99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2659

 

Introduced , by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.866 new
30 ILCS 105/6z-101 new
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 3.75% surcharge on firearms and firearm component parts. Amends the State Finance Act. Creates the At-Risk Youth Assistance Fund. Provides that the 3.75% surcharge shall be deposited into the Fund. Sets forth the purposes for which moneys in the Fund may be used. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2659LRB099 07716 HLH 27849 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.866 and 6z-101 as follows:
 
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The At-Risk Youth Assistance Fund.
 
8    (30 ILCS 105/6z-101 new)
9    Sec. 6z-101. At-Risk Youth Assistance Fund; creation.
10    (a) The At-Risk Youth Assistance Fund is hereby created as
11a special fund in the State treasury. Moneys in the Fund may be
12used for the following purposes, subject to appropriation: (1)
13to provide community college scholarships and grants to at-risk
14youth; (2) to make grants for the purpose of establishing and
15continuing summer job programs in communities in which at-risk
16youth reside; (3) for juvenile justice programs; and (4) to
17make grants to trauma centers in high crime areas for medical
18emergency responses.
19    (b) For the purposes of this Section:
20    "At-risk youth" means an individual between the ages of 16
21and 22 who resides in a high crime area.
22    "High crime area" means a census tract in which the

 

 

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1homicide rate is more than 4 times higher than the average
2homicide rate for a municipality that is the same size as the
3municipality in which the census tract is located, according to
4statistics generated by the Federal Bureau of Investigation as
5part of the Uniform Crime Reporting (UCR) Program.
6    "Trauma center" has the same meaning as in the Emergency
7Medical Services (EMS) Systems Act.
 
8    Section 10. The Use Tax Act is amended by changing Sections
93-10 and 9 as follows:
 
10    (35 ILCS 105/3-10)
11    Sec. 3-10. Rate of tax. Unless otherwise provided in this
12Section, the tax imposed by this Act is at the rate of 6.25% of
13either the selling price or the fair market value, if any, of
14the tangible personal property. In all cases where property
15functionally used or consumed is the same as the property that
16was purchased at retail, then the tax is imposed on the selling
17price of the property. In all cases where property functionally
18used or consumed is a by-product or waste product that has been
19refined, manufactured, or produced from property purchased at
20retail, then the tax is imposed on the lower of the fair market
21value, if any, of the specific property so used in this State
22or on the selling price of the property purchased at retail.
23For purposes of this Section "fair market value" means the
24price at which property would change hands between a willing

 

 

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1buyer and a willing seller, neither being under any compulsion
2to buy or sell and both having reasonable knowledge of the
3relevant facts. The fair market value shall be established by
4Illinois sales by the taxpayer of the same property as that
5functionally used or consumed, or if there are no such sales by
6the taxpayer, then comparable sales or purchases of property of
7like kind and character in Illinois.
8    Beginning on July 1, 2000 and through December 31, 2000,
9with respect to motor fuel, as defined in Section 1.1 of the
10Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
11the Use Tax Act, the tax is imposed at the rate of 1.25%.
12    Beginning on August 6, 2010 through August 15, 2010, with
13respect to sales tax holiday items as defined in Section 3-6 of
14this Act, the tax is imposed at the rate of 1.25%.
15    With respect to gasohol, the tax imposed by this Act
16applies to (i) 70% of the proceeds of sales made on or after
17January 1, 1990, and before July 1, 2003, (ii) 80% of the
18proceeds of sales made on or after July 1, 2003 and on or
19before December 31, 2018, and (iii) 100% of the proceeds of
20sales made thereafter. If, at any time, however, the tax under
21this Act on sales of gasohol is imposed at the rate of 1.25%,
22then the tax imposed by this Act applies to 100% of the
23proceeds of sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, the tax
25imposed by this Act does not apply to the proceeds of sales
26made on or after July 1, 2003 and on or before December 31,

 

 

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12018 but applies to 100% of the proceeds of sales made
2thereafter.
3    With respect to biodiesel blends with no less than 1% and
4no more than 10% biodiesel, the tax imposed by this Act applies
5to (i) 80% of the proceeds of sales made on or after July 1,
62003 and on or before December 31, 2018 and (ii) 100% of the
7proceeds of sales made thereafter. If, at any time, however,
8the tax under this Act on sales of biodiesel blends with no
9less than 1% and no more than 10% biodiesel is imposed at the
10rate of 1.25%, then the tax imposed by this Act applies to 100%
11of the proceeds of sales of biodiesel blends with no less than
121% and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel and biodiesel blends with
14more than 10% but no more than 99% biodiesel, the tax imposed
15by this Act does not apply to the proceeds of sales made on or
16after July 1, 2003 and on or before December 31, 2018 but
17applies to 100% of the proceeds of sales made thereafter.
18    With respect to food for human consumption that is to be
19consumed off the premises where it is sold (other than
20alcoholic beverages, soft drinks, and food that has been
21prepared for immediate consumption) and prescription and
22nonprescription medicines, drugs, medical appliances,
23modifications to a motor vehicle for the purpose of rendering
24it usable by a disabled person, and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, the tax is imposed at the rate of 1%. For the purposes of

 

 

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

 

 

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

 

 

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1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from a
8registered dispensing organization under the Compassionate Use
9of Medical Cannabis Pilot Program Act.
10    Beginning January 1, 2016, in addition to all other rates
11of tax imposed under this Act, a surcharge of 3.75%% is imposed
12on the selling price of (1) each firearm purchased in the State
13and (2) each component part to a firearm, if that component
14part is sold separately. "Firearm" has the meaning ascribed to
15that term in Section 1.1 of the Firearm Owners Identification
16Card Act.
17    If the property that is purchased at retail from a retailer
18is acquired outside Illinois and used outside Illinois before
19being brought to Illinois for use here and is taxable under
20this Act, the "selling price" on which the tax is computed
21shall be reduced by an amount that represents a reasonable
22allowance for depreciation for the period of prior out-of-state
23use.
24(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
25    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)

 

 

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1    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
2and trailers that are required to be registered with an agency
3of this State, each retailer required or authorized to collect
4the tax imposed by this Act shall pay to the Department the
5amount of such tax (except as otherwise provided) at the time
6when he is required to file his return for the period during
7which such tax was collected, less a discount of 2.1% prior to
8January 1, 1990, and 1.75% on and after January 1, 1990, or $5
9per calendar year, whichever is greater, which is allowed to
10reimburse the retailer for expenses incurred in collecting the
11tax, keeping records, preparing and filing returns, remitting
12the tax and supplying data to the Department on request. In the
13case of retailers who report and pay the tax on a transaction
14by transaction basis, as provided in this Section, such
15discount shall be taken with each such tax remittance instead
16of when such retailer files his periodic return. The Department
17may disallow the discount for retailers whose certificate of
18registration is revoked at the time the return is filed, but
19only if the Department's decision to revoke the certificate of
20registration has become final. A retailer need not remit that
21part of any tax collected by him to the extent that he is
22required to remit and does remit the tax imposed by the
23Retailers' Occupation Tax Act, with respect to the sale of the
24same property.
25    Where such tangible personal property is sold under a
26conditional sales contract, or under any other form of sale

 

 

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1wherein the payment of the principal sum, or a part thereof, is
2extended beyond the close of the period for which the return is
3filed, the retailer, in collecting the tax (except as to motor
4vehicles, watercraft, aircraft, and trailers that are required
5to be registered with an agency of this State), may collect for
6each tax return period, only the tax applicable to that part of
7the selling price actually received during such tax return
8period.
9    Except as provided in this Section, on or before the
10twentieth day of each calendar month, such retailer shall file
11a return for the preceding calendar month. Such return shall be
12filed on forms prescribed by the Department and shall furnish
13such information as the Department may reasonably require.
14    The Department may require returns to be filed on a
15quarterly basis. If so required, a return for each calendar
16quarter shall be filed on or before the twentieth day of the
17calendar month following the end of such calendar quarter. The
18taxpayer shall also file a return with the Department for each
19of the first two months of each calendar quarter, on or before
20the twentieth day of the following calendar month, stating:
21        1. The name of the seller;
22        2. The address of the principal place of business from
23    which he engages in the business of selling tangible
24    personal property at retail in this State;
25        3. The total amount of taxable receipts received by him
26    during the preceding calendar month from sales of tangible

 

 

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1    personal property by him during such preceding calendar
2    month, including receipts from charge and time sales, but
3    less all deductions allowed by law;
4        4. The amount of credit provided in Section 2d of this
5    Act;
6        5. The amount of tax due;
7        5-5. The signature of the taxpayer; and
8        6. Such other reasonable information as the Department
9    may require.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    Beginning October 1, 1993, a taxpayer who has an average
15monthly tax liability of $150,000 or more shall make all
16payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1994, a taxpayer who has
18an average monthly tax liability of $100,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 1995, a taxpayer who has
21an average monthly tax liability of $50,000 or more shall make
22all payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 2000, a taxpayer who has
24an annual tax liability of $200,000 or more shall make all
25payments required by rules of the Department by electronic
26funds transfer. The term "annual tax liability" shall be the

 

 

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

 

 

