(235 ILCS 5/7-7) (from Ch. 43, par. 151)
Sec. 7-7.
Any five residents of the city, village or county shall have the
right to file a complaint with the local commission stating that any
retailer licensee, subject to the jurisdiction of the local commission, has
been or is violating the provisions of this Act or the rules or regulations
issued pursuant hereto. Such complaint shall be in writing in the form
prescribed by the local commission and shall be signed and sworn to by the
parties complaining. The complaint shall state the particular provision,
rule or regulation believed to have been violated and the facts in detail
upon which belief is based. If the local commission is satisfied that the
complaint substantially charges a violation and that from the facts alleged
there is reasonable cause for such belief, it shall set the matter for
hearing and shall serve notice upon the licensee of the time and place of
such hearing and of the particular charge in the complaint.
(Source: P.A. 82-783.)
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(235 ILCS 5/7-8) (from Ch. 43, par. 152)
Sec. 7-8.
For each city, village or incorporated town having a population
of 500,000 or more inhabitants, there is established a license appeal
commission consisting of the chairman of the Illinois Liquor Control
Commission, the most senior member of the Illinois Liquor Control Commission
who is not of the same political party as the chairman, and one person who is
a resident of the particular city, village or incorporated town selected by
the council or president and board of trustees, as the case may be, who
shall serve for a term of 4 years and until his successor is selected
and takes office. Neither the mayor, president of the board of trustees,
nor any member of the council or board of trustees shall be eligible for
membership on a license appeal commission. Each of the 2 members of the
Illinois Liquor Control Commission shall receive a $200 per diem
for their work on the license appeal commission, and the other member shall
receive an annual salary which shall be paid by the particular city,
village or incorporated town. The secretary of the Illinois Liquor Control
Commission shall be ex-officio the secretary for each license appeal
commission.
(Source: P.A. 91-798, eff. 7-9-00; 91-922, eff. 7-7-00.)
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(235 ILCS 5/7-9) (from Ch. 43, par. 153)
Sec. 7-9.
Except as provided in this Section, any order or action of a
local liquor control commissioner levying a fine or refusing to levy a fine
on a licensee, granting or refusing to grant a license,
revoking or suspending or refusing to revoke or suspend a license or
refusing for more than 30 days to grant a hearing upon a complaint to
revoke or suspend a license may, within 20 days after notice of such
order or action, be appealed by any resident of the political
subdivision under the jurisdiction of the local liquor control
commissioner or any person interested, to the State Commission.
In any case where a licensee appeals to the State Commission from an
order or action of the local liquor control commission having the effect of
suspending or revoking a license, denying a renewal application, or
refusing to grant a license, the licensee shall resume the operation of the
licensed business pending the decision of the State Commission and the
expiration of the time allowed for an application for rehearing. If an
application for rehearing is filed, the licensee shall continue the
operation of the licensed business until the denial of the application or,
if the rehearing is granted, until the decision on rehearing.
In any case in which a licensee appeals to the State Commission a
suspension or revocation by a local liquor control commissioner that is the
second or subsequent such suspension or revocation placed on that licensee
within the preceding 12 month period, the licensee shall
consider the suspension or revocation to be in effect until a reversal of
the local liquor control commissioner's action has been issued by the State
Commission and shall cease all activity otherwise authorized by the
license. The State Commission shall expedite, to the greatest extent
possible, its consideration of any appeal that is an appeal of a second or
subsequent suspension or revocation within the past 12 month period.
The appeal shall be limited to a review of the official record of the
proceedings of such local liquor control commissioner if the county board,
city council or board of trustees, as the case may be,
has adopted a resolution requiring that such review be on the record. If such
resolution is adopted, a certified official record of the proceedings
taken and prepared by a certified court reporter or certified shorthand
reporter shall be filed by the local liquor control commissioner within 5
days after notice of the filing of such appeal, if the appellant licensee
pays for the cost of the transcript.
The State Commission
shall
review the propriety of the order or action of the local liquor control
commissioner and shall consider the following questions:
(a) whether the local liquor control commissioner has | ||
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(b) whether the order is supported by the findings;
(c) whether the findings are supported by substantial | ||
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The only evidence which may be considered in the review, shall be the
evidence found in the certified official record of the proceedings of
the local liquor control commissioner. No new or additional evidence
shall be admitted or considered. The State Commission shall render a
decision affirming, reversing or modifying the order or action reviewed
within 30 days after the appeal was heard.
In the event such appeal is from an order of a local liquor control
commissioner of a city, village or incorporated town of 500,000 or more
inhabitants, granting or refusing to grant a license or refusing for
more than 30 days to grant a hearing upon a complaint to revoke or
suspend a license, the matter of the propriety of such order or action
shall be tried de novo by the license appeal commission as expeditiously
as circumstances permit.
In the event such appeal is from an order or action of a local liquor
control commissioner of a city, village or incorporated town of 500,000
or more inhabitants, imposing a fine or refusing to impose a fine on a
licensee, revoking or suspending or refusing to revoke or
suspend a license, the license appeal commission shall determine the
appeal by a review of the official record of the proceedings of such
local liquor control commissioner. A certified record of the proceedings
shall be promptly filed with the license appeal commission by such local
liquor
control commissioner after notice of the filing of such
appeal if the appellant licensee pays for the cost of the transcript
and promptly delivers the transcript to
the local liquor control commission or its attorney.
