Rep. Cynthia Soto

Filed: 3/26/2014

 

 


 

 


 
09800HB3884ham001LRB098 15439 HLH 57481 a

1
AMENDMENT TO HOUSE BILL 3884

2    AMENDMENT NO. ______. Amend House Bill 3884 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Finance Act is amended by adding
5Sections 5.855 and 6a-4a as follows:
 
6    (30 ILCS 105/5.855 new)
7    Sec. 5.855. The Public University Capital Projects Fund.
 
8    (30 ILCS 105/6a-4a new)
9    Sec. 6a-4a. The Public University Capital Projects Fund;
10creation. The Public University Capital Projects Fund is hereby
11created as a special fund in the State treasury. Moneys in the
12Fund shall be used by public universities, subject to
13appropriation, solely for the purpose of funding capital
14projects and paying deferred maintenance fees. No public
15university may receive appropriations from the Fund that exceed

 

 

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1the amount of the tax attributable to sales occurring on a
2campus of that public university.
 
3    Section 10. The Service Occupation Tax Act is amended by
4changing Sections 2, 3-10, and 9 as follows:
 
5    (35 ILCS 115/2)  (from Ch. 120, par. 439.102)
6    Sec. 2. "Transfer" means any transfer of the title to
7property or of the ownership of property whether or not the
8transferor retains title as security for the payment of amounts
9due him from the transferee.
10    "Cost Price" means the consideration paid by the serviceman
11for a purchase valued in money, whether paid in money or
12otherwise, including cash, credits and services, and shall be
13determined without any deduction on account of the supplier's
14cost of the property sold or on account of any other expense
15incurred by the supplier. When a serviceman contracts out part
16or all of the services required in his sale of service, it
17shall be presumed that the cost price to the serviceman of the
18property transferred to him by his or her subcontractor is
19equal to 50% of the subcontractor's charges to the serviceman
20in the absence of proof of the consideration paid by the
21subcontractor for the purchase of such property.
22    "Department" means the Department of Revenue.
23    "Person" means any natural individual, firm, partnership,
24association, joint stock company, joint venture, public or

 

 

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1private corporation, limited liability company, and any
2receiver, executor, trustee, guardian or other representative
3appointed by order of any court.
4    "Public university" means Chicago State University,
5Eastern Illinois University, Governors State University,
6Illinois State University, Northeastern Illinois University,
7Northern Illinois University, Southern Illinois University,
8Western Illinois University, the University of Illinois, and
9any other public university established or authorized by the
10General Assembly.
11    "Sale of Service" means any transaction except:
12    (a) A retail sale of tangible personal property taxable
13under the Retailers' Occupation Tax Act or under the Use Tax
14Act.
15    (b) A sale of tangible personal property for the purpose of
16resale made in compliance with Section 2c of the Retailers'
17Occupation Tax Act.
18    (c) Except as hereinafter provided, a sale or transfer of
19tangible personal property as an incident to the rendering of
20service for or by any governmental body or for or by any
21corporation, society, association, foundation or institution
22organized and operated exclusively for charitable, religious
23or educational purposes or any not-for-profit corporation,
24society, association, foundation, institution or organization
25which has no compensated officers or employees and which is
26organized and operated primarily for the recreation of persons

 

 

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155 years of age or older. A limited liability company may
2qualify for the exemption under this paragraph only if the
3limited liability company is organized and operated
4exclusively for educational purposes.
5    (d) A sale or transfer of tangible personal property as an
6incident to the rendering of service for interstate carriers
7for hire for use as rolling stock moving in interstate commerce
8or lessors under leases of one year or longer, executed or in
9effect at the time of purchase, to interstate carriers for hire
10for use as rolling stock moving in interstate commerce, and
11equipment operated by a telecommunications provider, licensed
12as a common carrier by the Federal Communications Commission,
13which is permanently installed in or affixed to aircraft moving
14in interstate commerce.
15    (d-1) A sale or transfer of tangible personal property as
16an incident to the rendering of service for owners, lessors or
17shippers of tangible personal property which is utilized by
18interstate carriers for hire for use as rolling stock moving in
19interstate commerce, and equipment operated by a
20telecommunications provider, licensed as a common carrier by
21the Federal Communications Commission, which is permanently
22installed in or affixed to aircraft moving in interstate
23commerce.
24    (d-1.1) On and after July 1, 2003 and through June 30,
252004, a sale or transfer of a motor vehicle of the second
26division with a gross vehicle weight in excess of 8,000 pounds

 

 

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1as an incident to the rendering of service if that motor
2vehicle is subject to the commercial distribution fee imposed
3under Section 3-815.1 of the Illinois Vehicle Code. Beginning
4on July 1, 2004 and through June 30, 2005, the use in this
5State of motor vehicles of the second division: (i) with a
6gross vehicle weight rating in excess of 8,000 pounds; (ii)
7that are subject to the commercial distribution fee imposed
8under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
9that are primarily used for commercial purposes. Through June
1030, 2005, this exemption applies to repair and replacement
11parts added after the initial purchase of such a motor vehicle
12if that motor vehicle is used in a manner that would qualify
13for the rolling stock exemption otherwise provided for in this
14Act. For purposes of this paragraph, "used for commercial
15purposes" means the transportation of persons or property in
16furtherance of any commercial or industrial enterprise whether
17for-hire or not.
18    (d-2) The repairing, reconditioning or remodeling, for a
19common carrier by rail, of tangible personal property which
20belongs to such carrier for hire, and as to which such carrier
21receives the physical possession of the repaired,
22reconditioned or remodeled item of tangible personal property
23in Illinois, and which such carrier transports, or shares with
24another common carrier in the transportation of such property,
25out of Illinois on a standard uniform bill of lading showing
26the person who repaired, reconditioned or remodeled the

 

 

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1property as the shipper or consignor of such property to a
2destination outside Illinois, for use outside Illinois.
3    (d-3) A sale or transfer of tangible personal property
4which is produced by the seller thereof on special order in
5such a way as to have made the applicable tax the Service
6Occupation Tax or the Service Use Tax, rather than the
7Retailers' Occupation Tax or the Use Tax, for an interstate
8carrier by rail which receives the physical possession of such
9property in Illinois, and which transports such property, or
10shares with another common carrier in the transportation of
11such property, out of Illinois on a standard uniform bill of
12lading showing the seller of the property as the shipper or
13consignor of such property to a destination outside Illinois,
14for use outside Illinois.
15    (d-4) Until January 1, 1997, a sale, by a registered
16serviceman paying tax under this Act to the Department, of
17special order printed materials delivered outside Illinois and
18which are not returned to this State, if delivery is made by
19the seller or agent of the seller, including an agent who
20causes the product to be delivered outside Illinois by a common
21carrier or the U.S. postal service.
22    (e) A sale or transfer of machinery and equipment used
23primarily in the process of the manufacturing or assembling,
24either in an existing, an expanded or a new manufacturing
25facility, of tangible personal property for wholesale or retail
26sale or lease, whether such sale or lease is made directly by

 

 

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1the manufacturer or by some other person, whether the materials
2used in the process are owned by the manufacturer or some other
3person, or whether such sale or lease is made apart from or as
4an incident to the seller's engaging in a service occupation
5and the applicable tax is a Service Occupation Tax or Service
6Use Tax, rather than Retailers' Occupation Tax or Use Tax. The
7exemption provided by this paragraph (e) does not include
8machinery and equipment used in (i) the generation of
9electricity for wholesale or retail sale; (ii) the generation
10or treatment of natural or artificial gas for wholesale or
11retail sale that is delivered to customers through pipes,
12pipelines, or mains; or (iii) the treatment of water for
13wholesale or retail sale that is delivered to customers through
14pipes, pipelines, or mains. The provisions of this amendatory
15Act of the 98th General Assembly are declaratory of existing
16law as to the meaning and scope of this exemption.
17    (f) Until July 1, 2003, the sale or transfer of
18distillation machinery and equipment, sold as a unit or kit and
19assembled or installed by the retailer, which machinery and
20equipment is certified by the user to be used only for the
21production of ethyl alcohol that will be used for consumption
22as motor fuel or as a component of motor fuel for the personal
23use of such user and not subject to sale or resale.
24    (g) At the election of any serviceman not required to be
25otherwise registered as a retailer under Section 2a of the
26Retailers' Occupation Tax Act, made for each fiscal year sales