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1requirements of this Section.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act, the Service
5Use Tax Act was $10,000 or more during the preceding 4 complete
6calendar quarters, he shall file a return with the Department
7each month by the 20th day of the month next following the
8month during which such tax liability is incurred and shall
9make payments to the Department on or before the 7th, 15th,
1022nd and last day of the month during which such liability is
11incurred. On and after October 1, 2000, if the taxpayer's
12average monthly tax liability to the Department under this Act,
13the Retailers' Occupation Tax Act, the Service Occupation Tax
14Act, and the Service Use Tax Act was $20,000 or more during the
15preceding 4 complete calendar quarters, he shall file a return
16with the Department each month by the 20th day of the month
17next following the month during which such tax liability is
18incurred and shall make payment to the Department on or before
19the 7th, 15th, 22nd and last day of the month during which such
20liability is incurred. If the month during which such tax
21liability is incurred began prior to January 1, 1985, each
22payment shall be in an amount equal to 1/4 of the taxpayer's
23actual liability for the month or an amount set by the
24Department not to exceed 1/4 of the average monthly liability
25of the taxpayer to the Department for the preceding 4 complete
26calendar quarters (excluding the month of highest liability and

 

 

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1the month of lowest liability in such 4 quarter period). If the
2month during which such tax liability is incurred begins on or
3after January 1, 1985, and prior to January 1, 1987, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 27.5% 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, 1987, and prior to January 1, 1988, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 26.25% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1988, and prior to January 1, 1989, or
14begins on or after 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. If the month during which
18such tax liability is incurred begins on or after January 1,
191989, and prior to January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year or 100% of the taxpayer's
23actual liability for the quarter monthly reporting period. The
24amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month. Before October 1, 2000, once applicable, the

 

 

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

 

 

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1monthly tax liability for the reasonably foreseeable future
2will fall below the $20,000 threshold stated above, then such
3taxpayer may petition the Department for a change in such
4taxpayer's reporting status. The Department shall change such
5taxpayer's reporting status unless it finds that such change is
6seasonal in nature and not likely to be long term. If any such
7quarter monthly payment is not paid at the time or in the
8amount required by this Section, then the taxpayer shall be
9liable for penalties and interest on the difference between the
10minimum amount due and the amount of such quarter monthly
11payment actually and timely paid, except insofar as the
12taxpayer has previously made payments for that month to the
13Department in excess of the minimum payments previously due as
14provided in this Section. The Department shall make reasonable
15rules and regulations to govern the quarter monthly payment
16amount and quarter monthly payment dates for taxpayers who file
17on other than a calendar monthly basis.
18    If any such payment provided for in this Section exceeds
19the taxpayer's liabilities under this Act, the Retailers'
20Occupation Tax Act, the Service Occupation Tax Act and the
21Service Use Tax Act, as shown by an original monthly return,
22the Department shall issue to the taxpayer a credit memorandum
23no later than 30 days after the date of payment, which
24memorandum may be submitted by the taxpayer to the Department
25in payment of tax liability subsequently to be remitted by the
26taxpayer to the Department or be assigned by the taxpayer to a

 

 

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1similar taxpayer under this Act, the Retailers' Occupation Tax
2Act, the Service Occupation Tax Act or the Service Use Tax Act,
3in accordance with reasonable rules and regulations to be
4prescribed by the Department, except that if such excess
5payment is shown on an original monthly return and is made
6after December 31, 1986, no credit memorandum shall be issued,
7unless requested by the taxpayer. If no such request is made,
8the taxpayer may credit such excess payment against tax
9liability subsequently to be remitted by the taxpayer to the
10Department under this Act, the Retailers' Occupation Tax Act,
11the Service Occupation Tax Act or the Service Use Tax Act, in
12accordance with reasonable rules and regulations prescribed by
13the Department. If the Department subsequently determines that
14all or any part of the credit taken was not actually due to the
15taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
16be reduced by 2.1% or 1.75% of the difference between the
17credit taken and that actually due, and the taxpayer shall be
18liable for penalties and interest on such difference.
19    If the retailer is otherwise required to file a monthly
20return and if the retailer's average monthly tax liability to
21the Department does not exceed $200, the Department may
22authorize his returns to be filed on a quarter annual basis,
23with the return for January, February, and March of a given
24year being due by April 20 of such year; with the return for
25April, May and June of a given year being due by July 20 of such
26year; with the return for July, August and September of a given

 

 

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

 

 

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1transaction, (i) a retailer of aircraft, watercraft, motor
2vehicles or trailers transfers more than one aircraft,
3watercraft, motor vehicle or trailer to another aircraft,
4watercraft, motor vehicle or trailer retailer for the purpose
5of resale or (ii) a retailer of aircraft, watercraft, motor
6vehicles, or trailers transfers more than one aircraft,
7watercraft, motor vehicle, or trailer to a purchaser for use as
8a qualifying rolling stock as provided in Section 3-55 of this
9Act, then that seller may report the transfer of all the
10aircraft, watercraft, motor vehicles or trailers involved in
11that transaction to the Department on the same uniform
12invoice-transaction reporting return form. For purposes of
13this Section, "watercraft" means a Class 2, Class 3, or Class 4
14watercraft as defined in Section 3-2 of the Boat Registration
15and Safety Act, a personal watercraft, or any boat equipped
16with an inboard motor.
17    The transaction reporting return in the case of motor
18vehicles or trailers that are required to be registered with an
19agency of this State, shall be the same document as the Uniform
20Invoice referred to in Section 5-402 of the Illinois Vehicle
21Code and must show the name and address of the seller; the name
22and address of the purchaser; the amount of the selling price
23including the amount allowed by the retailer for traded-in
24property, if any; the amount allowed by the retailer for the
25traded-in tangible personal property, if any, to the extent to
26which Section 2 of this Act allows an exemption for the value

 

 

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

 

 

HB2659- 20 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 21 -LRB099 07716 HLH 27849 b

1    No retailer's failure or refusal to remit tax under this
2Act precludes a user, who has paid the proper tax to the
3retailer, from obtaining his certificate of title or other
4evidence of title or registration (if titling or registration
5is required) upon satisfying the Department that such user has
6paid the proper tax (if tax is due) to the retailer. The
7Department shall adopt appropriate rules to carry out the
8mandate of this paragraph.
9    If the user who would otherwise pay tax to the retailer
10wants the transaction reporting return filed and the payment of
11tax or proof of exemption made to the Department before the
12retailer is willing to take these actions and such user has not
13paid the tax to the retailer, such user may certify to the fact
14of such delay by the retailer, and may (upon the Department
15being satisfied of the truth of such certification) transmit
16the information required by the transaction reporting return
17and the remittance for tax or proof of exemption directly to
18the Department and obtain his tax receipt or exemption
19determination, in which event the transaction reporting return
20and tax remittance (if a tax payment was required) shall be
21credited by the Department to the proper retailer's account
22with the Department, but without the 2.1% or 1.75% discount
23provided for in this Section being allowed. When the user pays
24the tax directly to the Department, he shall pay the tax in the
25same amount and in the same form in which it would be remitted
26if the tax had been remitted to the Department by the retailer.

 

 

HB2659- 22 -LRB099 07716 HLH 27849 b

1    Where a retailer collects the tax with respect to the
2selling price of tangible personal property which he sells and
3the purchaser thereafter returns such tangible personal
4property and the retailer refunds the selling price thereof to
5the purchaser, such retailer shall also refund, to the
6purchaser, the tax so collected from the purchaser. When filing
7his return for the period in which he refunds such tax to the
8purchaser, the retailer may deduct the amount of the tax so
9refunded by him to the purchaser from any other use tax which
10such retailer may be required to pay or remit to the
11Department, as shown by such return, if the amount of the tax
12to be deducted was previously remitted to the Department by
13such retailer. If the retailer has not previously remitted the
14amount of such tax to the Department, he is entitled to no
15deduction under this Act upon refunding such tax to the
16purchaser.
17    Any retailer filing a return under this Section shall also
18include (for the purpose of paying tax thereon) the total tax
19covered by such return upon the selling price of tangible
20personal property purchased by him at retail from a retailer,
21but as to which the tax imposed by this Act was not collected
22from the retailer filing such return, and such retailer shall
23remit the amount of such tax to the Department when filing such
24return.
25    If experience indicates such action to be practicable, the
26Department may prescribe and furnish a combination or joint

 

 

HB2659- 23 -LRB099 07716 HLH 27849 b

1return which will enable retailers, who are required to file
2returns hereunder and also under the Retailers' Occupation Tax
3Act, to furnish all the return information required by both
4Acts on the one form.
5    Where the retailer has more than one business registered
6with the Department under separate registration under this Act,
7such retailer may not file each return that is due as a single
8return covering all such registered businesses, but shall file
9separate returns for each such registered business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury which is hereby created, the net
13revenue realized for the preceding month from the 1% tax on
14sales of food for human consumption which is to be consumed off
15the premises where it is sold (other than alcoholic beverages,
16soft drinks and food which has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances and insulin, urine testing
19materials, syringes and needles used by diabetics.
20    Beginning January 1, 1990, each month the Department shall
21pay into the County and Mass Transit District Fund 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate on the selling price of tangible personal property
24which is purchased outside Illinois at retail from a retailer
25and which is titled or registered by an agency of this State's
26government.