The review by the license appeal commission shall be limited to
the questions:
(a) whether the local liquor control commissioner has | ||
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(b) whether the order is supported by the findings;
(c) whether the findings are supported by substantial | ||
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No new or additional evidence in support
of or in opposition to such order or action under appeal shall be
received other than that contained in such record of the proceedings.
Within 30 days after such appeal was heard,
the license appeal
commission shall render its decision in accordance with the provisions
of Section 7-5.
In cities, villages and incorporated towns having a population of
500,000 or more inhabitants, appeals from any order or action shall lie
to the license appeal commission of such city, village or incorporated
town. All of the provisions of this Section and Section 7-10 relative
to proceedings upon appeals before the State Commission
and relative to appeals from the decisions of the State Commission shall
apply also to proceedings upon appeals before any license appeal
commission and appeals from the decisions of license appeal commission.
In any trial de novo hearing before the State Commission or license
appeal commission, the local liquor control commissioner shall be
entitled to 10 days notice and to be heard. All such trial de novo
hearings shall be open to the public and the Illinois Liquor Control
Commission and the license appeal commission shall reduce all evidence
offered thereto to writing.
If after trial de novo hearing or review as provided herein, the
State Commission or the license appeal commission (as the case may be)
shall decide that the license has been improperly issued, denied,
revoked, suspended or refused to be revoked or suspended or a hearing to
revoke or suspend has been improperly refused or that the licensee has been
improperly fined or not fined, it shall enter an order
in conformity with such findings, which order shall be in writing.
A certified copy of the order shall be transmitted to the particular
local liquor control commissioner and it shall be the duty of the local
liquor control commissioner to take such action as may be necessary to
conform with the order.
In any trial de novo hearing before the State Commission or the
license appeal commission, the licensee shall submit to examination and
produce books and records material to the business conducted under the
license in like manner as before the local liquor control commissioner,
and the failure of the licensee to submit to such an examination or to
produce such books and records, or to appear at the hearing on such
appeal, shall constitute an admission that he has violated the
provisions of this Act. In the event the appeal is from an order of the
local liquor control commissioner
denying a renewal application, the
licensee shall have on deposit with the local liquor control
commissioner an amount sufficient to cover the license fee for the
renewal period and any bond that may be required.
(Source: P.A. 88-613, eff. 1-1-95.)
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(235 ILCS 5/7-10) (from Ch. 43, par. 154)
Sec. 7-10.
A copy of the rule, regulation, order or decision of the State
commission or the license appeal commission, in any proceeding before it,
certified under the seal of said commission, shall be served upon each
party of record to the proceeding before the commission and service upon
any attorney of record for any such party shall be deemed service upon such
party. Each party appearing before said commission shall enter his
appearance and indicate to the commission his address for the service of a
copy of any rule, regulation, order, decision or notice and the mailing of
a copy of any rule, regulation or order of said commission or of any notice
by said commission, in said proceeding, to said party at such address shall
be deemed service thereof upon such party.
Within 20 days after the service of any rule, regulation, order or
decision of said commission upon any party to the proceeding, such party
may apply for a rehearing in respect to any matters determined by said
commission. If a rehearing is granted, the commission shall hold the
rehearing and render a decision within 20 days from the filing of the
application for rehearing with the secretary of the commission. The time
for holding such rehearing and rendering a decision may be extended for a
period not to exceed 30 days, for good cause shown, and by notice in
writing to all parties of interest. No action for the judicial review of
any decision of said commission shall be allowed unless the party
commencing such action has first filed an application for a rehearing and
the commission has acted upon said application. Only one rehearing may be
granted by the commission on application of any one party.
(Source: P.A. 82-783.)
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(235 ILCS 5/7-11) (from Ch. 43, par. 154a)
Sec. 7-11.
Judicial review.
All final administrative decisions of
the State Commission under this Act shall be subject to judicial review
pursuant to the provisions of the Administrative Review Law and the rules
adopted pursuant thereto. Judicial review may be requested by any party in
interest, including but not limited to the local liquor control
commissioner. The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
(Source: P.A. 86-1279.)
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(235 ILCS 5/7-12) (from Ch. 43, par. 155)
Sec. 7-12.
Whenever any licensee shall have been convicted
by any court of a
wilful violation of any of the provisions of this Act, he shall, in
addition to the penalties for such offense, incur a forfeiture of his state
and local license and all moneys that have been paid therefor; the local
commission shall thereupon revoke his license or the State commission shall
revoke his license as the case may be.
(Source: P.A. 82-783.)
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(235 ILCS 5/7-13) (from Ch. 43, par. 156)
Sec. 7-13.
Granting licenses after revocation; waiting period;
discretion. When any license shall have been revoked for any cause, no
license shall be granted to any person for the period of one year thereafter
for the conduct of the business of manufacturing, distributing, or selling
alcoholic liquor in the premises described in the revoked license unless the
revocation order has been vacated or unless the revocation order was entered as
to the licensee only.
