99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3298

 

Introduced , by Rep. Christian L. Mitchell

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.826 new
30 ILCS 105/6z-100 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 2% surcharge on firearm ammunition. Amends the State Finance Act. Creates the High Crime Trauma Center Grant Fund. Requires the 2% surcharge to be deposited into the Fund. Subject to appropriation, authorizes the Department of Public Health to make grants to trauma centers in high crime areas. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3298LRB099 08793 SXM 28963 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 5.826 and 6z-100 as follows:
 
6    (30 ILCS 105/5.826 new)
7    Sec. 5.826. The High Crime Trauma Center Grant Fund.
 
8    (30 ILCS 105/6z-100 new)
9    Sec. 6z-100. High Crime Trauma Center Grant Fund. The High
10Crime Trauma Center Grant Fund is created as a special fund in
11the State Treasury. Subject to appropriation, moneys in the
12Fund shall be used by the Department of Public Health to make
13grants to trauma centers in high crime areas for medical
14emergency responses. "Trauma center" has the same meaning as in
15the Emergency Medical Services (EMS) Systems Act.
 
16    Section 10. The Use Tax Act is amended by changing Sections
173-10 and 9 as follows:
 
18    (35 ILCS 105/3-10)
19    Sec. 3-10. Rate of tax. Unless otherwise provided in this
20Section, the tax imposed by this Act is at the rate of 6.25% of

 

 

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1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property functionally
6used or consumed is a by-product or waste product that has been
7refined, manufactured, or produced from property purchased at
8retail, then the tax is imposed on the lower of the fair market
9value, if any, of the specific property so used in this State
10or on the selling price of the property purchased at retail.
11For purposes of this Section "fair market value" means the
12price at which property would change hands between a willing
13buyer and a willing seller, neither being under any compulsion
14to buy or sell and both having reasonable knowledge of the
15relevant facts. The fair market value shall be established by
16Illinois sales by the taxpayer of the same property as that
17functionally used or consumed, or if there are no such sales by
18the taxpayer, then comparable sales or purchases of property of
19like kind and character in Illinois.
20    Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24    Beginning on August 6, 2010 through August 15, 2010, with
25respect to sales tax holiday items as defined in Section 3-6 of
26this Act, the tax is imposed at the rate of 1.25%.

 

 

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1    With respect to gasohol, the tax imposed by this Act
2applies to (i) 70% of the proceeds of sales made on or after
3January 1, 1990, and before July 1, 2003, (ii) 80% of the
4proceeds of sales made on or after July 1, 2003 and on or
5before December 31, 2018, and (iii) 100% of the proceeds of
6sales made thereafter. If, at any time, however, the tax under
7this Act on sales of gasohol is imposed at the rate of 1.25%,
8then the tax imposed by this Act applies to 100% of the
9proceeds of sales of gasohol made during that time.
10    With respect to majority blended ethanol fuel, the tax
11imposed by this Act does not apply to the proceeds of sales
12made on or after July 1, 2003 and on or before December 31,
132018 but applies to 100% of the proceeds of sales made
14thereafter.
15    With respect to biodiesel blends with no less than 1% and
16no more than 10% biodiesel, the tax imposed by this Act applies
17to (i) 80% of the proceeds of sales made on or after July 1,
182003 and on or before December 31, 2018 and (ii) 100% of the
19proceeds of sales made thereafter. If, at any time, however,
20the tax under this Act on sales of biodiesel blends with no
21less than 1% and no more than 10% biodiesel is imposed at the
22rate of 1.25%, then the tax imposed by this Act applies to 100%
23of the proceeds of sales of biodiesel blends with no less than
241% and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel and biodiesel blends with
26more than 10% but no more than 99% biodiesel, the tax imposed

 

 

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1by this Act does not apply to the proceeds of sales made on or
2after July 1, 2003 and on or before December 31, 2018 but
3applies to 100% of the proceeds of sales made thereafter.
4    With respect to food for human consumption that is to be
5consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances,
9modifications to a motor vehicle for the purpose of rendering
10it usable by a disabled person, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, the tax is imposed at the rate of 1%. For the purposes of
13this Section, until September 1, 2009: the term "soft drinks"
14means any complete, finished, ready-to-use, non-alcoholic
15drink, whether carbonated or not, including but not limited to
16soda water, cola, fruit juice, vegetable juice, carbonated
17water, and all other preparations commonly known as soft drinks
18of whatever kind or description that are contained in any
19closed or sealed bottle, can, carton, or container, regardless
20of size; but "soft drinks" does not include coffee, tea,
21non-carbonated water, infant formula, milk or milk products as
22defined in the Grade A Pasteurized Milk and Milk Products Act,
23or drinks containing 50% or more natural fruit or vegetable
24juice.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

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

 

 

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1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label includes:
13        (A) A "Drug Facts" panel; or
14        (B) A statement of the "active ingredient(s)" with a
15    list of those ingredients contained in the compound,
16    substance or preparation.
17    Beginning on the effective date of this amendatory Act of
18the 98th General Assembly, "prescription and nonprescription
19medicines and drugs" includes medical cannabis purchased from a
20registered dispensing organization under the Compassionate Use
21of Medical Cannabis Pilot Program Act.
22    Beginning January 1, 2016, in addition to all other rates
23of tax imposed under this Act, a surcharge of 2% is imposed on
24the selling price of firearm ammunition. "Firearm" and "firearm
25ammunition" have the meanings ascribed to them in Section 1.1
26of the Firearm Owners Identification Card Act.

 

 

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1    If the property that is purchased at retail from a retailer
2is acquired outside Illinois and used outside Illinois before
3being brought to Illinois for use here and is taxable under
4this Act, the "selling price" on which the tax is computed
5shall be reduced by an amount that represents a reasonable
6allowance for depreciation for the period of prior out-of-state
7use.
8(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
9    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
10    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
11and trailers that are required to be registered with an agency
12of this State, each retailer required or authorized to collect
13the tax imposed by this Act shall pay to the Department the
14amount of such tax (except as otherwise provided) at the time
15when he is required to file his return for the period during
16which such tax was collected, less a discount of 2.1% prior to
17January 1, 1990, and 1.75% on and after January 1, 1990, or $5
18per calendar year, whichever is greater, which is allowed to
19reimburse the retailer for expenses incurred in collecting the
20tax, keeping records, preparing and filing returns, remitting
21the tax and supplying data to the Department on request. In the
22case of retailers who report and pay the tax on a transaction
23by transaction basis, as provided in this Section, such
24discount shall be taken with each such tax remittance instead
25of when such retailer files his periodic return. The Department

 

 

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1may disallow the discount for retailers whose certificate of
2registration is revoked at the time the return is filed, but
3only if the Department's decision to revoke the certificate of
4registration has become final. A retailer need not remit that
5part of any tax collected by him to the extent that he is
6required to remit and does remit the tax imposed by the
7Retailers' Occupation Tax Act, with respect to the sale of the
8same property.
9    Where such tangible personal property is sold under a
10conditional sales contract, or under any other form of sale
11wherein the payment of the principal sum, or a part thereof, is
12extended beyond the close of the period for which the return is
13filed, the retailer, in collecting the tax (except as to motor
14vehicles, watercraft, aircraft, and trailers that are required
15to be registered with an agency of this State), may collect for
16each tax return period, only the tax applicable to that part of
17the selling price actually received during such tax return
18period.
19    Except as provided in this Section, on or before the
20twentieth day of each calendar month, such retailer shall file
21a return for the preceding calendar month. Such return shall be
22filed on forms prescribed by the Department and shall furnish
23such information as the Department may reasonably require.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5        1. The name of the seller;
6        2. The address of the principal place of business from
7    which he engages in the business of selling tangible
8    personal property at retail in this State;
9        3. The total amount of taxable receipts received by him
10    during the preceding calendar month from sales of tangible
11    personal property by him during such preceding calendar
12    month, including receipts from charge and time sales, but
13    less all deductions allowed by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due;
17        5-5. The signature of the taxpayer; and
18        6. Such other reasonable information as the Department
19    may require.
20    If a taxpayer fails to sign a return within 30 days after
21the proper notice and demand for signature by the Department,
22the return shall be considered valid and any amount shown to be
23due on the return shall be deemed assessed.
24    Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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

 

 

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1for a minimum of one year beginning on October 1.
2    Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5    All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those payments
8in the manner authorized by the Department.
9    The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12    Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Retailers'
14Occupation Tax Act, the Service Occupation Tax Act, the Service
15Use Tax Act was $10,000 or more during the preceding 4 complete
16calendar quarters, he shall file a return with the Department
17each month by the 20th day of the month next following the
18month during which such tax liability is incurred and shall
19make payments to the Department on or before the 7th, 15th,
2022nd and last day of the month during which such liability is
21incurred. On and after October 1, 2000, if the taxpayer's
22average monthly tax liability to the Department under this Act,
23the Retailers' Occupation Tax Act, the Service Occupation Tax
24Act, and the Service Use Tax Act was $20,000 or more during the
25preceding 4 complete calendar quarters, he shall file a return
26with the Department each month by the 20th day of the month