 

 

HB2659- 24 -LRB099 07716 HLH 27849 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the State and Local Sales Tax Reform Fund, a special
3fund in the State Treasury, 20% of the net revenue realized for
4the preceding month from the 6.25% general rate on the selling
5price of tangible personal property, other than tangible
6personal property which is purchased outside Illinois at retail
7from a retailer and which is titled or registered by an agency
8of this State's government.
9    Beginning August 1, 2000, each month the Department shall
10pay into the State and Local Sales Tax Reform Fund 100% of the
11net revenue realized for the preceding month from the 1.25%
12rate on the selling price of motor fuel and gasohol. Beginning
13September 1, 2010, each month the Department shall pay into the
14State and Local Sales Tax Reform Fund 100% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of sales tax holiday items.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the net revenue
19realized for the preceding month from the 6.25% general rate on
20the selling price of tangible personal property which is
21purchased outside Illinois at retail from a retailer and which
22is titled or registered by an agency of this State's
23government.
24    Beginning October 1, 2009, each month the Department shall
25pay into the Capital Projects Fund an amount that is equal to
26an amount estimated by the Department to represent 80% of the

 

 

HB2659- 25 -LRB099 07716 HLH 27849 b

1net revenue realized for the preceding month from the sale of
2candy, grooming and hygiene products, and soft drinks that had
3been taxed at a rate of 1% prior to September 1, 2009 but that
4are now taxed at 6.25%.
5    Beginning July 1, 2011, each month the Department shall pay
6into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
7realized for the preceding month from the 6.25% general rate on
8the selling price of sorbents used in Illinois in the process
9of sorbent injection as used to comply with the Environmental
10Protection Act or the federal Clean Air Act, but the total
11payment into the Clean Air Act (CAA) Permit Fund under this Act
12and the Retailers' Occupation Tax Act shall not exceed
13$2,000,000 in any fiscal year.
14    Beginning July 1, 2013, each month the Department shall pay
15into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Service Use Tax Act, the Service
17Occupation Tax Act, and the Retailers' Occupation Tax Act an
18amount equal to the average monthly deficit in the Underground
19Storage Tank Fund during the prior year, as certified annually
20by the Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Service Use Tax Act, the Service Occupation Tax Act, and
23the Retailers' Occupation Tax Act shall not exceed $18,000,000
24in any State fiscal year. As used in this paragraph, the
25"average monthly deficit" shall be equal to the difference
26between the average monthly claims for payment by the fund and

 

 

HB2659- 26 -LRB099 07716 HLH 27849 b

1the average monthly revenues deposited into the fund, excluding
2payments made pursuant to this paragraph.
3    Beginning January 1, 2016, the Department shall pay into
4the At-Risk Youth Assistance Fund 100% of the net revenue
5realized for the preceding month from the 3.75% surcharge on
6the selling price of firearms and firearm component parts.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

HB2659- 27 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 28 -LRB099 07716 HLH 27849 b

1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois Fund;
11provided, however, that any amounts paid to the Build Illinois
12Fund in any fiscal year pursuant to this sentence shall be
13deemed to constitute payments pursuant to clause (b) of the
14preceding sentence and shall reduce the amount otherwise
15payable for such fiscal year pursuant to clause (b) of the
16preceding sentence. The moneys received by the Department
17pursuant to this Act and required to be deposited into the
18Build Illinois Fund are subject to the pledge, claim and charge
19set forth in Section 12 of the Build Illinois Bond Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

HB2659- 29 -LRB099 07716 HLH 27849 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

 

 

HB2659- 30 -LRB099 07716 HLH 27849 b

12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

HB2659- 31 -LRB099 07716 HLH 27849 b

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois Tax
21Increment Fund 0.27% of 80% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB2659- 32 -LRB099 07716 HLH 27849 b

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois Fund,
12the McCormick Place Expansion Project Fund, the Illinois Tax
13Increment Fund, and the Energy Infrastructure Fund pursuant to
14the preceding paragraphs or in any amendments to this Section
15hereafter enacted, beginning on the first day of the first
16calendar month to occur on or after the effective date of this
17amendatory Act of the 98th General Assembly, each month, from
18the collections made under Section 9 of the Use Tax Act,
19Section 9 of the Service Use Tax Act, Section 9 of the Service
20Occupation Tax Act, and Section 3 of the Retailers' Occupation
21Tax Act, the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year by
26the Audit Bureau of the Department under the Use Tax Act, the

 

 

HB2659- 33 -LRB099 07716 HLH 27849 b

1Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Of the remainder of the moneys received by the Department
5pursuant to this Act, 75% thereof shall be paid into the State
6Treasury and 25% shall be reserved in a special account and
7used only for the transfer to the Common School Fund as part of
8the monthly transfer from the General Revenue Fund in
9accordance with Section 8a of the State Finance Act.
10    As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17    Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21    For greater simplicity of administration, manufacturers,
22importers and wholesalers whose products are sold at retail in
23Illinois by numerous retailers, and who wish to do so, may
24assume the responsibility for accounting and paying to the
25Department all tax accruing under this Act with respect to such
26sales, if the retailers who are affected do not make written

 

 

HB2659- 34 -LRB099 07716 HLH 27849 b

1objection to the Department to this arrangement.
2(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
3eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
498-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
5    Section 15. The Service Use Tax Act is amended by changing
6Sections 3-10 and 9 as follows:
 
7    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the selling price of tangible personal property transferred as
11an incident to the sale of service, but, for the purpose of
12computing this tax, in no event shall the selling price be less
13than the cost price of the property to the serviceman.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the selling price
20of property transferred as an incident to the sale of service
21on or after January 1, 1990, and before July 1, 2003, (ii) 80%
22of the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24December 31, 2018, and (iii) 100% of the selling price

 

 

HB2659- 35 -LRB099 07716 HLH 27849 b

1thereafter. If, at any time, however, the tax under this Act on
2sales of gasohol, as defined in the Use Tax Act, is imposed at
3the rate of 1.25%, then the tax imposed by this Act applies to
4100% of the proceeds of sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2018 but applies to 100% of the selling price
10thereafter.
11    With respect to biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel, the
13tax imposed by this Act applies to (i) 80% of the selling price
14of property transferred as an incident to the sale of service
15on or after July 1, 2003 and on or before December 31, 2018 and
16(ii) 100% of the proceeds of the selling price thereafter. If,
17at any time, however, the tax under this Act on sales of
18biodiesel blends, as defined in the Use Tax Act, with no less
19than 1% and no more than 10% biodiesel is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of biodiesel blends with no less than 1%
22and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of the selling price

 

 

HB2659- 36 -LRB099 07716 HLH 27849 b

1of property transferred as an incident to the sale of service
2on or after July 1, 2003 and on or before December 31, 2018 but
3applies to 100% of the selling price thereafter.
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 as an
13incident to the 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

 

 

HB2659- 37 -LRB099 07716 HLH 27849 b

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
10bottle, can, carton, or container, regardless of size; but
11"soft drinks" does not include coffee, tea, non-carbonated
12water, infant formula, milk or milk products as defined in the
13Grade A Pasteurized Milk and Milk Products Act, or drinks
14containing 50% 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

 

 

HB2659- 38 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 39 -LRB099 07716 HLH 27849 b

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), "prescription and nonprescription medicines and
9drugs" includes medical cannabis purchased from a registered
10dispensing organization under the Compassionate Use of Medical
11Cannabis Pilot Program Act.
12    Beginning January 1, 2016, in addition to all other rates
13of tax imposed under this Act, a surcharge of 3.75%% is imposed
14on the selling price of (1) each firearm purchased in the State
15and (2) each component part to a firearm, if that component
16part is sold separately. "Firearm" has the meaning ascribed to
17that term in Section 1.1 of the Firearm Owners Identification
18Card Act.
19    If the property that is acquired from a serviceman is
20acquired outside Illinois and used outside Illinois before
21being brought to Illinois for use here and is taxable under
22this Act, the "selling price" on which the tax is computed
23shall be reduced by an amount that represents a reasonable
24allowance for depreciation for the period of prior out-of-state
25use.
26(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,

 

 

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1eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
2eff. 7-16-14.)
 
3    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
4    Sec. 9. Each serviceman required or authorized to collect
5the tax herein imposed shall pay to the Department the amount
6of such tax (except as otherwise provided) at the time when he
7is required to file his return for the period during which such
8tax was collected, less a discount of 2.1% prior to January 1,
91990 and 1.75% on and after January 1, 1990, or $5 per calendar
10year, whichever is greater, which is allowed to reimburse the
11serviceman for expenses incurred in collecting the tax, keeping
12records, preparing and filing returns, remitting the tax and
13supplying data to the Department on request. The Department may
14disallow the discount for servicemen whose certificate of
15registration is revoked at the time the return is filed, but
16only if the Department's decision to revoke the certificate of
17registration has become final. A serviceman need not remit that
18part of any tax collected by him to the extent that he is
19required to pay and does pay the tax imposed by the Service
20Occupation Tax Act with respect to his sale of service
21involving the incidental transfer by him of the same property.
22    Except as provided hereinafter in this Section, on or
23before the twentieth day of each calendar month, such
24serviceman shall file a return for the preceding calendar month
25in accordance with reasonable Rules and Regulations to be

 

 

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

 

 

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1due on the return shall be deemed assessed.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    If the serviceman is otherwise required to file a monthly
17return and if the serviceman'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.