Nothing in this Section shall prohibit the issuance of a retail license
authorizing the sale of alcoholic liquor incidental to a restaurant if (1) the
primary
business of the restaurant consists of the sale of food where the sale of
liquor is incidental to the sale of food and the applicant is a completely new
owner of the restaurant, (2) the immediately
prior owner or operator of the premises where the restaurant is located
operated the premises as a restaurant and held a valid retail license
authorizing the
sale of alcoholic liquor at the restaurant for at least part of the 24 months
before the
change of ownership, and (3) the restaurant is located 75 or more feet from a
school.
(Source: P.A. 91-623, eff. 1-1-00.)
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(235 ILCS 5/7-14) (from Ch. 43, par. 157)
Sec. 7-14.
Separate license for each premise; transfer to other
premises. Licenses issued hereunder apply only to the premises
described in
the application and in the license issued thereon, and only one location
shall be so described in each license. After a license has been granted for
particular premises, the State Commission or the local commissioner, as the
case may be, upon proper showing, may endorse upon said license permission
to abandon the premises therein described and remove therefrom to other
premises approved by him or it, but in order to obtain such approval the
licensee shall file with the State Commission and local commissioner a
request in writing and a statement under oath which shall show that the
premises to which removal is to be made comply in all respects with the
requirements of this Act.
A transfer may only be requested to a premise within the same jurisdiction
that issued the original local liquor license.
(Source: P.A. 89-250, eff. 1-1-96.)
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(235 ILCS 5/Art. VIIA heading) ARTICLE VIIA.
WAREHOUSES
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(235 ILCS 5/7A-1) (from Ch. 43, par. 157a)
Sec. 7A-1.
For the purposes of this Article:
"Warehouse" means any room, house, structure, building, place, yard or
protected enclosure wherein personal property belonging to another is
stored for a compensation.
"Warehouseman" means any person, firm, partnership, association or
corporation owning, controlling, operating, managing or leasing any
warehouse within this State.
"For compensation" means any direct or indirect charge for storage.
(Source: P.A. 82-783.)
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(235 ILCS 5/7A-2) (from Ch. 43, par. 157b)
Sec. 7A-2.
On and after August 1, 1937, it shall be unlawful for any
warehouseman to receive, hold, store or deliver any alcoholic liquors
without a certificate of registration from the Department. Application for
a certificate of registration shall be made to the Department and shall
state: (1) The name of the applicant; (2) the address of his warehouse (if
he operates more than one such warehouse, he shall state the address of
each such warehouse). Upon the receipt of the application in proper form,
the Department shall issue to such applicant a certificate of registration
bearing a distinctive number which he shall conspicuously display on the
premises for which it is issued. The applications shall be made on forms
prepared and furnished by the Department and shall contain such other
information as the Department may reasonably require to carry out the
provisions of this Act.
(Source: P.A. 82-783.)
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(235 ILCS 5/7A-3) (from Ch. 43, par. 157c)
Sec. 7A-3.
It shall be unlawful for any person to store any alcoholic liquors
with or deliver any alcoholic liquors to any warehouseman who has not
received a certificate of registration from the Department.
(Source: P.A. 82-783.)
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(235 ILCS 5/7A-4) (from Ch. 43, par. 157d)
Sec. 7A-4.
On or before the fifteenth day of each calendar month, every
warehouseman holding a certificate of registration under this Article shall
file a return with the Department covering the preceding calendar month
stating:
1. The name of the warehouseman and the number of his certificate of
registration;
2. The address of the warehouse;
3. The name and address of each person from whom any alcoholic liquors
were actually or constructively received by him as a warehouseman, the date
on which same were so received, the number and size of the containers in
which any alcoholic liquors were so received, and the number and size of
the containers to the credit of each such person at the end of the
preceding calendar month; and
4. The name and address of each person to whom any alcoholic liquors
were actually or constructively delivered by him as a warehouseman, the
date on which same were so delivered, the number and size of the containers
in which any alcoholic liquors were so delivered and from whom any
alcoholic liquors so delivered were actually or constructively received.
(Source: P.A. 82-783.)
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(235 ILCS 5/7A-5) (from Ch. 43, par. 157e)
Sec. 7A-5.
Each warehouseman included in this Article shall
keep or cause to
be kept, at his registered address, a record showing all alcoholic liquors
actually or constructively received by him as a warehouseman, held, stored
or actually or constructively delivered by him as a warehouseman, the name
and address of the person depositing same, the name and address of the
person to whom delivered and any other information necessary to the proper
conduct of such warehouse. Such records shall, at all times during business
hours of the day, be subject to inspection by the Department or its duly
authorized agents and employees. Such records shall be preserved for a
period of two (2) years, unless the Department, in writing, authorizes
their destruction or disposal at an earlier date. Such records, reflecting
business done at any time after July 1, 1945, shall be preserved for a
period of three (3) years, unless the Department, in writing, authorizes
their destruction or disposal at an earlier date.
(Source: P.A. 82-783.)
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(235 ILCS 5/7A-6) (from Ch. 43, par. 157f)
Sec. 7A-6.