 

 

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1of service in which the aggregate annual cost price of tangible
2personal property transferred as an incident to the sales of
3service is less than 35% (75% in the case of servicemen
4transferring prescription drugs or servicemen engaged in
5graphic arts production) of the aggregate annual total gross
6receipts from all sales of service. The purchase of such
7tangible personal property by the serviceman shall be subject
8to tax under the Retailers' Occupation Tax Act and the Use Tax
9Act. However, if a primary serviceman who has made the election
10described in this paragraph subcontracts service work to a
11secondary serviceman who has also made the election described
12in this paragraph, the primary serviceman does not incur a Use
13Tax liability if the secondary serviceman (i) has paid or will
14pay Use Tax on his or her cost price of any tangible personal
15property transferred to the primary serviceman and (ii)
16certifies that fact in writing to the primary serviceman.
17    Tangible personal property transferred incident to the
18completion of a maintenance agreement is exempt from the tax
19imposed pursuant to this Act.
20    Exemption (e) also includes machinery and equipment used in
21the general maintenance or repair of such exempt machinery and
22equipment or for in-house manufacture of exempt machinery and
23equipment. The machinery and equipment exemption does not
24include machinery and equipment used in (i) the generation of
25electricity for wholesale or retail sale; (ii) the generation
26or treatment of natural or artificial gas for wholesale or

 

 

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1retail sale that is delivered to customers through pipes,
2pipelines, or mains; or (iii) the treatment of water for
3wholesale or retail sale that is delivered to customers through
4pipes, pipelines, or mains. The provisions of this amendatory
5Act of the 98th General Assembly are declaratory of existing
6law as to the meaning and scope of this exemption. For the
7purposes of exemption (e), each of these terms shall have the
8following meanings: (1) "manufacturing process" shall mean the
9production of any article of tangible personal property,
10whether such article is a finished product or an article for
11use in the process of manufacturing or assembling a different
12article of tangible personal property, by procedures commonly
13regarded as manufacturing, processing, fabricating, or
14refining which changes some existing material or materials into
15a material with a different form, use or name. In relation to a
16recognized integrated business composed of a series of
17operations which collectively constitute manufacturing, or
18individually constitute manufacturing operations, the
19manufacturing process shall be deemed to commence with the
20first operation or stage of production in the series, and shall
21not be deemed to end until the completion of the final product
22in the last operation or stage of production in the series; and
23further for purposes of exemption (e), photoprocessing is
24deemed to be a manufacturing process of tangible personal
25property for wholesale or retail sale; (2) "assembling process"
26shall mean the production of any article of tangible personal

 

 

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1property, whether such article is a finished product or an
2article for use in the process of manufacturing or assembling a
3different article of tangible personal property, by the
4combination of existing materials in a manner commonly regarded
5as assembling which results in a material of a different form,
6use or name; (3) "machinery" shall mean major mechanical
7machines or major components of such machines contributing to a
8manufacturing or assembling process; and (4) "equipment" shall
9include any independent device or tool separate from any
10machinery but essential to an integrated manufacturing or
11assembly process; including computers used primarily in a
12manufacturer's computer assisted design, computer assisted
13manufacturing (CAD/CAM) system; or any subunit or assembly
14comprising a component of any machinery or auxiliary, adjunct
15or attachment parts of machinery, such as tools, dies, jigs,
16fixtures, patterns and molds; or any parts which require
17periodic replacement in the course of normal operation; but
18shall not include hand tools. Equipment includes chemicals or
19chemicals acting as catalysts but only if the chemicals or
20chemicals acting as catalysts effect a direct and immediate
21change upon a product being manufactured or assembled for
22wholesale or retail sale or lease. The purchaser of such
23machinery and equipment who has an active resale registration
24number shall furnish such number to the seller at the time of
25purchase. The purchaser of such machinery and equipment and
26tools without an active resale registration number shall

 

 

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1furnish to the seller a certificate of exemption for each
2transaction stating facts establishing the exemption for that
3transaction, which certificate shall be available to the
4Department for inspection or audit.
5    Except as provided in Section 2d of this Act, the rolling
6stock exemption applies to rolling stock used by an interstate
7carrier for hire, even just between points in Illinois, if such
8rolling stock transports, for hire, persons whose journeys or
9property whose shipments originate or terminate outside
10Illinois.
11    Any informal rulings, opinions or letters issued by the
12Department in response to an inquiry or request for any opinion
13from any person regarding the coverage and applicability of
14exemption (e) to specific devices shall be published,
15maintained as a public record, and made available for public
16inspection and copying. If the informal ruling, opinion or
17letter contains trade secrets or other confidential
18information, where possible the Department shall delete such
19information prior to publication. Whenever such informal
20rulings, opinions, or letters contain any policy of general
21applicability, the Department shall formulate and adopt such
22policy as a rule in accordance with the provisions of the
23Illinois Administrative Procedure Act.
24    On and after July 1, 1987, no entity otherwise eligible
25under exemption (c) of this Section shall make tax free
26purchases unless it has an active exemption identification

 

 

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1number issued by the Department.
2    "Serviceman" means any person who is engaged in the
3occupation of making sales of service.
4    "Sale at Retail" means "sale at retail" as defined in the
5Retailers' Occupation Tax Act.
6    "Supplier" means any person who makes sales of tangible
7personal property to servicemen for the purpose of resale as an
8incident to a sale of service.
9(Source: P.A. 98-583, eff. 1-1-14.)
 
10    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13the "selling price", as defined in Section 2 of the Service Use
14Tax Act, of the tangible personal property. For the purpose of
15computing this tax, in no event shall the "selling price" be
16less than the cost price to the serviceman of the tangible
17personal property transferred. The selling price of each item
18of tangible personal property transferred as an incident of a
19sale of service may be shown as a distinct and separate item on
20the serviceman's billing to the service customer. If the
21selling price is not so shown, the selling price of the
22tangible personal property is deemed to be 50% of the
23serviceman's entire billing to the service customer. When,
24however, a serviceman contracts to design, develop, and produce
25special order machinery or equipment, the tax imposed by this

 

 

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1Act shall be based on the serviceman's cost price of the
2tangible personal property transferred incident to the
3completion of the contract.
4    Beginning on July 1, 2014, in addition to any other tax, a
5tax is imposed at the rate of 1% of the "selling price", as
6defined in Section 2 of the Service Use Tax Act, of all
7tangible personal property sold by a serviceman on the campus
8of a public university. For the purpose of computing this tax,
9in no event shall the "selling price" be less than the cost
10price to the serviceman of the tangible personal property
11transferred. The selling price of each item of tangible
12personal property transferred as an incident of a sale of
13service may be shown as a distinct and separate item on the
14serviceman's billing to the service customer. If the selling
15price is not so shown, the selling price of the tangible
16personal property is deemed to be 50% of the serviceman's
17entire billing to the service customer. When, however, a
18serviceman contracts to design, develop, and produce special
19order machinery or equipment, this additional tax shall be
20based on the serviceman's cost price of the tangible personal
21property transferred incident to the completion of the
22contract.
23    Beginning on July 1, 2000 and through December 31, 2000,
24with respect to motor fuel, as defined in Section 1.1 of the
25Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
26the Use Tax Act, the tax is imposed at the rate of 1.25%.