 

 

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1    If the serviceman is otherwise required to file a monthly
2or quarterly return and if the serviceman's average monthly tax
3liability to the Department does not exceed $50, the Department
4may authorize his returns to be filed on an annual basis, with
5the return for a given year being due by January 20 of the
6following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a serviceman may file his return, in the
12case of any serviceman who ceases to engage in a kind of
13business which makes him responsible for filing returns under
14this Act, such serviceman shall file a final return under this
15Act with the Department not more than 1 month after
16discontinuing such business.
17    Where a serviceman collects the tax with respect to the
18selling price of property which he sells and the purchaser
19thereafter returns such property and the serviceman refunds the
20selling price thereof to the purchaser, such serviceman shall
21also refund, to the purchaser, the tax so collected from the
22purchaser. When filing his return for the period in which he
23refunds such tax to the purchaser, the serviceman may deduct
24the amount of the tax so refunded by him to the purchaser from
25any other Service Use Tax, Service Occupation Tax, retailers'
26occupation tax or use tax which such serviceman may be required

 

 

HB2659- 45 -LRB099 07716 HLH 27849 b

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

 

 

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1month from the 1% tax on sales of food for human consumption
2which is to be consumed off the premises where it is sold
3(other than alcoholic beverages, soft drinks and food which has
4been prepared for immediate consumption) and prescription and
5nonprescription medicines, drugs, medical appliances and
6insulin, urine testing materials, syringes and needles used by
7diabetics.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 20% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on transfers of tangible personal property, other
12than tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by an agency of this State's government.
15    Beginning August 1, 2000, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 100% of the
17net revenue realized for the preceding month from the 1.25%
18rate on the selling price of motor fuel and gasohol.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2013, each month the Department shall pay

 

 

HB2659- 47 -LRB099 07716 HLH 27849 b

1into the Underground Storage Tank Fund from the proceeds
2collected under this Act, the Use Tax Act, the Service
3Occupation Tax Act, and the Retailers' Occupation Tax Act an
4amount equal to the average monthly deficit in the Underground
5Storage Tank Fund during the prior year, as certified annually
6by the Illinois Environmental Protection Agency, but the total
7payment into the Underground Storage Tank Fund under this Act,
8the Use Tax Act, the Service Occupation Tax Act, and the
9Retailers' Occupation Tax Act shall not exceed $18,000,000 in
10any State fiscal year. As used in this paragraph, the "average
11monthly deficit" shall be equal to the difference between the
12average monthly claims for payment by the fund and the average
13monthly revenues deposited into the fund, excluding payments
14made pursuant to this paragraph.
15    Beginning January 1, 2016, the Department shall pay into
16the At-Risk Youth Assistance Fund 100% of the net revenue
17realized for the preceding month from the 3.75% surcharge on
18the selling price of firearms and firearm component parts.
19    Of the remainder of the moneys received by the Department
20pursuant to this Act, (a) 1.75% thereof shall be paid into the
21Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
22and after July 1, 1989, 3.8% thereof shall be paid into the
23Build Illinois Fund; provided, however, that if in any fiscal
24year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
25may be, of the moneys received by the Department and required
26to be paid into the Build Illinois Fund pursuant to Section 3

 

 

HB2659- 48 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 49 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 50 -LRB099 07716 HLH 27849 b

1payable for such fiscal year pursuant to clause (b) of the
2preceding sentence. The moneys received by the Department
3pursuant to this Act and required to be deposited into the
4Build Illinois Fund are subject to the pledge, claim and charge
5set forth in Section 12 of the Build Illinois Bond Act.
6    Subject to payment of amounts into the Build Illinois Fund
7as provided in the preceding paragraph or in any amendment
8thereto hereafter enacted, the following specified monthly
9installment of the amount requested in the certificate of the
10Chairman of the Metropolitan Pier and Exposition Authority
11provided under Section 8.25f of the State Finance Act, but not
12in excess of the sums designated as "Total Deposit", shall be
13deposited in the aggregate from collections under Section 9 of
14the Use Tax Act, Section 9 of the Service Use Tax Act, Section
159 of the Service Occupation Tax Act, and Section 3 of the
16Retailers' Occupation Tax Act into the McCormick Place
17Expansion Project Fund in the specified fiscal years.
18Fiscal YearTotal Deposit
191993         $0
201994 53,000,000
211995 58,000,000
221996 61,000,000
231997 64,000,000
241998 68,000,000
251999 71,000,000

 

 

HB2659- 51 -LRB099 07716 HLH 27849 b

12000 75,000,000
22001 80,000,000
32002 93,000,000
42003 99,000,000
52004103,000,000
62005108,000,000
72006113,000,000
82007119,000,000
92008126,000,000
102009132,000,000
112010139,000,000
122011146,000,000
132012153,000,000
142013161,000,000
152014170,000,000
162015179,000,000
172016189,000,000
182017199,000,000
192018210,000,000
202019221,000,000
212020233,000,000
222021246,000,000
232022260,000,000
242023275,000,000
252024 275,000,000
262025 275,000,000

 

 

HB2659- 52 -LRB099 07716 HLH 27849 b

12026 279,000,000
22027 292,000,000
32028 307,000,000
42029 322,000,000
52030 338,000,000
62031 350,000,000
72032 350,000,000
8and
9each fiscal year
10thereafter that bonds
11are outstanding under
12Section 13.2 of the
13Metropolitan Pier and
14Exposition Authority Act,
15but not after fiscal year 2060.
16    Beginning July 20, 1993 and in each month of each fiscal
17year thereafter, one-eighth of the amount requested in the
18certificate of the Chairman of the Metropolitan Pier and
19Exposition Authority for that fiscal year, less the amount
20deposited into the McCormick Place Expansion Project Fund by
21the State Treasurer in the respective month under subsection
22(g) of Section 13 of the Metropolitan Pier and Exposition
23Authority Act, plus cumulative deficiencies in the deposits
24required under this Section for previous months and years,
25shall be deposited into the McCormick Place Expansion Project
26Fund, until the full amount requested for the fiscal year, but

 

 

HB2659- 53 -LRB099 07716 HLH 27849 b

1not in excess of the amount specified above as "Total Deposit",
2has been deposited.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois Tax
8Increment Fund 0.27% of 80% of the net revenue realized for the
9preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a 25-year
16period, the Department shall each month pay into the Energy
17Infrastructure Fund 80% of the net revenue realized from the
186.25% general rate on the selling price of Illinois-mined coal
19that was sold to an eligible business. For purposes of this
20paragraph, the term "eligible business" means a new electric
21generating facility certified pursuant to Section 605-332 of
22the Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois Fund,
25the McCormick Place Expansion Project Fund, the Illinois Tax
26Increment Fund, and the Energy Infrastructure Fund pursuant to

 

 

HB2659- 54 -LRB099 07716 HLH 27849 b

1the preceding paragraphs or in any amendments to this Section
2hereafter enacted, beginning on the first day of the first
3calendar month to occur on or after the effective date of this
4amendatory Act of the 98th General Assembly, each month, from
5the collections made under Section 9 of the Use Tax Act,
6Section 9 of the Service Use Tax Act, Section 9 of the Service
7Occupation Tax Act, and Section 3 of the Retailers' Occupation
8Tax Act, the Department shall pay into the Tax Compliance and
9Administration Fund, to be used, subject to appropriation, to
10fund additional auditors and compliance personnel at the
11Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12the cash receipts collected during the preceding fiscal year by
13the Audit Bureau of the Department under the Use Tax Act, the
14Service Use Tax Act, the Service Occupation Tax Act, the
15Retailers' Occupation Tax Act, and associated local occupation
16and use taxes administered by the Department.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, 75% thereof shall be paid into the
19General Revenue Fund of the State Treasury and 25% shall be
20reserved in a special account and used only for the transfer to
21the Common School Fund as part of the monthly transfer from the
22General Revenue Fund in accordance with Section 8a of the State
23Finance Act.
24    As soon as possible after the first day of each month, upon
25certification of the Department of Revenue, the Comptroller
26shall order transferred and the Treasurer shall transfer from

 

 

HB2659- 55 -LRB099 07716 HLH 27849 b

1the General Revenue Fund to the Motor Fuel Tax Fund an amount
2equal to 1.7% of 80% of the net revenue realized under this Act
3for the second preceding month. Beginning April 1, 2000, this
4transfer is no longer required and shall not be made.
5    Net revenue realized for a month shall be the revenue
6collected by the State pursuant to this Act, less the amount
7paid out during that month as refunds to taxpayers for
8overpayment of liability.
9(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1098-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1198-1098, eff. 8-26-14.)
 
12    Section 20. The Service Occupation Tax Act is amended by
13changing Sections 3-10 and 9 as follows:
 
14    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17the "selling price", as defined in Section 2 of the Service Use
18Tax Act, of the tangible personal property. For the purpose of
19computing this tax, in no event shall the "selling price" be
20less than the cost price to the serviceman of the tangible
21personal property transferred. The selling price of each item
22of tangible personal property transferred as an incident of a
23sale of service may be shown as a distinct and separate item on
24the serviceman's billing to the service customer. If the

 

 

HB2659- 56 -LRB099 07716 HLH 27849 b

1selling price is not so shown, the selling price of the
2tangible personal property is deemed to be 50% of the
3serviceman's entire billing to the service customer. When,
4however, a serviceman contracts to design, develop, and produce
5special order machinery or equipment, the tax imposed by this
6Act shall be based on the serviceman's cost price of the
7tangible personal property transferred incident to the
8completion of the contract.
9    Beginning on July 1, 2000 and through December 31, 2000,
10with respect to motor fuel, as defined in Section 1.1 of the
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, as defined in the Use Tax Act, the
14tax imposed by this Act shall apply to (i) 70% of the cost
15price of property transferred as an incident to the sale of
16service on or after January 1, 1990, and before July 1, 2003,
17(ii) 80% of the selling price of property transferred as an
18incident to the sale of service on or after July 1, 2003 and on
19or before December 31, 2018, and (iii) 100% of the cost price
20thereafter. If, at any time, however, the tax under this Act on
21sales of gasohol, as defined in the Use Tax Act, is imposed at
22the rate of 1.25%, then the tax imposed by this Act applies to
23100% of the proceeds of sales of gasohol made during that time.
24    With respect to majority blended ethanol fuel, as defined
25in the Use Tax Act, the tax imposed by this Act does not apply
26to the selling price of property transferred as an incident to