Any person who violates any of the provisions of this Article or
any of the rules and regulations of the Department for the administration
and enforcement of the provisions of this Article is guilty of a Class B
misdemeanor. In case of a continuing violation each day's continuance
thereof shall be a separate and distinct offense.
(Source: P.A. 82-783.)
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(235 ILCS 5/Art. VIII heading) ARTICLE VIII.
TAXATION OF LIQUOR
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(235 ILCS 5/8-1)
Sec. 8-1.
A tax is imposed upon the privilege of engaging in business as a
manufacturer or as an importing distributor of alcoholic liquor other than beer
at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 for cider containing not less than
0.5% alcohol by volume nor more than 7% alcohol by volume, $0.73
per gallon until September 1, 2009 and $1.39 per gallon beginning September 1, 2009 for wine other than
cider containing less than 7% alcohol by volume, and $4.50
per gallon until September 1, 2009 and $8.55 per gallon beginning September 1, 2009 on alcohol and spirits manufactured and sold or used by such
manufacturer, or as agent for any other person, or sold or used by such
importing distributor, or as agent for any other person. A tax is imposed
upon the privilege of engaging in business as a manufacturer of beer or as an
importing distributor of beer at the rate of $0.185 per gallon until September 1, 2009 and $0.231 per gallon beginning September 1, 2009 on
all beer, regardless of alcohol by volume, manufactured and sold or used by such manufacturer, or as agent for
any other person, or sold or used by such importing distributor, or as agent
for any other person. Any brewer manufacturing beer in this State shall be
entitled to and given a credit or refund of 75% of the tax imposed on each
gallon of beer up to 4.9 million gallons per year in any given calendar year
for tax paid or payable on beer produced and sold in the State of Illinois.
For purposes of this Section, "beer" means beer, ale, porter, stout, and other similar fermented beverages of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute for malt. For the purpose of this Section, "cider" means any alcoholic beverage
obtained by the alcohol fermentation of the juice of apples or pears
including, but not limited to, flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all beer taxes
in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st General Assembly in
the rates of taxes imposed under this Section shall apply beginning on July
1, 1999.
A tax at the rate of 1¢ per gallon on beer and 48¢ per gallon on
alcohol and spirits is also imposed upon the privilege of engaging in
business as a retailer or as a distributor who is not also an importing
distributor with respect to all beer and all alcohol and spirits owned
or possessed by such retailer or distributor when this amendatory Act of
1969 becomes effective, and with respect to which the additional tax
imposed by this amendatory Act upon manufacturers and importing
distributors does not apply. Retailers and distributors who are subject
to the additional tax imposed by this paragraph of this Section shall be
required to inventory such alcoholic liquor and to pay this additional
tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply to any
importing distributor engaging in business in this State, whether
licensed or not.
However, such tax is not imposed upon any such business as to any
alcoholic liquor shipped outside Illinois by an Illinois licensed
manufacturer or importing distributor, nor as to any alcoholic liquor
delivered in Illinois by an Illinois licensed manufacturer or importing
distributor to a purchaser for immediate transportation by the purchaser
to another state into which the purchaser has a legal right, under the
laws of such state, to import such alcoholic liquor, nor as to any
alcoholic liquor other than beer sold by one Illinois licensed
manufacturer or importing distributor to another Illinois licensed
manufacturer or importing distributor to the extent to which the sale of
alcoholic liquor other than beer by one Illinois licensed manufacturer
or importing distributor to another Illinois licensed manufacturer or
importing distributor is authorized by the licensing provisions of this
Act, nor to alcoholic liquor whether manufactured in or imported into
this State when sold to a "non-beverage user" licensed by the State for
use in the manufacture of any of the following when they are unfit for
beverage purposes:
Patent and proprietary medicines and medicinal, antiseptic, culinary
and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting denatured
alcohol;
Or for scientific, chemical, experimental or mechanical purposes;
Nor is the tax imposed upon the privilege of engaging in any business
in interstate commerce or otherwise, which business may not, under the
Constitution and Statutes of the United States, be made the subject of
taxation by this State.
The tax herein imposed shall be in addition to all other occupation
or privilege taxes imposed by the State of Illinois or political
subdivision thereof.
If any alcoholic liquor manufactured in or imported into this State
is sold to a licensed manufacturer or importing distributor by a
licensed manufacturer or importing distributor to be used solely as an
ingredient in the manufacture of any beverage for human consumption, the
tax imposed upon such purchasing manufacturer or importing distributor
shall be reduced by the amount of the taxes which have been paid by the
selling manufacturer or importing distributor under this Act as to such
alcoholic liquor so used to the Department of Revenue.
If any person received any alcoholic liquors from a manufacturer or
importing distributor, with respect to which alcoholic liquors no tax is
imposed under this Article, and such alcoholic liquor shall thereafter
be disposed of in such manner or under such circumstances as may cause
the same to become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same taxes and
be subject to all other provisions of this Article relating to
manufacturers and importing distributors.
Nothing in this Article shall be construed to require the payment to
the Department of the taxes imposed by this Article more than once with
respect to any quantity of alcoholic liquor sold or used within this
State.
