturer,

 

 

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1as defined in the Liquor Control Act of 1934, but is engaged in
2the business of selling, at retail, alcoholic liquor shall file
3a statement with the Department of Revenue, in a format and at
4a time prescribed by the Department, showing the total amount
5paid for alcoholic liquor purchased during the preceding month
6and such other information as is reasonably required by the
7Department. The Department may adopt rules to require that this
8statement be filed in an electronic or telephonic format. Such
9rules may provide for exceptions from the filing requirements
10of this paragraph. For the purposes of this paragraph, the term
11"alcoholic liquor" shall have the meaning prescribed in the
12Liquor Control Act of 1934.
13    Beginning on October 1, 2003, every distributor, importing
14distributor, and manufacturer of alcoholic liquor as defined in
15the Liquor Control Act of 1934, shall file a statement with the
16Department of Revenue, no later than the 10th day of the month
17for the preceding month during which transactions occurred, by
18electronic means, showing the total amount of gross receipts
19from the sale of alcoholic liquor sold or distributed during
20the preceding month to purchasers; identifying the purchaser to
21whom it was sold or distributed; the purchaser's tax
22registration number; and such other information reasonably
23required by the Department. A distributor, importing
24distributor, or manufacturer of alcoholic liquor must
25personally deliver, mail, or provide by electronic means to
26each retailer listed on the monthly statement a report

 

 

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1containing a cumulative total of that distributor's, importing
2distributor's, or manufacturer's total sales of alcoholic
3liquor to that retailer no later than the 10th day of the month
4for the preceding month during which the transaction occurred.
5The distributor, importing distributor, or manufacturer shall
6notify the retailer as to the method by which the distributor,
7importing distributor, or manufacturer will provide the sales
8information. If the retailer is unable to receive the sales
9information by electronic means, the distributor, importing
10distributor, or manufacturer shall furnish the sales
11information by personal delivery or by mail. For purposes of
12this paragraph, the term "electronic means" includes, but is
13not limited to, the use of a secure Internet website, e-mail,
14or facsimile.
15    If a total amount of less than $1 is payable, refundable or
16creditable, such amount shall be disregarded if it is less than
1750 cents and shall be increased to $1 if it is 50 cents or more.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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

 

 

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1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Any amount which is required to be shown or reported on any
7return or other document under this Act shall, if such amount
8is not a whole-dollar amount, be increased to the nearest
9whole-dollar amount in any case where the fractional part of a
10dollar is 50 cents or more, and decreased to the nearest
11whole-dollar amount where the fractional part of a dollar is
12less than 50 cents.
13    If the retailer is otherwise required to file a monthly
14return and if the retailer's average monthly tax liability to
15the Department does not exceed $200, the Department may
16authorize his returns to be filed on a quarter annual basis,
17with the return for January, February and March of a given year
18being due by April 20 of such year; with the return for April,
19May and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the retailer is otherwise required to file a monthly or
25quarterly return and if the retailer's average monthly tax
26liability with the Department does not exceed $50, the

 

 

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1Department may authorize his returns to be filed on an annual
2basis, with the return for a given year being due by January 20
3of the following year.
4    Such quarter annual and annual returns, as to form and
5substance, shall be subject to the same requirements as monthly
6returns.
7    Notwithstanding any other provision in this Act concerning
8the time within which a retailer may file his return, in the
9case of any retailer who ceases to engage in a kind of business
10which makes him responsible for filing returns under this Act,
11such retailer shall file a final return under this Act with the
12Department not more than one month after discontinuing such
13business.
14    Where the same person has more than one business registered
15with the Department under separate registrations under this
16Act, such person may not file each return that is due as a
17single return covering all such registered businesses, but
18shall file separate returns for each such registered business.
19    In addition, with respect to motor vehicles, watercraft,
20aircraft, and trailers that are required to be registered with
21an agency of this State, every retailer selling this kind of
22tangible personal property shall file, with the Department,
23upon a form to be prescribed and supplied by the Department, a
24separate return for each such item of tangible personal
25property which the retailer sells, except that if, in the same
26transaction, (i) a retailer of aircraft, watercraft, motor

 

 

