[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Senate Amendment 003 ] |
90_SB1458eng
35 ILCS 120/2d from Ch. 120, par. 441d
35 ILCS 505/2 from Ch. 120, par. 418
Amends the Retailers' Occupation Tax Act to make a
technical change in the Section concerning the prepayment of
retailers' occupation tax by motor fuel retailers. Amends
the Motor Fuel Tax Law by making a technical change in the
Section concerning the imposition and rate of the tax.
LRB9011307KDbd
SB1458 Engrossed LRB9011307KDbd
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Sections 3-10 and 9 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by Illinois
25 sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 With respect to motor fuel, as defined in Section 1.1 of
30 the Motor Fuel Tax Law, and gasohol, as defined in Section
31 3-40 of the Use Tax Act, the tax is imposed at the rate of
SB1458 Engrossed -2- LRB9011307KDbd
1 1.25%. If, however, the aggregate tax revenues from motor
2 fuel and gasohol under the Use Tax Act, the Service Use Tax
3 Act, the Service Occupation Tax Act, and the Retailers'
4 Occupation Tax Act during the period from October 1, 2001
5 through September 30, 2002 are not at least 15% more than the
6 aggregate tax revenues from motor fuel and gasohol under
7 those Acts during the period from October 1, 1998 through
8 September 30, 1999, then beginning January 1, 2003 the tax is
9 imposed on motor fuel and gasohol at the 6.25% general rate.
10 With respect to gasohol, the tax imposed by this Act
11 applies to 70% of the proceeds of sales made on or after
12 January 1, 1990, and before July 1, 1999, and to 100% of the
13 proceeds of sales made thereafter, except that from July 1,
14 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
15 in this State during the 12 months beginning July 1 following
16 any calendar year for which the Department has determined
17 that the percentages in Section 10 of the Gasohol Fuels Tax
18 Abatement Act have not been met.
19 With respect to food for human consumption that is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks, and food that has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances,
24 modifications to a motor vehicle for the purpose of rendering
25 it usable by a disabled person, and insulin, urine testing
26 materials, syringes, and needles used by diabetics, for human
27 use, the tax is imposed at the rate of 1%. For the purposes
28 of this Section, the term "soft drinks" means any complete,
29 finished, ready-to-use, non-alcoholic drink, whether
30 carbonated or not, including but not limited to soda water,
31 cola, fruit juice, vegetable juice, carbonated water, and all
32 other preparations commonly known as soft drinks of whatever
33 kind or description that are contained in any closed or
34 sealed bottle, can, carton, or container, regardless of size.
SB1458 Engrossed -3- LRB9011307KDbd
1 "Soft drinks" does not include coffee, tea, non-carbonated
2 water, infant formula, milk or milk products as defined in
3 the Grade A Pasteurized Milk and Milk Products Act, or drinks
4 containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act, "food
6 for human consumption that is to be consumed off the premises
7 where it is sold" includes all food sold through a vending
8 machine, except soft drinks and food products that are
9 dispensed hot from a vending machine, regardless of the
10 location of the vending machine.
11 If the property that is purchased at retail from a
12 retailer is acquired outside Illinois and used outside
13 Illinois before being brought to Illinois for use here and is
14 taxable under this Act, the "selling price" on which the tax
15 is computed shall be reduced by an amount that represents a
16 reasonable allowance for depreciation for the period of prior
17 out-of-state use.
18 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
19 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
20 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
21 (Text of Section before amendment by P.A. 90-491)
22 Sec. 9. Except as to motor vehicles, watercraft,
23 aircraft, and trailers that are required to be registered
24 with an agency of this State, each retailer required or
25 authorized to collect the tax imposed by this Act shall pay
26 to the Department the amount of such tax (except as otherwise
27 provided) at the time when he is required to file his return
28 for the period during which such tax was collected, less a
29 discount of 2.1% prior to January 1, 1990, and 1.75% on and
30 after January 1, 1990, or $5 per calendar year, whichever is
31 greater, which is allowed to reimburse the retailer for
32 expenses incurred in collecting the tax, keeping records,
33 preparing and filing returns, remitting the tax and supplying
SB1458 Engrossed -4- LRB9011307KDbd
1 data to the Department on request. In the case of retailers
2 who report and pay the tax on a transaction by transaction
3 basis, as provided in this Section, such discount shall be
4 taken with each such tax remittance instead of when such
5 retailer files his periodic return. A retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by the Retailers' Occupation Tax Act, with respect to the
9 sale of the same property.
10 Where such tangible personal property is sold under a
11 conditional sales contract, or under any other form of sale
12 wherein the payment of the principal sum, or a part thereof,
13 is extended beyond the close of the period for which the
14 return is filed, the retailer, in collecting the tax (except
15 as to motor vehicles, watercraft, aircraft, and trailers that
16 are required to be registered with an agency of this State),
17 may collect for each tax return period, only the tax
18 applicable to that part of the selling price actually
19 received during such tax return period.
20 Except as provided in this Section, on or before the
21 twentieth day of each calendar month, such retailer shall
22 file a return for the preceding calendar month. Such return
23 shall be filed on forms prescribed by the Department and
24 shall furnish such information as the Department may
25 reasonably require.
26 The Department may require returns to be filed on a
27 quarterly basis. If so required, a return for each calendar
28 quarter shall be filed on or before the twentieth day of the
29 calendar month following the end of such calendar quarter.