 

 

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1    With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act shall apply to (i) 70% of the cost
3price of property transferred as an incident to the sale of
4service on or after January 1, 1990, and before July 1, 2003,
5(ii) 80% of the selling price of property transferred as an
6incident to the sale of service on or after July 1, 2003 and on
7or before December 31, 2018, and (iii) 100% of the cost price
8thereafter. If, at any time, however, the tax under this Act on
9sales of gasohol, as defined in the Use Tax Act, is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2018 but applies to 100% of the selling price
17thereafter.
18    With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 and
23(ii) 100% of the proceeds of the selling price thereafter. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

 

 

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

 

 

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1Specialized Mental Health Rehabilitation Act of 2013, or the
2Child Care Act of 1969. The tax shall also be imposed at the
3rate of 1% on food for human consumption that is to be consumed
4off the premises where it is sold (other than alcoholic
5beverages, soft drinks, and food that has been prepared for
6immediate consumption and is not otherwise included in this
7paragraph) and prescription and nonprescription medicines,
8drugs, medical appliances, modifications to a motor vehicle for
9the purpose of rendering it usable by a disabled person, and
10insulin, urine testing materials, syringes, and needles used by
11diabetics, for human use. For the purposes of this Section,
12until September 1, 2009: the term "soft drinks" means any
13complete, finished, ready-to-use, non-alcoholic drink, whether
14carbonated or not, including but not limited to soda water,
15cola, fruit juice, vegetable juice, carbonated water, and all
16other preparations commonly known as soft drinks of whatever
17kind or description that are contained in any closed or sealed
18can, carton, or container, regardless of size; but "soft
19drinks" does not include coffee, tea, non-carbonated water,
20infant formula, milk or milk products as defined in the Grade A
21Pasteurized Milk and Milk Products Act, or drinks containing
2250% or more natural fruit or vegetable juice.
23    Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "soft drinks" means non-alcoholic
25beverages that contain natural or artificial sweeteners. "Soft
26drinks" do not include beverages that contain milk or milk

 

 

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

 

 

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1purposes of this Section, "grooming and hygiene products"
2includes, but is not limited to, soaps and cleaning solutions,
3shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
4lotions and screens, unless those products are available by
5prescription only, regardless of whether the products meet the
6definition of "over-the-counter-drugs". For the purposes of
7this paragraph, "over-the-counter-drug" means a drug for human
8use that contains a label that identifies the product as a drug
9as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
10label includes:
11        (A) A "Drug Facts" panel; or
12        (B) A statement of the "active ingredient(s)" with a
13    list of those ingredients contained in the compound,
14    substance or preparation.
15    Beginning on January 1, 2014 (the effective date of Public
16Act 98-122) this amendatory Act of the 98th General Assembly,
17"prescription and nonprescription medicines and drugs"
18includes medical cannabis purchased from a registered
19dispensing organization under the Compassionate Use of Medical
20Cannabis Pilot Program Act.
21(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
22eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
238-9-13.)
 
24    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
25    Sec. 9. Each serviceman required or authorized to collect

 

 

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

 

 

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

 

 

09800HB3884ham001- 21 -LRB098 15439 HLH 57481 a

1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4    Prior to October 1, 2003, and on and after September 1,
52004 a serviceman may accept a Manufacturer's Purchase Credit
6certification from a purchaser in satisfaction of Service Use
7Tax as provided in Section 3-70 of the Service Use Tax Act if
8the purchaser provides the appropriate documentation as
9required by Section 3-70 of the Service Use Tax Act. A
10Manufacturer's Purchase Credit certification, accepted prior
11to October 1, 2003 or on or after September 1, 2004 by a
12serviceman as provided in Section 3-70 of the Service Use Tax
13Act, may be used by that serviceman to satisfy Service
14Occupation Tax liability in the amount claimed in the
15certification, not to exceed 6.25% of the receipts subject to
16tax from a qualifying purchase. A Manufacturer's Purchase
17Credit reported on any original or amended return filed under
18this Act after October 20, 2003 for reporting periods prior to
19September 1, 2004 shall be disallowed. Manufacturer's Purchase
20Credit reported on annual returns due on or after January 1,
212005 will be disallowed for periods prior to September 1, 2004.
22No Manufacturer's Purchase Credit may be used after September
2330, 2003 through August 31, 2004 to satisfy any tax liability
24imposed under this Act, including any audit liability.
25    If the serviceman's average monthly tax liability to the
26Department does not exceed $200, the Department may authorize

 

 

09800HB3884ham001- 22 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 23 -LRB098 15439 HLH 57481 a

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.

 

 

09800HB3884ham001- 24 -LRB098 15439 HLH 57481 a

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    Where a serviceman collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the serviceman refunds the selling price thereof
15to the purchaser, such serviceman shall also refund, to the
16purchaser, the tax so collected from the purchaser. When filing
17his return for the period in which he refunds such tax to the
18purchaser, the serviceman may deduct the amount of the tax so
19refunded by him to the purchaser from any other Service
20Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
21Use Tax which such serviceman may be required to pay or remit
22to the Department, as shown by such return, provided that the
23amount of the tax to be deducted shall previously have been
24remitted to the Department by such serviceman. If the
25serviceman shall not previously have remitted the amount of
26such tax to the Department, he shall be entitled to no

 

 

09800HB3884ham001- 25 -LRB098 15439 HLH 57481 a

1deduction hereunder upon refunding such tax to the purchaser.
2    If experience indicates such action to be practicable, the
3Department may prescribe and furnish a combination or joint
4return which will enable servicemen, who are required to file
5returns hereunder and also under the Retailers' Occupation Tax
6Act, the Use Tax Act or the Service Use Tax Act, to furnish all
7the return information required by all said Acts on the one
8form.
9    Where the serviceman has more than one business registered
10with the Department under separate registrations hereunder,
11such serviceman shall file separate returns for each registered
12business.
13    Beginning July 1, 2014, each month the Department shall pay
14into the Public University Capital Projects Fund 100% of the
15net revenue realized for the preceding month from the
16additional 1% tax imposed on sales occurring on the campus of a
17public university.
18    Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund the revenue realized for
20the preceding month from the 1% tax on sales of food for human
21consumption which is to be consumed off the premises where it
22is sold (other than alcoholic beverages, soft drinks and food
23which has been prepared for immediate consumption) and
24prescription and nonprescription medicines, drugs, medical
25appliances and insulin, urine testing materials, syringes and
26needles used by diabetics.

 

 

09800HB3884ham001- 26 -LRB098 15439 HLH 57481 a

1    Beginning January 1, 1990, each month the Department shall
2pay into the County and Mass Transit District Fund 4% of the
3revenue realized for the preceding month from the 6.25% general
4rate.
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.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund 16% of the revenue
11realized for the preceding month from the 6.25% general rate on
12transfers of tangible personal property.
13    Beginning August 1, 2000, each month the Department shall
14pay into the Local Government Tax Fund 80% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of motor fuel and gasohol.
17    Beginning October 1, 2009, each month the Department shall
18pay into the Capital Projects Fund an amount that is equal to
19an amount estimated by the Department to represent 80% of the
20net revenue realized for the preceding month from the sale of
21candy, grooming and hygiene products, and soft drinks that had
22been taxed at a rate of 1% prior to September 1, 2009 but that
23are is now taxed at 6.25%.
24    Beginning July 1, 2013, each month the Department shall pay
25into the Underground Storage Tank Fund from the proceeds
26collected under this Act, the Use Tax Act, the Service Use Tax

 

 

09800HB3884ham001- 27 -LRB098 15439 HLH 57481 a

1Act, and the Retailers' Occupation Tax Act an amount equal to
2the average monthly deficit in the Underground Storage Tank
3Fund during the prior year, as certified annually by the
4Illinois Environmental Protection Agency, but the total
5payment into the Underground Storage Tank Fund under this Act,
6the Use Tax Act, the Service Use Tax Act, and the Retailers'
7Occupation Tax Act shall not exceed $18,000,000 in any State
8fiscal year. As used in this paragraph, the "average monthly
9deficit" shall be equal to the difference between the average
10monthly claims for payment by the fund and the average monthly
11revenues deposited into the fund, excluding payments made
12pursuant to this paragraph.
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