 

 

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1next following the month during which such tax liability is
2incurred and shall make payment to the Department on or before
3the 7th, 15th, 22nd and last day of the month during which such
4liability is incurred. If the month during which such tax
5liability is incurred began prior to January 1, 1985, each
6payment shall be in an amount equal to 1/4 of the taxpayer's
7actual liability for the month or an amount set by the
8Department not to exceed 1/4 of the average monthly liability
9of the taxpayer to the Department for the preceding 4 complete
10calendar quarters (excluding the month of highest liability and
11the month of lowest liability in such 4 quarter period). If the
12month during which such tax liability is incurred begins on or
13after January 1, 1985, and prior to January 1, 1987, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 27.5% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1987, and prior to January 1, 1988, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 26.25% of the taxpayer's
21liability for the same calendar month of the preceding year. If
22the month during which such tax liability is incurred begins on
23or after January 1, 1988, and prior to January 1, 1989, or
24begins on or after January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

 

 

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1calendar month of the preceding year. If the month during which
2such tax liability is incurred begins on or after January 1,
31989, and prior to January 1, 1996, each payment shall be in an
4amount equal to 22.5% of the taxpayer's actual liability for
5the month or 25% of the taxpayer's liability for the same
6calendar month of the preceding year or 100% of the taxpayer's
7actual liability for the quarter monthly reporting period. The
8amount of such quarter monthly payments shall be credited
9against the final tax liability of the taxpayer's return for
10that month. Before October 1, 2000, once applicable, the
11requirement of the making of quarter monthly payments to the
12Department shall continue until such taxpayer's average
13monthly liability to the Department during the preceding 4
14complete calendar quarters (excluding the month of highest
15liability and the month of lowest liability) is less than
16$9,000, or until such taxpayer's average monthly liability to
17the Department as computed for each calendar quarter of the 4
18preceding complete calendar quarter period is less than
19$10,000. However, if a taxpayer can show the Department that a
20substantial change in the taxpayer's business has occurred
21which causes the taxpayer to anticipate that his average
22monthly tax liability for the reasonably foreseeable future
23will fall below the $10,000 threshold stated above, then such
24taxpayer may petition the Department for change in such
25taxpayer's reporting status. On and after October 1, 2000, once
26applicable, the requirement of the making of quarter monthly

 

 

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

 

 

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1on other than a calendar monthly basis.
2    If any such payment provided for in this Section exceeds
3the taxpayer's liabilities under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act and the
5Service Use Tax Act, as shown by an original monthly return,
6the Department shall issue to the taxpayer a credit memorandum
7no later than 30 days after the date of payment, which
8memorandum may be submitted by the taxpayer to the Department
9in payment of tax liability subsequently to be remitted by the
10taxpayer to the Department or be assigned by the taxpayer to a
11similar taxpayer under this Act, the Retailers' Occupation Tax
12Act, the Service Occupation Tax Act or the Service Use Tax Act,
13in accordance with reasonable rules and regulations to be
14prescribed by the Department, except that if such excess
15payment is shown on an original monthly return and is made
16after December 31, 1986, no credit memorandum shall be issued,
17unless requested by the taxpayer. If no such request is made,
18the taxpayer may credit such excess payment against tax
19liability subsequently to be remitted by the taxpayer to the
20Department under this Act, the Retailers' Occupation Tax Act,
21the Service Occupation Tax Act or the Service Use Tax Act, in
22accordance with reasonable rules and regulations prescribed by
23the Department. If the Department subsequently determines that
24all or any part of the credit taken was not actually due to the
25taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
26be reduced by 2.1% or 1.75% of the difference between the

 

 

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

 

 

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, every retailer selling this kind of
7tangible personal property shall file, with the Department,
8upon a form to be prescribed and supplied by the Department, a
9separate return for each such item of tangible personal
10property which the retailer sells, except that if, in the same
11transaction, (i) a retailer of aircraft, watercraft, motor
12vehicles or trailers transfers more than one aircraft,
13watercraft, motor vehicle or trailer to another aircraft,
14watercraft, motor vehicle or trailer retailer for the purpose
15of resale or (ii) a retailer of aircraft, watercraft, motor
16vehicles, or trailers transfers more than one aircraft,
17watercraft, motor vehicle, or trailer to a purchaser for use as
18a qualifying rolling stock as provided in Section 3-55 of this
19Act, then that seller may report the transfer of all the
20aircraft, watercraft, motor vehicles or trailers involved in
21that transaction to the Department on the same uniform
22invoice-transaction reporting return form. For purposes of
23this Section, "watercraft" means a Class 2, Class 3, or Class 4
24watercraft as defined in Section 3-2 of the Boat Registration
25and Safety Act, a personal watercraft, or any boat equipped
26with an inboard motor.

 

 

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

 

 

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

 

 

HB3298- 20 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 21 -LRB099 08793 SXM 28963 b

1and the remittance for tax or proof of exemption directly to
2the Department and obtain his tax receipt or exemption
3determination, in which event the transaction reporting return
4and tax remittance (if a tax payment was required) shall be
5credited by the Department to the proper retailer's account
6with the Department, but without the 2.1% or 1.75% discount
7provided for in this Section being allowed. When the user pays
8the tax directly to the Department, he shall pay the tax in the
9same amount and in the same form in which it would be remitted
10if the tax had been remitted to the Department by the retailer.
11    Where a retailer collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the retailer refunds the selling price thereof to
15the purchaser, such retailer shall also refund, to the
16purchaser, the tax so collected from the purchaser. When filing
17his return for the period in which he refunds such tax to the
18purchaser, the retailer may deduct the amount of the tax so
19refunded by him to the purchaser from any other use tax which
20such retailer may be required to pay or remit to the
21Department, as shown by such return, if the amount of the tax
22to be deducted was previously remitted to the Department by
23such retailer. If the retailer has not previously remitted the
24amount of such tax to the Department, he is entitled to no
25deduction under this Act upon refunding such tax to the
26purchaser.

 

 

HB3298- 22 -LRB099 08793 SXM 28963 b

1    Any retailer filing a return under this Section shall also
2include (for the purpose of paying tax thereon) the total tax
3covered by such return upon the selling price of tangible
4personal property purchased by him at retail from a retailer,
5but as to which the tax imposed by this Act was not collected
6from the retailer filing such return, and such retailer shall
7remit the amount of such tax to the Department when filing such
8return.
9    If experience indicates such action to be practicable, the
10Department may prescribe and furnish a combination or joint
11return which will enable retailers, who are required to file
12returns hereunder and also under the Retailers' Occupation Tax
13Act, to furnish all the return information required by both
14Acts on the one form.
15    Where the retailer has more than one business registered
16with the Department under separate registration under this Act,
17such retailer may not file each return that is due as a single
18return covering all such registered businesses, but shall file
19separate returns for each such registered business.
20    Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury which is hereby created, the net
23revenue realized for the preceding month from the 1% tax on
24sales of food for human consumption which is to be consumed off
25the premises where it is sold (other than alcoholic beverages,
26soft drinks and food which has been prepared for immediate

 

 

HB3298- 23 -LRB099 08793 SXM 28963 b

1consumption) and prescription and nonprescription medicines,
2drugs, medical appliances and insulin, urine testing
3materials, syringes and needles used by diabetics.
4    Beginning January 1, 1990, each month the Department shall
5pay into the County and Mass Transit District Fund 4% of the
6net revenue realized for the preceding month from the 6.25%
7general rate on the selling price of tangible personal property
8which is purchased outside Illinois at retail from a retailer
9and which is titled or registered by an agency of this State's
10government.
11    Beginning January 1, 1990, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund, a special
13fund in the State Treasury, 20% of the net revenue realized for
14the preceding month from the 6.25% general rate on the selling
15price of tangible personal property, other than tangible
16personal property which is purchased outside Illinois at retail
17from a retailer and which is titled or registered by an agency
18of this State's government.
19    Beginning August 1, 2000, each month the Department shall
20pay into the State and Local Sales Tax Reform Fund 100% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol. Beginning
23September 1, 2010, each month the Department shall pay into the
24State and Local Sales Tax Reform Fund 100% of the net revenue
25realized for the preceding month from the 1.25% rate on the
26selling price of sales tax holiday items.