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1vehicles or trailers transfers more than one aircraft,
2watercraft, motor vehicle or trailer to another aircraft,
3watercraft, motor vehicle retailer or trailer retailer for the
4purpose of resale or (ii) a retailer of aircraft, watercraft,
5motor vehicles, or trailers transfers more than one aircraft,
6watercraft, motor vehicle, or trailer to a purchaser for use as
7a qualifying rolling stock as provided in Section 2-5 of this
8Act, then that seller may report the transfer of all aircraft,
9watercraft, motor vehicles or trailers involved in that
10transaction to the Department on the same uniform
11invoice-transaction reporting return form. For purposes of
12this Section, "watercraft" means a Class 2, Class 3, or Class 4
13watercraft as defined in Section 3-2 of the Boat Registration
14and Safety Act, a personal watercraft, or any boat equipped
15with an inboard motor.
16    Any retailer who sells only motor vehicles, watercraft,
17aircraft, or trailers that are required to be registered with
18an agency of this State, so that all retailers' occupation tax
19liability is required to be reported, and is reported, on such
20transaction reporting returns and who is not otherwise required
21to file monthly or quarterly returns, need not file monthly or
22quarterly returns. However, those retailers shall be required
23to file returns on an annual basis.
24    The transaction reporting return, in the case of motor
25vehicles or trailers that are required to be registered with an
26agency of this State, shall be the same document as the Uniform

 

 

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

 

 

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

 

 

HB1436- 72 -LRB097 05200 HLH 45249 b

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

 

 

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

 

 

HB1436- 74 -LRB097 05200 HLH 45249 b

1Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
2on and after January 1, 1990, or $5 per calendar year,
3whichever is greater, which is allowed to reimburse the
4retailer for the expenses incurred in keeping records,
5preparing and filing returns, remitting the tax and supplying
6data to the Department on request. Any prepayment made pursuant
7to Section 2d of this Act shall be included in the amount on
8which such 2.1% or 1.75% discount is computed. In the case of
9retailers who report and pay the tax on a transaction by
10transaction basis, as provided in this Section, such discount
11shall be taken with each such tax remittance instead of when
12such retailer files his periodic return.
13    Before October 1, 2000, if the taxpayer's average monthly
14tax liability to the Department under this Act, the Use Tax
15Act, the Service Occupation Tax Act, and the Service Use Tax
16Act, excluding any liability for prepaid sales tax to be
17remitted in accordance with Section 2d of this Act, was $10,000
18or more during the preceding 4 complete calendar quarters, he
19shall file a return with the Department each month by the 20th
20day of the month next following the month during which such tax
21liability is incurred and shall make payments to the Department
22on or before the 7th, 15th, 22nd and last day of the month
23during which such liability is incurred. On and after October
241, 2000, if the taxpayer's average monthly tax liability to the
25Department under this Act, the Use Tax Act, the Service
26Occupation Tax Act, and the Service Use Tax Act, excluding any

 

 

HB1436- 75 -LRB097 05200 HLH 45249 b

1liability for prepaid sales tax to be remitted in accordance
2with Section 2d of this Act, was $20,000 or more during the
3preceding 4 complete calendar quarters, he shall file a return
4with the Department each month by the 20th day of the month
5next following the month during which such tax liability is
6incurred and shall make payment to the Department on or before
7the 7th, 15th, 22nd and last day of the month during which such
8liability is incurred. If the month during which such tax
9liability is incurred began prior to January 1, 1985, each
10payment shall be in an amount equal to 1/4 of the taxpayer's
11actual liability for the month or an amount set by the
12Department not to exceed 1/4 of the average monthly liability
13of the taxpayer to the Department for the preceding 4 complete
14calendar quarters (excluding the month of highest liability and
15the month of lowest liability in such 4 quarter period). If the
16month during which such tax liability is incurred begins on or
17after January 1, 1985 and prior to January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 27.5% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1987 and prior to January 1, 1988, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year. If
26the month during which such tax liability is incurred begins on

 

 

HB1436- 76 -LRB097 05200 HLH 45249 b

1or after January 1, 1988, and prior to January 1, 1989, or
2begins on or after January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during which
6such tax liability is incurred begins on or after January 1,
71989, and prior to January 1, 1996, each payment shall be in an
8amount equal to 22.5% of the taxpayer's actual liability for
9the month or 25% of the taxpayer's liability for the same
10calendar month of the preceding year or 100% of the taxpayer's
11actual liability for the quarter monthly reporting period. The
12amount of such quarter monthly payments shall be credited
13against the final tax liability of the taxpayer's return for
14that month. Before October 1, 2000, once applicable, the
15requirement of the making of quarter monthly payments to the
16Department by taxpayers having an average monthly tax liability
17of $10,000 or more as determined in the manner provided above
18shall continue until such taxpayer's average monthly liability
19to the Department during the preceding 4 complete calendar
20quarters (excluding the month of highest liability and the
21month of lowest liability) is less than $9,000, or until such
22taxpayer's average monthly liability to the Department as
23computed for each calendar quarter of the 4 preceding complete
24calendar quarter period is less than $10,000. However, if a
25taxpayer can show the Department that a substantial change in
26the taxpayer's business has occurred which causes the taxpayer

