Rep. Cynthia Soto

Filed: 4/8/2014

 

 


 

 


 
09800HB3884ham002LRB098 15439 HLH 58361 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 campus of a
15public university may receive appropriations from the Fund that

 

 

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

 

 

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1association, joint stock company, joint venture, public or
2private corporation, limited liability company, and any
3receiver, executor, trustee, guardian or other representative
4appointed by order of any court.
5    "Public university" means Chicago State University,
6Eastern Illinois University, Governors State University,
7Illinois State University, Northeastern Illinois University,
8Northern Illinois University, the Carbondale and Edwardsville
9campuses of Southern Illinois University, the Macomb and Moline
10campuses of Western Illinois University, the Chicago,
11Springfield, and Urbana-Champaign campuses of the University
12of Illinois, and any other public university established or
13authorized by the General Assembly.
14    "Sale of Service" means any transaction except:
15    (a) A retail sale of tangible personal property taxable
16under the Retailers' Occupation Tax Act or under the Use Tax
17Act.
18    (b) A sale of tangible personal property for the purpose of
19resale made in compliance with Section 2c of the Retailers'
20Occupation Tax Act.
21    (c) Except as hereinafter provided, a sale or transfer of
22tangible personal property as an incident to the rendering of
23service for or by any governmental body or for or by any
24corporation, society, association, foundation or institution
25organized and operated exclusively for charitable, religious
26or educational purposes or any not-for-profit corporation,

 

 

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1society, association, foundation, institution or organization
2which has no compensated officers or employees and which is
3organized and operated primarily for the recreation of persons
455 years of age or older. A limited liability company may
5qualify for the exemption under this paragraph only if the
6limited liability company is organized and operated
7exclusively for educational purposes.
8    (d) A sale or transfer of tangible personal property as an
9incident to the rendering of service for interstate carriers
10for hire for use as rolling stock moving in interstate commerce
11or lessors under leases of one year or longer, executed or in
12effect at the time of purchase, to interstate carriers for hire
13for use as rolling stock moving in interstate commerce, and
14equipment operated by a telecommunications provider, licensed
15as a common carrier by the Federal Communications Commission,
16which is permanently installed in or affixed to aircraft moving
17in interstate commerce.
18    (d-1) A sale or transfer of tangible personal property as
19an incident to the rendering of service for owners, lessors or
20shippers of tangible personal property which is utilized by
21interstate carriers for hire for use as rolling stock moving in
22interstate commerce, and equipment operated by a
23telecommunications provider, licensed as a common carrier by
24the Federal Communications Commission, which is permanently
25installed in or affixed to aircraft moving in interstate
26commerce.

 

 

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1    (d-1.1) On and after July 1, 2003 and through June 30,
22004, a sale or transfer of a motor vehicle of the second
3division with a gross vehicle weight in excess of 8,000 pounds
4as an incident to the rendering of service if that motor
5vehicle is subject to the commercial distribution fee imposed
6under Section 3-815.1 of the Illinois Vehicle Code. Beginning
7on July 1, 2004 and through June 30, 2005, the use in this
8State of motor vehicles of the second division: (i) with a
9gross vehicle weight rating in excess of 8,000 pounds; (ii)
10that are subject to the commercial distribution fee imposed
11under Section 3-815.1 of the Illinois Vehicle Code; and (iii)
12that are primarily used for commercial purposes. Through June
1330, 2005, this exemption applies to repair and replacement
14parts added after the initial purchase of such a motor vehicle
15if that motor vehicle is used in a manner that would qualify
16for the rolling stock exemption otherwise provided for in this
17Act. For purposes of this paragraph, "used for commercial
18purposes" means the transportation of persons or property in
19furtherance of any commercial or industrial enterprise whether
20for-hire or not.
21    (d-2) The repairing, reconditioning or remodeling, for a
22common carrier by rail, of tangible personal property which
23belongs to such carrier for hire, and as to which such carrier
24receives the physical possession of the repaired,
25reconditioned or remodeled item of tangible personal property
26in Illinois, and which such carrier transports, or shares with

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1deemed to be a manufacturing process of tangible personal
2property for wholesale or retail sale; (2) "assembling process"
3shall mean the production of any article of tangible personal
4property, whether such article is a finished product or an
5article for use in the process of manufacturing or assembling a
6different article of tangible personal property, by the
7combination of existing materials in a manner commonly regarded
8as assembling which results in a material of a different form,
9use or name; (3) "machinery" shall mean major mechanical
10machines or major components of such machines contributing to a
11manufacturing or assembling process; and (4) "equipment" shall
12include any independent device or tool separate from any
13machinery but essential to an integrated manufacturing or
14assembly process; including computers used primarily in a
15manufacturer's computer assisted design, computer assisted
16manufacturing (CAD/CAM) system; or any subunit or assembly
17comprising a component of any machinery or auxiliary, adjunct
18or attachment parts of machinery, such as tools, dies, jigs,
19fixtures, patterns and molds; or any parts which require
20periodic replacement in the course of normal operation; but
21shall not include hand tools. Equipment includes chemicals or
22chemicals acting as catalysts but only if the chemicals or
23chemicals acting as catalysts effect a direct and immediate
24change upon a product being manufactured or assembled for
25wholesale or retail sale or lease. The purchaser of such
26machinery and equipment who has an active resale registration

 

 

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1number shall furnish such number to the seller at the time of
2purchase. The purchaser of such machinery and equipment and
3tools without an active resale registration number shall
4furnish to the seller a certificate of exemption for each
5transaction stating facts establishing the exemption for that
6transaction, which certificate shall be available to the
7Department for inspection or audit.
8    Except as provided in Section 2d of this Act, the rolling
9stock exemption applies to rolling stock used by an interstate
10carrier for hire, even just between points in Illinois, if such
11rolling stock transports, for hire, persons whose journeys or
12property whose shipments originate or terminate outside
13Illinois.
14    Any informal rulings, opinions or letters issued by the
15Department in response to an inquiry or request for any opinion
16from any person regarding the coverage and applicability of
17exemption (e) to specific devices shall be published,
18maintained as a public record, and made available for public
19inspection and copying. If the informal ruling, opinion or
20letter contains trade secrets or other confidential
21information, where possible the Department shall delete such
22information prior to publication. Whenever such informal
23rulings, opinions, or letters contain any policy of general
24applicability, the Department shall formulate and adopt such
25policy as a rule in accordance with the provisions of the
26Illinois Administrative Procedure Act.