 

 

09800HB3884ham001- 28 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 29 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 30 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 31 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 32 -LRB098 15439 HLH 57481 a

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 and ending on September 30,

 

 

09800HB3884ham001- 33 -LRB098 15439 HLH 57481 a

12013, the Department shall each month pay into the Illinois Tax
2Increment Fund 0.27% of 80% of the net revenue realized for the
3preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
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    Of the remainder of the moneys received by the Department
19pursuant to this Act, 75% shall be paid into the General
20Revenue Fund of the State Treasury and 25% shall be reserved in
21a special account and used only for the transfer to the Common
22School Fund as part of the monthly transfer from the General
23Revenue Fund in accordance with Section 8a of the State Finance
24Act.
25    The Department may, upon separate written notice to a
26taxpayer, require the taxpayer to prepare and file with the

 

 

09800HB3884ham001- 34 -LRB098 15439 HLH 57481 a

1Department on a form prescribed by the Department within not
2less than 60 days after receipt of the notice an annual
3information return for the tax year specified in the notice.
4Such annual return to the Department shall include a statement
5of gross receipts as shown by the taxpayer's last Federal
6income tax return. If the total receipts of the business as
7reported in the Federal income tax return do not agree with the
8gross receipts reported to the Department of Revenue for the
9same period, the taxpayer shall attach to his annual return a
10schedule showing a reconciliation of the 2 amounts and the
11reasons for the difference. The taxpayer's annual return to the
12Department shall also disclose the cost of goods sold by the
13taxpayer during the year covered by such return, opening and
14closing inventories of such goods for such year, cost of goods
15used from stock or taken from stock and given away by the
16taxpayer during such year, pay roll information of the
17taxpayer's business during such year and any additional
18reasonable information which the Department deems would be
19helpful in determining the accuracy of the monthly, quarterly
20or annual returns filed by such taxpayer as hereinbefore
21provided for in this Section.
22    If the annual information return required by this Section
23is not filed when and as required, the taxpayer shall be liable
24as follows:
25        (i) Until January 1, 1994, the taxpayer shall be liable
26    for a penalty equal to 1/6 of 1% of the tax due from such

 

 

09800HB3884ham001- 35 -LRB098 15439 HLH 57481 a

1    taxpayer under this Act during the period to be covered by
2    the annual return for each month or fraction of a month
3    until such return is filed as required, the penalty to be
4    assessed and collected in the same manner as any other
5    penalty provided for in this Act.
6        (ii) On and after January 1, 1994, the taxpayer shall
7    be liable for a penalty as described in Section 3-4 of the
8    Uniform Penalty and Interest Act.
9    The chief executive officer, proprietor, owner or highest
10ranking manager shall sign the annual return to certify the
11accuracy of the information contained therein. Any person who
12willfully signs the annual return containing false or
13inaccurate information shall be guilty of perjury and punished
14accordingly. The annual return form prescribed by the
15Department shall include a warning that the person signing the
16return may be liable for perjury.
17    The foregoing portion of this Section concerning the filing
18of an annual information return shall not apply to a serviceman
19who is not required to file an income tax return with the
20United States Government.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

09800HB3884ham001- 36 -LRB098 15439 HLH 57481 a

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, it shall be
7permissible for manufacturers, importers and wholesalers whose
8products are sold by numerous servicemen in Illinois, and who
9wish to do so, to assume the responsibility for accounting and
10paying to the Department all tax accruing under this Act with
11respect to such sales, if the servicemen who are affected do
12not make written objection to the Department to this
13arrangement.
14(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1598-298, eff. 8-9-13; 98-496, eff. 1-1-14; revised 9-9-13.)
 
16    Section 15. The Retailers' Occupation Tax Act is amended by
17changing Sections 1, 2-10, and 3 as follows:
 
18    (35 ILCS 120/1)  (from Ch. 120, par. 440)
19    Sec. 1. Definitions. "Sale at retail" means any transfer of
20the ownership of or title to tangible personal property to a
21purchaser, for the purpose of use or consumption, and not for
22the purpose of resale in any form as tangible personal property
23to the extent not first subjected to a use for which it was
24purchased, for a valuable consideration: Provided that the

 

 

09800HB3884ham001- 37 -LRB098 15439 HLH 57481 a

1property purchased is deemed to be purchased for the purpose of
2resale, despite first being used, to the extent to which it is
3resold as an ingredient of an intentionally produced product or
4byproduct of manufacturing. For this purpose, slag produced as
5an incident to manufacturing pig iron or steel and sold is
6considered to be an intentionally produced byproduct of
7manufacturing. Transactions whereby the possession of the
8property is transferred but the seller retains the title as
9security for payment of the selling price shall be deemed to be
10sales.
11    "Sale at retail" shall be construed to include any transfer
12of the ownership of or title to tangible personal property to a
13purchaser, for use or consumption by any other person to whom
14such purchaser may transfer the tangible personal property
15without a valuable consideration, and to include any transfer,
16whether made for or without a valuable consideration, for
17resale in any form as tangible personal property unless made in
18compliance with Section 2c of this Act.
19    Sales of tangible personal property, which property, to the
20extent not first subjected to a use for which it was purchased,
21as an ingredient or constituent, goes into and forms a part of
22tangible personal property subsequently the subject of a "Sale
23at retail", are not sales at retail as defined in this Act:
24Provided that the property purchased is deemed to be purchased
25for the purpose of resale, despite first being used, to the
26extent to which it is resold as an ingredient of an

 

 

09800HB3884ham001- 38 -LRB098 15439 HLH 57481 a

1intentionally produced product or byproduct of manufacturing.
2    "Sale at retail" shall be construed to include any Illinois
3florist's sales transaction in which the purchase order is
4received in Illinois by a florist and the sale is for use or
5consumption, but the Illinois florist has a florist in another
6state deliver the property to the purchaser or the purchaser's
7donee in such other state.
8    Nonreusable tangible personal property that is used by
9persons engaged in the business of operating a restaurant,
10cafeteria, or drive-in is a sale for resale when it is
11transferred to customers in the ordinary course of business as
12part of the sale of food or beverages and is used to deliver,
13package, or consume food or beverages, regardless of where
14consumption of the food or beverages occurs. Examples of those
15items include, but are not limited to nonreusable, paper and
16plastic cups, plates, baskets, boxes, sleeves, buckets or other
17containers, utensils, straws, placemats, napkins, doggie bags,
18and wrapping or packaging materials that are transferred to
19customers as part of the sale of food or beverages in the
20ordinary course of business.
21    The purchase, employment and transfer of such tangible
22personal property as newsprint and ink for the primary purpose
23of conveying news (with or without other information) is not a
24purchase, use or sale of tangible personal property.
25    A person whose activities are organized and conducted
26primarily as a not-for-profit service enterprise, and who

 

 

09800HB3884ham001- 39 -LRB098 15439 HLH 57481 a

1engages in selling tangible personal property at retail
2(whether to the public or merely to members and their guests)
3is engaged in the business of selling tangible personal
4property at retail with respect to such transactions, excepting
5only a person organized and operated exclusively for
6charitable, religious or educational purposes either (1), to
7the extent of sales by such person to its members, students,
8patients or inmates of tangible personal property to be used
9primarily for the purposes of such person, or (2), to the
10extent of sales by such person of tangible personal property
11which is not sold or offered for sale by persons organized for
12profit. The selling of school books and school supplies by
13schools at retail to students is not "primarily for the
14purposes of" the school which does such selling. The provisions
15of this paragraph shall not apply to nor subject to taxation
16occasional dinners, socials or similar activities of a person
17organized and operated exclusively for charitable, religious
18or educational purposes, whether or not such activities are
19open to the public.
20    A person who is the recipient of a grant or contract under
21Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
22serves meals to participants in the federal Nutrition Program
23for the Elderly in return for contributions established in
24amount by the individual participant pursuant to a schedule of
25suggested fees as provided for in the federal Act is not
26engaged in the business of selling tangible personal property