 

 

HB1436- 77 -LRB097 05200 HLH 45249 b

1to anticipate that his average monthly tax liability for the
2reasonably foreseeable future will fall below the $10,000
3threshold stated above, then such taxpayer may petition the
4Department for a change in such taxpayer's reporting status. On
5and after October 1, 2000, once applicable, the requirement of
6the making of quarter monthly payments to the Department by
7taxpayers having an average monthly tax liability of $20,000 or
8more as determined in the manner provided above shall continue
9until such taxpayer's average monthly liability to the
10Department during the preceding 4 complete calendar quarters
11(excluding the month of highest liability and the month of
12lowest liability) is less than $19,000 or until such taxpayer's
13average monthly liability to the Department as computed for
14each calendar quarter of the 4 preceding complete calendar
15quarter period is less than $20,000. However, if a taxpayer can
16show the Department that a substantial change in the taxpayer's
17business has occurred which causes the taxpayer to anticipate
18that his average monthly tax liability for the reasonably
19foreseeable future will fall below the $20,000 threshold stated
20above, then such taxpayer may petition the Department for a
21change in such taxpayer's reporting status. The Department
22shall change such taxpayer's reporting status unless it finds
23that such change is seasonal in nature and not likely to be
24long term. If any such quarter monthly payment is not paid at
25the time or in the amount required by this Section, then the
26taxpayer shall be liable for penalties and interest on the

 

 

HB1436- 78 -LRB097 05200 HLH 45249 b

1difference between the minimum amount due as a payment and the
2amount of such quarter monthly payment actually and timely
3paid, except insofar as the taxpayer has previously made
4payments for that month to the Department in excess of the
5minimum payments previously due as provided in this Section.
6The Department shall make reasonable rules and regulations to
7govern the quarter monthly payment amount and quarter monthly
8payment dates for taxpayers who file on other than a calendar
9monthly basis.
10    The provisions of this paragraph apply before October 1,
112001. Without regard to whether a taxpayer is required to make
12quarter monthly payments as specified above, any taxpayer who
13is required by Section 2d of this Act to collect and remit
14prepaid taxes and has collected prepaid taxes which average in
15excess of $25,000 per month during the preceding 2 complete
16calendar quarters, shall file a return with the Department as
17required by Section 2f and shall make payments to the
18Department on or before the 7th, 15th, 22nd and last day of the
19month during which such liability is incurred. If the month
20during which such tax liability is incurred began prior to the
21effective date of this amendatory Act of 1985, each payment
22shall be in an amount not less than 22.5% of the taxpayer's
23actual liability under Section 2d. If the month during which
24such tax liability is incurred begins on or after January 1,
251986, each payment shall be in an amount equal to 22.5% of the
26taxpayer's actual liability for the month or 27.5% of the

 

 

HB1436- 79 -LRB097 05200 HLH 45249 b

1taxpayer's liability for the same calendar month of the
2preceding calendar year. If the month during which such tax
3liability is incurred begins on or after January 1, 1987, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 26.25% of the taxpayer's
6liability for the same calendar month of the preceding year.
7The amount of such quarter monthly payments shall be credited
8against the final tax liability of the taxpayer's return for
9that month filed under this Section or Section 2f, as the case
10may be. Once applicable, the requirement of the making of
11quarter monthly payments to the Department pursuant to this
12paragraph shall continue until such taxpayer's average monthly
13prepaid tax collections during the preceding 2 complete
14calendar quarters is $25,000 or less. If any such quarter
15monthly payment is not paid at the time or in the amount
16required, the taxpayer shall be liable for penalties and
17interest on such difference, except insofar as the taxpayer has
18previously made payments for that month in excess of the
19minimum payments previously due.
20    The provisions of this paragraph apply on and after October
211, 2001. Without regard to whether a taxpayer is required to
22make quarter monthly payments as specified above, any taxpayer
23who is required by Section 2d of this Act to collect and remit
24prepaid taxes and has collected prepaid taxes that average in
25excess of $20,000 per month during the preceding 4 complete
26calendar quarters shall file a return with the Department as

 

 