No tax is imposed by this Act on sales of alcoholic liquor by
Illinois licensed foreign importers to Illinois licensed importing
distributors.
All of the proceeds of the additional tax imposed by Public Act 96-34 shall be deposited by the Department into the Capital Projects Fund. The remainder of the tax imposed by this Act shall be deposited by the Department into the General Revenue Fund. A manufacturer of beer that imports or transfers beer into this State must comply with the provisions of this Section with regard to the beer imported into this State. The provisions of this Section 8-1 are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)
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(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. Payments; reports. It is the duty of each manufacturer with respect to alcoholic
liquor produced or imported by such manufacturer, or purchased tax-free by
such manufacturer from another manufacturer or importing
distributor, and of each importing distributor as to alcoholic liquor
purchased by such importing distributor from foreign importers or from
anyone from any point in the United States outside of this State or
purchased tax-free from another manufacturer or importing
distributor, to pay the tax imposed by Section 8-1 to the
Department of Revenue on or before the 15th day of the calendar month
following the calendar month in which such alcoholic liquor is sold or used
by such manufacturer or by such importing distributor other than in an
authorized tax-free manner or to pay that tax electronically as provided in
this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1) on or before the
15th day of each calendar month, file in person or by United States
first-class
mail, postage pre-paid,
with the Department of Revenue, on
forms prescribed and furnished by the Department, a report in writing in
such form as may be required by the Department in order to compute, and
assure the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month. Payment of the tax
in the amount disclosed by the report shall accompany the report or, (2) on
or
before the 15th day of each calendar month, electronically file with the
Department of Revenue, on forms prescribed and furnished by the Department, an
electronic report in such form as may be required by the Department in order to
compute,
and assure the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor
occurring during the preceding month. An electronic payment of the tax in the
amount
disclosed by the report shall accompany the report. A manufacturer or
distributor who
files an electronic report and electronically pays the tax imposed pursuant to
Section 8-1
to the Department of Revenue on or before the 15th day of the calendar month
following
the calendar month in which such alcoholic liquor is sold or used by that
manufacturer or
importing distributor other than in an authorized tax-free manner shall pay to
the
Department the amount of the tax imposed pursuant to Section 8-1, less a
discount
which is allowed to reimburse the manufacturer or importing distributor
for the
expenses incurred in keeping and maintaining records, preparing and filing the
electronic
returns, remitting the tax, and supplying data to the Department upon
request.
The discount shall be in an amount as follows:
(1) For original returns due on or after January 1, | ||
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(2) For original returns due on or after October 1, | ||
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(3) For original returns due on or after October 1, | ||
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The Department may, if it deems it necessary in order to insure the
payment of the tax imposed by this Article, require returns to be made
more frequently than and covering periods of less than a month. Such return
shall contain such further information as the Department may reasonably
require.
It shall be presumed that all alcoholic liquors acquired or made by any
importing distributor or manufacturer have been sold or used by him in this
State and are the basis for the tax imposed by this Article unless proven,
to the satisfaction of the Department, that such alcoholic liquors are (1)
still in the possession of such importing distributor or manufacturer, or
(2) prior to the termination of possession have been lost by theft or
through unintentional destruction, or (3) that such alcoholic liquors are
otherwise exempt from taxation under this Act.
If any payment provided for in this Section exceeds the manufacturer's or importing distributor's liabilities under this Act, as shown on an original report, the manufacturer or importing distributor may credit such excess payment against liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules adopted by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the manufacturer or importing distributor, the manufacturer's or importing distributor's discount shall be reduced by an amount equal to the difference between the discount as applied to the credit taken and that actually due, and the manufacturer or importing distributor shall be liable for penalties and interest on such difference. The Department may require any foreign importer to file monthly
information returns, by the 15th day of the month following the month which
any such return covers, if the Department determines this to be necessary
to the proper performance of the Department's functions and duties under
this Act. Such return shall contain such information as the Department may
reasonably require.
Every manufacturer and importing distributor, except for a
manufacturer or importing distributor that in the preceding
year had less than $50,000 of tax liability under this Article, shall also file, with the
Department, a bond in an amount not less than $1,000 and not to exceed
$100,000 on a form to be approved by, and with a surety or sureties
satisfactory to, the Department. Such bond shall be conditioned upon the
manufacturer or importing distributor paying to the Department all monies
becoming due from such manufacturer or importing distributor under this
Article. The Department shall fix the penalty of such bond in each case,
taking into consideration the amount of alcoholic liquor expected to be
sold and used by such manufacturer or importing distributor, and the
penalty fixed by the Department shall be sufficient, in the Department's
opinion, to protect the State of Illinois against failure to pay any amount
due under this Article, but the amount of the penalty fixed by the
Department shall not exceed twice the amount of tax liability of a monthly
return, nor shall the amount of such penalty be less than $1,000. The
Department shall notify the State Commission of the Department's approval or
disapproval of any such manufacturer's or importing distributor's bond, or
of the termination or cancellation of any such bond, or of the Department's
direction to a manufacturer or importing distributor that he must file
additional bond in order to comply with this Section. The Commission shall
not issue a license to any applicant for a manufacturer's or importing
distributor's license unless the Commission has received a notification
from the Department showing that such applicant has filed a satisfactory
bond with the Department hereunder and that such bond has been approved by
the Department. Failure by any licensed manufacturer or importing
distributor to keep a satisfactory bond in effect with the Department or to
furnish additional bond to the Department, when required hereunder by the
Department to do so, shall be grounds for the revocation or suspension of
such manufacturer's or importing distributor's license by the Commission.
