97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3338

 

Introduced 2/24/2011, by Rep. Daniel V. Beiser

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/11  from Ch. 120, par. 450

    Amends the Retailers' Occupation Tax Act. Provides that the furnishing of financial information by the Department of Revenue to a home rule unit or non-home rule unit (rather than a home rule unit or non-home rule unit that receives more than 60% of its general corporate revenue from Illinois sales taxes and meets other certain criteria) is an official purpose. Provides that, for a village (rather than a village that receives more than 60% of its general corporate revenue from Illinois sales taxes and does not levy any real property taxes for village operations), the village manager and the chief financial officer are eligible to receive financial information from the Department of Revenue.


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A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 11 as follows:
 
6    (35 ILCS 120/11)  (from Ch. 120, par. 450)
7    Sec. 11. All information received by the Department from
8returns filed under this Act, or from any investigation
9conducted under this Act, shall be confidential, except for
10official purposes, and any person who divulges any such
11information in any manner, except in accordance with a proper
12judicial order or as otherwise provided by law, shall be guilty
13of a Class B misdemeanor.
14    Nothing in this Act prevents the Director of Revenue from
15publishing or making available to the public the names and
16addresses of persons filing returns under this Act, or
17reasonable statistics concerning the operation of the tax by
18grouping the contents of returns so the information in any
19individual return is not disclosed.
20    Nothing in this Act prevents the Director of Revenue from
21divulging to the United States Government or the government of
22any other state, or any village that does not levy any real
23property taxes for village operations and that receives more

 

 

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1than 60% of its general corporate revenue from taxes under the
2Use Tax Act, the Service Use Tax Act, the Service Occupation
3Tax Act, and the Retailers' Occupation Tax Act, or any officer
4or agency thereof, for exclusively official purposes,
5information received by the Department in administering this
6Act, provided that such other governmental agency agrees to
7divulge requested tax information to the Department.
8    The Department's furnishing of information derived from a
9taxpayer's return or from an investigation conducted under this
10Act to the surety on a taxpayer's bond that has been furnished
11to the Department under this Act, either to provide notice to
12such surety of its potential liability under the bond or, in
13order to support the Department's demand for payment from such
14surety under the bond, is an official purpose within the
15meaning of this Section.
16    The furnishing upon request of information obtained by the
17Department from returns filed under this Act or investigations
18conducted under this Act to the Illinois Liquor Control
19Commission for official use is deemed to be an official purpose
20within the meaning of this Section.
21    Notice to a surety of potential liability shall not be
22given unless the taxpayer has first been notified, not less
23than 10 days prior thereto, of the Department's intent to so
24notify the surety.
25    The furnishing upon request of the Auditor General, or his
26authorized agents, for official use, of returns filed and

 

 

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1information related thereto under this Act is deemed to be an
2official purpose within the meaning of this Section.
3    Where an appeal or a protest has been filed on behalf of a
4taxpayer, the furnishing upon request of the attorney for the
5taxpayer of returns filed by the taxpayer and information
6related thereto under this Act is deemed to be an official
7purpose within the meaning of this Section.
8    The furnishing of financial information to a home rule unit
9or non-home rule unit that has imposed a tax similar to that
10imposed by this Act pursuant to its home rule powers or the
11successful passage of a public referendum by a majority of the
12registered voters of the community, or to any village that does
13not levy any real property taxes for village operations and
14that receives more than 60% of its general corporate revenue
15from taxes under the Use Tax Act, the Service Use Tax Act, the
16Service Occupation Tax Act, and the Retailers' Occupation Tax
17Act, upon request of the Chief Executive thereof, is an
18official purpose within the meaning of this Section, provided
19the home rule unit, non-home rule unit with referendum
20approval, or village that does not levy any real property taxes
21for village operations and that receives more than 60% of its
22general corporate revenue from taxes under the Use Tax Act, the
23Service Use Tax Act, the Service Occupation Tax Act, and the
24Retailers' Occupation Tax Act agrees in writing to the
25requirements of this Section.
26    For a village that does not levy any real property taxes

 

 

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1for village operations and that receives more than 60% of its
2general corporate revenue from taxes under the Use Tax Act,
3Service Use Tax Act, Service Occupation Tax Act, and Retailers'
4Occupation Tax Act, the officers eligible to receive
5information from the Department of Revenue under this Section
6are the village manager and the chief financial officer of the
7village.
8    Information so provided shall be subject to all
9confidentiality provisions of this Section. The written
10agreement shall provide for reciprocity, limitations on
11access, disclosure, and procedures for requesting information.
12    The Department may make available to the Board of Trustees
13of any Metro East Mass Transit District information contained
14on transaction reporting returns required to be filed under
15Section 3 of this Act that report sales made within the
16boundary of the taxing authority of that Metro East Mass
17Transit District, as provided in Section 5.01 of the Local Mass
18Transit District Act. The disclosure shall be made pursuant to
19a written agreement between the Department and the Board of
20Trustees of a Metro East Mass Transit District, which is an
21official purpose within the meaning of this Section. The
22written agreement between the Department and the Board of
23Trustees of a Metro East Mass Transit District shall provide
24for reciprocity, limitations on access, disclosure, and
25procedures for requesting information. Information so provided
26shall be subject to all confidentiality provisions of this