 

 

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1    On and after July 1, 1987, no entity otherwise eligible
2under exemption (c) of this Section shall make tax free
3purchases unless it has an active exemption identification
4number issued by the Department.
5    "Serviceman" means any person who is engaged in the
6occupation of making sales of service.
7    "Sale at Retail" means "sale at retail" as defined in the
8Retailers' Occupation Tax Act.
9    "Supplier" means any person who makes sales of tangible
10personal property to servicemen for the purpose of resale as an
11incident to a sale of service.
12(Source: P.A. 98-583, eff. 1-1-14.)
 
13    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
14    Sec. 3-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16the "selling price", as defined in Section 2 of the Service Use
17Tax Act, of the tangible personal property.
18    As provided in Section 3-12 of this Act, the board of
19trustees of a public university may, by a resolution passed by
20a majority vote of the board of trustees, provide that an
21additional tax shall be imposed at a rate not to exceed 2% of
22the "selling price", as defined in Section 2 of the Service Use
23Tax Act, of all tangible personal property sold by a serviceman
24on any campus of that public university.
25    For the purpose of computing the taxes imposed under this

 

 

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1Act this tax, in no event shall the "selling price" be less
2than the cost price to the serviceman of the tangible personal
3property transferred. The selling price of each item of
4tangible personal property transferred as an incident of a sale
5of service may be shown as a distinct and separate item on the
6serviceman's billing to the service customer. If the selling
7price is not so shown, the selling price of the tangible
8personal property is deemed to be 50% of the serviceman's
9entire billing to the service customer. When, however, a
10serviceman contracts to design, develop, and produce special
11order machinery or equipment, the tax imposed by this Act shall
12be based on the serviceman's cost price of the tangible
13personal property transferred incident to the completion of the
14contract.
15    Beginning on July 1, 2000 and through December 31, 2000,
16with respect to motor fuel, as defined in Section 1.1 of the
17Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
18the Use Tax Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, as defined in the Use Tax Act, the
20tax imposed by this Act shall apply to (i) 70% of the cost
21price of property transferred as an incident to the sale of
22service on or after January 1, 1990, and before July 1, 2003,
23(ii) 80% of the selling price of property transferred as an
24incident to the sale of service on or after July 1, 2003 and on
25or before December 31, 2018, and (iii) 100% of the cost price
26thereafter. If, at any time, however, the tax under this Act on

 

 

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1sales of gasohol, as defined in the Use Tax Act, is imposed at
2the rate of 1.25%, then the tax imposed by this Act applies to
3100% of the proceeds of sales of gasohol made during that time.
4    With respect to majority blended ethanol fuel, as defined
5in the Use Tax Act, the tax imposed by this Act does not apply
6to the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8December 31, 2018 but applies to 100% of the selling price
9thereafter.
10    With respect to biodiesel blends, as defined in the Use Tax
11Act, with no less than 1% and no more than 10% biodiesel, the
12tax imposed by this Act applies to (i) 80% of the selling price
13of property transferred as an incident to the sale of service
14on or after July 1, 2003 and on or before December 31, 2018 and
15(ii) 100% of the proceeds of the selling price thereafter. If,
16at any time, however, the tax under this Act on sales of
17biodiesel blends, as defined in the Use Tax Act, with no less
18than 1% and no more than 10% biodiesel is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of biodiesel blends with no less than 1%
21and no more than 10% biodiesel made during that time.
22    With respect to 100% biodiesel, as defined in the Use Tax
23Act, and biodiesel blends, as defined in the Use Tax Act, with
24more than 10% but no more than 99% biodiesel material, the tax
25imposed by this Act does not apply to the proceeds of the
26selling price of property transferred as an incident to the

 

 

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1sale of service on or after July 1, 2003 and on or before
2December 31, 2018 but applies to 100% of the selling price
3thereafter.
4    At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the aggregate
10annual total gross receipts from all sales of service, the tax
11imposed by this Act shall be based on the serviceman's cost
12price of the tangible personal property transferred incident to
13the sale of those services.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Occupation Tax Act
17by an entity licensed under the Hospital Licensing Act, the
18Nursing Home Care Act, the ID/DD Community Care Act, the
19Specialized Mental Health Rehabilitation Act of 2013, or the
20Child Care Act of 1969. The tax shall also be imposed at the
21rate of 1% on food for human consumption that is to be consumed
22off the premises where it is sold (other than alcoholic
23beverages, soft drinks, and food that has been prepared for
24immediate consumption and is not otherwise included in this
25paragraph) and prescription and nonprescription medicines,
26drugs, medical appliances, modifications to a motor vehicle for

 

 

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1the purpose of rendering it usable by a disabled person, and
2insulin, urine testing materials, syringes, and needles used by
3diabetics, for human use. For the purposes of this Section,
4until September 1, 2009: the term "soft drinks" means any
5complete, finished, ready-to-use, non-alcoholic drink, whether
6carbonated or not, including but not limited to soda water,
7cola, fruit juice, vegetable juice, carbonated water, and all
8other preparations commonly known as soft drinks of whatever
9kind or description that are contained in any closed or sealed
10can, carton, or container, regardless of size; but "soft
11drinks" does not include coffee, tea, non-carbonated water,
12infant formula, milk or milk products as defined in the Grade A
13Pasteurized Milk and Milk Products Act, or drinks containing
1450% or more natural fruit or vegetable juice.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "soft drinks" means non-alcoholic
17beverages that contain natural or artificial sweeteners. "Soft
18drinks" do not include beverages that contain milk or milk
19products, soy, rice or similar milk substitutes, or greater
20than 50% of vegetable or fruit juice by volume.
21    Until August 1, 2009, and notwithstanding any other
22provisions of this Act, "food for human consumption that is to
23be consumed off the premises where it is sold" includes all
24food sold through a vending machine, except soft drinks and
25food products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine. Beginning

 

 

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

 

 

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1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on January 1, 2014 (the effective date of Public
8Act 98-122) this amendatory Act of the 98th General Assembly,
9"prescription and nonprescription medicines and drugs"
10includes medical cannabis purchased from a registered
11dispensing organization under the Compassionate Use of Medical
12Cannabis Pilot Program Act.
13(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
14eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; revised
158-9-13.)
 