If a manufacturer or importing distributor fails to pay any amount due
under this Article, his bond with the Department shall be deemed forfeited,
and the Department may institute a suit in its own name on such bond.
After notice and opportunity for a hearing the State Commission may
revoke or suspend the license of any manufacturer or importing distributor
who fails to comply with the provisions of this Section. Notice of such
hearing and the time and place thereof shall be in writing and shall
contain a statement of the charges against the licensee. Such notice may be
given by United States registered or certified mail with return receipt
requested, addressed to the person concerned at his last known address and
shall be given not less than 7 days prior to the date fixed for the
hearing. An order revoking or suspending a license under the provisions of
this Section may be reviewed in the manner provided in Section 7-10
of this Act. No new license shall be granted to a person
whose license has been revoked for a violation of this Section or, in case
of suspension, shall such suspension be terminated until he has paid to the
Department all taxes and penalties which he owes the State under the
provisions of this Act.
Every manufacturer or importing distributor who has, as verified by
the Department, continuously complied with the conditions of the bond under
this Act for a period of 2 years shall be considered to be a prior
continuous compliance taxpayer. In determining the consecutive period of
time for qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance immediately prior to
the effective date of this amendatory Act of 1987 shall be credited to any
manufacturer or importing distributor.
A manufacturer or importing distributor that is a prior continuous compliance taxpayer under this Section and becomes a successor as the result of an acquisition, merger, or consolidation of a manufacturer or importing distributor shall be deemed to be a prior continuous compliance taxpayer with respect to the acquired, merged, or consolidated entity.
Every prior continuous compliance taxpayer shall be exempt from the bond
requirements of this Act until the Department has determined the taxpayer
to be delinquent in the filing of any return or deficient in the payment of
any tax under this Act. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to post bond or
other acceptable security with the Department guaranteeing the payment of
such admitted or established liability.
The Department shall discharge any surety and shall release and return
any bond or security deposit assigned, pledged or otherwise provided to it
by a taxpayer under this Section within 30 days after: (1) such taxpayer
becomes a prior continuous compliance taxpayer; or (2) such taxpayer has
ceased to collect receipts on which he is required to remit tax to the
Department, has filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax liability as determined by
the Department under this Act.
(Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)
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(235 ILCS 5/8-3) (from Ch. 43, par. 159a)
Sec. 8-3.
If it appears, after claim therefor filed with the Department,
that an amount of tax or penalty or interest has been paid which was not due
under this Article, whether as the result of a mistake of fact or an error of
law, except as hereinafter provided, then the Department shall issue a
credit memorandum or refund to the person who made the erroneous payment
or, if that person died or became a person under legal disability, to his
or her legal representative, as such.
If it is determined that the Department should issue a credit or refund
under this Article, the Department may first apply the amount thereof
against any amount of tax or penalty or interest due hereunder from the
person entitled to such credit or refund. For this purpose, if proceedings
are pending to determine whether or not any tax or penalty or interest is
due under this Article from such person, the Department may withhold
issuance of the credit or refund pending the final disposition of such
proceedings and may apply such credit or refund against any amount found to
be due to the Department as a result of such proceedings. The balance, if
any, of the credit or refund shall be issued to the person entitled
thereto.
If no tax or penalty or interest is due and no proceeding is pending to
determine whether such taxpayer is indebted to the Department for tax or
penalty or interest the credit memorandum or refund shall be issued to the
claimant; or (in the case of a credit memorandum) the credit memorandum may
be assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other person who is subject to
this Article, and the amount thereof shall be applied by the Department
against any tax or penalty or interest due or to become due under this
Article from such assignee.
As to any claim filed hereunder with the Department on and after each
January 1 and July 1, no amount of tax or penalty or interest, erroneously
paid (either in total or partial liquidation of a tax or penalty or
interest under this Article) more than 3 years prior to such January 1 and
July 1, respectively, shall be credited or refunded. Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.
Any credit or refund that is allowed under this Act shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation as may be
available for that purpose. If it appears unlikely that the amount
appropriated would permit everyone having a claim allowed during the period
covered by such appropriation to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as hardship cases.
(Source: P.A. 102-40, eff. 6-25-21.)
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(235 ILCS 5/8-4) (from Ch. 43, par. 163)
Sec. 8-4.
If a person fails to file a return as required by
this Article, or
having filed an incorrect or insufficient return, fails to file a corrected
or sufficient return, as the case may require, within 10 days after the
giving of notice to him by the Department that such corrected or sufficient
return is required, the Department shall determine the amount of tax due at
any time within 3 years after the making of the earliest disposition of
alcoholic liquor included in such determination, and shall give written
notice, by means of a notice of tax liability, of such determination to
such person. Protest thereto and demand for a hearing may be made and final
assessments arrived at in accordance with Section 8-5.