 

 

HB2659- 57 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 58 -LRB099 07716 HLH 27849 b

1incident to the sales of service is less than 35%, or 75% in
2the case of servicemen transferring prescription drugs or
3servicemen engaged in graphic arts production, of the aggregate
4annual total gross receipts from all sales of service, the tax
5imposed by this Act shall be based on the serviceman's cost
6price of the tangible personal property transferred incident to
7the sale of those services.
8    The tax shall be imposed at the rate of 1% on food prepared
9for immediate consumption and transferred incident to a sale of
10service subject to this Act or the Service Occupation Tax Act
11by an entity licensed under the Hospital Licensing Act, the
12Nursing Home Care Act, the ID/DD Community Care Act, the
13Specialized Mental Health Rehabilitation Act of 2013, or the
14Child Care Act of 1969. The tax shall also be imposed at the
15rate of 1% on food for human consumption that is to be consumed
16off the premises where it is sold (other than alcoholic
17beverages, soft drinks, and food that has been prepared for
18immediate consumption and is not otherwise included in this
19paragraph) and prescription and nonprescription medicines,
20drugs, medical appliances, modifications to a motor vehicle for
21the purpose of rendering it usable by a disabled person, and
22insulin, urine testing materials, syringes, and needles used by
23diabetics, for human use. For the purposes of this Section,
24until September 1, 2009: the term "soft drinks" means any
25complete, finished, ready-to-use, non-alcoholic drink, whether
26carbonated or not, including but not limited to soda water,

 

 

HB2659- 59 -LRB099 07716 HLH 27849 b

1cola, fruit juice, vegetable juice, carbonated water, and all
2other preparations commonly known as soft drinks of whatever
3kind or description that are contained in any closed or sealed
4can, carton, or container, regardless of size; but "soft
5drinks" does not include coffee, tea, non-carbonated water,
6infant formula, milk or milk products as defined in the Grade A
7Pasteurized Milk and Milk Products Act, or drinks containing
850% or more natural fruit or vegetable juice.
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.

 

 

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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.

 

 

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1    Beginning on January 1, 2014 (the effective date of Public
2Act 98-122), "prescription and nonprescription medicines and
3drugs" includes medical cannabis purchased from a registered
4dispensing organization under the Compassionate Use of Medical
5Cannabis Pilot Program Act.
6    Beginning January 1, 2016, in addition to all other rates
7of tax imposed under this Act, a surcharge of 3.75%% is imposed
8on the selling price of (1) each firearm purchased in the State
9and (2) each component part to a firearm, if that component
10part is sold separately. "Firearm" has the meaning ascribed to
11that term in Section 1.1 of the Firearm Owners Identification
12Card 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; 98-756,
15eff. 7-16-14.)
 
16    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
17    Sec. 9. Each serviceman required or authorized to collect
18the tax herein imposed shall pay to the Department the amount
19of such tax at the time when he is required to file his return
20for the period during which such tax was collectible, less a
21discount of 2.1% prior to January 1, 1990, and 1.75% on and
22after January 1, 1990, or $5 per calendar year, whichever is
23greater, which is allowed to reimburse the serviceman for
24expenses incurred in collecting the tax, keeping records,
25preparing and filing returns, remitting the tax and supplying

 

 

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

 

 

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1the twentieth day of the following calendar month, stating:
2        1. The name of the seller;
3        2. The address of the principal place of business from
4    which he engages in business as a serviceman in this State;
5        3. The total amount of taxable receipts received by him
6    during the preceding calendar month, including receipts
7    from charge and time sales, but less all deductions allowed
8    by law;
9        4. The amount of credit provided in Section 2d of this
10    Act;
11        5. The amount of tax due;
12        5-5. The signature of the taxpayer; and
13        6. Such other reasonable information as the Department
14    may require.
15    If a taxpayer fails to sign a return within 30 days after
16the proper notice and demand for signature by the Department,
17the return shall be considered valid and any amount shown to be
18due on the return shall be deemed assessed.
19    Prior to October 1, 2003, and on and after September 1,
202004 a serviceman may accept a Manufacturer's Purchase Credit
21certification from a purchaser in satisfaction of Service Use
22Tax as provided in Section 3-70 of the Service Use Tax Act if
23the purchaser provides the appropriate documentation as
24required by Section 3-70 of the Service Use Tax Act. A
25Manufacturer's Purchase Credit certification, accepted prior
26to October 1, 2003 or on or after September 1, 2004 by a

 

 

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1serviceman as provided in Section 3-70 of the Service Use Tax
2Act, may be used by that serviceman to satisfy Service
3Occupation Tax liability in the amount claimed in the
4certification, not to exceed 6.25% of the receipts subject to
5tax from a qualifying purchase. A Manufacturer's Purchase
6Credit reported on any original or amended return filed under
7this Act after October 20, 2003 for reporting periods prior to
8September 1, 2004 shall be disallowed. Manufacturer's Purchase
9Credit reported on annual returns due on or after January 1,
102005 will be disallowed for periods prior to September 1, 2004.
11No Manufacturer's Purchase Credit may be used after September
1230, 2003 through August 31, 2004 to satisfy any tax liability
13imposed under this Act, including any audit liability.
14    If the serviceman's average monthly tax liability to the
15Department does not exceed $200, the Department may authorize
16his returns to be filed on a quarter annual basis, with the
17return for January, February and March of a given year being
18due by April 20 of such year; with the return for April, May
19and June of a given year being due by July 20 of such year; with
20the return for July, August and September of a given year being
21due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the serviceman's average monthly tax liability to the
25Department does not exceed $50, the Department may authorize
26his returns to be filed on an annual basis, with the return for

 

 

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1a given year being due by January 20 of the following year.
2    Such quarter annual and annual returns, as to form and
3substance, shall be subject to the same requirements as monthly
4returns.
5    Notwithstanding any other provision in this Act concerning
6the time within which a serviceman may file his return, in the
7case of any serviceman who ceases to engage in a kind of
8business which makes him responsible for filing returns under
9this Act, such serviceman shall file a final return under this
10Act with the Department not more than 1 month after
11discontinuing such business.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1995, a taxpayer who has
19an average monthly tax liability of $50,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 2000, a taxpayer who has
22an annual tax liability of $200,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. The term "annual tax liability" shall be the
25sum of the taxpayer's liabilities under this Act, and under all
26other State and local occupation and use tax laws administered

 

 

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

 

 

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1selling price of tangible personal property which he sells and
2the purchaser thereafter returns such tangible personal
3property and the serviceman refunds the selling price thereof
4to the purchaser, such serviceman shall also refund, to the
5purchaser, the tax so collected from the purchaser. When filing
6his return for the period in which he refunds such tax to the
7purchaser, the serviceman may deduct the amount of the tax so
8refunded by him to the purchaser from any other Service
9Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
10Use Tax which such serviceman may be required to pay or remit
11to the Department, as shown by such return, provided that the
12amount of the tax to be deducted shall previously have been
13remitted to the Department by such serviceman. If the
14serviceman shall not previously have remitted the amount of
15such tax to the Department, he shall be entitled to no
16deduction hereunder upon refunding such tax to the purchaser.
17    If experience indicates such action to be practicable, the
18Department may prescribe and furnish a combination or joint
19return which will enable servicemen, who are required to file
20returns hereunder and also under the Retailers' Occupation Tax
21Act, the Use Tax Act or the Service Use Tax Act, to furnish all
22the return information required by all said Acts on the one
23form.
24    Where the serviceman has more than one business registered
25with the Department under separate registrations hereunder,
26such serviceman shall file separate returns for each registered

 

 

HB2659- 68 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 69 -LRB099 07716 HLH 27849 b

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7are now taxed at 6.25%.
8    Beginning July 1, 2013, each month the Department shall pay
9into the Underground Storage Tank Fund from the proceeds
10collected under this Act, the Use Tax Act, the Service Use Tax
11Act, and the Retailers' Occupation Tax Act an amount equal to
12the average monthly deficit in the Underground Storage Tank
13Fund during the prior year, as certified annually by the
14Illinois Environmental Protection Agency, but the total
15payment into the Underground Storage Tank Fund under this Act,
16the Use Tax Act, the Service Use Tax Act, and the Retailers'
17Occupation Tax Act shall not exceed $18,000,000 in any State
18fiscal year. As used in this paragraph, the "average monthly
19deficit" shall be equal to the difference between the average
20monthly claims for payment by the fund and the average monthly
21revenues deposited into the fund, excluding payments made
22pursuant to this paragraph.
23    Beginning January 1, 2016, the Department shall pay into
24the At-Risk Youth Assistance Fund 100% of the net revenue
25realized for the preceding month from the 3.75% surcharge on
26the selling price of firearms and firearm component parts.