16    (35 ILCS 115/3-12 new)
17    Sec. 3-12. Additional public university tax. The board of
18trustees of a public university may, by a resolution passed by
19a majority vote of the board of trustees, provide that an
20additional tax shall be imposed at a rate not to exceed 2% of
21the "selling price", as defined in Section 2 of the Service Use
22Tax Act, of all tangible personal property sold by a serviceman
23on any campus of that public university. The resolution shall
24set forth the rate of tax and the campus or campuses on which
25the tax applies. Once imposed, the rate of tax may be increased

 

 

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1to a rate not to exceed 2%, the rate of tax may be reduced, or
2the tax may be discontinued by a resolution passed by a
3majority vote of the board of trustees.
4    A certified copy of the resolution imposing, discontinuing
5the tax, or effecting a change in the rate shall be filed with
6the Department within 15 days after the resolution is passed,
7and the Department shall proceed to administer and enforce this
8Section as of the first day of the first month to occur not
9less than 30 days after the filing.
10    This additional tax shall not apply to tickets of admission
11sold in conformity with the Ticket Sale and Resale Act.
12    If a tax is imposed under this Section, a tax shall be
13imposed at the same rate on the same campus under the
14provisions of Section 2-12 of the Retailers' Occupation Tax
15Act.
16    For purpose of imposing the additional tax under this
17paragraph, "campus" means any land owned or leased by a public
18university, except for farmland or that portion of land leased
19for residential purposes.
 
20    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax at the time when he is required to file his return
24for the period during which such tax was collectible, less a
25discount of 2.1% prior to January 1, 1990, and 1.75% on and

 

 

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

 

 

09800HB3884ham002- 21 -LRB098 15439 HLH 58361 a

1quarter shall be filed on or before the twentieth day of the
2calendar month following the end of such calendar quarter. The
3taxpayer shall also file a return with the Department for each
4of the first two months of each calendar quarter, on or before
5the twentieth day of the following calendar month, stating:
6        1. The name of the seller;
7        2. The address of the principal place of business from
8    which he engages in business as a serviceman in this State;
9        3. The total amount of taxable receipts received by him
10    during the preceding calendar month, including receipts
11    from charge and time sales, but less all deductions allowed
12    by law;
13        3-5. The total amount of taxable receipts received by
14    him during the preceding calendar month as a result of
15    sales that occurred on a campus of a public university,
16    with a separate entry for each campus; for the purposes of
17    this item, "campus" means any land owned or leased by a
18    public university, except for farmland or that portion of
19    land leased for residential purposes;
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

 

 

09800HB3884ham002- 22 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 23 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 24 -LRB098 15439 HLH 58361 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.

 

 

09800HB3884ham002- 25 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 26 -LRB098 15439 HLH 58361 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    Each month the Department shall pay into the Public
14University Capital Projects Fund 100% of the net revenue
15realized for the preceding month from the additional tax
16imposed on sales occurring on a campus of a public university
17under Section 3-12 of this Act.
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.

 

 

09800HB3884ham002- 27 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 28 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 29 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 30 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 31 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 32 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 33 -LRB098 15439 HLH 58361 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,

 

 

09800HB3884ham002- 34 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 35 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 36 -LRB098 15439 HLH 58361 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

 

 

09800HB3884ham002- 37 -LRB098 15439 HLH 58361 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 and by adding Section 2-12 as
18follows:
 
19    (35 ILCS 120/1)  (from Ch. 120, par. 440)
20    Sec. 1. Definitions. "Sale at retail" means any transfer of
21the ownership of or title to tangible personal property to a
22purchaser, for the purpose of use or consumption, and not for
23the purpose of resale in any form as tangible personal property
24to the extent not first subjected to a use for which it was

 

 

09800HB3884ham002- 38 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 39 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 40 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 41 -LRB098 15439 HLH 58361 a

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made in
5the course of business.
6    As provided in Section 2-12 of this Act, the board of
7trustees of a public university may, by a resolution passed by
8a majority vote of the board of trustees, provide that an
9additional tax shall be imposed at a rate not to exceed 2% of
10the gross receipts from sales of tangible personal property
11sold by a retailer on any campus of that public university.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 2-8 of
18this Act, the tax is imposed at the rate of 1.25%.
19    Within 14 days after the effective date of this amendatory
20Act of the 91st General Assembly, each retailer of motor fuel
21and gasohol shall cause the following notice to be posted in a
22prominently visible place on each retail dispensing device that
23is used to dispense motor fuel or gasohol in the State of
24Illinois: "As of July 1, 2000, the State of Illinois has
25eliminated the State's share of sales tax on motor fuel and
26gasohol through December 31, 2000. The price on this pump

 

 