30 The taxpayer shall also file a return with the Department for
31 each of the first two months of each calendar quarter, on or
32 before the twentieth day of the following calendar month,
33 stating:
34 1. The name of the seller;
SB1458 Engrossed -5- LRB9011307KDbd
1 2. The address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State;
4 3. The total amount of taxable receipts received by
5 him during the preceding calendar month from sales of
6 tangible personal property by him during such preceding
7 calendar month, including receipts from charge and time
8 sales, but less all deductions allowed by law;
9 4. The amount of credit provided in Section 2d of
10 this Act;
11 5. The amount of tax due;
12 5-5. The signature of the taxpayer; and
13 6. Such other reasonable information as the
14 Department may require.
15 If a taxpayer fails to sign a return within 30 days after
16 the proper notice and demand for signature by the Department,
17 the return shall be considered valid and any amount shown to
18 be due on the return shall be deemed assessed.
19 Beginning October 1, 1993, a taxpayer who has an average
20 monthly tax liability of $150,000 or more shall make all
21 payments required by rules of the Department by electronic
22 funds transfer. Beginning October 1, 1994, a taxpayer who has
23 an average monthly tax liability of $100,000 or more shall
24 make all payments required by rules of the Department by
25 electronic funds transfer. Beginning October 1, 1995, a
26 taxpayer who has an average monthly tax liability of $50,000
27 or more shall make all payments required by rules of the
28 Department by electronic funds transfer. The term "average
29 monthly tax liability" means the sum of the taxpayer's
30 liabilities under this Act, and under all other State and
31 local occupation and use tax laws administered by the
32 Department, for the immediately preceding calendar year
33 divided by 12.
34 Before August 1 of each year beginning in 1993, the
SB1458 Engrossed -6- LRB9011307KDbd
1 Department shall notify all taxpayers required to make
2 payments by electronic funds transfer. All taxpayers required
3 to make payments by electronic funds transfer shall make
4 those payments for a minimum of one year beginning on October
5 1.
6 Any taxpayer not required to make payments by electronic
7 funds transfer may make payments by electronic funds transfer
8 with the permission of the Department.
9 All taxpayers required to make payment by electronic
10 funds transfer and any taxpayers authorized to voluntarily
11 make payments by electronic funds transfer shall make those
12 payments in the manner authorized by the Department.
13 The Department shall adopt such rules as are necessary to
14 effectuate a program of electronic funds transfer and the
15 requirements of this Section.
16 If the taxpayer's average monthly tax liability to the
17 Department under this Act, the Retailers' Occupation Tax Act,
18 the Service Occupation Tax Act, the Service Use Tax Act was
19 $10,000 or more during the preceding 4 complete calendar
20 quarters, he shall file a return with the Department each
21 month by the 20th day of the month next following the month
22 during which such tax liability is incurred and shall make
23 payments to the Department on or before the 7th, 15th, 22nd
24 and last day of the month during which such liability is
25 incurred. If the month during which such tax liability is
26 incurred began prior to January 1, 1985, each payment shall
27 be in an amount equal to 1/4 of the taxpayer's actual
28 liability for the month or an amount set by the Department
29 not to exceed 1/4 of the average monthly liability of the
30 taxpayer to the Department for the preceding 4 complete
31 calendar quarters (excluding the month of highest liability
32 and the month of lowest liability in such 4 quarter period).
33 If the month during which such tax liability is incurred
34 begins on or after January 1, 1985, and prior to January 1,
SB1458 Engrossed -7- LRB9011307KDbd
1 1987, each payment shall be in an amount equal to 22.5% of
2 the taxpayer's actual liability for the month or 27.5% of the
3 taxpayer's liability for the same calendar month of the
4 preceding year. If the month during which such tax liability
5 is incurred begins on or after January 1, 1987, and prior to
6 January 1, 1988, each payment shall be in an amount equal to
7 22.5% of the taxpayer's actual liability for the month or
8 26.25% of the taxpayer's liability for the same calendar
9 month of the preceding year. If the month during which such
10 tax liability is incurred begins on or after January 1, 1988,
11 and prior to January 1, 1989, or begins on or after January
12 1, 1996, each payment shall be in an amount equal to 22.5% of
13 the taxpayer's actual liability for the month or 25% of the
14 taxpayer's liability for the same calendar month of the
15 preceding year. If the month during which such tax liability
16 is incurred begins on or after January 1, 1989, and prior to
17 January 1, 1996, each payment shall be in an amount equal to
18 22.5% of the taxpayer's actual liability for the month or 25%
19 of the taxpayer's liability for the same calendar month of
20 the preceding year or 100% of the taxpayer's actual liability
21 for the quarter monthly reporting period. The amount of such
22 quarter monthly payments shall be credited against the final
23 tax liability of the taxpayer's return for that month. Once
24 applicable, the requirement of the making of quarter monthly
25 payments to the Department shall continue until such
26 taxpayer's average monthly liability to the Department during
27 the preceding 4 complete calendar quarters (excluding the
28 month of highest liability and the month of lowest liability)
29 is less than $9,000, or until such taxpayer's average monthly
30 liability to the Department as computed for each calendar
31 quarter of the 4 preceding complete calendar quarter period
32 is less than $10,000. However, if a taxpayer can show the
33 Department that a substantial change in the taxpayer's
34 business has occurred which causes the taxpayer to anticipate
SB1458 Engrossed -8- LRB9011307KDbd
1 that his average monthly tax liability for the reasonably
2 foreseeable future will fall below $10,000, then such
3 taxpayer may petition the Department for change in such
4 taxpayer's reporting status. The Department shall change
5 such taxpayer's reporting status unless it finds that such
6 change is seasonal in nature and not likely to be long term.
7 If any such quarter monthly payment is not paid at the time
8 or in the amount required by this Section, then the
9 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
10 by 2.1% or 1.75%, as the case may be, of the difference
11 between the minimum amount due and the amount of such quarter
12 monthly payment actually and timely paid and the taxpayer
13 shall be liable for penalties and interest on such
14 difference, except insofar as the taxpayer has previously
15 made payments for that month to the Department in excess of
16 the minimum payments previously due as provided in this
17 Section. The Department shall make reasonable rules and
18 regulations to govern the quarter monthly payment amount and
19 quarter monthly payment dates for taxpayers who file on other
20 than a calendar monthly basis.