 

 

HB3298- 24 -LRB099 08793 SXM 28963 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of tangible personal property which is
5purchased outside Illinois at retail from a retailer and which
6is titled or registered by an agency of this State's
7government.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are now taxed at 6.25%.
15    Beginning July 1, 2011, each month the Department shall pay
16into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
17realized for the preceding month from the 6.25% general rate on
18the selling price of sorbents used in Illinois in the process
19of sorbent injection as used to comply with the Environmental
20Protection Act or the federal Clean Air Act, but the total
21payment into the Clean Air Act (CAA) Permit Fund under this Act
22and the Retailers' Occupation Tax Act shall not exceed
23$2,000,000 in any fiscal year.
24    Beginning July 1, 2013, each month the Department shall pay
25into the Underground Storage Tank Fund from the proceeds
26collected under this Act, the Service Use Tax Act, the Service

 

 

HB3298- 25 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 26 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 27 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 28 -LRB099 08793 SXM 28963 b

1pursuant to this Act and required to be deposited into the
2Build Illinois Fund are subject to the pledge, claim and charge
3set forth in Section 12 of the Build Illinois Bond Act.
4    Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
262002 93,000,000

 

 

HB3298- 29 -LRB099 08793 SXM 28963 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

HB3298- 30 -LRB099 08793 SXM 28963 b

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB3298- 31 -LRB099 08793 SXM 28963 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning July 1, 1993 and ending on September 30,
42013, the Department shall each month pay into the Illinois Tax
5Increment Fund 0.27% of 80% of the net revenue realized for the
6preceding month from the 6.25% general rate on the selling
7price of tangible personal property.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning with the receipt of the first report of
12taxes paid by an eligible business and continuing for a 25-year
13period, the Department shall each month pay into the Energy
14Infrastructure Fund 80% of the net revenue realized from the
156.25% general rate on the selling price of Illinois-mined coal
16that was sold to an eligible business. For purposes of this
17paragraph, the term "eligible business" means a new electric
18generating facility certified pursuant to Section 605-332 of
19the Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    Subject to payment of amounts into the Build Illinois Fund,
22the McCormick Place Expansion Project Fund, the Illinois Tax
23Increment Fund, and the Energy Infrastructure Fund pursuant to
24the preceding paragraphs or in any amendments to this Section
25hereafter enacted, beginning on the first day of the first
26calendar month to occur on or after the effective date of this

 

 

HB3298- 32 -LRB099 08793 SXM 28963 b

1amendatory Act of the 98th General Assembly, each month, from
2the collections made under Section 9 of the Use Tax Act,
3Section 9 of the Service Use Tax Act, Section 9 of the Service
4Occupation Tax Act, and Section 3 of the Retailers' Occupation
5Tax Act, the Department shall pay into the Tax Compliance and
6Administration Fund, to be used, subject to appropriation, to
7fund additional auditors and compliance personnel at the
8Department of Revenue, an amount equal to 1/12 of 5% of 80% of
9the cash receipts collected during the preceding fiscal year by
10the Audit Bureau of the Department under the Use Tax Act, the
11Service Use Tax Act, the Service Occupation Tax Act, the
12Retailers' Occupation Tax Act, and associated local occupation
13and use taxes administered by the Department.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the State
16Treasury and 25% shall be reserved in a special account and
17used only for the transfer to the Common School Fund as part of
18the monthly transfer from the General Revenue Fund in
19accordance with Section 8a of the State Finance Act.
20    As soon as possible after the first day of each month, upon
21certification of the Department of Revenue, the Comptroller
22shall order transferred and the Treasurer shall transfer from
23the General Revenue Fund to the Motor Fuel Tax Fund an amount
24equal to 1.7% of 80% of the net revenue realized under this Act
25for the second preceding month. Beginning April 1, 2000, this
26transfer is no longer required and shall not be made.

 

 

HB3298- 33 -LRB099 08793 SXM 28963 b

1    Net revenue realized for a month shall be the revenue
2collected by the State pursuant to this Act, less the amount
3paid out during that month as refunds to taxpayers for
4overpayment of liability.
5    For greater simplicity of administration, manufacturers,
6importers and wholesalers whose products are sold at retail in
7Illinois by numerous retailers, and who wish to do so, may
8assume the responsibility for accounting and paying to the
9Department all tax accruing under this Act with respect to such
10sales, if the retailers who are affected do not make written
11objection to the Department to this arrangement.
12(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
13eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
1498-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
15    Section 15. The Service Use Tax Act is amended by changing
16Sections 3-10 and 9 as follows:
 
17    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
18    Sec. 3-10. Rate of tax. Unless otherwise provided in this
19Section, the tax imposed by this Act is at the rate of 6.25% of
20the selling price of tangible personal property transferred as
21an incident to the sale of service, but, for the purpose of
22computing this tax, in no event shall the selling price be less
23than the cost price of the property to the serviceman.
24    Beginning on July 1, 2000 and through December 31, 2000,

 

 

HB3298- 34 -LRB099 08793 SXM 28963 b

1with respect to motor fuel, as defined in Section 1.1 of the
2Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
3the Use Tax Act, the tax is imposed at the rate of 1.25%.
4    With respect to gasohol, as defined in the Use Tax Act, the
5tax imposed by this Act applies to (i) 70% of the selling price
6of property transferred as an incident to the sale of service
7on or after January 1, 1990, and before July 1, 2003, (ii) 80%
8of the selling price of property transferred as an incident to
9the sale of service on or after July 1, 2003 and on or before
10December 31, 2018, and (iii) 100% of the selling price
11thereafter. If, at any time, however, the tax under this Act on
12sales of gasohol, as defined in the Use Tax Act, is imposed at
13the rate of 1.25%, then the tax imposed by this Act applies to
14100% of the proceeds of sales of gasohol made during that time.
15    With respect to majority blended ethanol fuel, as defined
16in the Use Tax Act, the tax imposed by this Act does not apply
17to the selling price of property transferred as an incident to
18the sale of service on or after July 1, 2003 and on or before
19December 31, 2018 but applies to 100% of the selling price
20thereafter.
21    With respect to biodiesel blends, as defined in the Use Tax
22Act, with no less than 1% and no more than 10% biodiesel, the
23tax imposed by this Act applies to (i) 80% of the selling price
24of property transferred as an incident to the sale of service
25on or after July 1, 2003 and on or before December 31, 2018 and
26(ii) 100% of the proceeds of the selling price thereafter. If,

 

 

HB3298- 35 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 36 -LRB099 08793 SXM 28963 b

1by an entity licensed under the Hospital Licensing Act, the
2Nursing Home Care Act, the ID/DD Community Care Act, the
3Specialized Mental Health Rehabilitation Act of 2013, or the
4Child Care Act of 1969. The tax shall also be imposed at the
5rate of 1% on food for human consumption that is to be consumed
6off the premises where it is sold (other than alcoholic
7beverages, soft drinks, and food that has been prepared for
8immediate consumption and is not otherwise included in this
9paragraph) and prescription and nonprescription medicines,
10drugs, medical appliances, modifications to a motor vehicle for
11the purpose of rendering it usable by a disabled person, and
12insulin, urine testing materials, syringes, and needles used by
13diabetics, for human use. For the purposes of this Section,
14until September 1, 2009: the term "soft drinks" means any
15complete, finished, ready-to-use, non-alcoholic drink, whether
16carbonated or not, including but not limited to soda water,
17cola, fruit juice, vegetable juice, carbonated water, and all
18other preparations commonly known as soft drinks of whatever
19kind or description that are contained in any closed or sealed
20bottle, can, carton, or container, regardless of size; but
21"soft drinks" does not include coffee, tea, non-carbonated
22water, infant formula, milk or milk products as defined in the
23Grade A Pasteurized Milk and Milk Products Act, or drinks
24containing 50% or more natural fruit or vegetable juice.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "soft drinks" means non-alcoholic

 

 

HB3298- 37 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 38 -LRB099 08793 SXM 28963 b

1beginning September 1, 2009, "nonprescription medicines and
2drugs" does not include grooming and hygiene products. For
3purposes of this Section, "grooming and hygiene products"
4includes, but is not limited to, soaps and cleaning solutions,
5shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
6lotions and screens, unless those products are available by
7prescription only, regardless of whether the products meet the
8definition of "over-the-counter-drugs". For the purposes of
9this paragraph, "over-the-counter-drug" means a drug for human
10use that contains a label that identifies the product as a drug
11as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
12label includes:
13        (A) A "Drug Facts" panel; or
14        (B) A statement of the "active ingredient(s)" with a
15    list of those ingredients contained in the compound,
16    substance or preparation.
17    Beginning on January 1, 2014 (the effective date of Public
18Act 98-122), "prescription and nonprescription medicines and
19drugs" includes medical cannabis purchased from a registered
20dispensing organization under the Compassionate Use of Medical
21Cannabis Pilot Program Act.
22    Beginning January 1, 2016, in addition to all other rates
23of tax imposed under this Act, a surcharge of 2% is imposed on
24the selling price of firearm ammunition. "Firearm" and "firearm
25ammunition" have the meanings ascribed to them in Section 1.1
26of the Firearm Owners Identification Card Act.

 

 

HB3298- 39 -LRB099 08793 SXM 28963 b

1    If the property that is acquired from a serviceman is
2acquired outside Illinois and used outside Illinois before
3being brought to Illinois for use here and is taxable under
4this Act, the "selling price" on which the tax is computed
5shall be reduced by an amount that represents a reasonable
6allowance for depreciation for the period of prior out-of-state
7use.
8(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
9eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
10eff. 7-16-14.)
 