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1should reflect the elimination of the tax." The notice shall be
2printed in bold print on a sign that is no smaller than 4
3inches by 8 inches. The sign shall be clearly visible to
4customers. Any retailer who fails to post or maintain a
5required sign through December 31, 2000 is guilty of a petty
6offense for which the fine shall be $500 per day per each
7retail premises where a violation occurs.
8    With respect to gasohol, as defined in the Use Tax Act, the
9tax imposed by this Act applies to (i) 70% of the proceeds of
10sales made on or after January 1, 1990, and before July 1,
112003, (ii) 80% of the proceeds of sales made on or after July
121, 2003 and on or before December 31, 2018, and (iii) 100% of
13the proceeds of sales made thereafter. If, at any time,
14however, the tax under this Act on sales of gasohol, as defined
15in the Use Tax Act, is imposed at the rate of 1.25%, then the
16tax imposed by this Act applies to 100% of the proceeds of
17sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the proceeds of sales made on or after July 1, 2003 and on or
21before December 31, 2018 but applies to 100% of the proceeds of
22sales made thereafter.
23    With respect to biodiesel blends, as defined in the Use Tax
24Act, with no less than 1% and no more than 10% biodiesel, the
25tax imposed by this Act applies to (i) 80% of the proceeds of
26sales made on or after July 1, 2003 and on or before December

 

 

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131, 2018 and (ii) 100% of the proceeds of sales made
2thereafter. If, at any time, however, the tax under this Act on
3sales of biodiesel blends, as defined in the Use Tax Act, with
4no less than 1% and no more than 10% biodiesel is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of biodiesel blends with no less
7than 1% and no more than 10% biodiesel made during that time.
8    With respect to 100% biodiesel, as defined in the Use Tax
9Act, and biodiesel blends, as defined in the Use Tax Act, with
10more than 10% but no more than 99% biodiesel, the tax imposed
11by this Act does not apply to the proceeds of sales made on or
12after July 1, 2003 and on or before December 31, 2018 but
13applies to 100% of the proceeds of sales made thereafter.
14    With respect to food for human consumption that is to be
15consumed off the premises where it is sold (other than
16alcoholic beverages, soft drinks, and food that has been
17prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances,
19modifications to a motor vehicle for the purpose of rendering
20it usable by a disabled person, and insulin, urine testing
21materials, syringes, and needles used by diabetics, for human
22use, the tax is imposed at the rate of 1%. For the purposes of
23this Section, until September 1, 2009: the term "soft drinks"
24means any complete, finished, ready-to-use, non-alcoholic
25drink, whether carbonated or not, including but not limited to
26soda water, cola, fruit juice, vegetable juice, carbonated

 

 

09800HB3884ham002- 49 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 50 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 51 -LRB098 15439 HLH 58361 a

1    Beginning on the effective date of this amendatory Act of
2the 98th General Assembly, "prescription and nonprescription
3medicines and drugs" includes medical cannabis purchased from a
4registered dispensing organization under the Compassionate Use
5of Medical Cannabis Pilot Program Act.
6(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
7    (35 ILCS 120/2-12 new)
8    Sec. 2-12. Additional public university tax. The board of
9trustees of a public university may, by a resolution passed by
10a majority vote of the board of trustees, provide that an
11additional tax shall be imposed at a rate not to exceed 2% of
12the gross receipts from sales of tangible personal property
13sold by a retailer on any campus of that public university. The
14resolution shall set forth the rate of tax and the campus or
15campuses on which the tax applies. Once imposed, the rate of
16tax may be increased to a rate not to exceed 2%, the rate of tax
17may be reduced, or the tax may be discontinued by a resolution
18passed by a majority vote of the board of trustees.
19    A certified copy of the resolution imposing, discontinuing
20the tax, or effecting a change in the rate shall be filed with
21the Department within 15 days after the resolution is passed,
22and the Department shall proceed to administer and enforce this
23Section as of the first day of the first month to occur not
24less than 30 days after the filing.
25    This additional tax shall not apply to tickets of admission

 

 

09800HB3884ham002- 52 -LRB098 15439 HLH 58361 a

1sold in conformity with the Ticket Sale and Resale Act.
2    If a tax is imposed under this Section, a tax shall be
3imposed at the same rate on the same campus under the
4provisions of Section 2-12 of the Service Occupation Tax Act.
5    For purpose of imposing the additional tax under this
6paragraph, "campus" means any land owned or leased by a public
7university, except for farmland or that portion of land leased
8for residential purposes.
 
9    (35 ILCS 120/3)  (from Ch. 120, par. 442)
10    Sec. 3. Except as provided in this Section, on or before
11the twentieth day of each calendar month, every person engaged
12in the business of selling tangible personal property at retail
13in this State during the preceding calendar month shall file a
14return with the Department, stating:
15        1. The name of the seller;
16        2. His residence address and the address of his
17    principal place of business and the address of the
18    principal place of business (if that is a different
19    address) from which he engages in the business of selling
20    tangible personal property at retail in this State;
21        3. Total amount of receipts received by him during the
22    preceding calendar month or quarter, as the case may be,
23    from sales of tangible personal property, and from services
24    furnished, by him during such preceding calendar month or
25    quarter;

 

 

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1        4. Total amount received by him during the preceding
2    calendar month or quarter on charge and time sales of
3    tangible personal property, and from services furnished,
4    by him prior to the month or quarter for which the return
5    is filed;
6        4-5. Total amount of receipts received by him during
7    the preceding calendar month or quarter, as the case may
8    be, from sales of tangible personal property occurring on
9    the campus of a public university, with a separate entry
10    for each campus; as used in this item, "campus" means any
11    land owned or leased by a public university, except for
12    farmland or that portion of land leased for residential
13    purposes;
14        5. Deductions allowed by law;
15        6. Gross receipts which were received by him during the
16    preceding calendar month or quarter and upon the basis of
17    which the tax is imposed;
18        7. The amount of credit provided in Section 2d of this
19    Act;
20        8. The amount of tax due;
21        9. The signature of the taxpayer; and
22        10. Such other reasonable information as the
23    Department may require.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