21 If any such payment provided for in this Section exceeds
22 the taxpayer's liabilities under this Act, the Retailers'
23 Occupation Tax Act, the Service Occupation Tax Act and the
24 Service Use Tax Act, as shown by an original monthly return,
25 the Department shall issue to the taxpayer a credit
26 memorandum no later than 30 days after the date of payment,
27 which memorandum may be submitted by the taxpayer to the
28 Department in payment of tax liability subsequently to be
29 remitted by the taxpayer to the Department or be assigned by
30 the taxpayer to a similar taxpayer under this Act, the
31 Retailers' Occupation Tax Act, the Service Occupation Tax Act
32 or the Service Use Tax Act, in accordance with reasonable
33 rules and regulations to be prescribed by the Department,
34 except that if such excess payment is shown on an original
SB1458 Engrossed -9- LRB9011307KDbd
1 monthly return and is made after December 31, 1986, no credit
2 memorandum shall be issued, unless requested by the taxpayer.
3 If no such request is made, the taxpayer may credit such
4 excess payment against tax liability subsequently to be
5 remitted by the taxpayer to the Department under this Act,
6 the Retailers' Occupation Tax Act, the Service Occupation Tax
7 Act or the Service Use Tax Act, in accordance with reasonable
8 rules and regulations prescribed by the Department. If the
9 Department subsequently determines that all or any part of
10 the credit taken was not actually due to the taxpayer, the
11 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
12 by 2.1% or 1.75% of the difference between the credit taken
13 and that actually due, and the taxpayer shall be liable for
14 penalties and interest on such difference.
15 If the retailer is otherwise required to file a monthly
16 return and if the retailer's average monthly tax liability to
17 the Department does not exceed $200, the Department may
18 authorize his returns to be filed on a quarter annual basis,
19 with the return for January, February, and March of a given
20 year being due by April 20 of such year; with the return for
21 April, May and June of a given year being due by July 20 of
22 such year; with the return for July, August and September of
23 a given year being due by October 20 of such year, and with
24 the return for October, November and December of a given year
25 being due by January 20 of the following year.
26 If the retailer is otherwise required to file a monthly
27 or quarterly return and if the retailer's average monthly tax
28 liability to the Department does not exceed $50, the
29 Department may authorize his returns to be filed on an annual
30 basis, with the return for a given year being due by January
31 20 of the following year.
32 Such quarter annual and annual returns, as to form and
33 substance, shall be subject to the same requirements as
34 monthly returns.
SB1458 Engrossed -10- LRB9011307KDbd
1 Notwithstanding any other provision in this Act
2 concerning the time within which a retailer may file his
3 return, in the case of any retailer who ceases to engage in a
4 kind of business which makes him responsible for filing
5 returns under this Act, such retailer shall file a final
6 return under this Act with the Department not more than one
7 month after discontinuing such business.
8 In addition, with respect to motor vehicles, watercraft,
9 aircraft, and trailers that are required to be registered
10 with an agency of this State, every retailer selling this
11 kind of tangible personal property shall file, with the
12 Department, upon a form to be prescribed and supplied by the
13 Department, a separate return for each such item of tangible
14 personal property which the retailer sells, except that
15 where, in the same transaction, a retailer of aircraft,
16 watercraft, motor vehicles or trailers transfers more than
17 one aircraft, watercraft, motor vehicle or trailer to another
18 aircraft, watercraft, motor vehicle or trailer retailer for
19 the purpose of resale, that seller for resale may report the
20 transfer of all the aircraft, watercraft, motor vehicles or
21 trailers involved in that transaction to the Department on
22 the same uniform invoice-transaction reporting return form.
23 For purposes of this Section, "watercraft" means a Class 2,
24 Class 3, or Class 4 watercraft as defined in Section 3-2 of
25 the Boat Registration and Safety Act, a personal watercraft,
26 or any boat equipped with an inboard motor.
27 The transaction reporting return in the case of motor
28 vehicles or trailers that are required to be registered with
29 an agency of this State, shall be the same document as the
30 Uniform Invoice referred to in Section 5-402 of the Illinois
31 Vehicle Code and must show the name and address of the
32 seller; the name and address of the purchaser; the amount of
33 the selling price including the amount allowed by the
34 retailer for traded-in property, if any; the amount allowed
SB1458 Engrossed -11- LRB9011307KDbd
1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 2 of this Act allows
3 an exemption for the value of traded-in property; the balance
4 payable after deducting such trade-in allowance from the
5 total selling price; the amount of tax due from the retailer
6 with respect to such transaction; the amount of tax collected
7 from the purchaser by the retailer on such transaction (or
8 satisfactory evidence that such tax is not due in that
9 particular instance, if that is claimed to be the fact); the
10 place and date of the sale; a sufficient identification of
11 the property sold; such other information as is required in
12 Section 5-402 of the Illinois Vehicle Code, and such other
13 information as the Department may reasonably require.
14 The transaction reporting return in the case of
15 watercraft and aircraft must show the name and address of the
16 seller; the name and address of the purchaser; the amount of
17 the selling price including the amount allowed by the
18 retailer for traded-in property, if any; the amount allowed
19 by the retailer for the traded-in tangible personal property,
20 if any, to the extent to which Section 2 of this Act allows
21 an exemption for the value of traded-in property; the balance
22 payable after deducting such trade-in allowance from the
23 total selling price; the amount of tax due from the retailer
24 with respect to such transaction; the amount of tax collected
25 from the purchaser by the retailer on such transaction (or
26 satisfactory evidence that such tax is not due in that
27 particular instance, if that is claimed to be the fact); the
28 place and date of the sale, a sufficient identification of
29 the property sold, and such other information as the
30 Department may reasonably require.
31 Such transaction reporting return shall be filed not
32 later than 20 days after the date of delivery of the item
33 that is being sold, but may be filed by the retailer at any
34 time sooner than that if he chooses to do so. The
SB1458 Engrossed -12- LRB9011307KDbd
1 transaction reporting return and tax remittance or proof of
2 exemption from the tax that is imposed by this Act may be
3 transmitted to the Department by way of the State agency with
4 which, or State officer with whom, the tangible personal
5 property must be titled or registered (if titling or
6 registration is required) if the Department and such agency
7 or State officer determine that this procedure will expedite
8 the processing of applications for title or registration.