HB1436- 80 -LRB097 05200 HLH 45249 b

1required by Section 2f and shall make payments to the
2Department on or before the 7th, 15th, 22nd and last day of the
3month during which the liability is incurred. Each payment
4shall be in an amount equal to 22.5% of the taxpayer's actual
5liability for the month or 25% of the taxpayer's liability for
6the same calendar month of the preceding year. The amount of
7the quarter monthly payments shall be credited against the
8final tax liability of the taxpayer's return for that month
9filed under this Section or Section 2f, as the case may be.
10Once applicable, the requirement of the making of quarter
11monthly payments to the Department pursuant to this paragraph
12shall continue until the taxpayer's average monthly prepaid tax
13collections during the preceding 4 complete calendar quarters
14(excluding the month of highest liability and the month of
15lowest liability) is less than $19,000 or until such taxpayer's
16average monthly liability to the Department as computed for
17each calendar quarter of the 4 preceding complete calendar
18quarters is less than $20,000. If any such quarter monthly
19payment is not paid at the time or in the amount required, the
20taxpayer shall be liable for penalties and interest on such
21difference, except insofar as the taxpayer has previously made
22payments for that month in excess of the minimum payments
23previously due.
24    If any payment provided for in this Section exceeds the
25taxpayer's liabilities under this Act, the Use Tax Act, the
26Service Occupation Tax Act and the Service Use Tax Act, as

 

 

HB1436- 81 -LRB097 05200 HLH 45249 b

1shown on an original monthly return, the Department shall, if
2requested by the taxpayer, issue to the taxpayer a credit
3memorandum no later than 30 days after the date of payment. The
4credit evidenced by such credit memorandum may be assigned by
5the taxpayer to a similar taxpayer under this Act, the Use Tax
6Act, the Service Occupation Tax Act or the Service Use Tax Act,
7in accordance with reasonable rules and regulations to be
8prescribed by the Department. If no such request is made, the
9taxpayer may credit such excess payment against tax liability
10subsequently to be remitted to the Department under this Act,
11the Use Tax Act, the Service Occupation Tax Act or the Service
12Use Tax Act, in accordance with reasonable rules and
13regulations prescribed by the Department. If the Department
14subsequently determined that all or any part of the credit
15taken was not actually due to the taxpayer, the taxpayer's 2.1%
16and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
17of the difference between the credit taken and that actually
18due, and that taxpayer shall be liable for penalties and
19interest on such difference.
20    If a retailer of motor fuel is entitled to a credit under
21Section 2d of this Act which exceeds the taxpayer's liability
22to the Department under this Act for the month which the
23taxpayer is filing a return, the Department shall issue the
24taxpayer a credit memorandum for the excess.
25    Beginning January 1, 1990, each month the Department shall
26pay into the Local Government Tax Fund, a special fund in the

 

 

HB1436- 82 -LRB097 05200 HLH 45249 b

1State treasury which is hereby created, the net revenue
2realized for the preceding month from the 1% tax on sales of
3food for human consumption which is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food which has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances and insulin, urine testing
8materials, syringes and needles used by diabetics.
9    Beginning January 1, 1990, each month the Department shall
10pay into the County and Mass Transit District Fund, a special
11fund in the State treasury which is hereby created, 4% of the
12net revenue realized for the preceding month from the 6.25%
13general rate.
14    Beginning August 1, 2000, each month the Department shall
15pay into the County and Mass Transit District Fund 20% of the
16net revenue realized for the preceding month from the 1.25%
17rate on the selling price of motor fuel and gasohol. Beginning
18September 1, 2010, each month the Department shall pay into the
19County and Mass Transit District Fund 20% of the net revenue
20realized for the preceding month from the 1.25% rate on the
21selling price of sales tax holiday items.
22    Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund 16% of the net revenue
24realized for the preceding month from the 6.25% general rate on
25the selling price of tangible personal property.
26    Beginning August 1, 2000, each month the Department shall

 

 

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1pay into the Local Government Tax Fund 80% of the net revenue
2realized for the preceding month from the 1.25% rate on the
3selling price of motor fuel and gasohol. Beginning September 1,
42010, each month the Department shall pay into the Local
5Government Tax Fund 80% of the net revenue realized for the
6preceding month from the 1.25% rate on the selling price of
7sales tax holiday items.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14is now taxed at 6.25%.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to this Act,
23Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
24Act, and Section 9 of the Service Occupation Tax Act, such Acts
25being hereinafter called the "Tax Acts" and such aggregate of
262.2% or 3.8%, as the case may be, of moneys being hereinafter

 

 