 

 

HB2659- 70 -LRB099 07716 HLH 27849 b

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, (a) 1.75% thereof shall be paid into the
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
4and after July 1, 1989, 3.8% thereof shall be paid into the
5Build Illinois Fund; provided, however, that if in any fiscal
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
7may be, of the moneys received by the Department and required
8to be paid into the Build Illinois Fund pursuant to Section 3
9of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
10Act, Section 9 of the Service Use Tax Act, and Section 9 of the
11Service Occupation Tax Act, such Acts being hereinafter called
12the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
13may be, of moneys being hereinafter called the "Tax Act
14Amount", and (2) the amount transferred to the Build Illinois
15Fund from the State and Local Sales Tax Reform Fund shall be
16less than the Annual Specified Amount (as defined in Section 3
17of the Retailers' Occupation Tax Act), an amount equal to the
18difference shall be immediately paid into the Build Illinois
19Fund from other moneys received by the Department pursuant to
20the Tax Acts; and further provided, that if on the last
21business day of any month the sum of (1) the Tax Act Amount
22required to be deposited into the Build Illinois Account in the
23Build Illinois Fund during such month and (2) the amount
24transferred during such month to the Build Illinois Fund from
25the State and Local Sales Tax Reform Fund shall have been less
26than 1/12 of the Annual Specified Amount, an amount equal to

 

 

HB2659- 71 -LRB099 07716 HLH 27849 b

1the difference shall be immediately paid into the Build
2Illinois Fund from other moneys received by the Department
3pursuant to the Tax Acts; and, further provided, that in no
4event shall the payments required under the preceding proviso
5result in aggregate payments into the Build Illinois Fund
6pursuant to this clause (b) for any fiscal year in excess of
7the greater of (i) the Tax Act Amount or (ii) the Annual
8Specified Amount for such fiscal year; and, further provided,
9that the amounts payable into the Build Illinois Fund under
10this clause (b) shall be payable only until such time as the
11aggregate amount on deposit under each trust indenture securing
12Bonds issued and outstanding pursuant to the Build Illinois
13Bond Act is sufficient, taking into account any future
14investment income, to fully provide, in accordance with such
15indenture, for the defeasance of or the payment of the
16principal of, premium, if any, and interest on the Bonds
17secured by such indenture and on any Bonds expected to be
18issued thereafter and all fees and costs payable with respect
19thereto, all as certified by the Director of the Bureau of the
20Budget (now Governor's Office of Management and Budget). If on
21the last business day of any month in which Bonds are
22outstanding pursuant to the Build Illinois Bond Act, the
23aggregate of the moneys deposited in the Build Illinois Bond
24Account in the Build Illinois Fund in such month shall be less
25than the amount required to be transferred in such month from
26the Build Illinois Bond Account to the Build Illinois Bond

 

 

HB2659- 72 -LRB099 07716 HLH 27849 b

1Retirement and Interest Fund pursuant to Section 13 of the
2Build Illinois Bond Act, an amount equal to such deficiency
3shall be immediately paid from other moneys received by the
4Department pursuant to the Tax Acts to the Build Illinois Fund;
5provided, however, that any amounts paid to the Build Illinois
6Fund in any fiscal year pursuant to this sentence shall be
7deemed to constitute payments pursuant to clause (b) of the
8preceding sentence and shall reduce the amount otherwise
9payable for such fiscal year pursuant to clause (b) of the
10preceding sentence. The moneys received by the Department
11pursuant to this Act and required to be deposited into the
12Build Illinois Fund are subject to the pledge, claim and charge
13set forth in Section 12 of the Build Illinois Bond Act.
14    Subject to payment of amounts into the Build Illinois Fund
15as provided in the preceding paragraph or in any amendment
16thereto hereafter enacted, the following specified monthly
17installment of the amount requested in the certificate of the
18Chairman of the Metropolitan Pier and Exposition Authority
19provided under Section 8.25f of the State Finance Act, but not
20in excess of the sums designated as "Total Deposit", shall be
21deposited in the aggregate from collections under Section 9 of
22the Use Tax Act, Section 9 of the Service Use Tax Act, Section
239 of the Service Occupation Tax Act, and Section 3 of the
24Retailers' Occupation Tax Act into the McCormick Place
25Expansion Project Fund in the specified fiscal years.

 

 

HB2659- 73 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 74 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 75 -LRB099 07716 HLH 27849 b

1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois Tax
17Increment Fund 0.27% of 80% of the net revenue realized for the
18preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a 25-year
25period, the Department shall each month pay into the Energy
26Infrastructure Fund 80% of the net revenue realized from the

 

 

HB2659- 76 -LRB099 07716 HLH 27849 b

16.25% general rate on the selling price of Illinois-mined coal
2that was sold to an eligible business. For purposes of this
3paragraph, the term "eligible business" means a new electric
4generating facility certified pursuant to Section 605-332 of
5the Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    Subject to payment of amounts into the Build Illinois Fund,
8the McCormick Place Expansion Project Fund, the Illinois Tax
9Increment Fund, and the Energy Infrastructure Fund pursuant to
10the preceding paragraphs or in any amendments to this Section
11hereafter enacted, beginning on the first day of the first
12calendar month to occur on or after the effective date of this
13amendatory Act of the 98th General Assembly, each month, from
14the collections made under Section 9 of the Use Tax Act,
15Section 9 of the Service Use Tax Act, Section 9 of the Service
16Occupation Tax Act, and Section 3 of the Retailers' Occupation
17Tax Act, the Department shall pay into the Tax Compliance and
18Administration Fund, to be used, subject to appropriation, to
19fund additional auditors and compliance personnel at the
20Department of Revenue, an amount equal to 1/12 of 5% of 80% of
21the cash receipts collected during the preceding fiscal year by
22the Audit Bureau of the Department under the Use Tax Act, the
23Service Use Tax Act, the Service Occupation Tax Act, the
24Retailers' Occupation Tax Act, and associated local occupation
25and use taxes administered by the Department.
26    Of the remainder of the moneys received by the Department

 

 

HB2659- 77 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 78 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 79 -LRB099 07716 HLH 27849 b

1who is not required to file an income tax return with the
2United States Government.
3    As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10    Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14    For greater simplicity of administration, it shall be
15permissible for manufacturers, importers and wholesalers whose
16products are sold by numerous servicemen in Illinois, and who
17wish to do so, to assume the responsibility for accounting and
18paying to the Department all tax accruing under this Act with
19respect to such sales, if the servicemen who are affected do
20not make written objection to the Department to this
21arrangement.
22(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2398-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2498-1098, eff. 8-26-14.)
 
25    Section 25. The Retailers' Occupation Tax Act is amended by

 

 

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1changing Sections 2-10 and 3 as follows:
 
2    (35 ILCS 120/2-10)
3    Sec. 2-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5gross receipts from sales of tangible personal property made in
6the course of business.
7    Beginning on July 1, 2000 and through December 31, 2000,
8with respect to motor fuel, as defined in Section 1.1 of the
9Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
10the Use Tax Act, the tax is imposed at the rate of 1.25%.
11    Beginning on August 6, 2010 through August 15, 2010, with
12respect to sales tax holiday items as defined in Section 2-8 of
13this Act, the tax is imposed at the rate of 1.25%.
14    Within 14 days after the effective date of this amendatory
15Act of the 91st General Assembly, each retailer of motor fuel
16and gasohol shall cause the following notice to be posted in a
17prominently visible place on each retail dispensing device that
18is used to dispense motor fuel or gasohol in the State of
19Illinois: "As of July 1, 2000, the State of Illinois has
20eliminated the State's share of sales tax on motor fuel and
21gasohol through December 31, 2000. The price on this pump
22should reflect the elimination of the tax." The notice shall be
23printed in bold print on a sign that is no smaller than 4
24inches by 8 inches. The sign shall be clearly visible to
25customers. Any retailer who fails to post or maintain a

 

 

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1required sign through December 31, 2000 is guilty of a petty
2offense for which the fine shall be $500 per day per each
3retail premises where a violation occurs.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the proceeds of
6sales made on or after January 1, 1990, and before July 1,
72003, (ii) 80% of the proceeds of sales made on or after July
81, 2003 and on or before December 31, 2018, and (iii) 100% of
9the proceeds of sales made thereafter. If, at any time,
10however, the tax under this Act on sales of gasohol, as defined
11in the Use Tax Act, is imposed at the rate of 1.25%, then the
12tax imposed by this Act applies to 100% of the proceeds of
13sales of gasohol made during that time.
14    With respect to majority blended ethanol fuel, as defined
15in the Use Tax Act, the tax imposed by this Act does not apply
16to the proceeds of sales made on or after July 1, 2003 and on or
17before December 31, 2018 but applies to 100% of the proceeds of
18sales made thereafter.
19    With respect to biodiesel blends, as defined in the Use Tax
20Act, with no less than 1% and no more than 10% biodiesel, the
21tax imposed by this Act applies to (i) 80% of the proceeds of
22sales made on or after July 1, 2003 and on or before December
2331, 2018 and (ii) 100% of the proceeds of sales made
24thereafter. If, at any time, however, the tax under this Act on
25sales of biodiesel blends, as defined in the Use Tax Act, with
26no less than 1% and no more than 10% biodiesel is imposed at

 

 

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1the rate of 1.25%, then the tax imposed by this Act applies to
2100% of the proceeds of sales of biodiesel blends with no less
3than 1% and no more than 10% biodiesel made during that time.
4    With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel, the tax imposed
7by this Act does not apply to the proceeds of sales made on or
8after July 1, 2003 and on or before December 31, 2018 but
9applies to 100% of the proceeds of sales made thereafter.
10    With respect to food for human consumption that is to be
11consumed off the premises where it is sold (other than
12alcoholic beverages, soft drinks, and food that has been
13prepared for immediate consumption) and prescription and
14nonprescription medicines, drugs, medical appliances,
15modifications to a motor vehicle for the purpose of rendering
16it usable by a disabled person, and insulin, urine testing
17materials, syringes, and needles used by diabetics, for human
18use, the tax is imposed at the rate of 1%. For the purposes of
19this Section, until September 1, 2009: the term "soft drinks"
20means any complete, finished, ready-to-use, non-alcoholic
21drink, whether carbonated or not, including but not limited to
22soda water, cola, fruit juice, vegetable juice, carbonated
23water, and all other preparations commonly known as soft drinks
24of whatever kind or description that are contained in any
25closed or sealed bottle, can, carton, or container, regardless
26of size; but "soft drinks" does not include coffee, tea,

