97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2519

 

Introduced 11/2/2011, by Sen. Jeffrey M. Schoenberg

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Retailers' Occupation Tax Act. In a Section concerning returns filed with the Department of Revenue, provides that the taxpayer shall specify the amount attributable to in-store sales, online sales, mail order sales, telephone sales, door-to-door sales, and other sales.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2519LRB097 14299 HLH 59080 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 3 as follows:
 
6    (35 ILCS 120/3)  (from Ch. 120, par. 442)
7    Sec. 3. Except as provided in this Section, on or before
8the twentieth day of each calendar month, every person engaged
9in the business of selling tangible personal property at retail
10in this State during the preceding calendar month shall file a
11return with the Department, stating:
12        1. The name of the seller;
13        2. His residence address and the address of his
14    principal place of business and the address of the
15    principal place of business (if that is a different
16    address) from which he engages in the business of selling
17    tangible personal property at retail in this State;
18        3. Total amount of receipts received by him during the
19    preceding calendar month or quarter, as the case may be,
20    from sales of tangible personal property, and from services
21    furnished, by him during such preceding calendar month or
22    quarter;
23        4. Total amount received by him during the preceding

 

 

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1    calendar month or quarter on charge and time sales of
2    tangible personal property, and from services furnished,
3    by him prior to the month or quarter for which the return
4    is filed;
5        5. Deductions allowed by law;
6        6. Gross receipts which were received by him during the
7    preceding calendar month or quarter and upon the basis of
8    which the tax is imposed; when reporting its gross receipts
9    under this paragraph, the taxpayer shall specify the amount
10    attributable to in-store sales, online sales, mail order
11    sales, telephone sales, door-to-door sales, and other
12    sales;
13        7. The amount of credit provided in Section 2d of this
14    Act;
15        8. The amount of tax due;
16        9. The signature of the taxpayer; and
17        10. Such other reasonable information as the
18    Department 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    Each return shall be accompanied by the statement of
24prepaid tax issued pursuant to Section 2e for which credit is
25claimed.
26    Prior to October 1, 2003, and on and after September 1,

 

 

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12004 a retailer may accept a Manufacturer's Purchase Credit
2certification from a purchaser in satisfaction of Use Tax as
3provided in Section 3-85 of the Use Tax Act if the purchaser
4provides the appropriate documentation as required by Section
53-85 of the Use Tax Act. A Manufacturer's Purchase Credit
6certification, accepted by a retailer prior to October 1, 2003
7and on and after September 1, 2004 as provided in Section 3-85
8of the Use Tax Act, may be used by that retailer to satisfy
9Retailers' Occupation Tax liability in the amount claimed in
10the certification, not to exceed 6.25% of the receipts subject
11to tax from a qualifying purchase. A Manufacturer's Purchase
12Credit reported on any original or amended return filed under
13this Act after October 20, 2003 for reporting periods prior to
14September 1, 2004 shall be disallowed. Manufacturer's
15Purchaser Credit reported on annual returns due on or after
16January 1, 2005 will be disallowed for periods prior to
17September 1, 2004. No Manufacturer's Purchase Credit may be
18used after September 30, 2003 through August 31, 2004 to
19satisfy any tax liability imposed under this Act, including any
20audit liability.
21    The Department may require returns to be filed on a
22quarterly basis. If so required, a return for each calendar
23quarter shall be filed on or before the twentieth day of the
24calendar month following the end of such calendar quarter. The
25taxpayer shall also file a return with the Department for each
26of the first two months of each calendar quarter, on or before

 

 

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

 

 

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

 

 

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1distributor, or manufacturer shall furnish the sales
2information by personal delivery or by mail. For purposes of
3this paragraph, the term "electronic means" includes, but is
4not limited to, the use of a secure Internet website, e-mail,
5or facsimile.
6    If a total amount of less than $1 is payable, refundable or
7creditable, such amount shall be disregarded if it is less than
850 cents and shall be increased to $1 if it is 50 cents or more.
9    Beginning October 1, 1993, a taxpayer who has an average
10monthly tax liability of $150,000 or more shall make all
11payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1994, a taxpayer who has
13an average monthly tax liability of $100,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1995, a taxpayer who has
16an average monthly tax liability of $50,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 2000, a taxpayer who has
19an annual tax liability of $200,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. The term "annual tax liability" shall be the
22sum of the taxpayer's liabilities under this Act, and under all
23other State and local occupation and use tax laws administered
24by the Department, for the immediately preceding calendar year.
25The term "average monthly tax liability" shall be the sum of
26the taxpayer's liabilities under this Act, and under all other