9 With each such transaction reporting return, the retailer
10 shall remit the proper amount of tax due (or shall submit
11 satisfactory evidence that the sale is not taxable if that is
12 the case), to the Department or its agents, whereupon the
13 Department shall issue, in the purchaser's name, a tax
14 receipt (or a certificate of exemption if the Department is
15 satisfied that the particular sale is tax exempt) which such
16 purchaser may submit to the agency with which, or State
17 officer with whom, he must title or register the tangible
18 personal property that is involved (if titling or
19 registration is required) in support of such purchaser's
20 application for an Illinois certificate or other evidence of
21 title or registration to such tangible personal property.
22 No retailer's failure or refusal to remit tax under this
23 Act precludes a user, who has paid the proper tax to the
24 retailer, from obtaining his certificate of title or other
25 evidence of title or registration (if titling or registration
26 is required) upon satisfying the Department that such user
27 has paid the proper tax (if tax is due) to the retailer. The
28 Department shall adopt appropriate rules to carry out the
29 mandate of this paragraph.
30 If the user who would otherwise pay tax to the retailer
31 wants the transaction reporting return filed and the payment
32 of tax or proof of exemption made to the Department before
33 the retailer is willing to take these actions and such user
34 has not paid the tax to the retailer, such user may certify
SB1458 Engrossed -13- LRB9011307KDbd
1 to the fact of such delay by the retailer, and may (upon the
2 Department being satisfied of the truth of such
3 certification) transmit the information required by the
4 transaction reporting return and the remittance for tax or
5 proof of exemption directly to the Department and obtain his
6 tax receipt or exemption determination, in which event the
7 transaction reporting return and tax remittance (if a tax
8 payment was required) shall be credited by the Department to
9 the proper retailer's account with the Department, but
10 without the 2.1% or 1.75% discount provided for in this
11 Section being allowed. When the user pays the tax directly
12 to the Department, he shall pay the tax in the same amount
13 and in the same form in which it would be remitted if the tax
14 had been remitted to the Department by the retailer.
15 Where a retailer collects the tax with respect to the
16 selling price of tangible personal property which he sells
17 and the purchaser thereafter returns such tangible personal
18 property and the retailer refunds the selling price thereof
19 to the purchaser, such retailer shall also refund, to the
20 purchaser, the tax so collected from the purchaser. When
21 filing his return for the period in which he refunds such tax
22 to the purchaser, the retailer may deduct the amount of the
23 tax so refunded by him to the purchaser from any other use
24 tax which such retailer may be required to pay or remit to
25 the Department, as shown by such return, if the amount of the
26 tax to be deducted was previously remitted to the Department
27 by such retailer. If the retailer has not previously
28 remitted the amount of such tax to the Department, he is
29 entitled to no deduction under this Act upon refunding such
30 tax to the purchaser.
31 Any retailer filing a return under this Section shall
32 also include (for the purpose of paying tax thereon) the
33 total tax covered by such return upon the selling price of
34 tangible personal property purchased by him at retail from a
SB1458 Engrossed -14- LRB9011307KDbd
1 retailer, but as to which the tax imposed by this Act was not
2 collected from the retailer filing such return, and such
3 retailer shall remit the amount of such tax to the Department
4 when filing such return.
5 If experience indicates such action to be practicable,
6 the Department may prescribe and furnish a combination or
7 joint return which will enable retailers, who are required to
8 file returns hereunder and also under the Retailers'
9 Occupation Tax Act, to furnish all the return information
10 required by both Acts on the one form.
11 Where the retailer has more than one business registered
12 with the Department under separate registration under this
13 Act, such retailer may not file each return that is due as a
14 single return covering all such registered businesses, but
15 shall file separate returns for each such registered
16 business.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the State and Local Sales Tax Reform Fund, a
19 special fund in the State Treasury which is hereby created,
20 the net revenue realized for the preceding month from the 1%
21 tax on sales of food for human consumption which is to be
22 consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks and food which has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes and needles used
27 by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
34 this State's government.
SB1458 Engrossed -15- LRB9011307KDbd
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Sales Tax Reform Fund, a
3 special fund in the State Treasury, 20% of the net revenue
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property, other
6 than tangible personal property which is purchased outside
7 Illinois at retail from a retailer and which is titled or
8 registered by an agency of this State's government.
9 Beginning November 1, 1998, and so long as the rate
10 remains at 1.25%, each month the Department shall pay into
11 the County and Mass Transit District Fund 20% of the net
12 revenue realized for the preceding month from the 1.25% rate
13 on the selling price of motor fuel and gasohol.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund 16% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property which is purchased outside Illinois at retail from a
19 retailer and which is titled or registered by an agency of
20 this State's government.
21 Beginning November 1, 1998, and so long as the rate
22 remains at 1.25%, each month the Department shall pay into
23 the Local Government Tax Fund 80% of the net revenue realized
24 for the preceding month from the 1.25% rate on the selling
25 price of motor fuel and gasohol.