 

 

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

 

 

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

 

 

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1of Medical Cannabis Pilot Program Act.
2    Beginning January 1, 2016, in addition to all other rates
3of tax imposed under this Act, a surcharge of 3.75%% is imposed
4on the selling price of (1) each firearm purchased in the State
5and (2) each component part to a firearm, if that component
6part is sold separately. "Firearm" has the meaning ascribed to
7that term in Section 1.1 of the Firearm Owners Identification
8Card Act.
9(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
10    (35 ILCS 120/3)  (from Ch. 120, par. 442)
11    Sec. 3. Except as provided in this Section, on or before
12the twentieth day of each calendar month, every person engaged
13in the business of selling tangible personal property at retail
14in this State during the preceding calendar month shall file a
15return with the Department, stating:
16        1. The name of the seller;
17        2. His residence address and the address of his
18    principal place of business and the address of the
19    principal place of business (if that is a different
20    address) from which he engages in the business of selling
21    tangible personal property at retail in this State;
22        3. Total amount of receipts received by him during the
23    preceding calendar month or quarter, as the case may be,
24    from sales of tangible personal property, and from services
25    furnished, by him during such preceding calendar month or

 

 

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1    quarter;
2        4. Total amount received by him during the preceding
3    calendar month or quarter on charge and time sales of
4    tangible personal property, and from services furnished,
5    by him prior to the month or quarter for which the return
6    is filed;
7        5. Deductions allowed by law;
8        6. Gross receipts which were received by him during the
9    preceding calendar month or quarter and upon the basis of
10    which the tax is imposed;
11        7. The amount of credit provided in Section 2d of this
12    Act;
13        8. The amount of tax due;
14        9. The signature of the taxpayer; and
15        10. Such other reasonable information as the
16    Department may require.
17    If a taxpayer fails to sign a return within 30 days after
18the proper notice and demand for signature by the Department,
19the return shall be considered valid and any amount shown to be
20due on the return shall be deemed assessed.
21    Each return shall be accompanied by the statement of
22prepaid tax issued pursuant to Section 2e for which credit is
23claimed.
24    Prior to October 1, 2003, and on and after September 1,
252004 a retailer may accept a Manufacturer's Purchase Credit
26certification from a purchaser in satisfaction of Use Tax as

 

 

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1provided in Section 3-85 of the Use Tax Act if the purchaser
2provides the appropriate documentation as required by Section
33-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4certification, accepted by a retailer prior to October 1, 2003
5and on and after September 1, 2004 as provided in Section 3-85
6of the Use Tax Act, may be used by that retailer to satisfy
7Retailers' Occupation Tax liability in the amount claimed in
8the certification, not to exceed 6.25% of the receipts subject
9to tax from a qualifying purchase. A Manufacturer's Purchase
10Credit reported on any original or amended return filed under
11this Act after October 20, 2003 for reporting periods prior to
12September 1, 2004 shall be disallowed. Manufacturer's
13Purchaser Credit reported on annual returns due on or after
14January 1, 2005 will be disallowed for periods prior to
15September 1, 2004. No Manufacturer's Purchase Credit may be
16used after September 30, 2003 through August 31, 2004 to
17satisfy any tax liability imposed under this Act, including any
18audit liability.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB2659- 92 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 93 -LRB099 07716 HLH 27849 b

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

 

 

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

 

 

HB2659- 95 -LRB099 07716 HLH 27849 b

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

 

 

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

 

 

HB2659- 97 -LRB099 07716 HLH 27849 b

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

 

 

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

 

 

HB2659- 99 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 100 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 101 -LRB099 07716 HLH 27849 b

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

 

 

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

 

 

HB2659- 103 -LRB099 07716 HLH 27849 b

1payment dates for taxpayers who file on other than a calendar
2monthly basis.
3    The provisions of this paragraph apply before October 1,
42001. Without regard to whether a taxpayer is required to make
5quarter monthly payments as specified above, any taxpayer who
6is required by Section 2d of this Act to collect and remit
7prepaid taxes and has collected prepaid taxes which average in
8excess of $25,000 per month during the preceding 2 complete
9calendar quarters, shall file a return with the Department as
10required by Section 2f and shall make payments to the
11Department on or before the 7th, 15th, 22nd and last day of the
12month during which such liability is incurred. If the month
13during which such tax liability is incurred began prior to the
14effective date of this amendatory Act of 1985, each payment
15shall be in an amount not less than 22.5% of the taxpayer's
16actual liability under Section 2d. If the month during which
17such tax liability is incurred begins on or after January 1,
181986, each payment shall be in an amount equal to 22.5% of the
19taxpayer's actual liability for the month or 27.5% of the
20taxpayer's liability for the same calendar month of the
21preceding calendar year. If the month during which such tax
22liability is incurred begins on or after January 1, 1987, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year.
26The amount of such quarter monthly payments shall be credited

 

 

HB2659- 104 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 105 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 106 -LRB099 07716 HLH 27849 b

1prescribed by the Department. If no such request is made, the
2taxpayer may credit such excess payment against tax liability
3subsequently to be remitted to the Department under this Act,
4the Use Tax Act, the Service Occupation Tax Act or the Service
5Use Tax Act, in accordance with reasonable rules and
6regulations prescribed by the Department. If the Department
7subsequently determined that all or any part of the credit
8taken was not actually due to the taxpayer, the taxpayer's 2.1%
9and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
10of the difference between the credit taken and that actually
11due, and that taxpayer shall be liable for penalties and
12interest on such difference.
13    If a retailer of motor fuel is entitled to a credit under
14Section 2d of this Act which exceeds the taxpayer's liability
15to the Department under this Act for the month which the
16taxpayer is filing a return, the Department shall issue the
17taxpayer a credit memorandum for the excess.
18    Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund, a special fund in the
20State treasury which is hereby created, the net revenue
21realized for the preceding month from the 1% tax on sales of
22food for human consumption which is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft
24drinks and food which has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances and insulin, urine testing

 

 

HB2659- 107 -LRB099 07716 HLH 27849 b

1materials, syringes and needles used by diabetics.
2    Beginning January 1, 1990, each month the Department shall
3pay into the County and Mass Transit District Fund, a special
4fund in the State treasury which is hereby created, 4% of the
5net revenue realized for the preceding month from the 6.25%
6general rate.
7    Beginning August 1, 2000, each month the Department shall
8pay into the County and Mass Transit District Fund 20% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol. Beginning
11September 1, 2010, each month the Department shall pay into the
12County and Mass Transit District Fund 20% of the net revenue
13realized for the preceding month from the 1.25% rate on the
14selling price of sales tax holiday items.
15    Beginning January 1, 1990, each month the Department shall
16pay into the Local Government Tax Fund 16% of the net revenue
17realized for the preceding month from the 6.25% general rate on
18the selling price of tangible personal property.
19    Beginning August 1, 2000, each month the Department shall
20pay into the Local Government Tax Fund 80% of the net revenue
21realized for the preceding month from the 1.25% rate on the
22selling price of motor fuel and gasohol. Beginning September 1,
232010, each month the Department shall pay into the Local
24Government Tax Fund 80% of the net revenue realized for the
25preceding month from the 1.25% rate on the selling price of
26sales tax holiday items.

 

 

HB2659- 108 -LRB099 07716 HLH 27849 b

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7are now taxed at 6.25%.
8    Beginning July 1, 2011, each month the Department shall pay
9into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
10realized for the preceding month from the 6.25% general rate on
11the selling price of sorbents used in Illinois in the process
12of sorbent injection as used to comply with the Environmental
13Protection Act or the federal Clean Air Act, but the total
14payment into the Clean Air Act (CAA) Permit Fund under this Act
15and the Use Tax Act shall not exceed $2,000,000 in any fiscal
16year.
17    Beginning July 1, 2013, each month the Department shall pay
18into the Underground Storage Tank Fund from the proceeds
19collected under this Act, the Use Tax Act, the Service Use Tax
20Act, and the Service Occupation Tax Act an amount equal to the
21average monthly deficit in the Underground Storage Tank Fund
22during the prior year, as certified annually by the Illinois
23Environmental Protection Agency, but the total payment into the
24Underground Storage Tank Fund under this Act, the Use Tax Act,
25the Service Use Tax Act, and the Service Occupation Tax Act
26shall not exceed $18,000,000 in any State fiscal year. As used

 

 

HB2659- 109 -LRB099 07716 HLH 27849 b

1in this paragraph, the "average monthly deficit" shall be equal
2to the difference between the average monthly claims for
3payment by the fund and the average monthly revenues deposited
4into the fund, excluding payments made pursuant to this
5paragraph.
6    Beginning January 1, 2016, the Department shall pay into
7the At-Risk Youth Assistance Fund 100% of the net revenue
8realized for the preceding month from the 3.75% surcharge on
9the selling price of firearms and firearm component parts.
10    Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to this Act,
18Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
19Act, and Section 9 of the Service Occupation Tax Act, such Acts
20being hereinafter called the "Tax Acts" and such aggregate of
212.2% or 3.8%, as the case may be, of moneys being hereinafter
22called the "Tax Act Amount", and (2) the amount transferred to
23the Build Illinois Fund from the State and Local Sales Tax
24Reform Fund shall be less than the Annual Specified Amount (as
25hereinafter defined), an amount equal to the difference shall
26be immediately paid into the Build Illinois Fund from other