 

 

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

 

 

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

 

 

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

 

 

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1transaction to the Department on the same uniform
2invoice-transaction reporting return form. For purposes of
3this Section, "watercraft" means a Class 2, Class 3, or Class 4
4watercraft as defined in Section 3-2 of the Boat Registration
5and Safety Act, a personal watercraft, or any boat equipped
6with an inboard motor.
7    Any retailer who sells only motor vehicles, watercraft,
8aircraft, or trailers that are required to be registered with
9an agency of this State, so that all retailers' occupation tax
10liability is required to be reported, and is reported, on such
11transaction reporting returns and who is not otherwise required
12to file monthly or quarterly returns, need not file monthly or
13quarterly returns. However, those retailers shall be required
14to file returns on an annual basis.
15    The transaction reporting return, in the case of motor
16vehicles or trailers that are required to be registered with an
17agency of this State, shall be the same document as the Uniform
18Invoice referred to in Section 5-402 of The Illinois Vehicle
19Code and must show the name and address of the seller; the name
20and address of the purchaser; the amount of the selling price
21including the amount allowed by the retailer for traded-in
22property, if any; the amount allowed by the retailer for the
23traded-in tangible personal property, if any, to the extent to
24which Section 1 of this Act allows an exemption for the value
25of traded-in property; the balance payable after deducting such
26trade-in allowance from the total selling price; the amount of

 

 

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

 

 

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1than 20 days after the day of delivery of the item that is
2being sold, but may be filed by the retailer at any time sooner
3than that if he chooses to do so. The transaction reporting
4return and tax remittance or proof of exemption from the
5Illinois use tax may be transmitted to the Department by way of
6the State agency with which, or State officer with whom the
7tangible personal property must be titled or registered (if
8titling or registration is required) if the Department and such
9agency or State officer determine that this procedure will
10expedite the processing of applications for title or
11registration.
12    With each such transaction reporting return, the retailer
13shall remit the proper amount of tax due (or shall submit
14satisfactory evidence that the sale is not taxable if that is
15the case), to the Department or its agents, whereupon the
16Department shall issue, in the purchaser's name, a use tax
17receipt (or a certificate of exemption if the Department is
18satisfied that the particular sale is tax exempt) which such
19purchaser may submit to the agency with which, or State officer
20with whom, he must title or register the tangible personal
21property that is involved (if titling or registration is
22required) in support of such purchaser's application for an
23Illinois certificate or other evidence of title or registration
24to such tangible personal property.
25    No retailer's failure or refusal to remit tax under this
26Act precludes a user, who has paid the proper tax to the

 

 

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1retailer, from obtaining his certificate of title or other
2evidence of title or registration (if titling or registration
3is required) upon satisfying the Department that such user has
4paid the proper tax (if tax is due) to the retailer. The
5Department shall adopt appropriate rules to carry out the
6mandate of this paragraph.
7    If the user who would otherwise pay tax to the retailer
8wants the transaction reporting return filed and the payment of
9the tax or proof of exemption made to the Department before the
10retailer is willing to take these actions and such user has not
11paid the tax to the retailer, such user may certify to the fact
12of such delay by the retailer and may (upon the Department
13being satisfied of the truth of such certification) transmit
14the information required by the transaction reporting return
15and the remittance for tax or proof of exemption directly to
16the Department and obtain his tax receipt or exemption
17determination, in which event the transaction reporting return
18and tax remittance (if a tax payment was required) shall be
19credited by the Department to the proper retailer's account
20with the Department, but without the 2.1% or 1.75% discount
21provided for in this Section being allowed. When the user pays
22the tax directly to the Department, he shall pay the tax in the
23same amount and in the same form in which it would be remitted
24if the tax had been remitted to the Department by the retailer.
25    Refunds made by the seller during the preceding return
26period to purchasers, on account of tangible personal property

 

 