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, (a) 1.75% thereof shall be paid into
28 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
29 and on and after July 1, 1989, 3.8% thereof shall be paid
30 into the Build Illinois Fund; provided, however, that if in
31 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
32 as the case may be, of the moneys received by the Department
33 and required to be paid into the Build Illinois Fund pursuant
34 to Section 3 of the Retailers' Occupation Tax Act, Section 9
SB1458 Engrossed -16- LRB9011307KDbd
1 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
2 Section 9 of the Service Occupation Tax Act, such Acts being
3 hereinafter called the "Tax Acts" and such aggregate of 2.2%
4 or 3.8%, as the case may be, of moneys being hereinafter
5 called the "Tax Act Amount", and (2) the amount transferred
6 to the Build Illinois Fund from the State and Local Sales Tax
7 Reform Fund shall be less than the Annual Specified Amount
8 (as defined in Section 3 of the Retailers' Occupation Tax
9 Act), an amount equal to the difference shall be immediately
10 paid into the Build Illinois Fund from other moneys received
11 by the Department pursuant to the Tax Acts; and further
12 provided, that if on the last business day of any month the
13 sum of (1) the Tax Act Amount required to be deposited into
14 the Build Illinois Bond Account in the Build Illinois Fund
15 during such month and (2) the amount transferred during such
16 month to the Build Illinois Fund from the State and Local
17 Sales Tax Reform Fund shall have been less than 1/12 of the
18 Annual Specified Amount, an amount equal to the difference
19 shall be immediately paid into the Build Illinois Fund from
20 other moneys received by the Department pursuant to the Tax
21 Acts; and, further provided, that in no event shall the
22 payments required under the preceding proviso result in
23 aggregate payments into the Build Illinois Fund pursuant to
24 this clause (b) for any fiscal year in excess of the greater
25 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
26 for such fiscal year; and, further provided, that the amounts
27 payable into the Build Illinois Fund under this clause (b)
28 shall be payable only until such time as the aggregate amount
29 on deposit under each trust indenture securing Bonds issued
30 and outstanding pursuant to the Build Illinois Bond Act is
31 sufficient, taking into account any future investment income,
32 to fully provide, in accordance with such indenture, for the
33 defeasance of or the payment of the principal of, premium, if
34 any, and interest on the Bonds secured by such indenture and
SB1458 Engrossed -17- LRB9011307KDbd
1 on any Bonds expected to be issued thereafter and all fees
2 and costs payable with respect thereto, all as certified by
3 the Director of the Bureau of the Budget. If on the last
4 business day of any month in which Bonds are outstanding
5 pursuant to the Build Illinois Bond Act, the aggregate of the
6 moneys deposited in the Build Illinois Bond Account in the
7 Build Illinois Fund in such month shall be less than the
8 amount required to be transferred in such month from the
9 Build Illinois Bond Account to the Build Illinois Bond
10 Retirement and Interest Fund pursuant to Section 13 of the
11 Build Illinois Bond Act, an amount equal to such deficiency
12 shall be immediately paid from other moneys received by the
13 Department pursuant to the Tax Acts to the Build Illinois
14 Fund; provided, however, that any amounts paid to the Build
15 Illinois Fund in any fiscal year pursuant to this sentence
16 shall be deemed to constitute payments pursuant to clause (b)
17 of the preceding sentence and shall reduce the amount
18 otherwise payable for such fiscal year pursuant to clause (b)
19 of the preceding sentence. The moneys received by the
20 Department pursuant to this Act and required to be deposited
21 into the Build Illinois Fund are subject to the pledge, claim
22 and charge set forth in Section 12 of the Build Illinois Bond
23 Act.
24 Subject to payment of amounts into the Build Illinois
25 Fund as provided in the preceding paragraph or in any
26 amendment thereto hereafter enacted, the following specified
27 monthly installment of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority provided under Section 8.25f of the
30 State Finance Act, but not in excess of the sums designated
31 as "Total Deposit", shall be deposited in the aggregate from
32 collections under Section 9 of the Use Tax Act, Section 9 of
33 the Service Use Tax Act, Section 9 of the Service Occupation
34 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
SB1458 Engrossed -18- LRB9011307KDbd
1 into the McCormick Place Expansion Project Fund in the
2 specified fiscal years.
3 Fiscal Year Total Deposit
4 1993 $0
5 1994 53,000,000
6 1995 58,000,000
7 1996 61,000,000
8 1997 64,000,000
9 1998 68,000,000
10 1999 71,000,000
11 2000 75,000,000
12 2001 80,000,000
13 2002 84,000,000
14 2003 89,000,000
15 2004 and 93,000,000
16 each fiscal year
17 thereafter that bonds
18 are outstanding under
19 Section 13.2 of the
20 Metropolitan Pier and
21 Exposition Authority
22 Act.
23 Beginning July 20, 1993 and in each month of each fiscal
24 year thereafter, one-eighth of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority for that fiscal year, less the amount
27 deposited into the McCormick Place Expansion Project Fund by
28 the State Treasurer in the respective month under subsection
29 (g) of Section 13 of the Metropolitan Pier and Exposition
30 Authority Act, plus cumulative deficiencies in the deposits
31 required under this Section for previous months and years,
32 shall be deposited into the McCormick Place Expansion Project
33 Fund, until the full amount requested for the fiscal year,
34 but not in excess of the amount specified above as "Total
SB1458 Engrossed -19- LRB9011307KDbd
1 Deposit", has been deposited.
2 Subject to payment of amounts into the Build Illinois
3 Fund and the McCormick Place Expansion Project Fund pursuant
4 to the preceding paragraphs or in any amendment thereto
5 hereafter enacted, each month the Department shall pay into
6 the Local Government Distributive Fund .4% of the net revenue
7 realized for the preceding month from the 5% general rate, or
8 .4% of 80% of the net revenue realized for the preceding
9 month from the 6.25% general rate, as the case may be, on the
10 selling price of tangible personal property which amount
11 shall, subject to appropriation, be distributed as provided
12 in Section 2 of the State Revenue Sharing Act. No payments or
13 distributions pursuant to this paragraph shall be made if the
14 tax imposed by this Act on photoprocessing products is
15 declared unconstitutional, or if the proceeds from such tax
16 are unavailable for distribution because of litigation.