11    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
12    Sec. 9. Each serviceman required or authorized to collect
13the tax herein imposed shall pay to the Department the amount
14of such tax (except as otherwise provided) at the time when he
15is required to file his return for the period during which such
16tax was collected, less a discount of 2.1% prior to January 1,
171990 and 1.75% on and after January 1, 1990, or $5 per calendar
18year, whichever is greater, which is allowed to reimburse the
19serviceman for expenses incurred in collecting the tax, keeping
20records, preparing and filing returns, remitting the tax and
21supplying data to the Department on request. The Department may
22disallow the discount for servicemen whose certificate of
23registration is revoked at the time the return is filed, but
24only if the Department's decision to revoke the certificate of
25registration has become final. A serviceman need not remit that

 

 

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1part of any tax collected by him to the extent that he is
2required to pay and does pay the tax imposed by the Service
3Occupation Tax Act with respect to his sale of service
4involving the incidental transfer by him of the same property.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar month
8in accordance with reasonable Rules and Regulations to be
9promulgated by the Department. Such return shall be filed on a
10form prescribed by the Department and shall contain such
11information as the Department may reasonably require.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in business as a serviceman in this State;
22        3. The total amount of taxable receipts received by him
23    during the preceding calendar month, including receipts
24    from charge and time sales, but less all deductions allowed
25    by law;
26        4. The amount of credit provided in Section 2d of this

 

 

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1    Act;
2        5. The amount of tax due;
3        5-5. The signature of the taxpayer; and
4        6. Such other reasonable information as the Department
5    may require.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1995, a taxpayer who has
17an average monthly tax liability of $50,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 2000, a taxpayer who has
20an annual tax liability of $200,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. The term "annual tax liability" shall be the
23sum of the taxpayer's liabilities under this Act, and under all
24other State and local occupation and use tax laws administered
25by the Department, for the immediately preceding calendar year.
26The term "average monthly tax liability" means the sum of the

 

 

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1taxpayer's liabilities under this Act, and under all other
2State and local occupation and use tax laws administered by the
3Department, for the immediately preceding calendar year
4divided by 12. Beginning on October 1, 2002, a taxpayer who has
5a tax liability in the amount set forth in subsection (b) of
6Section 2505-210 of the Department of Revenue Law shall make
7all payments required by rules of the Department by electronic
8funds transfer.
9    Before August 1 of each year beginning in 1993, the
10Department shall notify all taxpayers required to make payments
11by electronic funds transfer. All taxpayers required to make
12payments by electronic funds transfer shall make those payments
13for a minimum of one year beginning on October 1.
14    Any taxpayer not required to make payments by electronic
15funds transfer may make payments by electronic funds transfer
16with the permission of the Department.
17    All taxpayers required to make payment by electronic funds
18transfer and any taxpayers authorized to voluntarily make
19payments by electronic funds transfer shall make those payments
20in the manner authorized by the Department.
21    The Department shall adopt such rules as are necessary to
22effectuate a program of electronic funds transfer and the
23requirements of this Section.
24    If the serviceman is otherwise required to file a monthly
25return and if the serviceman's average monthly tax liability to
26the Department does not exceed $200, the Department may

 

 

HB3298- 43 -LRB099 08793 SXM 28963 b

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

 

 

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

 

 

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1    Where the serviceman has more than one business registered
2with the Department under separate registration hereunder,
3such serviceman shall not file each return that is due as a
4single return covering all such registered businesses, but
5shall file separate returns for each such registered business.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Tax Reform Fund, a special fund in
8the State Treasury, the net revenue realized for the preceding
9month from the 1% tax on sales of food for human consumption
10which is to be consumed off the premises where it is sold
11(other than alcoholic beverages, soft drinks and food which has
12been prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances and
14insulin, urine testing materials, syringes and needles used by
15diabetics.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund 20% of the
18net revenue realized for the preceding month from the 6.25%
19general rate on transfers of tangible personal property, other
20than tangible personal property which is purchased outside
21Illinois at retail from a retailer and which is titled or
22registered by an agency of this State's government.
23    Beginning August 1, 2000, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 100% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol.

 

 

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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
11Occupation Tax Act, and the Retailers' Occupation Tax Act an
12amount equal to the average monthly deficit in the Underground
13Storage Tank Fund during the prior year, as certified annually
14by the Illinois Environmental Protection Agency, but the total
15payment into the Underground Storage Tank Fund under this Act,
16the Use Tax Act, the Service Occupation Tax Act, and the
17Retailers' Occupation Tax Act shall not exceed $18,000,000 in
18any State fiscal year. As used in this paragraph, the "average
19monthly deficit" shall be equal to the difference between the
20average monthly claims for payment by the fund and the average
21monthly revenues deposited into the fund, excluding payments
22made pursuant to this paragraph.
23    Beginning January 1, 2016, the Department shall pay into
24the High Crime Trauma Center Grant Fund 100% of the net revenue
25realized for the preceding month from the 2% surcharge on the
26selling price of firearm ammunition.

 

 

HB3298- 47 -LRB099 08793 SXM 28963 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 Bond Account
23in the Build 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

 

 

HB3298- 48 -LRB099 08793 SXM 28963 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

 

 

HB3298- 49 -LRB099 08793 SXM 28963 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.

 

 

HB3298- 50 -LRB099 08793 SXM 28963 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

 

 

HB3298- 51 -LRB099 08793 SXM 28963 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

 

 

HB3298- 52 -LRB099 08793 SXM 28963 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

 

 

HB3298- 53 -LRB099 08793 SXM 28963 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

 

 

HB3298- 54 -LRB099 08793 SXM 28963 b

1pursuant to this Act, 75% thereof shall be paid into the
2General Revenue Fund of the State Treasury and 25% shall be
3reserved in a special account and used only for the transfer to
4the Common School Fund as part of the monthly transfer from the
5General Revenue Fund in accordance with Section 8a of the State
6Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1998-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2098-1098, eff. 8-26-14.)
 
21    Section 20. The Service Occupation Tax Act is amended by
22changing Sections 3-10 and 9 as follows:
 
23    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
24    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

HB3298- 55 -LRB099 08793 SXM 28963 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2the "selling price", as defined in Section 2 of the Service Use
3Tax Act, of the tangible personal property. For the purpose of
4computing this tax, in no event shall the "selling price" be
5less than the cost price to the serviceman of the tangible
6personal property transferred. The selling price of each item
7of tangible personal property transferred as an incident of a
8sale of service may be shown as a distinct and separate item on
9the serviceman's billing to the service customer. If the
10selling price is not so shown, the selling price of the
11tangible personal property is deemed to be 50% of the
12serviceman's entire billing to the service customer. When,
13however, a serviceman contracts to design, develop, and produce
14special order machinery or equipment, the tax imposed by this
15Act shall be based on the serviceman's cost price of the
16tangible personal property transferred incident to the
17completion of the contract.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    With respect to gasohol, as defined in the Use Tax Act, the
23tax imposed by this Act shall apply to (i) 70% of the cost
24price of property transferred as an incident to the sale of
25service on or after January 1, 1990, and before July 1, 2003,
26(ii) 80% of the selling price of property transferred as an

 

 

HB3298- 56 -LRB099 08793 SXM 28963 b

1incident to the sale of service on or after July 1, 2003 and on
2or before December 31, 2018, and (iii) 100% of the cost price
3thereafter. If, at any time, however, the tax under this Act on
4sales of gasohol, as defined in the Use Tax Act, is imposed at
5the rate of 1.25%, then the tax imposed by this Act applies to
6100% of the proceeds of sales of gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the selling price of property transferred as an incident to
10the sale of service on or after July 1, 2003 and on or before
11December 31, 2018 but applies to 100% of the selling price
12thereafter.
13    With respect to biodiesel blends, as defined in the Use Tax
14Act, with no less than 1% and no more than 10% biodiesel, the
15tax imposed by this Act applies to (i) 80% of the selling price
16of property transferred as an incident to the sale of service
17on or after July 1, 2003 and on or before December 31, 2018 and
18(ii) 100% of the proceeds of the selling price thereafter. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25    With respect to 100% biodiesel, as defined in the Use Tax
26Act, and biodiesel blends, as defined in the Use Tax Act, with

 

 