 

 

09800HB3884ham001- 40 -LRB098 15439 HLH 57481 a

1at retail with respect to such transactions.
2    "Purchaser" means anyone who, through a sale at retail,
3acquires the ownership of or title to tangible personal
4property for a valuable consideration.
5    "Reseller of motor fuel" means any person engaged in the
6business of selling or delivering or transferring title of
7motor fuel to another person other than for use or consumption.
8No person shall act as a reseller of motor fuel within this
9State without first being registered as a reseller pursuant to
10Section 2c or a retailer pursuant to Section 2a.
11    "Selling price" or the "amount of sale" means the
12consideration for a sale valued in money whether received in
13money or otherwise, including cash, credits, property, other
14than as hereinafter provided, and services, but not including
15the value of or credit given for traded-in tangible personal
16property where the item that is traded-in is of like kind and
17character as that which is being sold, and shall be determined
18without any deduction on account of the cost of the property
19sold, the cost of materials used, labor or service cost or any
20other expense whatsoever, but does not include charges that are
21added to prices by sellers on account of the seller's tax
22liability under this Act, or on account of the seller's duty to
23collect, from the purchaser, the tax that is imposed by the Use
24Tax Act, or, except as otherwise provided with respect to any
25cigarette tax imposed by a home rule unit, on account of the
26seller's tax liability under any local occupation tax

 

 

09800HB3884ham001- 41 -LRB098 15439 HLH 57481 a

1administered by the Department, or, except as otherwise
2provided with respect to any cigarette tax imposed by a home
3rule unit on account of the seller's duty to collect, from the
4purchasers, the tax that is imposed under any local use tax
5administered by the Department. Effective December 1, 1985,
6"selling price" shall include charges that are added to prices
7by sellers on account of the seller's tax liability under the
8Cigarette Tax Act, on account of the sellers' duty to collect,
9from the purchaser, the tax imposed under the Cigarette Use Tax
10Act, and on account of the seller's duty to collect, from the
11purchaser, any cigarette tax imposed by a home rule unit.
12    The phrase "like kind and character" shall be liberally
13construed (including but not limited to any form of motor
14vehicle for any form of motor vehicle, or any kind of farm or
15agricultural implement for any other kind of farm or
16agricultural implement), while not including a kind of item
17which, if sold at retail by that retailer, would be exempt from
18retailers' occupation tax and use tax as an isolated or
19occasional sale.
20    "Gross receipts" from the sales of tangible personal
21property at retail means the total selling price or the amount
22of such sales, as hereinbefore defined. In the case of charge
23and time sales, the amount thereof shall be included only as
24and when payments are received by the seller. Receipts or other
25consideration derived by a seller from the sale, transfer or
26assignment of accounts receivable to a wholly owned subsidiary

 

 

09800HB3884ham001- 42 -LRB098 15439 HLH 57481 a

1will not be deemed payments prior to the time the purchaser
2makes payment on such accounts.
3    "Department" means the Department of Revenue.
4    "Person" means any natural individual, firm, partnership,
5association, joint stock company, joint adventure, public or
6private corporation, limited liability company, or a receiver,
7executor, trustee, guardian or other representative appointed
8by order of any court.
9    The isolated or occasional sale of tangible personal
10property at retail by a person who does not hold himself out as
11being engaged (or who does not habitually engage) in selling
12such tangible personal property at retail, or a sale through a
13bulk vending machine, does not constitute engaging in a
14business of selling such tangible personal property at retail
15within the meaning of this Act; provided that any person who is
16engaged in a business which is not subject to the tax imposed
17by this Act because of involving the sale of or a contract to
18sell real estate or a construction contract to improve real
19estate or a construction contract to engineer, install, and
20maintain an integrated system of products, but who, in the
21course of conducting such business, transfers tangible
22personal property to users or consumers in the finished form in
23which it was purchased, and which does not become real estate
24or was not engineered and installed, under any provision of a
25construction contract or real estate sale or real estate sales
26agreement entered into with some other person arising out of or

 

 

09800HB3884ham001- 43 -LRB098 15439 HLH 57481 a

1because of such nontaxable business, is engaged in the business
2of selling tangible personal property at retail to the extent
3of the value of the tangible personal property so transferred.
4If, in such a transaction, a separate charge is made for the
5tangible personal property so transferred, the value of such
6property, for the purpose of this Act, shall be the amount so
7separately charged, but not less than the cost of such property
8to the transferor; if no separate charge is made, the value of
9such property, for the purposes of this Act, is the cost to the
10transferor of such tangible personal property. Construction
11contracts for the improvement of real estate consisting of
12engineering, installation, and maintenance of voice, data,
13video, security, and all telecommunication systems do not
14constitute engaging in a business of selling tangible personal
15property at retail within the meaning of this Act if they are
16sold at one specified contract price.
17    A person who holds himself or herself out as being engaged
18(or who habitually engages) in selling tangible personal
19property at retail is a person engaged in the business of
20selling tangible personal property at retail hereunder with
21respect to such sales (and not primarily in a service
22occupation) notwithstanding the fact that such person designs
23and produces such tangible personal property on special order
24for the purchaser and in such a way as to render the property
25of value only to such purchaser, if such tangible personal
26property so produced on special order serves substantially the

 

 

09800HB3884ham001- 44 -LRB098 15439 HLH 57481 a

1same function as stock or standard items of tangible personal
2property that are sold at retail.
3    Persons who engage in the business of transferring tangible
4personal property upon the redemption of trading stamps are
5engaged in the business of selling such property at retail and
6shall be liable for and shall pay the tax imposed by this Act
7on the basis of the retail value of the property transferred
8upon redemption of such stamps.
9    "Bulk vending machine" means a vending machine, containing
10unsorted confections, nuts, toys, or other items designed
11primarily to be used or played with by children which, when a
12coin or coins of a denomination not larger than $0.50 are
13inserted, are dispensed in equal portions, at random and
14without selection by the customer.
15    "Public university" means Chicago State University,
16Eastern Illinois University, Governors State University,
17Illinois State University, Northeastern Illinois University,
18Northern Illinois University, Southern Illinois University,
19Western Illinois University, the University of Illinois, and
20any other public university established or authorized by the
21General Assembly.
22(Source: P.A. 95-723, eff. 6-23-08.)
 
23    (35 ILCS 120/2-10)
24    Sec. 2-10. Rate of tax. Unless otherwise provided in this
25Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1gross receipts from sales of tangible personal property made in
2the course of business.
3    Beginning on July 1, 2014, in addition to any other tax, a
4tax is imposed at the rate of 1% of the gross receipts from
5sales of tangible personal property sold by a retailer on the
6campus of a public university.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14    Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device that
18is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall be
23printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a
26required sign through December 31, 2000 is guilty of a petty

 

 

09800HB3884ham001- 46 -LRB098 15439 HLH 57481 a

1offense for which the fine shall be $500 per day per each
2retail premises where a violation occurs.
3    With respect to gasohol, as defined in the Use Tax Act, the
4tax imposed by this Act applies to (i) 70% of the proceeds of
5sales made on or after January 1, 1990, and before July 1,
62003, (ii) 80% of the proceeds of sales made on or after July
71, 2003 and on or before December 31, 2018, and (iii) 100% of
8the proceeds of sales made thereafter. If, at any time,
9however, the tax under this Act on sales of gasohol, as defined
10in the Use Tax Act, is imposed at the rate of 1.25%, then the
11tax imposed by this Act applies to 100% of the proceeds of
12sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the proceeds of sales made on or after July 1, 2003 and on or
16before December 31, 2018 but applies to 100% of the proceeds of
17sales made thereafter.
18    With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the proceeds of
21sales made on or after July 1, 2003 and on or before December
2231, 2018 and (ii) 100% of the proceeds of sales made
23thereafter. If, at any time, however, the tax under this Act on
24sales of biodiesel blends, as defined in the Use Tax Act, with
25no less than 1% and no more than 10% biodiesel is imposed at
26the rate of 1.25%, then the tax imposed by this Act applies to