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1returned to the seller, shall be allowed as a deduction under
2subdivision 5 of his monthly or quarterly return, as the case
3may be, in case the seller had theretofore included the
4receipts from the sale of such tangible personal property in a
5return filed by him and had paid the tax imposed by this Act
6with respect to such receipts.
7    Where the seller is a corporation, the return filed on
8behalf of such corporation shall be signed by the president,
9vice-president, secretary or treasurer or by the properly
10accredited agent of such corporation.
11    Where the seller is a limited liability company, the return
12filed on behalf of the limited liability company shall be
13signed by a manager, member, or properly accredited agent of
14the limited liability company.
15    Except as provided in this Section, the retailer filing the
16return under this Section shall, at the time of filing such
17return, pay to the Department the amount of tax imposed by this
18Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
19on and after January 1, 1990, or $5 per calendar year,
20whichever is greater, which is allowed to reimburse the
21retailer for the expenses incurred in keeping records,
22preparing and filing returns, remitting the tax and supplying
23data to the Department on request. Any prepayment made pursuant
24to Section 2d of this Act shall be included in the amount on
25which such 2.1% or 1.75% discount is computed. In the case of
26retailers who report and pay the tax on a transaction by

 

 

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1transaction basis, as provided in this Section, such discount
2shall be taken with each such tax remittance instead of when
3such retailer files his periodic return.
4    Before October 1, 2000, if the taxpayer's average monthly
5tax liability to the Department under this Act, the Use Tax
6Act, the Service Occupation Tax Act, and the Service Use Tax
7Act, excluding any liability for prepaid sales tax to be
8remitted in accordance with Section 2d of this Act, was $10,000
9or more during the preceding 4 complete calendar quarters, he
10shall file a return with the Department each month by the 20th
11day of the month next following the month during which such tax
12liability is incurred and shall make payments to the Department
13on or before the 7th, 15th, 22nd and last day of the month
14during which such liability is incurred. On and after October
151, 2000, if the taxpayer's average monthly tax liability to the
16Department under this Act, the Use Tax Act, the Service
17Occupation Tax Act, and the Service Use Tax Act, excluding any
18liability for prepaid sales tax to be remitted in accordance
19with Section 2d of this Act, was $20,000 or more during the
20preceding 4 complete calendar quarters, he shall file a return
21with the Department each month by the 20th day of the month
22next following the month during which such tax liability is
23incurred and shall make payment to the Department on or before
24the 7th, 15th, 22nd and last day of the month during which such
25liability is incurred. If the month during which such tax
26liability is incurred began prior to January 1, 1985, each

 

 

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1payment shall be in an amount equal to 1/4 of the taxpayer's
2actual liability for the month or an amount set by the
3Department not to exceed 1/4 of the average monthly liability
4of the taxpayer to the Department for the preceding 4 complete
5calendar quarters (excluding the month of highest liability and
6the month of lowest liability in such 4 quarter period). If the
7month during which such tax liability is incurred begins on or
8after January 1, 1985 and prior to January 1, 1987, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 27.5% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1987 and prior to January 1, 1988, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 26.25% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1988, and prior to January 1, 1989, or
19begins on or after January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year. If the month during which
23such tax liability is incurred begins on or after January 1,
241989, and prior to January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

 

 

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1calendar month of the preceding year or 100% of the taxpayer's
2actual liability for the quarter monthly reporting period. The
3amount of such quarter monthly payments shall be credited
4against the final tax liability of the taxpayer's return for
5that month. Before October 1, 2000, once applicable, the
6requirement of the making of quarter monthly payments to the
7Department by taxpayers having an average monthly tax liability
8of $10,000 or more as determined in the manner provided above
9shall continue until such taxpayer's average monthly liability
10to the Department during the preceding 4 complete calendar
11quarters (excluding the month of highest liability and the
12month of lowest liability) is less than $9,000, or until such
13taxpayer's average monthly liability to the Department as
14computed for each calendar quarter of the 4 preceding complete
15calendar quarter period is less than $10,000. However, if a
16taxpayer can show the Department that a substantial change in
17the taxpayer's business has occurred which causes the taxpayer
18to anticipate that his average monthly tax liability for the
19reasonably foreseeable future will fall below the $10,000
20threshold stated above, then such taxpayer may petition the
21Department for a change in such taxpayer's reporting status. On
22and after October 1, 2000, once applicable, the requirement of
23the making of quarter monthly payments to the Department by
24taxpayers having an average monthly tax liability of $20,000 or
25more as determined in the manner provided above shall continue
26until such taxpayer's average monthly liability to the