HB3298- 57 -LRB099 08793 SXM 28963 b

1more than 10% but no more than 99% biodiesel material, the tax
2imposed by this Act does not apply to the proceeds of the
3selling price of property transferred as an incident to the
4sale of service on or after July 1, 2003 and on or before
5December 31, 2018 but applies to 100% of the selling price
6thereafter.
7    At the election of any registered serviceman made for each
8fiscal year, sales of service in which the aggregate annual
9cost price of tangible personal property transferred as an
10incident to the sales of service is less than 35%, or 75% in
11the case of servicemen transferring prescription drugs or
12servicemen engaged in graphic arts production, of the aggregate
13annual total gross receipts from all sales of service, the tax
14imposed by this Act shall be based on the serviceman's cost
15price of the tangible personal property transferred incident to
16the sale of those services.
17    The tax shall be imposed at the rate of 1% on food prepared
18for immediate consumption and transferred incident to a sale of
19service subject to this Act or the Service Occupation Tax Act
20by an entity licensed under the Hospital Licensing Act, the
21Nursing Home Care Act, the ID/DD Community Care Act, the
22Specialized Mental Health Rehabilitation Act of 2013, or the
23Child Care Act of 1969. The tax shall also be imposed at the
24rate of 1% on food for human consumption that is to be consumed
25off the premises where it is sold (other than alcoholic
26beverages, soft drinks, and food that has been prepared for

 

 

HB3298- 58 -LRB099 08793 SXM 28963 b

1immediate consumption and is not otherwise included in this
2paragraph) and prescription and nonprescription medicines,
3drugs, medical appliances, modifications to a motor vehicle for
4the purpose of rendering it usable by a disabled person, and
5insulin, urine testing materials, syringes, and needles used by
6diabetics, for human use. For the purposes of this Section,
7until September 1, 2009: the term "soft drinks" means any
8complete, finished, ready-to-use, non-alcoholic drink, whether
9carbonated or not, including but not limited to soda water,
10cola, fruit juice, vegetable juice, carbonated water, and all
11other preparations commonly known as soft drinks of whatever
12kind or description that are contained in any closed or sealed
13can, carton, or container, regardless of size; but "soft
14drinks" does not include coffee, tea, non-carbonated water,
15infant formula, milk or milk products as defined in the Grade A
16Pasteurized Milk and Milk Products Act, or drinks containing
1750% or more natural fruit or vegetable juice.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "soft drinks" means non-alcoholic
20beverages that contain natural or artificial sweeteners. "Soft
21drinks" do not include beverages that contain milk or milk
22products, soy, rice or similar milk substitutes, or greater
23than 50% of vegetable or fruit juice by volume.
24    Until August 1, 2009, and notwithstanding any other
25provisions of this Act, "food for human consumption that is to
26be consumed off the premises where it is sold" includes all

 

 

HB3298- 59 -LRB099 08793 SXM 28963 b

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

 

 

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1definition of "over-the-counter-drugs". For the purposes of
2this paragraph, "over-the-counter-drug" means a drug for human
3use that contains a label that identifies the product as a drug
4as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
5label includes:
6        (A) A "Drug Facts" panel; or
7        (B) A statement of the "active ingredient(s)" with a
8    list of those ingredients contained in the compound,
9    substance or preparation.
10    Beginning on January 1, 2014 (the effective date of Public
11Act 98-122), "prescription and nonprescription medicines and
12drugs" includes medical cannabis purchased from a registered
13dispensing organization under the Compassionate Use of Medical
14Cannabis Pilot Program Act.
15    Beginning January 1, 2016, in addition to all other rates
16of tax imposed under this Act, a surcharge of 2% is imposed on
17the selling price of firearm ammunition. "Firearm" and "firearm
18ammunition" have the meanings ascribed to them in Section 1.1
19of the Firearm Owners Identification Card Act.
20(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-636,
21eff. 6-1-12; 98-104, eff. 7-22-13; 98-122, eff. 1-1-14; 98-756,
22eff. 7-16-14.)
 
23    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
24    Sec. 9. Each serviceman required or authorized to collect
25the tax herein imposed shall pay to the Department the amount

 

 

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

 

 

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1such information as the Department may reasonably require.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in business as a serviceman in this State;
12        3. The total amount of taxable receipts received by him
13    during the preceding calendar month, including receipts
14    from charge and time sales, but less all deductions allowed
15    by law;
16        4. The amount of credit provided in Section 2d of this
17    Act;
18        5. The amount of tax due;
19        5-5. The signature of the taxpayer; and
20        6. Such other reasonable information as the Department
21    may require.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Prior to October 1, 2003, and on and after September 1,

 

 

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12004 a serviceman may accept a Manufacturer's Purchase Credit
2certification from a purchaser in satisfaction of Service Use
3Tax as provided in Section 3-70 of the Service Use Tax Act if
4the purchaser provides the appropriate documentation as
5required by Section 3-70 of the Service Use Tax Act. A
6Manufacturer's Purchase Credit certification, accepted prior
7to October 1, 2003 or on or after September 1, 2004 by a
8serviceman as provided in Section 3-70 of the Service Use Tax
9Act, may be used by that serviceman to satisfy Service
10Occupation Tax liability in the amount claimed in the
11certification, not to exceed 6.25% of the receipts subject to
12tax from a qualifying purchase. A Manufacturer's Purchase
13Credit reported on any original or amended return filed under
14this Act after October 20, 2003 for reporting periods prior to
15September 1, 2004 shall be disallowed. Manufacturer's Purchase
16Credit reported on annual returns due on or after January 1,
172005 will be disallowed for periods prior to September 1, 2004.
18No Manufacturer's Purchase Credit may be used after September
1930, 2003 through August 31, 2004 to satisfy any tax liability
20imposed under this Act, including any audit liability.
21    If the serviceman's average monthly tax liability to the
22Department does not exceed $200, the Department may authorize
23his returns to be filed on a quarter annual basis, with the
24return for January, February and March of a given year being
25due by April 20 of such year; with the return for April, May
26and June of a given year being due by July 20 of such year; with

 

 

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

 

 

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

 

 

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1transfer and any taxpayers authorized to voluntarily make
2payments by electronic funds transfer shall make those payments
3in the manner authorized by the Department.
4    The Department shall adopt such rules as are necessary to
5effectuate a program of electronic funds transfer and the
6requirements of this Section.
7    Where a serviceman collects the tax with respect to the
8selling price of tangible personal property which he sells and
9the purchaser thereafter returns such tangible personal
10property and the serviceman refunds the selling price thereof
11to the purchaser, such serviceman shall also refund, to the
12purchaser, the tax so collected from the purchaser. When filing
13his return for the period in which he refunds such tax to the
14purchaser, the serviceman may deduct the amount of the tax so
15refunded by him to the purchaser from any other Service
16Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
17Use Tax which such serviceman may be required to pay or remit
18to the Department, as shown by such return, provided that the
19amount of the tax to be deducted shall previously have been
20remitted to the Department by such serviceman. If the
21serviceman shall not previously have remitted the amount of
22such tax to the Department, he shall be entitled to no
23deduction hereunder upon refunding such tax to the purchaser.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable servicemen, who are required to file

 

 

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1returns hereunder and also under the Retailers' Occupation Tax
2Act, the Use Tax Act or the Service Use Tax Act, to furnish all
3the return information required by all said Acts on the one
4form.
5    Where the serviceman has more than one business registered
6with the Department under separate registrations hereunder,
7such serviceman shall file separate returns for each registered
8business.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund the revenue realized for
11the preceding month from the 1% tax on sales of food for human
12consumption which is to be consumed off the premises where it
13is sold (other than alcoholic beverages, soft drinks and food
14which has been prepared for immediate consumption) and
15prescription and nonprescription medicines, drugs, medical
16appliances and insulin, urine testing materials, syringes and
17needles used by diabetics.
18    Beginning January 1, 1990, each month the Department shall
19pay into the County and Mass Transit District Fund 4% of the
20revenue realized for the preceding month from the 6.25% general
21rate.
22    Beginning August 1, 2000, each month the Department shall
23pay into the County and Mass Transit District Fund 20% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB3298- 68 -LRB099 08793 SXM 28963 b

1pay into the Local Government Tax Fund 16% of the revenue
2realized for the preceding month from the 6.25% general rate on
3transfers of tangible personal property.
4    Beginning August 1, 2000, each month the Department shall
5pay into the Local Government Tax Fund 80% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of motor fuel and gasohol.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are now taxed at 6.25%.
15    Beginning July 1, 2013, each month the Department shall pay
16into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Retailers' Occupation Tax Act an amount equal to
19the average monthly deficit in the Underground Storage Tank
20Fund during the prior year, as certified annually by the
21Illinois Environmental Protection Agency, but the total
22payment into the Underground Storage Tank Fund under this Act,
23the Use Tax Act, the Service Use Tax Act, and the Retailers'
24Occupation Tax Act shall not exceed $18,000,000 in any State
25fiscal year. As used in this paragraph, the "average monthly
26deficit" shall be equal to the difference between the average

 

 

HB3298- 69 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 70 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 71 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 72 -LRB099 08793 SXM 28963 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000

 

 

HB3298- 73 -LRB099 08793 SXM 28963 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021246,000,000
122022260,000,000
132023275,000,000
142024 275,000,000
152025 275,000,000
162026 279,000,000
172027 292,000,000
182028 307,000,000
192029 322,000,000
202030 338,000,000
212031 350,000,000
222032 350,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