 

 

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1Section.
2    The Director may make available to any State agency,
3including the Illinois Supreme Court, which licenses persons to
4engage in any occupation, information that a person licensed by
5such agency has failed to file returns under this Act or pay
6the tax, penalty and interest shown therein, or has failed to
7pay any final assessment of tax, penalty or interest due under
8this Act. The Director may make available to any State agency,
9including the Illinois Supreme Court, information regarding
10whether a bidder, contractor, or an affiliate of a bidder or
11contractor has failed to collect and remit Illinois Use tax on
12sales into Illinois, or any tax under this Act or pay the tax,
13penalty, and interest shown therein, or has failed to pay any
14final assessment of tax, penalty, or interest due under this
15Act, for the limited purpose of enforcing bidder and contractor
16certifications. The Director may make available to units of
17local government and school districts that require bidder and
18contractor certifications, as set forth in Sections 50-11 and
1950-12 of the Illinois Procurement Code, information regarding
20whether a bidder, contractor, or an affiliate of a bidder or
21contractor has failed to collect and remit Illinois Use tax on
22sales into Illinois, file returns under this Act, or pay the
23tax, penalty, and interest shown therein, or has failed to pay
24any final assessment of tax, penalty, or interest due under
25this Act, for the limited purpose of enforcing bidder and
26contractor certifications. For purposes of this Section, the

 

 

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1term "affiliate" means any entity that (1) directly,
2indirectly, or constructively controls another entity, (2) is
3directly, indirectly, or constructively controlled by another
4entity, or (3) is subject to the control of a common entity.
5For purposes of this Section, an entity controls another entity
6if it owns, directly or individually, more than 10% of the
7voting securities of that entity. As used in this Section, the
8term "voting security" means a security that (1) confers upon
9the holder the right to vote for the election of members of the
10board of directors or similar governing body of the business or
11(2) is convertible into, or entitles the holder to receive upon
12its exercise, a security that confers such a right to vote. A
13general partnership interest is a voting security.
14    The Director may make available to any State agency,
15including the Illinois Supreme Court, units of local
16government, and school districts, information regarding
17whether a bidder or contractor is an affiliate of a person who
18is not collecting and remitting Illinois Use taxes for the
19limited purpose of enforcing bidder and contractor
20certifications.
21    The Director may also make available to the Secretary of
22State information that a limited liability company, which has
23filed articles of organization with the Secretary of State, or
24corporation which has been issued a certificate of
25incorporation by the Secretary of State has failed to file
26returns under this Act or pay the tax, penalty and interest

 

 

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1shown therein, or has failed to pay any final assessment of
2tax, penalty or interest due under this Act. An assessment is
3final when all proceedings in court for review of such
4assessment have terminated or the time for the taking thereof
5has expired without such proceedings being instituted.
6    The Director shall make available for public inspection in
7the Department's principal office and for publication, at cost,
8administrative decisions issued on or after January 1, 1995.
9These decisions are to be made available in a manner so that
10the following taxpayer information is not disclosed:
11        (1) The names, addresses, and identification numbers
12    of the taxpayer, related entities, and employees.
13        (2) At the sole discretion of the Director, trade
14    secrets or other confidential information identified as
15    such by the taxpayer, no later than 30 days after receipt
16    of an administrative decision, by such means as the
17    Department shall provide by rule.
18    The Director shall determine the appropriate extent of the
19deletions allowed in paragraph (2). In the event the taxpayer
20does not submit deletions, the Director shall make only the
21deletions specified in paragraph (1).
22    The Director shall make available for public inspection and
23publication an administrative decision within 180 days after
24the issuance of the administrative decision. The term
25"administrative decision" has the same meaning as defined in
26Section 3-101 of Article III of the Code of Civil Procedure.

 

 

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1Costs collected under this Section shall be paid into the Tax
2Compliance and Administration Fund.
3    Nothing contained in this Act shall prevent the Director
4from divulging information to any person pursuant to a request
5or authorization made by the taxpayer or by an authorized
6representative of the taxpayer.
7(Source: P.A. 93-25, eff. 6-20-03; 93-939, eff. 8-13-04;
894-1074, eff. 12-26-06.)