 

 

09800HB3884ham001- 47 -LRB098 15439 HLH 57481 a

1100% of the proceeds of sales of biodiesel blends with no less
2than 1% and no more than 10% biodiesel made during that time.
3    With respect to 100% biodiesel, as defined in the Use Tax
4Act, and biodiesel blends, as defined in the Use Tax Act, with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of sales made on or
7after July 1, 2003 and on or before December 31, 2018 but
8applies to 100% of the proceeds of sales made thereafter.
9    With respect to food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances,
14modifications to a motor vehicle for the purpose of rendering
15it usable by a disabled person, and insulin, urine testing
16materials, syringes, and needles used by diabetics, for human
17use, the tax is imposed at the rate of 1%. For the purposes of
18this Section, until September 1, 2009: the term "soft drinks"
19means any complete, finished, ready-to-use, non-alcoholic
20drink, whether carbonated or not, including but not limited to
21soda water, cola, fruit juice, vegetable juice, carbonated
22water, and all other preparations commonly known as soft drinks
23of whatever kind or description that are contained in any
24closed or sealed bottle, can, carton, or container, regardless
25of size; but "soft drinks" does not include coffee, tea,
26non-carbonated water, infant formula, milk or milk products as

 

 

09800HB3884ham001- 48 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 49 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 50 -LRB098 15439 HLH 57481 a

1(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
2    (35 ILCS 120/3)  (from Ch. 120, par. 442)
3    Sec. 3. Except as provided in this Section, on or before
4the twentieth day of each calendar month, every person engaged
5in the business of selling tangible personal property at retail
6in this State during the preceding calendar month shall file a
7return with the Department, stating:
8        1. The name of the seller;
9        2. His residence address and the address of his
10    principal place of business and the address of the
11    principal place of business (if that is a different
12    address) from which he engages in the business of selling
13    tangible personal property at retail in this State;
14        3. Total amount of receipts received by him during the
15    preceding calendar month or quarter, as the case may be,
16    from sales of tangible personal property, and from services
17    furnished, by him during such preceding calendar month or
18    quarter;
19        4. Total amount received by him during the preceding
20    calendar month or quarter on charge and time sales of
21    tangible personal property, and from services furnished,
22    by him prior to the month or quarter for which the return
23    is filed;
24        4-5. Total amount of receipts received by him during
25    the preceding calendar month or quarter, as the case may

 

 

09800HB3884ham001- 51 -LRB098 15439 HLH 57481 a

1    be, from sales of tangible personal property occurring on
2    the campus of a public university;
3        5. Deductions allowed by law;
4        6. Gross receipts which were received by him during the
5    preceding calendar month or quarter and upon the basis of
6    which the tax is imposed;
7        7. The amount of credit provided in Section 2d of this
8    Act;
9        8. The amount of tax due;
10        9. The signature of the taxpayer; and
11        10. Such other reasonable information as the
12    Department may require.
13    If a taxpayer fails to sign a return within 30 days after
14the proper notice and demand for signature by the Department,
15the return shall be considered valid and any amount shown to be
16due on the return shall be deemed assessed.
17    Each return shall be accompanied by the statement of
18prepaid tax issued pursuant to Section 2e for which credit is
19claimed.
20    Prior to October 1, 2003, and on and after September 1,
212004 a retailer may accept a Manufacturer's Purchase Credit
22certification from a purchaser in satisfaction of Use Tax as
23provided in Section 3-85 of the Use Tax Act if the purchaser
24provides the appropriate documentation as required by Section
253-85 of the Use Tax Act. A Manufacturer's Purchase Credit
26certification, accepted by a retailer prior to October 1, 2003

 

 

09800HB3884ham001- 52 -LRB098 15439 HLH 57481 a

1and on and after September 1, 2004 as provided in Section 3-85
2of the Use Tax Act, may be used by that retailer to satisfy
3Retailers' Occupation Tax liability in the amount claimed in
4the certification, not to exceed 6.25% of the receipts subject
5to tax from a qualifying purchase. A Manufacturer's Purchase
6Credit reported on any original or amended return filed under
7this Act after October 20, 2003 for reporting periods prior to
8September 1, 2004 shall be disallowed. Manufacturer's
9Purchaser Credit reported on annual returns due on or after
10January 1, 2005 will be disallowed for periods prior to
11September 1, 2004. No Manufacturer's Purchase Credit may be
12used after September 30, 2003 through August 31, 2004 to
13satisfy any tax liability imposed under this Act, including any
14audit liability.
15    The Department may require returns to be filed on a
16quarterly basis. If so required, a return for each calendar
17quarter shall be filed on or before the twentieth day of the
18calendar month following the end of such calendar quarter. The
19taxpayer shall also file a return with the Department for each
20of the first two months of each calendar quarter, on or before
21the twentieth day of the following calendar month, stating:
22        1. The name of the seller;
23        2. The address of the principal place of business from
24    which he engages in the business of selling tangible
25    personal property at retail in this State;
26        3. The total amount of taxable receipts received by him

 

 

09800HB3884ham001- 53 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 54 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 55 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 56 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 57 -LRB098 15439 HLH 57481 a

1less than 50 cents.
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 year
7being due by April 20 of such year; with the return for April,
8May and June of a given year being due by July 20 of such year;
9with the return for July, August and September of a given year
10being due by October 20 of such year, and with the return for
11October, 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 with the Department does not exceed $50, the
16Department may authorize his returns to be filed on an annual
17basis, with the return for a given year being due by January 20
18of the following 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

 

 

09800HB3884ham001- 58 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 59 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 60 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 61 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 62 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 63 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 64 -LRB098 15439 HLH 57481 a

1such retailer files his periodic return. The Department may
2disallow the discount for retailers whose certificate of
3registration is revoked at the time the return is filed, but
4only if the Department's decision to revoke the certificate of
5registration has become final.
6    Before October 1, 2000, if the taxpayer's average monthly
7tax liability to the Department under this Act, the Use Tax
8Act, the Service Occupation Tax Act, and the Service Use Tax
9Act, excluding any liability for prepaid sales tax to be
10remitted in accordance with Section 2d of this Act, was $10,000
11or more during the preceding 4 complete calendar quarters, he
12shall file a return with the Department each month by the 20th
13day of the month next following the month during which such tax
14liability is incurred and shall make payments to the Department
15on or before the 7th, 15th, 22nd and last day of the month
16during which such liability is incurred. On and after October
171, 2000, if the taxpayer's average monthly tax liability to the
18Department under this Act, the Use Tax Act, the Service
19Occupation Tax Act, and the Service Use Tax Act, excluding any
20liability for prepaid sales tax to be remitted in accordance
21with Section 2d of this Act, was $20,000 or more during the
22preceding 4 complete calendar quarters, he shall file a return
23with the Department each month by the 20th day of the month
24next following the month during which such tax liability is
25incurred and shall make payment to the Department on or before
26the 7th, 15th, 22nd and last day of the month during which such

 

 