HB3298- 74 -LRB099 08793 SXM 28963 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total Deposit",
17has been deposited.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois Tax
23Increment Fund 0.27% of 80% of the net revenue realized for the
24preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB3298- 75 -LRB099 08793 SXM 28963 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning with the receipt of the first report of
4taxes paid by an eligible business and continuing for a 25-year
5period, the Department shall each month pay into the Energy
6Infrastructure Fund 80% of the net revenue realized from the
76.25% general rate on the selling price of Illinois-mined coal
8that was sold to an eligible business. For purposes of this
9paragraph, the term "eligible business" means a new electric
10generating facility certified pursuant to Section 605-332 of
11the Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    Subject to payment of amounts into the Build Illinois Fund,
14the McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Energy Infrastructure Fund pursuant to
16the preceding paragraphs or in any amendments to this Section
17hereafter enacted, beginning on the first day of the first
18calendar month to occur on or after the effective date of this
19amendatory Act of the 98th General Assembly, each month, from
20the collections made under Section 9 of the Use Tax Act,
21Section 9 of the Service Use Tax Act, Section 9 of the Service
22Occupation Tax Act, and Section 3 of the Retailers' Occupation
23Tax Act, the Department shall pay into the Tax Compliance and
24Administration Fund, to be used, subject to appropriation, to
25fund additional auditors and compliance personnel at the
26Department of Revenue, an amount equal to 1/12 of 5% of 80% of

 

 

HB3298- 76 -LRB099 08793 SXM 28963 b

1the cash receipts collected during the preceding fiscal year by
2the Audit Bureau of the Department under the Use Tax Act, the
3Service Use Tax Act, the Service Occupation Tax Act, the
4Retailers' Occupation Tax Act, and associated local occupation
5and use taxes administered by the Department.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, 75% shall be paid into the General
8Revenue Fund of the State Treasury and 25% shall be reserved in
9a special account and used only for the transfer to the Common
10School Fund as part of the monthly transfer from the General
11Revenue Fund in accordance with Section 8a of the State Finance
12Act.
13    The Department may, upon separate written notice to a
14taxpayer, require the taxpayer to prepare and file with the
15Department on a form prescribed by the Department within not
16less than 60 days after receipt of the notice an annual
17information return for the tax year specified in the notice.
18Such annual return to the Department shall include a statement
19of gross receipts as shown by the taxpayer's last Federal
20income tax return. If the total receipts of the business as
21reported in the Federal income tax return do not agree with the
22gross receipts reported to the Department of Revenue for the
23same period, the taxpayer shall attach to his annual return a
24schedule showing a reconciliation of the 2 amounts and the
25reasons for the difference. The taxpayer's annual return to the
26Department shall also disclose the cost of goods sold by the

 

 

HB3298- 77 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 78 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 79 -LRB099 08793 SXM 28963 b

1arrangement.
2(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
398-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
498-1098, eff. 8-26-14.)
 
5    Section 25. The Retailers' Occupation Tax Act is amended by
6changing Sections 2-10 and 3 as follows:
 
7    (35 ILCS 120/2-10)
8    Sec. 2-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10gross receipts from sales of tangible personal property made in
11the course of business.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 2-8 of
18this Act, the tax is imposed at the rate of 1.25%.
19    Within 14 days after the effective date of this amendatory
20Act of the 91st General Assembly, each retailer of motor fuel
21and gasohol shall cause the following notice to be posted in a
22prominently visible place on each retail dispensing device that
23is used to dispense motor fuel or gasohol in the State of
24Illinois: "As of July 1, 2000, the State of Illinois has

 

 

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1eliminated the State's share of sales tax on motor fuel and
2gasohol through December 31, 2000. The price on this pump
3should reflect the elimination of the tax." The notice shall be
4printed in bold print on a sign that is no smaller than 4
5inches by 8 inches. The sign shall be clearly visible to
6customers. Any retailer who fails to post or maintain a
7required sign through December 31, 2000 is guilty of a petty
8offense for which the fine shall be $500 per day per each
9retail premises where a violation occurs.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the proceeds of
12sales made on or after January 1, 1990, and before July 1,
132003, (ii) 80% of the proceeds of sales made on or after July
141, 2003 and on or before December 31, 2018, and (iii) 100% of
15the proceeds of sales made thereafter. If, at any time,
16however, the tax under this Act on sales of gasohol, as defined
17in the Use Tax Act, is imposed at the rate of 1.25%, then the
18tax imposed by this Act applies to 100% of the proceeds of
19sales of gasohol made during that time.
20    With respect to majority blended ethanol fuel, as defined
21in the Use Tax Act, the tax imposed by this Act does not apply
22to the proceeds of sales made on or after July 1, 2003 and on or
23before December 31, 2018 but applies to 100% of the proceeds of
24sales made thereafter.
25    With respect to biodiesel blends, as defined in the Use Tax
26Act, with no less than 1% and no more than 10% biodiesel, the

 

 

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1tax imposed by this Act applies to (i) 80% of the proceeds of
2sales made on or after July 1, 2003 and on or before December
331, 2018 and (ii) 100% of the proceeds of sales made
4thereafter. If, at any time, however, the tax under this Act on
5sales of biodiesel blends, as defined in the Use Tax Act, with
6no less than 1% and no more than 10% biodiesel is imposed at
7the rate of 1.25%, then the tax imposed by this Act applies to
8100% of the proceeds of sales of biodiesel blends with no less
9than 1% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel, the tax imposed
13by this Act does not apply to the proceeds of sales made on or
14after July 1, 2003 and on or before December 31, 2018 but
15applies to 100% of the proceeds of sales made thereafter.
16    With respect to food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, soft drinks, and food that has been
19prepared for immediate consumption) and prescription and
20nonprescription medicines, drugs, medical appliances,
21modifications to a motor vehicle for the purpose of rendering
22it usable by a disabled person, and insulin, urine testing
23materials, syringes, and needles used by diabetics, for human
24use, the tax is imposed at the rate of 1%. For the purposes of
25this Section, until September 1, 2009: the term "soft drinks"
26means any complete, finished, ready-to-use, non-alcoholic

 

 

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

 

 

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

 

 

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1    list of those ingredients contained in the compound,
2    substance or preparation.
3    Beginning on the effective date of this amendatory Act of
4the 98th General Assembly, "prescription and nonprescription
5medicines and drugs" includes medical cannabis purchased from a
6registered dispensing organization under the Compassionate Use
7of Medical Cannabis Pilot Program Act.
8    Beginning January 1, 2016, in addition to all other rates
9of tax imposed under this Act, a surcharge of 2% is imposed on
10the selling price of firearm ammunition. "Firearm" and "firearm
11ammunition" have the meanings ascribed to them in Section 1.1
12of the Firearm Owners Identification Card Act.
13(Source: P.A. 97-636, eff. 6-1-12; 98-122, eff. 1-1-14.)
 
14    (35 ILCS 120/3)  (from Ch. 120, par. 442)
15    Sec. 3. Except as provided in this Section, on or before
16the twentieth day of each calendar month, every person engaged
17in the business of selling tangible personal property at retail
18in this State during the preceding calendar month shall file a
19return with the Department, stating:
20        1. The name of the seller;
21        2. His residence address and the address of his
22    principal place of business and the address of the
23    principal place of business (if that is a different
24    address) from which he engages in the business of selling
25    tangible personal property at retail in this State;

 

 

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

 

 

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1claimed.
2    Prior to October 1, 2003, and on and after September 1,
32004 a retailer may accept a Manufacturer's Purchase Credit
4certification from a purchaser in satisfaction of Use Tax as
5provided in Section 3-85 of the Use Tax Act if the purchaser
6provides the appropriate documentation as required by Section
73-85 of the Use Tax Act. A Manufacturer's Purchase Credit
8certification, accepted by a retailer prior to October 1, 2003
9and on and after September 1, 2004 as provided in Section 3-85
10of the Use Tax Act, may be used by that retailer to satisfy
11Retailers' Occupation Tax liability in the amount claimed in
12the certification, not to exceed 6.25% of the receipts subject
13to tax from a qualifying purchase. A Manufacturer's Purchase
14Credit reported on any original or amended return filed under
15this Act after October 20, 2003 for reporting periods prior to
16September 1, 2004 shall be disallowed. Manufacturer's
17Purchaser Credit reported on annual returns due on or after
18January 1, 2005 will be disallowed for periods prior to
19September 1, 2004. No Manufacturer's Purchase Credit may be
20used after September 30, 2003 through August 31, 2004 to
21satisfy any tax liability imposed under this Act, including any
22audit liability.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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

 

 

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

 

 

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1information. If the retailer is unable to receive the sales
2information by electronic means, the distributor, importing
3distributor, or manufacturer shall furnish the sales
4information by personal delivery or by mail. For purposes of
5this paragraph, the term "electronic means" includes, but is
6not limited to, the use of a secure Internet website, e-mail,
7or facsimile.
8    If a total amount of less than $1 is payable, refundable or
9creditable, such amount shall be disregarded if it is less than
1050 cents and shall be increased to $1 if it is 50 cents or more.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

