Sen. Pamela J. Althoff

Filed: 3/16/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3322

2    AMENDMENT NO. ______. Amend Senate Bill 3322 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 11 as follows:
 
6    (35 ILCS 120/11)  (from Ch. 120, par. 450)
7    Sec. 11. All information received by the Department from
8returns filed under this Act, or from any investigation
9conducted under this Act, shall be confidential, except for
10official purposes, and any person who divulges any such
11information in any manner, except in accordance with a proper
12judicial order or as otherwise provided by law, shall be guilty
13of a Class B misdemeanor with a fine not to exceed $7,500.
14    Nothing in this Act prevents the Director of Revenue from
15publishing or making available to the public the names and
16addresses of persons filing returns under this Act, or

 

 

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1reasonable statistics concerning the operation of the tax by
2grouping the contents of returns so the information in any
3individual return is not disclosed.
4    Nothing in this Act prevents the Director of Revenue from
5divulging to the United States Government or the government of
6any other state, or any officer or agency thereof, for
7exclusively official purposes, information received by the
8Department in administering this Act, provided that such other
9governmental agency agrees to divulge requested tax
10information to the Department.
11    The Department's furnishing of information derived from a
12taxpayer's return or from an investigation conducted under this
13Act to the surety on a taxpayer's bond that has been furnished
14to the Department under this Act, either to provide notice to
15such surety of its potential liability under the bond or, in
16order to support the Department's demand for payment from such
17surety under the bond, is an official purpose within the
18meaning of this Section.
19    The furnishing upon request of information obtained by the
20Department from returns filed under this Act or investigations
21conducted under this Act to the Illinois Liquor Control
22Commission for official use is deemed to be an official purpose
23within the meaning of this Section.
24    Notice to a surety of potential liability shall not be
25given unless the taxpayer has first been notified, not less
26than 10 days prior thereto, of the Department's intent to so

 

 

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1notify the surety.
2    The furnishing upon request of the Auditor General, or his
3authorized agents, for official use, of returns filed and
4information related thereto under this Act is deemed to be an
5official purpose within the meaning of this Section.
6    Where an appeal or a protest has been filed on behalf of a
7taxpayer, the furnishing upon request of the attorney for the
8taxpayer of returns filed by the taxpayer and information
9related thereto under this Act is deemed to be an official
10purpose within the meaning of this Section.
11    The furnishing of financial information to a municipality
12or county, upon request of the chief executive officer Chief
13Executive thereof, is an official purpose within the meaning of
14this Section, provided the municipality or county agrees in
15writing to the requirements of this Section. Information
16provided to municipalities and counties under this paragraph
17shall be limited to: (1) the business name; (2) the business
18address; (3) the standard classification number assigned to the
19business; (4) net revenue distributed to the requesting
20municipality or county that is directly related to the
21requesting municipality's or county's local share of the
22proceeds under the Use Tax Act, the Service Use Tax Act, the
23Service Occupation Tax Act, and the Retailers' Occupation Tax
24Act distributed from the Local Government Tax Fund, and, if
25applicable, any locally imposed retailers' occupation tax or
26service occupation tax; and (5) (4) a listing of all businesses

 

 

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1within the requesting municipality or county by account
2identification number and address. On and after July 1, 2015,
3the furnishing of financial information to municipalities and
4counties under this paragraph may be by electronic means.
5    Information so provided shall be subject to all
6confidentiality provisions of this Section. The written
7agreement shall provide for reciprocity, limitations on
8access, disclosure, and procedures for requesting information.
9Only the chief executive officer of the municipality or county
10may initiate the written agreement with the Department.
11Information provided to the municipality or county under this
12Section may be shared with or viewed only by persons who are
13directly involved in the financial operations of the
14municipality or county, including attorneys or accountants
15retained by the municipality or county. The information
16provided shall not, however, be shared with or viewed by any
17person who is compensated by the municipality or county for
18services rendered on a contingent basis or any other similar
19method that may impair that person's independence or the
20perception of that person's independence. The chief executive
21officer shall provide the Department with a list of names and
22official titles of persons designated by him or her as persons
23exclusively authorized to request, view, or receive, on his or
24her behalf, the financial information so provided. The
25information provided by the Department shall not be viewed by
26or shared with anyone who is not on the list. No person shall

 

 

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1be eligible to receive or view the information provided under
2this Section unless that person enters into a written agreement
3to be bound by the confidentiality provisions of this Section
4and a copy of such written agreement is provided by the
5municipality or county to the Department. In addition, a
6municipality or county must also provide the Department with a
7copy of any compensation agreement it has with persons who are
8not employees of the municipality or county as a condition of
9the municipality or county sharing with that person information
10provided by the Department under this Section. The written
11agreement may be canceled by either the Department or the chief
12executive officer at any time and shall be canceled in the
13event of any unauthorized use or disclosure of the information
14obtained pursuant to the written agreement or failure to abide
15by the procedures set forth in the agreement by the Department
16for safeguarding the confidentiality of such information.
17    The Department may make available to the Board of Trustees
18of any Metro East Mass Transit District information contained
19on transaction reporting returns required to be filed under
20Section 3 of this Act that report sales made within the
21boundary of the taxing authority of that Metro East Mass
22Transit District, as provided in Section 5.01 of the Local Mass
23Transit District Act. The disclosure shall be made pursuant to
24a written agreement between the Department and the Board of
25Trustees of a Metro East Mass Transit District, which is an
26official purpose within the meaning of this Section. The