 

 

HB2659- 110 -LRB099 07716 HLH 27849 b

1moneys received by the Department pursuant to the Tax Acts; the
2"Annual Specified Amount" means the amounts specified below for
3fiscal years 1986 through 1993:
4Fiscal YearAnnual Specified Amount
51986$54,800,000
61987$76,650,000
71988$80,480,000
81989$88,510,000
91990$115,330,000
101991$145,470,000
111992$182,730,000
121993$206,520,000;
13and means the Certified Annual Debt Service Requirement (as
14defined in Section 13 of the Build Illinois Bond Act) or the
15Tax Act Amount, whichever is greater, for fiscal year 1994 and
16each fiscal year thereafter; and further provided, that if on
17the last business day of any month the sum of (1) the Tax Act
18Amount required to be deposited into the Build Illinois Bond
19Account in the Build Illinois Fund during such month and (2)
20the amount transferred to the Build Illinois Fund from the
21State and Local Sales Tax Reform Fund shall have been less than
221/12 of the Annual Specified Amount, an amount equal to the
23difference shall be immediately paid into the Build Illinois
24Fund from other moneys received by the Department pursuant to
25the Tax Acts; and, further provided, that in no event shall the
26payments required under the preceding proviso result in

 

 

HB2659- 111 -LRB099 07716 HLH 27849 b

1aggregate payments into the Build Illinois Fund pursuant to
2this clause (b) for any fiscal year in excess of the greater of
3(i) the Tax Act Amount or (ii) the Annual Specified Amount for
4such fiscal year. The amounts payable into the Build Illinois
5Fund under clause (b) of the first sentence in this paragraph
6shall be payable only until such time as the aggregate amount
7on deposit under each trust indenture securing Bonds issued and
8outstanding pursuant to the Build Illinois Bond Act is
9sufficient, taking into account any future investment income,
10to fully provide, in accordance with such indenture, for the
11defeasance of or the payment of the principal of, premium, if
12any, and interest on the Bonds secured by such indenture and on
13any Bonds expected to be issued thereafter and all fees and
14costs payable with respect thereto, all as certified by the
15Director of the Bureau of the Budget (now Governor's Office of
16Management and Budget). If on the last business day of any
17month in which Bonds are outstanding pursuant to the Build
18Illinois Bond Act, the aggregate of moneys deposited in the
19Build Illinois Bond Account in the Build Illinois Fund in such
20month shall be less than the amount required to be transferred
21in such month from the Build Illinois Bond Account to the Build
22Illinois Bond Retirement and Interest Fund pursuant to Section
2313 of the Build Illinois Bond Act, an amount equal to such
24deficiency shall be immediately paid from other moneys received
25by the Department pursuant to the Tax Acts to the Build
26Illinois Fund; provided, however, that any amounts paid to the

 

 

HB2659- 112 -LRB099 07716 HLH 27849 b

1Build Illinois Fund in any fiscal year pursuant to this
2sentence shall be deemed to constitute payments pursuant to
3clause (b) of the first sentence of this paragraph and shall
4reduce the amount otherwise payable for such fiscal year
5pursuant to that clause (b). The moneys received by the
6Department pursuant to this Act and required to be deposited
7into the Build Illinois Fund are subject to the pledge, claim
8and charge set forth in Section 12 of the Build Illinois Bond
9Act.
10    Subject to payment of amounts into the Build Illinois Fund
11as provided in the preceding paragraph or in any amendment
12thereto hereafter enacted, the following specified monthly
13installment of the amount requested in the certificate of the
14Chairman of the Metropolitan Pier and Exposition Authority
15provided under Section 8.25f of the State Finance Act, but not
16in excess of sums designated as "Total Deposit", shall be
17deposited in the aggregate from collections under Section 9 of
18the Use Tax Act, Section 9 of the Service Use Tax Act, Section
199 of the Service Occupation Tax Act, and Section 3 of the
20Retailers' Occupation Tax Act into the McCormick Place
21Expansion Project Fund in the specified fiscal years.
22Fiscal YearTotal Deposit
231993         $0
241994 53,000,000
251995 58,000,000

 

 

HB2659- 113 -LRB099 07716 HLH 27849 b

11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021246,000,000

 

 

HB2659- 114 -LRB099 07716 HLH 27849 b

12022260,000,000
22023275,000,000
32024 275,000,000
42025 275,000,000
52026 279,000,000
62027 292,000,000
72028 307,000,000
82029 322,000,000
92030 338,000,000
102031 350,000,000
112032 350,000,000
12and
13each fiscal year
14thereafter that bonds
15are outstanding under
16Section 13.2 of the
17Metropolitan Pier and
18Exposition Authority Act,
19but not after fiscal year 2060.
20    Beginning July 20, 1993 and in each month of each fiscal
21year thereafter, one-eighth of the amount requested in the
22certificate of the Chairman of the Metropolitan Pier and
23Exposition Authority for that fiscal year, less the amount
24deposited into the McCormick Place Expansion Project Fund by
25the State Treasurer in the respective month under subsection
26(g) of Section 13 of the Metropolitan Pier and Exposition

 

 

HB2659- 115 -LRB099 07716 HLH 27849 b

1Authority Act, plus cumulative deficiencies in the deposits
2required under this Section for previous months and years,
3shall be deposited into the McCormick Place Expansion Project
4Fund, until the full amount requested for the fiscal year, but
5not in excess of the amount specified above as "Total Deposit",
6has been deposited.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning July 1, 1993 and ending on September 30,
112013, the Department shall each month pay into the Illinois Tax
12Increment Fund 0.27% of 80% of the net revenue realized for the
13preceding month from the 6.25% general rate on the selling
14price of tangible personal property.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning with the receipt of the first report of
19taxes paid by an eligible business and continuing for a 25-year
20period, the Department shall each month pay into the Energy
21Infrastructure Fund 80% of the net revenue realized from the
226.25% general rate on the selling price of Illinois-mined coal
23that was sold to an eligible business. For purposes of this
24paragraph, the term "eligible business" means a new electric
25generating facility certified pursuant to Section 605-332 of
26the Department of Commerce and Economic Opportunity Law of the

 

 

HB2659- 116 -LRB099 07716 HLH 27849 b

1Civil Administrative Code of Illinois.
2    Subject to payment of amounts into the Build Illinois Fund,
3the McCormick Place Expansion Project Fund, the Illinois Tax
4Increment Fund, and the Energy Infrastructure Fund pursuant to
5the preceding paragraphs or in any amendments to this Section
6hereafter enacted, beginning on the first day of the first
7calendar month to occur on or after the effective date of this
8amendatory Act of the 98th General Assembly, each month, from
9the collections made under Section 9 of the Use Tax Act,
10Section 9 of the Service Use Tax Act, Section 9 of the Service
11Occupation Tax Act, and Section 3 of the Retailers' Occupation
12Tax Act, the Department shall pay into the Tax Compliance and
13Administration Fund, to be used, subject to appropriation, to
14fund additional auditors and compliance personnel at the
15Department of Revenue, an amount equal to 1/12 of 5% of 80% of
16the cash receipts collected during the preceding fiscal year by
17the Audit Bureau of the Department under the Use Tax Act, the
18Service Use Tax Act, the Service Occupation Tax Act, the
19Retailers' Occupation Tax Act, and associated local occupation
20and use taxes administered by the Department.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, 75% thereof shall be paid into the State
23Treasury and 25% shall be reserved in a special account and
24used only for the transfer to the Common School Fund as part of
25the monthly transfer from the General Revenue Fund in
26accordance with Section 8a of the State Finance Act.

 

 

HB2659- 117 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 118 -LRB099 07716 HLH 27849 b

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

 

 

HB2659- 119 -LRB099 07716 HLH 27849 b

1equal to 1.7% of 80% of the net revenue realized under this Act
2for the second preceding month. Beginning April 1, 2000, this
3transfer is no longer required and shall not be made.
4    Net revenue realized for a month shall be the revenue
5collected by the State pursuant to this Act, less the amount
6paid out during that month as refunds to taxpayers for
7overpayment of liability.
8    For greater simplicity of administration, manufacturers,
9importers and wholesalers whose products are sold at retail in
10Illinois by numerous retailers, and who wish to do so, may
11assume the responsibility for accounting and paying to the
12Department all tax accruing under this Act with respect to such
13sales, if the retailers who are affected do not make written
14objection to the Department to this arrangement.
15    Any person who promotes, organizes, provides retail
16selling space for concessionaires or other types of sellers at
17the Illinois State Fair, DuQuoin State Fair, county fairs,
18local fairs, art shows, flea markets and similar exhibitions or
19events, including any transient merchant as defined by Section
202 of the Transient Merchant Act of 1987, is required to file a
21report with the Department providing the name of the merchant's
22business, the name of the person or persons engaged in
23merchant's business, the permanent address and Illinois
24Retailers Occupation Tax Registration Number of the merchant,
25the dates and location of the event and other reasonable
26information that the Department may require. The report must be

 

 

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

 

 

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1eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
298-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.