09800HB3884ham001- 65 -LRB098 15439 HLH 57481 a

1liability is incurred. If the month during which such tax
2liability is incurred began prior to January 1, 1985, each
3payment shall be in an amount equal to 1/4 of the taxpayer's
4actual liability for the month or an amount set by the
5Department not to exceed 1/4 of the average monthly liability
6of the taxpayer to the Department for the preceding 4 complete
7calendar quarters (excluding the month of highest liability and
8the month of lowest liability in such 4 quarter period). If the
9month during which such tax liability is incurred begins on or
10after January 1, 1985 and prior to January 1, 1987, each
11payment shall be in an amount equal to 22.5% of the taxpayer's
12actual liability for the month or 27.5% of the taxpayer's
13liability for the same calendar month of the preceding year. If
14the month during which such tax liability is incurred begins on
15or after January 1, 1987 and prior to January 1, 1988, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 26.25% of the taxpayer's
18liability for the same calendar month of the preceding year. If
19the month during which such tax liability is incurred begins on
20or after January 1, 1988, and prior to January 1, 1989, or
21begins on or after January 1, 1996, each payment shall be in an
22amount equal to 22.5% of the taxpayer's actual liability for
23the month or 25% of the taxpayer's liability for the same
24calendar month of the preceding year. If the month during which
25such tax liability is incurred begins on or after January 1,
261989, and prior to January 1, 1996, each payment shall be in an

 

 

09800HB3884ham001- 66 -LRB098 15439 HLH 57481 a

1amount equal to 22.5% of the taxpayer's actual liability for
2the month or 25% of the taxpayer's liability for the same
3calendar month of the preceding year or 100% of the taxpayer's
4actual liability for the quarter monthly reporting period. The
5amount of such quarter monthly payments shall be credited
6against the final tax liability of the taxpayer's return for
7that month. Before October 1, 2000, once applicable, the
8requirement of the making of quarter monthly payments to the
9Department by taxpayers having an average monthly tax liability
10of $10,000 or more as determined in the manner provided above
11shall continue until such taxpayer's average monthly liability
12to the Department during the preceding 4 complete calendar
13quarters (excluding the month of highest liability and the
14month of lowest liability) is less than $9,000, or until such
15taxpayer's average monthly liability to the Department as
16computed for each calendar quarter of the 4 preceding complete
17calendar quarter period is less than $10,000. However, if a
18taxpayer can show the Department that a substantial change in
19the taxpayer's business has occurred which causes the taxpayer
20to anticipate that his average monthly tax liability for the
21reasonably foreseeable future will fall below the $10,000
22threshold stated above, then such taxpayer may petition the
23Department for a change in such taxpayer's reporting status. On
24and after October 1, 2000, once applicable, the requirement of
25the making of quarter monthly payments to the Department by
26taxpayers having an average monthly tax liability of $20,000 or

 

 

09800HB3884ham001- 67 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 68 -LRB098 15439 HLH 57481 a

1payment dates for taxpayers who file on other than a calendar
2monthly basis.
3    The provisions of this paragraph apply before October 1,
42001. Without regard to whether a taxpayer is required to make
5quarter monthly payments as specified above, any taxpayer who
6is required by Section 2d of this Act to collect and remit
7prepaid taxes and has collected prepaid taxes which average in
8excess of $25,000 per month during the preceding 2 complete
9calendar quarters, shall file a return with the Department as
10required by Section 2f and shall make payments to the
11Department on or before the 7th, 15th, 22nd and last day of the
12month during which such liability is incurred. If the month
13during which such tax liability is incurred began prior to the
14effective date of this amendatory Act of 1985, each payment
15shall be in an amount not less than 22.5% of the taxpayer's
16actual liability under Section 2d. If the month during which
17such tax liability is incurred begins on or after January 1,
181986, each payment shall be in an amount equal to 22.5% of the
19taxpayer's actual liability for the month or 27.5% of the
20taxpayer's liability for the same calendar month of the
21preceding calendar year. If the month during which such tax
22liability is incurred begins on or after January 1, 1987, 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.
26The amount of such quarter monthly payments shall be credited

 

 

09800HB3884ham001- 69 -LRB098 15439 HLH 57481 a

1against the final tax liability of the taxpayer's return for
2that month filed under this Section or Section 2f, as the case
3may be. Once applicable, the requirement of the making of
4quarter monthly payments to the Department pursuant to this
5paragraph shall continue until such taxpayer's average monthly
6prepaid tax collections during the preceding 2 complete
7calendar quarters is $25,000 or less. If any such quarter
8monthly payment is not paid at the time or in the amount
9required, the taxpayer shall be liable for penalties and
10interest on such difference, except insofar as the taxpayer has
11previously made payments for that month in excess of the
12minimum payments previously due.
13    The provisions of this paragraph apply on and after October
141, 2001. Without regard to whether a taxpayer is required to
15make quarter monthly payments as specified above, any taxpayer
16who is required by Section 2d of this Act to collect and remit
17prepaid taxes and has collected prepaid taxes that average in
18excess of $20,000 per month during the preceding 4 complete
19calendar quarters shall file a return with the Department as
20required by Section 2f and shall make payments to the
21Department on or before the 7th, 15th, 22nd and last day of the
22month during which the liability is incurred. Each payment
23shall be in an amount equal to 22.5% of the taxpayer's actual
24liability for the month or 25% of the taxpayer's liability for
25the same calendar month of the preceding year. The amount of
26the quarter monthly payments shall be credited against the

 

 

09800HB3884ham001- 70 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 71 -LRB098 15439 HLH 57481 a

1prescribed by the Department. If no such request is made, the
2taxpayer may credit such excess payment against tax liability
3subsequently to be remitted to the Department under this Act,
4the Use Tax Act, the Service Occupation Tax Act or the Service
5Use Tax Act, in accordance with reasonable rules and
6regulations prescribed by the Department. If the Department
7subsequently determined that all or any part of the credit
8taken was not actually due to the taxpayer, the taxpayer's 2.1%
9and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
10of the difference between the credit taken and that actually
11due, and that taxpayer shall be liable for penalties and
12interest on such difference.
13    If a retailer of motor fuel is entitled to a credit under
14Section 2d of this Act which exceeds the taxpayer's liability
15to the Department under this Act for the month which the
16taxpayer is filing a return, the Department shall issue the
17taxpayer a credit memorandum for the excess.
18    Beginning July 1, 2014, each month the Department shall pay
19into the Public University Capital Projects Fund 100% of the
20net revenue realized for the preceding month from the
21additional 1% tax imposed on sales occurring on the campus of a
22public university.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund, a special fund in the
25State treasury which is hereby created, the net revenue
26realized for the preceding month from the 1% tax on sales of

 

 

09800HB3884ham001- 72 -LRB098 15439 HLH 57481 a

1food for human consumption which is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks and food which has been prepared for immediate
4consumption) and prescription and nonprescription medicines,
5drugs, medical appliances and insulin, urine testing
6materials, syringes and needles used by diabetics.
7    Beginning January 1, 1990, each month the Department shall
8pay into the County and Mass Transit District Fund, a special
9fund in the State treasury which is hereby created, 4% of the
10net revenue realized for the preceding month from the 6.25%
11general rate.
12    Beginning August 1, 2000, each month the Department shall
13pay into the County and Mass Transit District Fund 20% of the
14net revenue realized for the preceding month from the 1.25%
15rate on the selling price of motor fuel and gasohol. Beginning
16September 1, 2010, each month the Department shall pay into the
17County and Mass Transit District Fund 20% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of sales tax holiday items.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of tangible personal property.
24    Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

09800HB3884ham001- 73 -LRB098 15439 HLH 57481 a

1selling price of motor fuel and gasohol. Beginning September 1,
22010, each month the Department shall pay into the Local
3Government Tax Fund 80% of the net revenue realized for the
4preceding month from the 1.25% rate on the selling price of
5sales tax holiday items.
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
12are is now taxed at 6.25%.
13    Beginning July 1, 2011, each month the Department shall pay
14into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
15realized for the preceding month from the 6.25% general rate on
16the selling price of sorbents used in Illinois in the process
17of sorbent injection as used to comply with the Environmental
18Protection Act or the federal Clean Air Act, but the total
19payment into the Clean Air Act (CAA) Permit Fund under this Act
20and the Use Tax Act shall not exceed $2,000,000 in any fiscal
21year.
22    Beginning July 1, 2013, each month the Department shall pay
23into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Use Tax Act, the Service Use Tax
25Act, and the Service Occupation Tax Act an amount equal to the
26average monthly deficit in the Underground Storage Tank Fund