09800HB3884ham002- 54 -LRB098 15439 HLH 58361 a

1due on the return shall be deemed assessed.
2    Each return shall be accompanied by the statement of
3prepaid tax issued pursuant to Section 2e for which credit is
4claimed.
5    Prior to October 1, 2003, and on and after September 1,
62004 a retailer may accept a Manufacturer's Purchase Credit
7certification from a purchaser in satisfaction of Use Tax as
8provided in Section 3-85 of the Use Tax Act if the purchaser
9provides the appropriate documentation as required by Section
103-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11certification, accepted by a retailer prior to October 1, 2003
12and on and after September 1, 2004 as provided in Section 3-85
13of the Use Tax Act, may be used by that retailer to satisfy
14Retailers' Occupation Tax liability in the amount claimed in
15the certification, not to exceed 6.25% of the receipts subject
16to tax 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
20Purchaser Credit reported on annual returns due on or after
21January 1, 2005 will be disallowed for periods prior to
22September 1, 2004. No Manufacturer's Purchase Credit may be
23used after September 30, 2003 through August 31, 2004 to
24satisfy any tax liability imposed under this Act, including any
25audit liability.
26    The Department may require returns to be filed on a

 

 

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1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in the business of selling tangible
10    personal property at retail in this State;
11        3. The total amount of taxable receipts received by him
12    during the preceding calendar month from sales of tangible
13    personal property by him during such preceding calendar
14    month, including receipts from charge and time sales, but
15    less all deductions allowed by law;
16        3-5. Total amount of receipts received by him during
17    the preceding calendar month from sales of tangible
18    personal property occurring on a campus of a public
19    university, with a separate entry for each campus; as used
20    in this item, "campus" means any land owned or leased by a
21    public university, except for farmland or that portion of
22    land leased for residential purposes;
23        4. The amount of credit provided in Section 2d of this
24    Act;
25        5. The amount of tax due; and
26        6. Such other reasonable information as the Department

 

 

09800HB3884ham002- 56 -LRB098 15439 HLH 58361 a

1    may require.
2    Beginning on October 1, 2003, any person who is not a
3licensed distributor, importing distributor, or manufacturer,
4as defined in the Liquor Control Act of 1934, but is engaged in
5the business of selling, at retail, alcoholic liquor shall file
6a statement with the Department of Revenue, in a format and at
7a time prescribed by the Department, showing the total amount
8paid for alcoholic liquor purchased during the preceding month
9and such other information as is reasonably required by the
10Department. The Department may adopt rules to require that this
11statement be filed in an electronic or telephonic format. Such
12rules may provide for exceptions from the filing requirements
13of this paragraph. For the purposes of this paragraph, the term
14"alcoholic liquor" shall have the meaning prescribed in the
15Liquor Control Act of 1934.
16    Beginning on October 1, 2003, every distributor, importing
17distributor, and manufacturer of alcoholic liquor as defined in
18the Liquor Control Act of 1934, shall file a statement with the
19Department of Revenue, no later than the 10th day of the month
20for the preceding month during which transactions occurred, by
21electronic means, showing the total amount of gross receipts
22from the sale of alcoholic liquor sold or distributed during
23the preceding month to purchasers; identifying the purchaser to
24whom it was sold or distributed; the purchaser's tax
25registration number; and such other information reasonably
26required by the Department. A distributor, importing

 

 

09800HB3884ham002- 57 -LRB098 15439 HLH 58361 a

1distributor, or manufacturer of alcoholic liquor must
2personally deliver, mail, or provide by electronic means to
3each retailer listed on the monthly statement a report
4containing a cumulative total of that distributor's, importing
5distributor's, or manufacturer's total sales of alcoholic
6liquor to that retailer no later than the 10th day of the month
7for the preceding month during which the transaction occurred.
8The distributor, importing distributor, or manufacturer shall
9notify the retailer as to the method by which the distributor,
10importing distributor, or manufacturer will provide the sales
11information. If the retailer is unable to receive the sales
12information by electronic means, the distributor, importing
13distributor, or manufacturer shall furnish the sales
14information by personal delivery or by mail. For purposes of
15this paragraph, the term "electronic means" includes, but is
16not limited to, the use of a secure Internet website, e-mail,
17or facsimile.
18    If a total amount of less than $1 is payable, refundable or
19creditable, such amount shall be disregarded if it is less than
2050 cents and shall be increased to $1 if it is 50 cents or more.
21    Beginning October 1, 1993, a taxpayer who has an average
22monthly tax liability of $150,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1994, a taxpayer who has
25an average monthly tax liability of $100,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

09800HB3884ham002- 58 -LRB098 15439 HLH 58361 a

1funds transfer. Beginning October 1, 1995, a taxpayer who has
2an average monthly tax liability of $50,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 2000, a taxpayer who has
5an annual tax liability of $200,000 or more shall make all
6payments required by rules of the Department by electronic
7funds transfer. The term "annual tax liability" shall be the
8sum of the taxpayer's liabilities under this Act, and under all
9other State and local occupation and use tax laws administered
10by the Department, for the immediately preceding calendar year.
11The term "average monthly tax liability" shall be the sum of
12the taxpayer's liabilities under this Act, and under all other
13State and local occupation and use tax laws administered by the
14Department, for the immediately preceding calendar year
15divided by 12. Beginning on October 1, 2002, a taxpayer who has
16a tax liability in the amount set forth in subsection (b) of
17Section 2505-210 of the Department of Revenue Law shall make
18all payments required by rules of the Department by electronic
19funds transfer.
20    Before August 1 of each year beginning in 1993, the
21Department shall notify all taxpayers required to make payments
22by electronic funds transfer. All taxpayers required to make
23payments by electronic funds transfer shall make those payments
24for a minimum of one year beginning on October 1.
25    Any taxpayer not required to make payments by electronic
26funds transfer may make payments by electronic funds transfer

 

 

09800HB3884ham002- 59 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 60 -LRB098 15439 HLH 58361 a

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

 

 

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

 

 

09800HB3884ham002- 62 -LRB098 15439 HLH 58361 a

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

 

 

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

 

 

09800HB3884ham002- 64 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 65 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 66 -LRB098 15439 HLH 58361 a