 

 

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1Department during the preceding 4 complete calendar quarters
2(excluding the month of highest liability and the month of
3lowest liability) is less than $19,000 or until such taxpayer's
4average monthly liability to the Department as computed for
5each calendar quarter of the 4 preceding complete calendar
6quarter period is less than $20,000. However, if a taxpayer can
7show the Department that a substantial change in the taxpayer's
8business has occurred which causes the taxpayer to anticipate
9that his average monthly tax liability for the reasonably
10foreseeable future will fall below the $20,000 threshold stated
11above, then such taxpayer may petition the Department for a
12change in such taxpayer's reporting status. The Department
13shall change such taxpayer's reporting status unless it finds
14that such change is seasonal in nature and not likely to be
15long term. If any such quarter monthly payment is not paid at
16the time or in the amount required by this Section, then the
17taxpayer shall be liable for penalties and interest on the
18difference between the minimum amount due as a payment and the
19amount of such quarter monthly payment actually and timely
20paid, except insofar as the taxpayer has previously made
21payments for that month to the Department in excess of the
22minimum payments previously due as provided in this Section.
23The Department shall make reasonable rules and regulations to
24govern the quarter monthly payment amount and quarter monthly
25payment dates for taxpayers who file on other than a calendar
26monthly basis.

 

 

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1    The provisions of this paragraph apply before October 1,
22001. Without regard to whether a taxpayer is required to make
3quarter monthly payments as specified above, any taxpayer who
4is required by Section 2d of this Act to collect and remit
5prepaid taxes and has collected prepaid taxes which average in
6excess of $25,000 per month during the preceding 2 complete
7calendar quarters, shall file a return with the Department as
8required by Section 2f and shall make payments to the
9Department on or before the 7th, 15th, 22nd and last day of the
10month during which such liability is incurred. If the month
11during which such tax liability is incurred began prior to the
12effective date of this amendatory Act of 1985, each payment
13shall be in an amount not less than 22.5% of the taxpayer's
14actual liability under Section 2d. If the month during which
15such tax liability is incurred begins on or after January 1,
161986, each payment shall be in an amount equal to 22.5% of the
17taxpayer's actual liability for the month or 27.5% of the
18taxpayer's liability for the same calendar month of the
19preceding calendar year. If the month during which such tax
20liability is incurred begins on or after January 1, 1987, each
21payment shall be in an amount equal to 22.5% of the taxpayer's
22actual liability for the month or 26.25% of the taxpayer's
23liability for the same calendar month of the preceding year.
24The amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month filed under this Section or Section 2f, as the case

 

 

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1may be. Once applicable, the requirement of the making of
2quarter monthly payments to the Department pursuant to this
3paragraph shall continue until such taxpayer's average monthly
4prepaid tax collections during the preceding 2 complete
5calendar quarters is $25,000 or less. If any such quarter
6monthly payment is not paid at the time or in the amount
7required, the taxpayer shall be liable for penalties and
8interest on such difference, except insofar as the taxpayer has
9previously made payments for that month in excess of the
10minimum payments previously due.
11    The provisions of this paragraph apply on and after October
121, 2001. Without regard to whether a taxpayer is required to
13make quarter monthly payments as specified above, any taxpayer
14who is required by Section 2d of this Act to collect and remit
15prepaid taxes and has collected prepaid taxes that average in
16excess of $20,000 per month during the preceding 4 complete
17calendar quarters shall file a return with the Department as
18required by Section 2f and shall make payments to the
19Department on or before the 7th, 15th, 22nd and last day of the
20month during which the liability is incurred. Each payment
21shall be in an amount equal to 22.5% of the taxpayer's actual
22liability for the month or 25% of the taxpayer's liability for
23the same calendar month of the preceding year. The amount of
24the quarter monthly payments shall be credited against the
25final tax liability of the taxpayer's return for that month
26filed under this Section or Section 2f, as the case may be.