17 Subject to payment of amounts into the Build Illinois
18 Fund, the McCormick Place Expansion Project Fund, and the
19 Local Government Distributive Fund pursuant to the preceding
20 paragraphs or in any amendments thereto hereafter enacted,
21 beginning July 1, 1993, the Department shall each month pay
22 into the Illinois Tax Increment Fund 0.27% of 80% of the net
23 revenue realized for the preceding month from the 6.25%
24 general rate on the selling price of tangible personal
25 property.
26 Of the remainder of the moneys received by the Department
27 pursuant to this Act, 75% thereof shall be paid into the
28 State Treasury and 25% shall be reserved in a special account
29 and used only for the transfer to the Common School Fund as
30 part of the monthly transfer from the General Revenue Fund in
31 accordance with Section 8a of the State Finance Act.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
SB1458 Engrossed -20- LRB9011307KDbd
1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month;
4 except that this transfer shall not be made for the months
5 February through June of 1992.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 For greater simplicity of administration, manufacturers,
11 importers and wholesalers whose products are sold at retail
12 in Illinois by numerous retailers, and who wish to do so, may
13 assume the responsibility for accounting and paying to the
14 Department all tax accruing under this Act with respect to
15 such sales, if the retailers who are affected do not make
16 written objection to the Department to this arrangement.
17 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96.)
18 (Text of Section after amendment by P.A. 90-491)
19 Sec. 9. Except as to motor vehicles, watercraft,
20 aircraft, and trailers that are required to be registered
21 with an agency of this State, each retailer required or
22 authorized to collect the tax imposed by this Act shall pay
23 to the Department the amount of such tax (except as otherwise
24 provided) at the time when he is required to file his return
25 for the period during which such tax was collected, less a
26 discount of 2.1% prior to January 1, 1990, and 1.75% on and
27 after January 1, 1990, or $5 per calendar year, whichever is
28 greater, which is allowed to reimburse the retailer for
29 expenses incurred in collecting the tax, keeping records,
30 preparing and filing returns, remitting the tax and supplying
31 data to the Department on request. In the case of retailers
32 who report and pay the tax on a transaction by transaction
33 basis, as provided in this Section, such discount shall be
34 taken with each such tax remittance instead of when such
SB1458 Engrossed -21- LRB9011307KDbd
1 retailer files his periodic return. A retailer need not
2 remit that part of any tax collected by him to the extent
3 that he is required to remit and does remit the tax imposed
4 by the Retailers' Occupation Tax Act, with respect to the
5 sale of the same property.
6 Where such tangible personal property is sold under a
7 conditional sales contract, or under any other form of sale
8 wherein the payment of the principal sum, or a part thereof,
9 is extended beyond the close of the period for which the
10 return is filed, the retailer, in collecting the tax (except
11 as to motor vehicles, watercraft, aircraft, and trailers that
12 are required to be registered with an agency of this State),
13 may collect for each tax return period, only the tax
14 applicable to that part of the selling price actually
15 received during such tax return period.
16 Except as provided in this Section, on or before the
17 twentieth day of each calendar month, such retailer shall
18 file a return for the preceding calendar month. Such return
19 shall be filed on forms prescribed by the Department and
20 shall furnish such information as the Department may
21 reasonably require.
22 The Department may require returns to be filed on a
23 quarterly basis. If so required, a return for each calendar
24 quarter shall be filed on or before the twentieth day of the
25 calendar month following the end of such calendar quarter.
26 The taxpayer shall also file a return with the Department for
27 each of the first two months of each calendar quarter, on or
28 before the twentieth day of the following calendar month,
29 stating:
30 1. The name of the seller;
31 2. The address of the principal place of business
32 from which he engages in the business of selling tangible
33 personal property at retail in this State;
34 3. The total amount of taxable receipts received by
SB1458 Engrossed -22- LRB9011307KDbd
1 him during the preceding calendar month from sales of
2 tangible personal property by him during such preceding
3 calendar month, including receipts from charge and time
4 sales, but less all deductions allowed by law;
5 4. The amount of credit provided in Section 2d of
6 this Act;
7 5. The amount of tax due;
8 5-5. The signature of the taxpayer; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who has
19 an average monthly tax liability of $100,000 or more shall
20 make all payments required by rules of the Department by
21 electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. The term "average
25 monthly tax liability" means the sum of the taxpayer's
26 liabilities under this Act, and under all other State and
27 local occupation and use tax laws administered by the
28 Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers required
33 to make payments by electronic funds transfer shall make
34 those payments for a minimum of one year beginning on October
SB1458 Engrossed -23- LRB9011307KDbd
1 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 If the taxpayer's average monthly tax liability to the
13 Department under this Act, the Retailers' Occupation Tax Act,
14 the Service Occupation Tax Act, the Service Use Tax Act was
15 $10,000 or more during the preceding 4 complete calendar
16 quarters, he shall file a return with the Department each
17 month by the 20th day of the month next following the month
18 during which such tax liability is incurred and shall make
19 payments to the Department on or before the 7th, 15th, 22nd
20 and last day of the month during which such liability is
21 incurred. If the month during which such tax liability is
22 incurred began prior to January 1, 1985, each payment shall
23 be in an amount equal to 1/4 of the taxpayer's actual
24 liability for the month or an amount set by the Department
25 not to exceed 1/4 of the average monthly liability of the
26 taxpayer to the Department for the preceding 4 complete
27 calendar quarters (excluding the month of highest liability
28 and the month of lowest liability in such 4 quarter period).