(Source: P.A. 82-783.)
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(235 ILCS 5/8-5) (from Ch. 43, par. 163a)
Sec. 8-5.
As soon as practicable after any return is filed, the Department
shall examine such return or amended return and shall correct such return according to its
best judgment and information, which return so corrected by the Department
shall be prima facie correct and shall be prima facie evidence of the
correctness of the amount of tax due, as shown therein. Instead of
requiring the licensee to file an amended return, the Department may simply
notify the licensee of the correction or corrections it has made. Proof of
such correction by the Department, or of the determination of the amount of
tax due as provided in Sections 8-4 and 8-10, may be made at
any hearing before the Department or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in the name of
the Department under the certificate of the Director of Revenue. Such
reproduced copy shall, without further proof, be admitted into evidence
before the Department or in any legal proceeding and shall be prima facie
proof of the correctness of the amount of tax due, as shown therein. If the
return so corrected by the Department discloses the sale or use, by a
licensed manufacturer or importing distributor, of alcoholic liquors as to
which the tax provided for in this Article should have been paid, but has
not been paid, in excess of the alcoholic liquors reported as being taxable
by the licensee, and as to which the proper tax was paid the Department
shall notify the licensee that it shall issue the taxpayer a notice of tax
liability for the amount of tax claimed by the Department to be due,
together with penalties at the rates prescribed by Sections 3-3, 3-5 and
3-6 of the Uniform Penalty and Interest Act, which amount of tax shall be
equivalent to the amount of tax which, at the prescribed rate per gallon,
should have been paid with respect to the alcoholic liquors disposed of in
excess of those reported as being taxable. No earlier than 90 days after the due date of the return, the Department may compare filed returns, or any amendments thereto, against reports of sales of alcoholic liquor submitted to the Department by other manufacturers and distributors. If a return or amended return is corrected by the Department because the return or amended return failed to disclose the purchase of alcoholic liquor from manufacturers or distributors on which the tax provided for in this Article should have been paid, but has not been paid, the Department shall issue the taxpayer a notice of tax liability for the amount of tax claimed by the Department to be due, together with penalties at the rates prescribed by Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act. In a case where no return has
been filed, the Department shall determine the amount of tax due according
to its best judgment and information and shall issue the taxpayer a notice
of tax liability for the amount of tax claimed by the Department to be due
as herein provided together with penalties at the rates prescribed by
Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act. If, in
administering the provisions of this Act, a comparison of a licensee's
return or returns with the books, records and physical inventories of such
licensee discloses a deficiency which cannot be allocated by the Department
to a particular month or months, the Department shall issue the taxpayer a
notice of tax liability for the amount of tax claimed by the Department to
be due for a given period, but without any obligation upon the Department
to allocate such deficiency to any particular month or months, together
with penalties at the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, which amount of tax shall be equivalent to
the amount of tax which, at the prescribed rate per gallon, should have
been paid with respect to the alcoholic liquors disposed of in excess of
those reported being taxable, with the tax thereon having been paid under
which circumstances the aforesaid notice of tax liability shall be prima
facie correct and shall be prima facie evidence of the correctness of the
amount of tax due as shown therein; and proof of such correctness may be
made in accordance with, and the admissibility of a reproduced copy of such
notice of the Department's notice of tax liability shall be governed by,
all the provisions of this Act applicable to corrected returns.
If the licensee dies or becomes a person under legal disability
at any time before the Department issues its notice of tax liability, such
notice shall be issued to the administrator, executor or other legal
representative, as such, of the deceased or licensee who is under legal
disability.
If such licensee or legal representative, within 60 days after such
notice of tax liability, files a protest to such notice of tax liability
and requests a hearing thereon, the Department shall give at least 7 days'
notice to such licensee or legal representative, as the case may be, of the
time and place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act, and pursuant thereto shall
issue a final assessment to such licensee or legal representative for the
amount found to be due as a result of such hearing.
If a protest to the notice of tax liability and a request for a hearing
thereon is not filed within 60 days after such notice of tax liability,
such notice of tax liability shall become final without the necessity of a
final assessment being issued and shall be deemed to be a final assessment.
Notwithstanding any other provisions of this Act, any amount paid as tax or in respect of tax paid under this Act shall be deemed assessed upon the date of receipt of payment. In case of failure to pay the tax, or any portion thereof, or any
penalty provided for herein, when due, the Department may recover the
amount of such tax, or portion thereof, or penalty in a civil action; or if
the licensee dies or becomes a person under legal disability, by filing a
claim therefor against his or her estate; provided that no such claim shall
be filed against the estate of any deceased or of the licensee who is under
legal disability for any tax or penalty or portion thereof except in the
manner prescribed and within the time limited by the Probate Act of 1975,
as amended.
The collection of any such tax and penalty, or either, by any means
provided for herein, shall not be a bar to any prosecution under this Act.
In addition to any other penalty provided for in this Article, all provisions of the Uniform Penalty and Interest Act that are not inconsistent with this Act apply.
(Source: P.A. 103-9, eff. 1-1-24 .)