 

 

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

 

 

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1subsequently to be remitted to the Department under this Act,
2the Use Tax Act, the Service Occupation Tax Act or the Service
3Use Tax Act, in accordance with reasonable rules and
4regulations prescribed by the Department. If the Department
5subsequently determined that all or any part of the credit
6taken was not actually due to the taxpayer, the taxpayer's 2.1%
7and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
8of the difference between the credit taken and that actually
9due, and that taxpayer shall be liable for penalties and
10interest on such difference.
11    If a retailer of motor fuel is entitled to a credit under
12Section 2d of this Act which exceeds the taxpayer's liability
13to the Department under this Act for the month which the
14taxpayer is filing a return, the Department shall issue the
15taxpayer a credit memorandum for the excess.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund, a special fund in the
18State treasury which is hereby created, the net revenue
19realized for the preceding month from the 1% tax on sales of
20food for human consumption which is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks and food which has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances and insulin, urine testing
25materials, syringes and needles used by diabetics.
26    Beginning January 1, 1990, each month the Department shall

 

 

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1pay into the County and Mass Transit District Fund, a special
2fund in the State treasury which is hereby created, 4% of the
3net revenue realized for the preceding month from the 6.25%
4general rate.
5    Beginning August 1, 2000, each month the Department shall
6pay into the County and Mass Transit District Fund 20% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol. Beginning
9September 1, 2010, each month the Department shall pay into the
10County and Mass Transit District Fund 20% of the net revenue
11realized for the preceding month from the 1.25% rate on the
12selling price of sales tax holiday items.
13    Beginning January 1, 1990, each month the Department shall
14pay into the Local Government Tax Fund 16% of the net revenue
15realized for the preceding month from the 6.25% general rate on
16the selling price of tangible personal property.
17    Beginning August 1, 2000, each month the Department shall
18pay into the Local Government Tax Fund 80% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of motor fuel and gasohol. Beginning September 1,
212010, each month the Department shall pay into the Local
22Government Tax Fund 80% of the net revenue realized for the
23preceding month from the 1.25% rate on the selling price of
24sales tax holiday items.
25    Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

 

 

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1an amount estimated by the Department to represent 80% of the
2net revenue realized for the preceding month from the sale of
3candy, grooming and hygiene products, and soft drinks that had
4been taxed at a rate of 1% prior to September 1, 2009 but that
5is now taxed at 6.25%.
6    Beginning July 1, 2011, each month the Department shall pay
7into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of sorbents used in Illinois in the process
10of sorbent injection as used to comply with the Environmental
11Protection Act or the federal Clean Air Act, but the total
12payment into the Clean Air Act (CAA) Permit Fund under this Act
13and the Use Tax Act shall not exceed $2,000,000 in any fiscal
14year.
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.

 

 

SB2519- 28 -LRB097 14299 HLH 59080 b

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

 

 

SB2519- 29 -LRB097 14299 HLH 59080 b

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

 

 

SB2519- 30 -LRB097 14299 HLH 59080 b

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

 

 

SB2519- 31 -LRB097 14299 HLH 59080 b

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    Of the remainder of the moneys received by the Department
8pursuant to this Act, 75% thereof shall be paid into the State
9Treasury and 25% shall be reserved in a special account and
10used only for the transfer to the Common School Fund as part of
11the monthly transfer from the General Revenue Fund in
12accordance with Section 8a of the State Finance Act.
13    The Department may, upon separate written notice to a
14taxpayer, require the taxpayer to prepare and file with the
15Department on a form prescribed by the Department within not
16less than 60 days after receipt of the notice an annual
17information return for the tax year specified in the notice.
18Such annual return to the Department shall include a statement
19of gross receipts as shown by the retailer's last Federal
20income tax return. If the total receipts of the business as
21reported in the Federal income tax return do not agree with the
22gross receipts reported to the Department of Revenue for the
23same period, the retailer shall attach to his annual return a
24schedule showing a reconciliation of the 2 amounts and the
25reasons for the difference. The retailer's annual return to the
26Department shall also disclose the cost of goods sold by the

 

 