29 If the month during which such tax liability is incurred
30 begins on or after January 1, 1985, and prior to January 1,
31 1987, each payment shall be in an amount equal to 22.5% of
32 the taxpayer's actual liability for the month or 27.5% of the
33 taxpayer's liability for the same calendar month of the
34 preceding year. If the month during which such tax liability
SB1458 Engrossed -24- LRB9011307KDbd
1 is incurred begins on or after January 1, 1987, and prior to
2 January 1, 1988, each payment shall be in an amount equal to
3 22.5% of the taxpayer's actual liability for the month or
4 26.25% of the taxpayer's liability for the same calendar
5 month of the preceding year. If the month during which such
6 tax liability is incurred begins on or after January 1, 1988,
7 and prior to January 1, 1989, or begins on or after January
8 1, 1996, each payment shall be in an amount equal to 22.5% of
9 the taxpayer's actual liability for the month or 25% of the
10 taxpayer's liability for the same calendar month of the
11 preceding year. If the month during which such tax liability
12 is incurred begins on or after January 1, 1989, and prior to
13 January 1, 1996, each payment shall be in an amount equal to
14 22.5% of the taxpayer's actual liability for the month or 25%
15 of the taxpayer's liability for the same calendar month of
16 the preceding year or 100% of the taxpayer's actual liability
17 for the quarter monthly reporting period. The amount of such
18 quarter monthly payments shall be credited against the final
19 tax liability of the taxpayer's return for that month. Once
20 applicable, the requirement of the making of quarter monthly
21 payments to the Department shall continue until such
22 taxpayer's average monthly liability to the Department during
23 the preceding 4 complete calendar quarters (excluding the
24 month of highest liability and the month of lowest liability)
25 is less than $9,000, or until such taxpayer's average monthly
26 liability to the Department as computed for each calendar
27 quarter of the 4 preceding complete calendar quarter period
28 is less than $10,000. However, if a taxpayer can show the
29 Department that a substantial change in the taxpayer's
30 business has occurred which causes the taxpayer to anticipate
31 that his average monthly tax liability for the reasonably
32 foreseeable future will fall below $10,000, then such
33 taxpayer may petition the Department for change in such
34 taxpayer's reporting status. The Department shall change
SB1458 Engrossed -25- LRB9011307KDbd
1 such taxpayer's reporting status unless it finds that such
2 change is seasonal in nature and not likely to be long term.
3 If any such quarter monthly payment is not paid at the time
4 or in the amount required by this Section, then the taxpayer
5 shall be liable for penalties and interest on the difference
6 between the minimum amount due and the amount of such quarter
7 monthly payment actually and timely paid, except insofar as
8 the taxpayer has previously made payments for that month to
9 the Department in excess of the minimum payments previously
10 due as provided in this Section. The Department shall make
11 reasonable rules and regulations to govern the quarter
12 monthly payment amount and quarter monthly payment dates for
13 taxpayers who file on other than a calendar monthly basis.
14 If any such payment provided for in this Section exceeds
15 the taxpayer's liabilities under this Act, the Retailers'
16 Occupation Tax Act, the Service Occupation Tax Act and the
17 Service Use Tax Act, as shown by an original monthly return,
18 the Department shall issue to the taxpayer a credit
19 memorandum no later than 30 days after the date of payment,
20 which memorandum may be submitted by the taxpayer to the
21 Department in payment of tax liability subsequently to be
22 remitted by the taxpayer to the Department or be assigned by
23 the taxpayer to a similar taxpayer under this Act, the
24 Retailers' Occupation Tax Act, the Service Occupation Tax Act
25 or the Service Use Tax Act, in accordance with reasonable
26 rules and regulations to be prescribed by the Department,
27 except that if such excess payment is shown on an original
28 monthly return and is made after December 31, 1986, no credit
29 memorandum shall be issued, unless requested by the taxpayer.
30 If no such request is made, the taxpayer may credit such
31 excess payment against tax liability subsequently to be
32 remitted by the taxpayer to the Department under this Act,
33 the Retailers' Occupation Tax Act, the Service Occupation Tax
34 Act or the Service Use Tax Act, in accordance with reasonable
SB1458 Engrossed -26- LRB9011307KDbd
1 rules and regulations prescribed by the Department. If the
2 Department subsequently determines that all or any part of
3 the credit taken was not actually due to the taxpayer, the
4 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
5 by 2.1% or 1.75% of the difference between the credit taken
6 and that actually due, and the taxpayer shall be liable for
7 penalties and interest on such difference.
8 If the retailer is otherwise required to file a monthly
9 return and if the retailer's average monthly tax liability to
10 the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February, and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the retailer is otherwise required to file a monthly
20 or quarterly return and if the retailer's average monthly tax
21 liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a retailer may file his
30 return, in the case of any retailer who ceases to engage in a
31 kind of business which makes him responsible for filing
32 returns under this Act, such retailer shall file a final
33 return under this Act with the Department not more than one
34 month after discontinuing such business.
SB1458 Engrossed -27- LRB9011307KDbd
1 In addition, with respect to motor vehicles, watercraft,
2 aircraft, and trailers that are required to be registered
3 with an agency of this State, every retailer selling this
4 kind of tangible personal property shall file, with the
5 Department, upon a form to be prescribed and supplied by the
6 Department, a separate return for each such item of tangible
7 personal property which the retailer sells, except that
8 where, in the same transaction, a retailer of aircraft,
9 watercraft, motor vehicles or trailers transfers more than
10 one aircraft, watercraft, motor vehicle or trailer to another
11 aircraft, watercraft, motor vehicle or trailer retailer for
12 the purpose of resale, that seller for resale may report the
13 transfer of all the aircraft, watercraft, motor vehicles or
14 trailers involved in that transaction to the Department on
15 the same uniform invoice-transaction reporting return form.
16 For purposes of this Section, "watercraft" means a Class 2,
17 Class 3, or Class 4 watercraft as defined in Section 3-2 of
18 the Boat Registration and Safety Act, a personal watercraft,
19 or any boat equipped with an inboard motor.