1    Except as provided in this Section, the retailer filing the
2return under this Section shall, at the time of filing such
3return, pay to the Department the amount of tax imposed by this
4Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
5on and after January 1, 1990, or $5 per calendar year,
6whichever is greater, which is allowed to reimburse the
7retailer for the expenses incurred in keeping records,
8preparing and filing returns, remitting the tax and supplying
9data to the Department on request. Any prepayment made pursuant
10to Section 2d of this Act shall be included in the amount on
11which such 2.1% or 1.75% discount is computed. In the case of
12retailers who report and pay the tax on a transaction by
13transaction basis, as provided in this Section, such discount
14shall be taken with each such tax remittance instead of when
15such retailer files his periodic return. The Department may
16disallow the discount for retailers whose certificate of
17registration is revoked at the time the return is filed, but
18only if the Department's decision to revoke the certificate of
19registration has become final.
20    Before October 1, 2000, if the taxpayer's average monthly
21tax liability to the Department under this Act, the Use Tax
22Act, the Service Occupation Tax Act, and the Service Use Tax
23Act, excluding any liability for prepaid sales tax to be
24remitted in accordance with Section 2d of this Act, was $10,000
25or more during the preceding 4 complete calendar quarters, he
26shall file a return with the Department each month by the 20th

 

 

09800HB3884ham002- 67 -LRB098 15439 HLH 58361 a

1day of the month next following the month during which such tax
2liability is incurred and shall make payments to the Department
3on or before the 7th, 15th, 22nd and last day of the month
4during which such liability is incurred. On and after October
51, 2000, if the taxpayer's average monthly tax liability to the
6Department under this Act, the Use Tax Act, the Service
7Occupation Tax Act, and the Service Use Tax Act, excluding any
8liability for prepaid sales tax to be remitted in accordance
9with Section 2d of this Act, was $20,000 or more during the
10preceding 4 complete calendar quarters, he shall file a return
11with the Department each month by the 20th day of the month
12next following the month during which such tax liability is
13incurred and shall make payment to the Department on or before
14the 7th, 15th, 22nd and last day of the month during which such
15liability is incurred. If the month during which such tax
16liability is incurred began prior to January 1, 1985, each
17payment shall be in an amount equal to 1/4 of the taxpayer's
18actual liability for the month or an amount set by the
19Department not to exceed 1/4 of the average monthly liability
20of the taxpayer to the Department for the preceding 4 complete
21calendar quarters (excluding the month of highest liability and
22the month of lowest liability in such 4 quarter period). If the
23month during which such tax liability is incurred begins on or
24after January 1, 1985 and prior to January 1, 1987, each
25payment shall be in an amount equal to 22.5% of the taxpayer's
26actual liability for the month or 27.5% of the taxpayer's

 

 

09800HB3884ham002- 68 -LRB098 15439 HLH 58361 a

1liability for the same calendar month of the preceding year. If
2the month during which such tax liability is incurred begins on
3or after January 1, 1987 and prior to January 1, 1988, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 26.25% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1988, and prior to January 1, 1989, or
9begins on or after January 1, 1996, each payment shall be in an
10amount equal to 22.5% of the taxpayer's actual liability for
11the month or 25% of the taxpayer's liability for the same
12calendar month of the preceding year. If the month during which
13such tax liability is incurred begins on or after January 1,
141989, and prior to January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year or 100% of the taxpayer's
18actual liability for the quarter monthly reporting period. The
19amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month. Before October 1, 2000, once applicable, the
22requirement of the making of quarter monthly payments to the
23Department by taxpayers having an average monthly tax liability
24of $10,000 or more as determined in the manner provided above
25shall continue until such taxpayer's average monthly liability
26to the Department during the preceding 4 complete calendar

 

 

09800HB3884ham002- 69 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 70 -LRB098 15439 HLH 58361 a

1above, then such taxpayer may petition the Department for a
2change in such taxpayer's reporting status. The Department
3shall change such taxpayer's reporting status unless it finds
4that such change is seasonal in nature and not likely to be
5long term. If any such quarter monthly payment is not paid at
6the time or in the amount required by this Section, then the
7taxpayer shall be liable for penalties and interest on the
8difference between the minimum amount due as a payment and the
9amount of such quarter monthly payment actually and timely
10paid, except insofar as the taxpayer has previously made
11payments for that month to the Department in excess of the
12minimum payments previously due as provided in this Section.
13The Department shall make reasonable rules and regulations to
14govern the quarter monthly payment amount and quarter monthly
15payment dates for taxpayers who file on other than a calendar
16monthly basis.
17    The provisions of this paragraph apply before October 1,
182001. Without regard to whether a taxpayer is required to make
19quarter monthly payments as specified above, any taxpayer who
20is required by Section 2d of this Act to collect and remit
21prepaid taxes and has collected prepaid taxes which average in
22excess of $25,000 per month during the preceding 2 complete
23calendar quarters, shall file a return with the Department as
24required by Section 2f and shall make payments to the
25Department on or before the 7th, 15th, 22nd and last day of the
26month during which such liability is incurred. If the month

 

 

09800HB3884ham002- 71 -LRB098 15439 HLH 58361 a

1during which such tax liability is incurred began prior to the
2effective date of this amendatory Act of 1985, each payment
3shall be in an amount not less than 22.5% of the taxpayer's
4actual liability under Section 2d. If the month during which
5such tax liability is incurred begins on or after January 1,
61986, each payment shall be in an amount equal to 22.5% of the
7taxpayer's actual liability for the month or 27.5% of the
8taxpayer's liability for the same calendar month of the
9preceding calendar year. If the month during which such tax
10liability is incurred begins on or after January 1, 1987, each
11payment shall be in an amount equal to 22.5% of the taxpayer's
12actual liability for the month or 26.25% of the taxpayer's
13liability for the same calendar month of the preceding year.
14The amount of such quarter monthly payments shall be credited
15against the final tax liability of the taxpayer's return for
16that month filed under this Section or Section 2f, as the case
17may be. Once applicable, the requirement of the making of
18quarter monthly payments to the Department pursuant to this
19paragraph shall continue until such taxpayer's average monthly
20prepaid tax collections during the preceding 2 complete
21calendar quarters is $25,000 or less. If any such quarter
22monthly payment is not paid at the time or in the amount
23required, the taxpayer shall be liable for penalties and
24interest on such difference, except insofar as the taxpayer has
25previously made payments for that month in excess of the
26minimum payments previously due.