 

 

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

 

 

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

 

 

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

 

 

HB3298- 93 -LRB099 08793 SXM 28963 b

1Act, then that seller may report the transfer of all aircraft,
2watercraft, motor vehicles or trailers involved in that
3transaction to the Department on the same uniform
4invoice-transaction reporting return form. For purposes of
5this Section, "watercraft" means a Class 2, Class 3, or Class 4
6watercraft as defined in Section 3-2 of the Boat Registration
7and Safety Act, a personal watercraft, or any boat equipped
8with an inboard motor.
9    Any retailer who sells only motor vehicles, watercraft,
10aircraft, or trailers that are required to be registered with
11an agency of this State, so that all retailers' occupation tax
12liability is required to be reported, and is reported, on such
13transaction reporting returns and who is not otherwise required
14to file monthly or quarterly returns, need not file monthly or
15quarterly returns. However, those retailers shall be required
16to file returns on an annual basis.
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 1 of this Act allows an exemption for the value

 

 

HB3298- 94 -LRB099 08793 SXM 28963 b

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
13or 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 1 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

 

 

HB3298- 95 -LRB099 08793 SXM 28963 b

1information as the Department may reasonably require.
2    Such transaction reporting return shall be filed not later
3than 20 days after the day 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
7Illinois use tax may be transmitted to the Department by way of
8the State agency with which, or State officer with whom the
9tangible personal property must be titled or registered (if
10titling or registration is required) if the Department and such
11agency or State officer determine that this procedure will
12expedite the processing of applications for title or
13registration.
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 use tax
19receipt (or a certificate of exemption if the Department is
20satisfied that the particular sale is tax exempt) which such
21purchaser may submit to the agency with which, or State officer
22with whom, he must title or register the tangible personal
23property that is involved (if titling or registration is
24required) in support of such purchaser's application for an
25Illinois certificate or other evidence of title or registration
26to such tangible personal property.

 

 

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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
11the tax 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.

 

 

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

 

 

HB3298- 98 -LRB099 08793 SXM 28963 b

1which such 2.1% or 1.75% discount is computed. In the case of
2retailers who report and pay the tax on a transaction by
3transaction basis, as provided in this Section, such discount
4shall be taken with each such tax remittance instead of when
5such retailer files his periodic return. The Department may
6disallow the discount for retailers whose certificate of
7registration is revoked at the time the return is filed, but
8only if the Department's decision to revoke the certificate of
9registration has become final.
10    Before October 1, 2000, if the taxpayer's average monthly
11tax liability to the Department under this Act, the Use Tax
12Act, the Service Occupation Tax Act, and the Service Use Tax
13Act, excluding any liability for prepaid sales tax to be
14remitted in accordance with Section 2d of this Act, was $10,000
15or more during the preceding 4 complete calendar quarters, he
16shall file a return with the Department each month by the 20th
17day of the month next following the month during which such tax
18liability is incurred and shall make payments to the Department
19on or before the 7th, 15th, 22nd and last day of the month
20during which such liability is incurred. On and after October
211, 2000, if the taxpayer's average monthly tax liability to the
22Department under this Act, the Use Tax Act, the Service
23Occupation Tax Act, and the Service Use Tax Act, excluding any
24liability for prepaid sales tax to be remitted in accordance
25with Section 2d of this Act, was $20,000 or more during the
26preceding 4 complete calendar quarters, he shall file a return

 

 

HB3298- 99 -LRB099 08793 SXM 28963 b

1with the Department each month by the 20th day of the month
2next following the month during which such tax liability is
3incurred and shall make payment to the Department on or before
4the 7th, 15th, 22nd and last day of the month during which such
5liability is incurred. If the month during which such tax
6liability is incurred began prior to January 1, 1985, each
7payment shall be in an amount equal to 1/4 of the taxpayer's
8actual liability for the month or an amount set by the
9Department not to exceed 1/4 of the average monthly liability
10of the taxpayer to the Department for the preceding 4 complete
11calendar quarters (excluding the month of highest liability and
12the month of lowest liability in such 4 quarter period). If the
13month during which such tax liability is incurred begins on or
14after January 1, 1985 and prior to January 1, 1987, each
15payment shall be in an amount equal to 22.5% of the taxpayer's
16actual liability for the month or 27.5% of the taxpayer's
17liability for the same calendar month of the preceding year. If
18the month during which such tax liability is incurred begins on
19or after January 1, 1987 and prior to January 1, 1988, each
20payment shall be in an amount equal to 22.5% of the taxpayer's
21actual liability for the month or 26.25% of the taxpayer's
22liability for the same calendar month of the preceding year. If
23the month during which such tax liability is incurred begins on
24or after January 1, 1988, and prior to January 1, 1989, or
25begins on or after January 1, 1996, each payment shall be in an
26amount equal to 22.5% of the taxpayer's actual liability for

 

 

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1the month or 25% of the taxpayer's liability for the same
2calendar month of the preceding year. If the month during which
3such tax liability is incurred begins on or after January 1,
41989, and prior to January 1, 1996, each payment shall be in an
5amount equal to 22.5% of the taxpayer's actual liability for
6the month or 25% of the taxpayer's liability for the same
7calendar month of the preceding year or 100% of the taxpayer's
8actual liability for the quarter monthly reporting period. The
9amount of such quarter monthly payments shall be credited
10against the final tax liability of the taxpayer's return for
11that month. Before October 1, 2000, once applicable, the
12requirement of the making of quarter monthly payments to the
13Department by taxpayers having an average monthly tax liability
14of $10,000 or more as determined in the manner provided above
15shall continue until such taxpayer's average monthly liability
16to the Department during the preceding 4 complete calendar
17quarters (excluding the month of highest liability and the
18month of lowest liability) is less than $9,000, or until such
19taxpayer's average monthly liability to the Department as
20computed for each calendar quarter of the 4 preceding complete
21calendar quarter period is less than $10,000. However, if a
22taxpayer can show the Department that a substantial change in
23the taxpayer's business has occurred which causes the taxpayer
24to anticipate that his average monthly tax liability for the
25reasonably foreseeable future will fall below the $10,000
26threshold stated above, then such taxpayer may petition the

 

 

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1Department for a change in such taxpayer's reporting status. On
2and after October 1, 2000, once applicable, the requirement of
3the making of quarter monthly payments to the Department by
4taxpayers having an average monthly tax liability of $20,000 or
5more as determined in the manner provided above shall continue
6until such taxpayer's average monthly liability to the
7Department during the preceding 4 complete calendar quarters
8(excluding the month of highest liability and the month of
9lowest liability) is less than $19,000 or until such taxpayer's
10average monthly liability to the Department as computed for
11each calendar quarter of the 4 preceding complete calendar
12quarter period is less than $20,000. However, if a taxpayer can
13show the Department that a substantial change in the taxpayer's
14business has occurred which causes the taxpayer to anticipate
15that his average monthly tax liability for the reasonably
16foreseeable future will fall below the $20,000 threshold stated
17above, then such taxpayer may petition the Department for a
18change in such taxpayer's reporting status. The Department
19shall change such taxpayer's reporting status unless it finds
20that such change is seasonal in nature and not likely to be
21long term. If any such quarter monthly payment is not paid at
22the time or in the amount required by this Section, then the
23taxpayer shall be liable for penalties and interest on the
24difference between the minimum amount due as a payment and the
25amount of such quarter monthly payment actually and timely
26paid, except insofar as the taxpayer has previously made

 

 

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1payments for that month to the Department in excess of the
2minimum payments previously due as provided in this Section.
3The Department shall make reasonable rules and regulations to
4govern the quarter monthly payment amount and quarter monthly
5payment dates for taxpayers who file on other than a calendar
6monthly basis.
7    The provisions of this paragraph apply before October 1,
82001. Without regard to whether a taxpayer is required to make
9quarter monthly payments as specified above, any taxpayer who
10is required by Section 2d of this Act to collect and remit
11prepaid taxes and has collected prepaid taxes which average in
12excess of $25,000 per month during the preceding 2 complete
13calendar quarters, shall file a return with the Department as
14required by Section 2f and shall make payments to the
15Department on or before the 7th, 15th, 22nd and last day of the
16month during which such liability is incurred. If the month
17during which such tax liability is incurred began prior to the
18effective date of this amendatory Act of 1985, each payment
19shall be in an amount not less than 22.5% of the taxpayer's
20actual liability under Section 2d. If the month during which
21such tax liability is incurred begins on or after January 1,
221986, each payment shall be in an amount equal to 22.5% of the
23taxpayer's actual liability for the month or 27.5% of the
24taxpayer's liability for the same calendar month of the
25preceding calendar year. If the month during which such tax
26liability is incurred begins on or after January 1, 1987, each

 

 