 

 

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1written agreement between the Department and the Board of
2Trustees of a Metro East Mass Transit District shall provide
3for reciprocity, limitations on access, disclosure, and
4procedures for requesting information. Information so provided
5shall be subject to all confidentiality provisions of this
6Section.
7    The Director may make available to any State agency,
8including the Illinois Supreme Court, which licenses persons to
9engage in any occupation, information that a person licensed by
10such agency has failed to file returns under this Act or pay
11the tax, penalty and interest shown therein, or has failed to
12pay any final assessment of tax, penalty or interest due under
13this Act. The Director may make available to any State agency,
14including the Illinois Supreme Court, information regarding
15whether a bidder, contractor, or an affiliate of a bidder or
16contractor has failed to collect and remit Illinois Use tax on
17sales into Illinois, or any tax under this Act or pay the tax,
18penalty, and interest shown therein, or has failed to pay any
19final assessment of tax, penalty, or interest due under this
20Act, for the limited purpose of enforcing bidder and contractor
21certifications. The Director may make available to units of
22local government and school districts that require bidder and
23contractor certifications, as set forth in Sections 50-11 and
2450-12 of the Illinois Procurement Code, information regarding
25whether a bidder, contractor, or an affiliate of a bidder or
26contractor has failed to collect and remit Illinois Use tax on

 

 

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1sales into Illinois, file returns under this Act, or pay the
2tax, penalty, and interest shown therein, or has failed to pay
3any final assessment of tax, penalty, or interest due under
4this Act, for the limited purpose of enforcing bidder and
5contractor certifications. For purposes of this Section, the
6term "affiliate" means any entity that (1) directly,
7indirectly, or constructively controls another entity, (2) is
8directly, indirectly, or constructively controlled by another
9entity, or (3) is subject to the control of a common entity.
10For purposes of this Section, an entity controls another entity
11if it owns, directly or individually, more than 10% of the
12voting securities of that entity. As used in this Section, the
13term "voting security" means a security that (1) confers upon
14the holder the right to vote for the election of members of the
15board of directors or similar governing body of the business or
16(2) is convertible into, or entitles the holder to receive upon
17its exercise, a security that confers such a right to vote. A
18general partnership interest is a voting security.
19    The Director may make available to any State agency,
20including the Illinois Supreme Court, units of local
21government, and school districts, information regarding
22whether a bidder or contractor is an affiliate of a person who
23is not collecting and remitting Illinois Use taxes for the
24limited purpose of enforcing bidder and contractor
25certifications.
26    The Director may also make available to the Secretary of

 

 

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1State information that a limited liability company, which has
2filed articles of organization with the Secretary of State, or
3corporation which has been issued a certificate of
4incorporation by the Secretary of State has failed to file
5returns under this Act or pay the tax, penalty and interest
6shown therein, or has failed to pay any final assessment of
7tax, penalty or interest due under this Act. An assessment is
8final when all proceedings in court for review of such
9assessment have terminated or the time for the taking thereof
10has expired without such proceedings being instituted.
11    The Director shall make available for public inspection in
12the Department's principal office and for publication, at cost,
13administrative decisions issued on or after January 1, 1995.
14These decisions are to be made available in a manner so that
15the following taxpayer information is not disclosed:
16        (1) The names, addresses, and identification numbers
17    of the taxpayer, related entities, and employees.
18        (2) At the sole discretion of the Director, trade
19    secrets or other confidential information identified as
20    such by the taxpayer, no later than 30 days after receipt
21    of an administrative decision, by such means as the
22    Department shall provide by rule.
23    The Director shall determine the appropriate extent of the
24deletions allowed in paragraph (2). In the event the taxpayer
25does not submit deletions, the Director shall make only the
26deletions specified in paragraph (1).

 

 

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1    The Director shall make available for public inspection and
2publication an administrative decision within 180 days after
3the issuance of the administrative decision. The term
4"administrative decision" has the same meaning as defined in
5Section 3-101 of Article III of the Code of Civil Procedure.
6Costs collected under this Section shall be paid into the Tax
7Compliance and Administration Fund.
8    Nothing contained in this Act shall prevent the Director
9from divulging information to any person pursuant to a request
10or authorization made by the taxpayer or by an authorized
11representative of the taxpayer.
12    For the purposes of this Section "chief executive officer"
13means the mayor of a city, the village board president of a
14village, the mayor or president of an incorporated town, the
15county executive of a county that has adopted the county
16executive form of government, the president of the board of
17commissioners of Cook County, or the chairperson of the county
18board or board of county commissioners of any other county.
19(Source: P.A. 98-1058, eff. 1-1-15.)".