 

 

09800HB3884ham001- 74 -LRB098 15439 HLH 57481 a

1during the prior year, as certified annually by the Illinois
2Environmental Protection Agency, but the total payment into the
3Underground Storage Tank Fund under this Act, the Use Tax Act,
4the Service Use Tax Act, and the Service Occupation Tax Act
5shall not exceed $18,000,000 in any State fiscal year. As used
6in this paragraph, the "average monthly deficit" shall be equal
7to the difference between the average monthly claims for
8payment by the fund and the average monthly revenues deposited
9into the fund, excluding payments made pursuant to this
10paragraph.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, (a) 1.75% thereof shall be paid into the
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14and after July 1, 1989, 3.8% thereof shall be paid into the
15Build Illinois Fund; provided, however, that if in any fiscal
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17may be, of the moneys received by the Department and required
18to be paid into the Build Illinois Fund pursuant to this Act,
19Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
20Act, and Section 9 of the Service Occupation Tax Act, such Acts
21being hereinafter called the "Tax Acts" and such aggregate of
222.2% or 3.8%, as the case may be, of moneys being hereinafter
23called the "Tax Act Amount", and (2) the amount transferred to
24the Build Illinois Fund from the State and Local Sales Tax
25Reform Fund shall be less than the Annual Specified Amount (as
26hereinafter defined), an amount equal to the difference shall

 

 

09800HB3884ham001- 75 -LRB098 15439 HLH 57481 a

1be immediately paid into the Build Illinois Fund from other
2moneys received by the Department pursuant to the Tax Acts; the
3"Annual Specified Amount" means the amounts specified below for
4fiscal years 1986 through 1993:
5Fiscal YearAnnual Specified Amount
61986$54,800,000
71987$76,650,000
81988$80,480,000
91989$88,510,000
101990$115,330,000
111991$145,470,000
121992$182,730,000
131993$206,520,000;
14and means the Certified Annual Debt Service Requirement (as
15defined in Section 13 of the Build Illinois Bond Act) or the
16Tax Act Amount, whichever is greater, for fiscal year 1994 and
17each fiscal year thereafter; and further provided, that if on
18the last business day of any month the sum of (1) the Tax Act
19Amount required to be deposited into the Build Illinois Bond
20Account in the Build Illinois Fund during such month and (2)
21the amount transferred to the Build Illinois Fund from the
22State and Local Sales Tax Reform Fund shall have been less than
231/12 of the Annual Specified Amount, an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and, further provided, that in no event shall the

 

 

09800HB3884ham001- 76 -LRB098 15439 HLH 57481 a

1payments required under the preceding proviso result in
2aggregate payments into the Build Illinois Fund pursuant to
3this clause (b) for any fiscal year in excess of the greater of
4(i) the Tax Act Amount or (ii) the Annual Specified Amount for
5such fiscal year. The amounts payable into the Build Illinois
6Fund under clause (b) of the first sentence in this paragraph
7shall be payable only until such time as the aggregate amount
8on deposit under each trust indenture securing Bonds issued and
9outstanding pursuant to the Build Illinois Bond Act is
10sufficient, taking into account any future investment income,
11to fully provide, in accordance with such indenture, for the
12defeasance of or the payment of the principal of, premium, if
13any, and interest on the Bonds secured by such indenture and on
14any Bonds expected to be issued thereafter and all fees and
15costs payable with respect thereto, all as certified by the
16Director of the Bureau of the Budget (now Governor's Office of
17Management and Budget). If on the last business day of any
18month in which Bonds are outstanding pursuant to the Build
19Illinois Bond Act, the aggregate of moneys deposited in the
20Build Illinois Bond Account in the Build Illinois Fund in such
21month shall be less than the amount required to be transferred
22in such month from the Build Illinois Bond Account to the Build
23Illinois Bond Retirement and Interest Fund pursuant to Section
2413 of the Build Illinois Bond Act, an amount equal to such
25deficiency shall be immediately paid from other moneys received
26by the Department pursuant to the Tax Acts to the Build

 

 

09800HB3884ham001- 77 -LRB098 15439 HLH 57481 a

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

 

 

09800HB3884ham001- 78 -LRB098 15439 HLH 57481 a

11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

 

 

09800HB3884ham001- 79 -LRB098 15439 HLH 57481 a

12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21    Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

 

 

09800HB3884ham001- 80 -LRB098 15439 HLH 57481 a

1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

 

 

09800HB3884ham001- 81 -LRB098 15439 HLH 57481 a

1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, 75% thereof shall be paid into the State
5Treasury and 25% shall be reserved in a special account and
6used only for the transfer to the Common School Fund as part of
7the monthly transfer from the General Revenue Fund in
8accordance with Section 8a of the State Finance Act.
9    The Department may, upon separate written notice to a
10taxpayer, require the taxpayer to prepare and file with the
11Department on a form prescribed by the Department within not
12less than 60 days after receipt of the notice an annual
13information return for the tax year specified in the notice.
14Such annual return to the Department shall include a statement
15of gross receipts as shown by the retailer's last Federal
16income tax return. If the total receipts of the business as
17reported in the Federal income tax return do not agree with the
18gross receipts reported to the Department of Revenue for the
19same period, the retailer shall attach to his annual return a
20schedule showing a reconciliation of the 2 amounts and the
21reasons for the difference. The retailer's annual return to the
22Department shall also disclose the cost of goods sold by the
23retailer during the year covered by such return, opening and
24closing inventories of such goods for such year, costs of goods
25used from stock or taken from stock and given away by the
26retailer during such year, payroll information of the

 

 

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

 

 

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1    The provisions of this Section concerning the filing of an
2annual information return do not apply to a retailer who is not
3required to file an income tax return with the United States
4Government.
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    Any person who promotes, organizes, provides retail
24selling space for concessionaires or other types of sellers at
25the Illinois State Fair, DuQuoin State Fair, county fairs,
26local fairs, art shows, flea markets and similar exhibitions or

 

 

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1events, including any transient merchant as defined by Section
22 of the Transient Merchant Act of 1987, is required to file a
3report with the Department providing the name of the merchant's
4business, the name of the person or persons engaged in
5merchant's business, the permanent address and Illinois
6Retailers Occupation Tax Registration Number of the merchant,
7the dates and location of the event and other reasonable
8information that the Department may require. The report must be
9filed not later than the 20th day of the month next following
10the month during which the event with retail sales was held.
11Any person who fails to file a report required by this Section
12commits a business offense and is subject to a fine not to
13exceed $250.
14    Any person engaged in the business of selling tangible
15personal property at retail as a concessionaire or other type
16of seller at the Illinois State Fair, county fairs, art shows,
17flea markets and similar exhibitions or events, or any
18transient merchants, as defined by Section 2 of the Transient
19Merchant Act of 1987, may be required to make a daily report of
20the amount of such sales to the Department and to make a daily
21payment of the full amount of tax due. The Department shall
22impose this requirement when it finds that there is a
23significant risk of loss of revenue to the State at such an
24exhibition or event. Such a finding shall be based on evidence
25that a substantial number of concessionaires or other sellers
26who are not residents of Illinois will be engaging in the

 

 

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1business of selling tangible personal property at retail at the
2exhibition or event, or other evidence of a significant risk of
3loss of revenue to the State. The Department shall notify
4concessionaires and other sellers affected by the imposition of
5this requirement. In the absence of notification by the
6Department, the concessionaires and other sellers shall file
7their returns as otherwise required in this Section.
8(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
9eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
10revised 9-9-13.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".