 

 

09800HB3884ham002- 72 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 73 -LRB098 15439 HLH 58361 a

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

 

 

09800HB3884ham002- 74 -LRB098 15439 HLH 58361 a

1    If a retailer of motor fuel is entitled to a credit under
2Section 2d of this Act which exceeds the taxpayer's liability
3to the Department under this Act for the month which the
4taxpayer is filing a return, the Department shall issue the
5taxpayer a credit memorandum for the excess.
6    Each month the Department shall pay into the Public
7University Capital Projects Fund 100% of the net revenue
8realized for the preceding month from the additional tax
9imposed on sales occurring on a campus of a public university
10under Section 2-12 of this Act.
11    Beginning January 1, 1990, each month the Department shall
12pay into the Local Government Tax Fund, a special fund in the
13State treasury which is hereby created, the net revenue
14realized for the preceding month from the 1% tax on sales of
15food for human consumption which is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks and food which has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances and insulin, urine testing
20materials, syringes and needles used by diabetics.
21    Beginning January 1, 1990, each month the Department shall
22pay into the County and Mass Transit District Fund, a special
23fund in the State treasury which is hereby created, 4% of the
24net revenue realized for the preceding month from the 6.25%
25general rate.
26    Beginning August 1, 2000, each month the Department shall

 

 

09800HB3884ham002- 75 -LRB098 15439 HLH 58361 a

1pay into the County and Mass Transit District Fund 20% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol. Beginning
4September 1, 2010, each month the Department shall pay into the
5County and Mass Transit District Fund 20% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of sales tax holiday items.
8    Beginning January 1, 1990, each month the Department shall
9pay into the Local Government Tax Fund 16% of the net revenue
10realized for the preceding month from the 6.25% general rate on
11the selling price of tangible personal property.
12    Beginning August 1, 2000, each month the Department shall
13pay into the Local Government Tax Fund 80% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of motor fuel and gasohol. Beginning September 1,
162010, each month the Department shall pay into the Local
17Government Tax Fund 80% of the net revenue realized for the
18preceding month from the 1.25% rate on the selling price of
19sales tax holiday items.
20    Beginning October 1, 2009, each month the Department shall
21pay into the Capital Projects Fund an amount that is equal to
22an amount estimated by the Department to represent 80% of the
23net revenue realized for the preceding month from the sale of
24candy, grooming and hygiene products, and soft drinks that had
25been taxed at a rate of 1% prior to September 1, 2009 but that
26are is now taxed at 6.25%.

 

 

09800HB3884ham002- 76 -LRB098 15439 HLH 58361 a

1    Beginning July 1, 2011, each month the Department shall pay
2into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of sorbents used in Illinois in the process
5of sorbent injection as used to comply with the Environmental
6Protection Act or the federal Clean Air Act, but the total
7payment into the Clean Air Act (CAA) Permit Fund under this Act
8and the Use Tax Act shall not exceed $2,000,000 in any fiscal
9year.
10    Beginning July 1, 2013, each month the Department shall pay
11into the Underground Storage Tank Fund from the proceeds
12collected under this Act, the Use Tax Act, the Service Use Tax
13Act, and the Service Occupation Tax Act an amount equal to the
14average monthly deficit in the Underground Storage Tank Fund
15during the prior year, as certified annually by the Illinois
16Environmental Protection Agency, but the total payment into the
17Underground Storage Tank Fund under this Act, the Use Tax Act,
18the Service Use Tax Act, and the Service Occupation Tax Act
19shall not exceed $18,000,000 in any State fiscal year. As used
20in this paragraph, the "average monthly deficit" shall be equal
21to the difference between the average monthly claims for
22payment by the fund and the average monthly revenues deposited
23into the fund, excluding payments made pursuant to this
24paragraph.
25    Of the remainder of the moneys received by the Department
26pursuant to this Act, (a) 1.75% thereof shall be paid into the

 

 

09800HB3884ham002- 77 -LRB098 15439 HLH 58361 a

1Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2and after July 1, 1989, 3.8% thereof shall be paid into the
3Build Illinois Fund; provided, however, that if in any fiscal
4year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5may be, of the moneys received by the Department and required
6to be paid into the Build Illinois Fund pursuant to this Act,
7Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
8Act, and Section 9 of the Service Occupation Tax Act, such Acts
9being hereinafter called the "Tax Acts" and such aggregate of
102.2% or 3.8%, as the case may be, of moneys being hereinafter
11called the "Tax Act Amount", and (2) the amount transferred to
12the Build Illinois Fund from the State and Local Sales Tax
13Reform Fund shall be less than the Annual Specified Amount (as
14hereinafter defined), an amount equal to the difference shall
15be immediately paid into the Build Illinois Fund from other
16moneys received by the Department pursuant to the Tax Acts; the
17"Annual Specified Amount" means the amounts specified below for
18fiscal years 1986 through 1993:
19Fiscal YearAnnual Specified Amount
201986$54,800,000
211987$76,650,000
221988$80,480,000
231989$88,510,000
241990$115,330,000
251991$145,470,000
261992$182,730,000

 

 