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1called the "Tax Act Amount", and (2) the amount transferred to
2the Build Illinois Fund from the State and Local Sales Tax
3Reform Fund shall be less than the Annual Specified Amount (as
4hereinafter defined), an amount equal to the difference shall
5be immediately paid into the Build Illinois Fund from other
6moneys received by the Department pursuant to the Tax Acts; the
7"Annual Specified Amount" means the amounts specified below for
8fiscal years 1986 through 1993:
9Fiscal YearAnnual Specified Amount
101986$54,800,000
111987$76,650,000
121988$80,480,000
131989$88,510,000
141990$115,330,000
151991$145,470,000
161992$182,730,000
171993$206,520,000;
18and means the Certified Annual Debt Service Requirement (as
19defined in Section 13 of the Build Illinois Bond Act) or the
20Tax Act Amount, whichever is greater, for fiscal year 1994 and
21each fiscal year thereafter; and further provided, that if on
22the last business day of any month the sum of (1) the Tax Act
23Amount required to be deposited into the Build Illinois Bond
24Account in the Build Illinois Fund during such month and (2)
25the amount transferred to the Build Illinois Fund from the
26State and Local Sales Tax Reform Fund shall have been less than

 

 

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

 

 

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

 

 

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1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

 

 

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12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

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1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993, the Department shall each
16month pay into the Illinois Tax Increment Fund 0.27% of 80% of
17the net revenue realized for the preceding month from the 6.25%
18general rate on the selling price of tangible personal
19property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a 25-year
25period, the Department shall each month pay into the Energy
26Infrastructure Fund 80% of the net revenue realized from the

 

 

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16.25% general rate on the selling price of Illinois-mined coal
2that was sold to an eligible business. For purposes of this
3paragraph, the term "eligible business" means a new electric
4generating facility certified pursuant to Section 605-332 of
5the Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    Subject to payments of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund as provided in
9this Section, beginning on July 1, 2011 the Department shall
10pay each month into the Downstate Public Transportation Fund
11the moneys required to be so paid under Section 2-3 of the
12Downstate Public Transportation Act.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, 75% thereof shall be paid into the State
15Treasury and 25% shall be reserved in a special account and
16used only for the transfer to the Common School Fund as part of
17the monthly transfer from the General Revenue Fund in
18accordance with Section 8a of the State Finance Act.
19    The Department may, upon separate written notice to a
20taxpayer, require the taxpayer to prepare and file with the
21Department on a form prescribed by the Department within not
22less than 60 days after receipt of the notice an annual
23information return for the tax year specified in the notice.
24Such annual return to the Department shall include a statement
25of gross receipts as shown by the retailer's last Federal
26income tax return. If the total receipts of the business as

 

 

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

 

 

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

 

 

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1importers and wholesalers whose products are sold at retail in
2Illinois by numerous retailers, and who wish to do so, may
3assume the responsibility for accounting and paying to the
4Department all tax accruing under this Act with respect to such
5sales, if the retailers who are affected do not make written
6objection to the Department to this arrangement.
7    Any person who promotes, organizes, provides retail
8selling space for concessionaires or other types of sellers at
9the Illinois State Fair, DuQuoin State Fair, county fairs,
10local fairs, art shows, flea markets and similar exhibitions or
11events, including any transient merchant as defined by Section
122 of the Transient Merchant Act of 1987, is required to file a
13report with the Department providing the name of the merchant's
14business, the name of the person or persons engaged in
15merchant's business, the permanent address and Illinois
16Retailers Occupation Tax Registration Number of the merchant,
17the dates and location of the event and other reasonable
18information that the Department may require. The report must be
19filed not later than the 20th day of the month next following
20the month during which the event with retail sales was held.
21Any person who fails to file a report required by this Section
22commits a business offense and is subject to a fine not to
23exceed $250.
24    Any person engaged in the business of selling tangible
25personal property at retail as a concessionaire or other type
26of seller at the Illinois State Fair, county fairs, art shows,

 

 

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1flea markets and similar exhibitions or events, or any
2transient merchants, as defined by Section 2 of the Transient
3Merchant Act of 1987, may be required to make a daily report of
4the amount of such sales to the Department and to make a daily
5payment of the full amount of tax due. The Department shall
6impose this requirement when it finds that there is a
7significant risk of loss of revenue to the State at such an
8exhibition or event. Such a finding shall be based on evidence
9that a substantial number of concessionaires or other sellers
10who are not residents of Illinois will be engaging in the
11business of selling tangible personal property at retail at the
12exhibition or event, or other evidence of a significant risk of
13loss of revenue to the State. The Department shall notify
14concessionaires and other sellers affected by the imposition of
15this requirement. In the absence of notification by the
16Department, the concessionaires and other sellers shall file
17their returns as otherwise required in this Section.
18(Source: P.A. 95-331, eff. 8-21-07; 96-34, eff. 7-13-09; 96-38,
19eff. 7-13-09; 96-898, eff. 5-27-10; 96-1012, eff. 7-7-10;
20revised 7-22-10.)
 
21    Section 99. Effective date. This Act takes effect July 1,
222011.