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(235 ILCS 5/8-6) (from Ch. 43, par. 163b)
Sec. 8-6.
The Department, or any officer or employee designated in writing
by the Director thereof, for the purpose of administering and enforcing the
provisions of this Act, may hold investigations and hearings concerning any
matters covered by this Act. In holding or conducting any hearing or
investigation authorized under this Act, the Department or any officer or
employee of the Department designated, in writing, by the Director thereof,
may examine any books, papers, records or memoranda bearing upon the
manufacture, importation, sale or use of alcoholic liquors by any licensee,
and may require the attendance of such licensee or of any officer, agent or
employee of such licensee, or of any person having knowledge of such facts,
and may take testimony and require proof for its information. In the
conduct of any investigation or hearing, neither the Department nor any
officer or employee thereof shall be bound by the technical rules of
evidence, and no informality in any proceeding, or in the manner of taking
testimony, shall invalidate any assessment, order, decision, rule or
regulation made or approved or confirmed by the Department. The Director of
Revenue or any duly designated officer or employee of the Department shall
have power to administer oaths to such persons; and the Department shall
have the power to issue subpoenas and subpoenas duces tecum, and the
Department, or any other party to a proceeding pending before the
Department, may apply to the circuit court to compel the attendance
and testimony of witnesses and
the production of books, papers, records and memoranda, by an attachment for
contempt as provided for such purposes in civil cases.
The Department or any officer or employee thereof, or any party in an
investigation or hearing before the Department, may cause the depositions
of witnesses within the State to be taken in the manner prescribed by law
for like depositions in civil actions in courts of this State, and to that
end compel the attendance of witnesses and the production of books, papers,
records and memoranda.
The books, papers, records and memoranda of the Department, or parts
thereof, may be proved in any hearing, investigation or judicial
proceeding by a reproduced copy thereof under the certificate of the Director
of Revenue. Such reproduced copy shall, without further proof, be admitted into
evidence before the Department or in any judicial proceeding.
(Source: P.A. 83-334.)
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(235 ILCS 5/8-7) (from Ch. 43, par. 163c)
Sec. 8-7.
All hearings provided for in Section 8-5 of
this Act shall be held in the county wherein the licensee has his
principal place of business; provided, that if the licensee does not
have his or her principal place of business in this State, such hearing shall
be held in Sangamon County.
The Circuit Court of the county wherein any hearing is held by the
Department shall have power to review all final administrative decisions
of the Department in administering the provisions of this Act. If the administrative
proceeding which is to be reviewed judicially
is a claim for refund proceeding commenced in accordance with Section 8-3
of this Act and Section 2a of "An Act in relation to the
payment and disposition of moneys received by officers and employees of
the State of Illinois by virtue of their office or employment", approved
June 9, 1911, as amended, the Circuit Court having jurisdiction of the
proceeding for judicial review under this Section and under
the Administrative Review Law, as amended, shall be
the same court that entered the injunction
which is provided
for in Section 2a of "An Act in relation to the payment and
disposition of moneys received by officers and employees of the State of
Illinois by virtue of their office or employment", and which enables
such claim proceeding to be processed and disposed of as a claim for
refund proceeding rather than as a claim for credit proceeding.
The provisions of the Administrative Review Law, and all amendments
and modifications thereof, and the rules adopted pursuant thereto, shall
apply to and govern all proceedings for the judicial review of final
administrative decisions of the Department hereunder. The term
"administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.
Service of summons issued in such review proceeding upon the Director
of Revenue or the Assistant Director of Revenue of the Department of
Revenue shall be service upon the Department. The Department shall
certify the record of its proceedings if the licensee shall pay to it
the sum of 75¢ per page of testimony taken before the Department and 25¢
per page of all other matters contained in such record, except that
these charges may be waived where the Department is satisfied that the
aggrieved party is a poor person who cannot afford to pay such charges.
Provided, however, before the delivery of such record to the person
applying for same, the payment therefor shall be made as hereinabove provided, and
in the event of nonpayment for the record as hereinabove provided
within 30 days
after notice that such record is available, the complaint may be
dismissed by the court upon motion of the Department.
No stay order shall be entered by the Circuit Court unless the
plaintiff in the review proceedings shall file with the court a bond
in an amount fixed and approved by the court to indemnify the State
against all loss and injury which may be sustained by it on account of
the review proceedings and to secure all costs which may be occasioned
by such proceedings.
Whenever notice is required by this Act, such notice may be given by
United States registered or certified mail with return receipt
requested, addressed to the person concerned at his or her last known address,
and proof of such mailing shall be sufficient for the purposes of this
Act.
Whenever any proceeding provided by this Act is commenced before the
Department, either by the Department or by a person subject to this Act,
and such person thereafter dies or becomes a person under legal disability
before such
proceeding is concluded, the legal representative of the deceased
or the guardian of the person under legal disability shall notify the
Department of such death or legal disability. The legal representative,
as such, shall then be
substituted by the Department for such person. If the legal
representative fails to notify the Department of his or her appointment as such
legal representative, the Department may, upon its own motion,
substitute such legal representative in the proceeding pending before
the Department for the person who died or became a person under legal
disability.
(Source: P.A. 83-345.)
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