SB2519- 32 -LRB097 14299 HLH 59080 b

1retailer during the year covered by such return, opening and
2closing inventories of such goods for such year, costs of goods
3used from stock or taken from stock and given away by the
4retailer during such year, payroll information of the
5retailer's business during such year and any additional
6reasonable information which the Department deems would be
7helpful in determining the accuracy of the monthly, quarterly
8or annual returns filed by such retailer as provided for in
9this Section.
10    If the annual information return required by this Section
11is not filed when and as required, the taxpayer shall be liable
12as follows:
13        (i) Until January 1, 1994, the taxpayer shall be liable
14    for a penalty equal to 1/6 of 1% of the tax due from such
15    taxpayer under this Act during the period to be covered by
16    the annual return for each month or fraction of a month
17    until such return is filed as required, the penalty to be
18    assessed and collected in the same manner as any other
19    penalty provided for in this Act.
20        (ii) On and after January 1, 1994, the taxpayer shall
21    be liable for a penalty as described in Section 3-4 of the
22    Uniform Penalty and Interest Act.
23    The chief executive officer, proprietor, owner or highest
24ranking manager shall sign the annual return to certify the
25accuracy of the information contained therein. Any person who
26willfully signs the annual return containing false or

 

 

SB2519- 33 -LRB097 14299 HLH 59080 b

1inaccurate information shall be guilty of perjury and punished
2accordingly. The annual return form prescribed by the
3Department shall include a warning that the person signing the
4return may be liable for perjury.
5    The provisions of this Section concerning the filing of an
6annual information return do not apply to a retailer who is not
7required to file an income tax return with the United States
8Government.
9    As soon as possible after the first day of each month, upon
10certification of the Department of Revenue, the Comptroller
11shall order transferred and the Treasurer shall transfer from
12the General Revenue Fund to the Motor Fuel Tax Fund an amount
13equal to 1.7% of 80% of the net revenue realized under this Act
14for the second preceding month. Beginning April 1, 2000, this
15transfer is no longer required and shall not be made.
16    Net revenue realized for a month shall be the revenue
17collected by the State pursuant to this Act, less the amount
18paid out during that month as refunds to taxpayers for
19overpayment of liability.
20    For greater simplicity of administration, manufacturers,
21importers and wholesalers whose products are sold at retail in
22Illinois by numerous retailers, and who wish to do so, may
23assume the responsibility for accounting and paying to the
24Department all tax accruing under this Act with respect to such
25sales, if the retailers who are affected do not make written
26objection to the Department to this arrangement.

 

 

SB2519- 34 -LRB097 14299 HLH 59080 b

1    Any person who promotes, organizes, provides retail
2selling space for concessionaires or other types of sellers at
3the Illinois State Fair, DuQuoin State Fair, county fairs,
4local fairs, art shows, flea markets and similar exhibitions or
5events, including any transient merchant as defined by Section
62 of the Transient Merchant Act of 1987, is required to file a
7report with the Department providing the name of the merchant's
8business, the name of the person or persons engaged in
9merchant's business, the permanent address and Illinois
10Retailers Occupation Tax Registration Number of the merchant,
11the dates and location of the event and other reasonable
12information that the Department may require. The report must be
13filed not later than the 20th day of the month next following
14the month during which the event with retail sales was held.
15Any person who fails to file a report required by this Section
16commits a business offense and is subject to a fine not to
17exceed $250.
18    Any person engaged in the business of selling tangible
19personal property at retail as a concessionaire or other type
20of seller at the Illinois State Fair, county fairs, art shows,
21flea markets and similar exhibitions or events, or any
22transient merchants, as defined by Section 2 of the Transient
23Merchant Act of 1987, may be required to make a daily report of
24the amount of such sales to the Department and to make a daily
25payment of the full amount of tax due. The Department shall
26impose this requirement when it finds that there is a

 

 

SB2519- 35 -LRB097 14299 HLH 59080 b

1significant risk of loss of revenue to the State at such an
2exhibition or event. Such a finding shall be based on evidence
3that a substantial number of concessionaires or other sellers
4who are not residents of Illinois will be engaging in the
5business of selling tangible personal property at retail at the
6exhibition or event, or other evidence of a significant risk of
7loss of revenue to the State. The Department shall notify
8concessionaires and other sellers affected by the imposition of
9this requirement. In the absence of notification by the
10Department, the concessionaires and other sellers shall file
11their returns as otherwise required in this Section.
12(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
13eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
1497-333, eff. 8-12-11.)