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1payment shall be in an amount equal to 22.5% of the taxpayer's
2actual liability for the month or 26.25% of the taxpayer's
3liability for the same calendar month of the preceding year.
4The amount of such quarter monthly payments shall be credited
5against the final tax liability of the taxpayer's return for
6that month filed under this Section or Section 2f, as the case
7may be. Once applicable, the requirement of the making of
8quarter monthly payments to the Department pursuant to this
9paragraph shall continue until such taxpayer's average monthly
10prepaid tax collections during the preceding 2 complete
11calendar quarters is $25,000 or less. If any such quarter
12monthly payment is not paid at the time or in the amount
13required, the taxpayer shall be liable for penalties and
14interest on such difference, except insofar as the taxpayer has
15previously made payments for that month in excess of the
16minimum payments previously due.
17    The provisions of this paragraph apply on and after October
181, 2001. Without regard to whether a taxpayer is required to
19make quarter monthly payments as specified above, any taxpayer
20who is required by Section 2d of this Act to collect and remit
21prepaid taxes and has collected prepaid taxes that average in
22excess of $20,000 per month during the preceding 4 complete
23calendar quarters shall file a return with the Department as
24required by Section 2f and shall make payments to the
25Department on or before the 7th, 15th, 22nd and last day of the
26month during which the liability is incurred. Each payment

 

 

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1shall be in an amount equal to 22.5% of the taxpayer's actual
2liability for the month or 25% of the taxpayer's liability for
3the same calendar month of the preceding year. The amount of
4the quarter monthly payments shall be credited against the
5final tax liability of the taxpayer's return for that month
6filed under this Section or Section 2f, as the case may be.
7Once applicable, the requirement of the making of quarter
8monthly payments to the Department pursuant to this paragraph
9shall continue until the taxpayer's average monthly prepaid tax
10collections during the preceding 4 complete calendar quarters
11(excluding the month of highest liability and the month of
12lowest liability) is less than $19,000 or until such taxpayer's
13average monthly liability to the Department as computed for
14each calendar quarter of the 4 preceding complete calendar
15quarters is less than $20,000. If any such quarter monthly
16payment is not paid at the time or in the amount required, the
17taxpayer shall be liable for penalties and interest on such
18difference, except insofar as the taxpayer has previously made
19payments for that month in excess of the minimum payments
20previously due.
21    If any payment provided for in this Section exceeds the
22taxpayer's liabilities under this Act, the Use Tax Act, the
23Service Occupation Tax Act and the Service Use Tax Act, as
24shown on an original monthly return, the Department shall, if
25requested by the taxpayer, issue to the taxpayer a credit
26memorandum no later than 30 days after the date of payment. The

 

 

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

 

 

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

 

 

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12010, each month the Department shall pay into the Local
2Government Tax Fund 80% of the net revenue realized for the
3preceding month from the 1.25% rate on the selling price of
4sales tax holiday items.
5    Beginning October 1, 2009, each month the Department shall
6pay into the Capital Projects Fund an amount that is equal to
7an amount estimated by the Department to represent 80% of the
8net revenue realized for the preceding month from the sale of
9candy, grooming and hygiene products, and soft drinks that had
10been taxed at a rate of 1% prior to September 1, 2009 but that
11are now taxed at 6.25%.
12    Beginning July 1, 2011, each month the Department shall pay
13into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
14realized for the preceding month from the 6.25% general rate on
15the selling price of sorbents used in Illinois in the process
16of sorbent injection as used to comply with the Environmental
17Protection Act or the federal Clean Air Act, but the total
18payment into the Clean Air Act (CAA) Permit Fund under this Act
19and the Use Tax Act shall not exceed $2,000,000 in any fiscal
20year.
21    Beginning July 1, 2013, each month the Department shall pay
22into the Underground Storage Tank Fund from the proceeds
23collected under this Act, the Use Tax Act, the Service Use Tax
24Act, and the Service Occupation Tax Act an amount equal to the
25average monthly deficit in the Underground Storage Tank Fund
26during the prior year, as certified annually by the Illinois

 

 

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1Environmental Protection Agency, but the total payment into the
2Underground Storage Tank Fund under this Act, the Use Tax Act,
3the Service Use Tax Act, and the Service Occupation Tax Act
4shall not exceed $18,000,000 in any State fiscal year. As used
5in this paragraph, the "average monthly deficit" shall be equal
6to the difference between the average monthly claims for
7payment by the fund and the average monthly revenues deposited
8into the fund, excluding payments made pursuant to this
9paragraph.
10    Beginning January 1, 2016, the Department shall pay into
11the High Crime Trauma Center Grant Fund 100% of the net revenue
12realized for the preceding month from the 2% surcharge on the
13selling price of firearm ammunition.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, (a) 1.75% thereof shall be paid into the
16Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
17and after July 1, 1989, 3.8% thereof shall be paid into the
18Build Illinois Fund; provided, however, that if in any fiscal
19year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
20may be, of the moneys received by the Department and required
21to be paid into the Build Illinois Fund pursuant to this Act,
22Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
23Act, and Section 9 of the Service Occupation Tax Act, such Acts
24being hereinafter called the "Tax Acts" and such aggregate of
252.2% or 3.8%, as the case may be, of moneys being hereinafter
26called the "Tax Act Amount", and (2) the amount transferred to

 

 

HB3298- 109 -LRB099 08793 SXM 28963 b

1the Build Illinois Fund from the State and Local Sales Tax
2Reform Fund shall be less than the Annual Specified Amount (as
3hereinafter defined), an amount equal to the difference shall
4be immediately paid into the Build Illinois Fund from other
5moneys received by the Department pursuant to the Tax Acts; the
6"Annual Specified Amount" means the amounts specified below for
7fiscal years 1986 through 1993:
8Fiscal YearAnnual Specified Amount
91986$54,800,000
101987$76,650,000
111988$80,480,000
121989$88,510,000
131990$115,330,000
141991$145,470,000
151992$182,730,000
161993$206,520,000;
17and means the Certified Annual Debt Service Requirement (as
18defined in Section 13 of the Build Illinois Bond Act) or the
19Tax Act Amount, whichever is greater, for fiscal year 1994 and
20each fiscal year thereafter; and further provided, that if on
21the last business day of any month the sum of (1) the Tax Act
22Amount required to be deposited into the Build Illinois Bond
23Account in the Build Illinois Fund during such month and (2)
24the amount transferred to the Build Illinois Fund from the
25State and Local Sales Tax Reform Fund shall have been less than
261/12 of the Annual Specified Amount, an amount equal to the

 

 

HB3298- 110 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 111 -LRB099 08793 SXM 28963 b

113 of the Build Illinois Bond Act, an amount equal to such
2deficiency shall be immediately paid from other moneys received
3by the Department pursuant to the Tax Acts to the Build
4Illinois Fund; provided, however, that any amounts paid to the
5Build Illinois Fund in any fiscal year pursuant to this
6sentence shall be deemed to constitute payments pursuant to
7clause (b) of the first sentence of this paragraph and shall
8reduce the amount otherwise payable for such fiscal year
9pursuant to that clause (b). The moneys received by the
10Department pursuant to this Act and required to be deposited
11into the Build Illinois Fund are subject to the pledge, claim
12and charge set forth in Section 12 of the Build Illinois Bond
13Act.
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 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.

 

 

HB3298- 112 -LRB099 08793 SXM 28963 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

 

 

HB3298- 113 -LRB099 08793 SXM 28963 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

 

 

HB3298- 114 -LRB099 08793 SXM 28963 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

 

 

HB3298- 115 -LRB099 08793 SXM 28963 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

 

 

HB3298- 116 -LRB099 08793 SXM 28963 b

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

 

 

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

 

 

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1Government.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13    For greater simplicity of administration, manufacturers,
14importers and wholesalers whose products are sold at retail in
15Illinois by numerous retailers, and who wish to do so, may
16assume the responsibility for accounting and paying to the
17Department all tax accruing under this Act with respect to such
18sales, if the retailers who are affected do not make written
19objection to the Department to this arrangement.
20    Any person who promotes, organizes, provides retail
21selling space for concessionaires or other types of sellers at
22the Illinois State Fair, DuQuoin State Fair, county fairs,
23local fairs, art shows, flea markets and similar exhibitions or
24events, including any transient merchant as defined by Section
252 of the Transient Merchant Act of 1987, is required to file a
26report with the Department providing the name of the merchant's

 

 

HB3298- 119 -LRB099 08793 SXM 28963 b

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

 

 

HB3298- 120 -LRB099 08793 SXM 28963 b

1concessionaires and other sellers affected by the imposition of
2this requirement. In the absence of notification by the
3Department, the concessionaires and other sellers shall file
4their returns as otherwise required in this Section.
5(Source: P.A. 97-95, eff. 7-12-11; 97-333, eff. 8-12-11; 98-24,
6eff. 6-19-13; 98-109, eff. 7-25-13; 98-496, eff. 1-1-14;
798-756, eff. 7-16-14; 98-1098, eff. 8-26-14.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.