09800HB3884ham002- 78 -LRB098 15439 HLH 58361 a

11993$206,520,000;
2and means the Certified Annual Debt Service Requirement (as
3defined in Section 13 of the Build Illinois Bond Act) or the
4Tax Act Amount, whichever is greater, for fiscal year 1994 and
5each fiscal year thereafter; and further provided, that if on
6the last business day of any month the sum of (1) the Tax Act
7Amount required to be deposited into the Build Illinois Bond
8Account in the Build Illinois Fund during such month and (2)
9the amount transferred to the Build Illinois Fund from the
10State and Local Sales Tax Reform Fund shall have been less than
111/12 of the Annual Specified Amount, an amount equal to the
12difference shall be immediately paid into the Build Illinois
13Fund from other moneys received by the Department pursuant to
14the Tax Acts; and, further provided, that in no event shall the
15payments required under the preceding proviso result in
16aggregate payments into the Build Illinois Fund pursuant to
17this clause (b) for any fiscal year in excess of the greater of
18(i) the Tax Act Amount or (ii) the Annual Specified Amount for
19such fiscal year. The amounts payable into the Build Illinois
20Fund under clause (b) of the first sentence in this paragraph
21shall be payable only until such time as the aggregate amount
22on deposit under each trust indenture securing Bonds issued and
23outstanding pursuant to the Build Illinois Bond Act is
24sufficient, taking into account any future investment income,
25to fully provide, in accordance with such indenture, for the
26defeasance of or the payment of the principal of, premium, if

 

 

09800HB3884ham002- 79 -LRB098 15439 HLH 58361 a

1any, and interest on the Bonds secured by such indenture and on
2any Bonds expected to be issued thereafter and all fees and
3costs payable with respect thereto, all as certified by the
4Director of the Bureau of the Budget (now Governor's Office of
5Management and Budget). If on the last business day of any
6month in which Bonds are outstanding pursuant to the Build
7Illinois Bond Act, the aggregate of moneys deposited in the
8Build Illinois Bond Account in the Build Illinois Fund in such
9month shall be less than the amount required to be transferred
10in such month from the Build Illinois Bond Account to the Build
11Illinois Bond Retirement and Interest Fund pursuant to Section
1213 of the Build Illinois Bond Act, an amount equal to such
13deficiency shall be immediately paid from other moneys received
14by the Department pursuant to the Tax Acts to the Build
15Illinois Fund; provided, however, that any amounts paid to the
16Build Illinois Fund in any fiscal year pursuant to this
17sentence shall be deemed to constitute payments pursuant to
18clause (b) of the first sentence of this paragraph and shall
19reduce the amount otherwise payable for such fiscal year
20pursuant to that clause (b). The moneys received by the
21Department pursuant to this Act and required to be deposited
22into the Build Illinois Fund are subject to the pledge, claim
23and charge set forth in Section 12 of the Build Illinois Bond
24Act.
25    Subject to payment of amounts into the Build Illinois Fund
26as provided in the preceding paragraph or in any amendment

 

 

09800HB3884ham002- 80 -LRB098 15439 HLH 58361 a

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000

 

 

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12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021246,000,000
162022260,000,000
172023275,000,000
182024 275,000,000
192025 275,000,000
202026 279,000,000
212027 292,000,000
222028 307,000,000
232029 322,000,000
242030 338,000,000
252031 350,000,000
262032 350,000,000

 

 

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1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9    Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total Deposit",
21has been deposited.
22    Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois Tax

 

 

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1Increment Fund 0.27% of 80% of the net revenue realized for the
2preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a 25-year
9period, the Department shall each month pay into the Energy
10Infrastructure Fund 80% of the net revenue realized from the
116.25% general rate on the selling price of Illinois-mined coal
12that was sold to an eligible business. For purposes of this
13paragraph, the term "eligible business" means a new electric
14generating facility certified pursuant to Section 605-332 of
15the Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, 75% thereof shall be paid into the State
19Treasury and 25% shall be reserved in a special account and
20used only for the transfer to the Common School Fund as part of
21the monthly transfer from the General Revenue Fund in
22accordance with Section 8a of the State Finance Act.
23    The Department may, upon separate written notice to a
24taxpayer, require the taxpayer to prepare and file with the
25Department on a form prescribed by the Department within not
26less than 60 days after receipt of the notice an annual

 

 

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

 

 

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

 

 

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1collected by the State pursuant to this Act, less the amount
2paid out during that month as refunds to taxpayers for
3overpayment of liability.
4    For greater simplicity of administration, manufacturers,
5importers and wholesalers whose products are sold at retail in
6Illinois by numerous retailers, and who wish to do so, may
7assume the responsibility for accounting and paying to the
8Department all tax accruing under this Act with respect to such
9sales, if the retailers who are affected do not make written
10objection to the Department to this arrangement.
11    Any person who promotes, organizes, provides retail
12selling space for concessionaires or other types of sellers at
13the Illinois State Fair, DuQuoin State Fair, county fairs,
14local fairs, art shows, flea markets and similar exhibitions or
15events, including any transient merchant as defined by Section
162 of the Transient Merchant Act of 1987, is required to file a
17report with the Department providing the name of the merchant's
18business, the name of the person or persons engaged in
19merchant's business, the permanent address and Illinois
20Retailers Occupation Tax Registration Number of the merchant,
21the dates and location of the event and other reasonable
22information that the Department may require. The report must be
23filed not later than the 20th day of the month next following
24the month during which the event with retail sales was held.
25Any person who fails to file a report required by this Section
26commits a business offense and is subject to a fine not to

 

 

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1exceed $250.
2    Any person engaged in the business of selling tangible
3personal property at retail as a concessionaire or other type
4of seller at the Illinois State Fair, county fairs, art shows,
5flea markets and similar exhibitions or events, or any
6transient merchants, as defined by Section 2 of the Transient
7Merchant Act of 1987, may be required to make a daily report of
8the amount of such sales to the Department and to make a daily
9payment of the full amount of tax due. The Department shall
10impose this requirement when it finds that there is a
11significant risk of loss of revenue to the State at such an
12exhibition or event. Such a finding shall be based on evidence
13that a substantial number of concessionaires or other sellers
14who are not residents of Illinois will be engaging in the
15business of selling tangible personal property at retail at the
16exhibition or event, or other evidence of a significant risk of
17loss of revenue to the State. The Department shall notify
18concessionaires and other sellers affected by the imposition of
19this requirement. In the absence of notification by the
20Department, the concessionaires and other sellers shall file
21their returns as otherwise required in this Section.
22(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
23eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
24revised 9-9-13.)
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.".