20 The transaction reporting return in the case of motor
21 vehicles or trailers that are required to be registered with
22 an agency of this State, shall be the same document as the
23 Uniform Invoice referred to in Section 5-402 of the Illinois
24 Vehicle Code and must show the name and address of the
25 seller; the name and address of the purchaser; the amount of
26 the selling price including the amount allowed by the
27 retailer for traded-in property, if any; the amount allowed
28 by the retailer for the traded-in tangible personal property,
29 if any, to the extent to which Section 2 of this Act allows
30 an exemption for the value of traded-in property; the balance
31 payable after deducting such trade-in allowance from the
32 total selling price; the amount of tax due from the retailer
33 with respect to such transaction; the amount of tax collected
34 from the purchaser by the retailer on such transaction (or
SB1458 Engrossed -28- LRB9011307KDbd
1 satisfactory evidence that such tax is not due in that
2 particular instance, if that is claimed to be the fact); the
3 place and date of the sale; a sufficient identification of
4 the property sold; such other information as is required in
5 Section 5-402 of the Illinois Vehicle Code, and such other
6 information as the Department may reasonably require.
7 The transaction reporting return in the case of
8 watercraft and aircraft must show the name and address of the
9 seller; the name and address of the purchaser; the amount of
10 the selling price including the amount allowed by the
11 retailer for traded-in property, if any; the amount allowed
12 by the retailer for the traded-in tangible personal property,
13 if any, to the extent to which Section 2 of this Act allows
14 an exemption for the value of traded-in property; the balance
15 payable after deducting such trade-in allowance from the
16 total selling price; the amount of tax due from the retailer
17 with respect to such transaction; the amount of tax collected
18 from the purchaser by the retailer on such transaction (or
19 satisfactory evidence that such tax is not due in that
20 particular instance, if that is claimed to be the fact); the
21 place and date of the sale, a sufficient identification of
22 the property sold, and such other information as the
23 Department may reasonably require.
24 Such transaction reporting return shall be filed not
25 later than 20 days after the date of delivery of the item
26 that is being sold, but may be filed by the retailer at any
27 time sooner than that if he chooses to do so. The
28 transaction reporting return and tax remittance or proof of
29 exemption from the tax that is imposed by this Act may be
30 transmitted to the Department by way of the State agency with
31 which, or State officer with whom, the tangible personal
32 property must be titled or registered (if titling or
33 registration is required) if the Department and such agency
34 or State officer determine that this procedure will expedite
SB1458 Engrossed -29- LRB9011307KDbd
1 the processing of applications for title or registration.
2 With each such transaction reporting return, the retailer
3 shall remit the proper amount of tax due (or shall submit
4 satisfactory evidence that the sale is not taxable if that is
5 the case), to the Department or its agents, whereupon the
6 Department shall issue, in the purchaser's name, a tax
7 receipt (or a certificate of exemption if the Department is
8 satisfied that the particular sale is tax exempt) which such
9 purchaser may submit to the agency with which, or State
10 officer with whom, he must title or register the tangible
11 personal property that is involved (if titling or
12 registration is required) in support of such purchaser's
13 application for an Illinois certificate or other evidence of
14 title or registration to such tangible personal property.
15 No retailer's failure or refusal to remit tax under this
16 Act precludes a user, who has paid the proper tax to the
17 retailer, from obtaining his certificate of title or other
18 evidence of title or registration (if titling or registration
19 is required) upon satisfying the Department that such user
20 has paid the proper tax (if tax is due) to the retailer. The
21 Department shall adopt appropriate rules to carry out the
22 mandate of this paragraph.
23 If the user who would otherwise pay tax to the retailer
24 wants the transaction reporting return filed and the payment
25 of tax or proof of exemption made to the Department before
26 the retailer is willing to take these actions and such user
27 has not paid the tax to the retailer, such user may certify
28 to the fact of such delay by the retailer, and may (upon the
29 Department being satisfied of the truth of such
30 certification) transmit the information required by the
31 transaction reporting return and the remittance for tax or
32 proof of exemption directly to the Department and obtain his
33 tax receipt or exemption determination, in which event the
34 transaction reporting return and tax remittance (if a tax
SB1458 Engrossed -30- LRB9011307KDbd
1 payment was required) shall be credited by the Department to
2 the proper retailer's account with the Department, but
3 without the 2.1% or 1.75% discount provided for in this
4 Section being allowed. When the user pays the tax directly
5 to the Department, he shall pay the tax in the same amount
6 and in the same form in which it would be remitted if the tax
7 had been remitted to the Department by the retailer.
8 Where a retailer collects the tax with respect to the
9 selling price of tangible personal property which he sells
10 and the purchaser thereafter returns such tangible personal
11 property and the retailer refunds the selling price thereof
12 to the purchaser, such retailer shall also refund, to the
13 purchaser, the tax so collected from the purchaser. When
14 filing his return for the period in which he refunds such tax
15 to the purchaser, the retailer may deduct the amount of the
16 tax so refunded by him to the purchaser from any other use
17 tax which such retailer may be required to pay or remit to
18 the Department, as shown by such return, if the amount of the
19 tax to be deducted was previously remitted to the Department
20 by such retailer. If the retailer has not previously
21 remitted the amount of such tax to the Department, he is
22 entitled to no deduction under this Act upon refunding such
23 tax to the purchaser.
24 Any retailer filing a return under this Section shall
25 also include (for the purpose of paying tax thereon) the
26 total tax covered by such return upon the selling price of
27 tangible personal property purchased by him at retail from a
28 retailer, but as to which the tax imposed by this Act was not
29 collected from the retailer filing such return, and such
30 retailer shall remit the amount of such tax to the Department
31 when filing such return.
32 If experience indicates such action to be practicable,
33 the Department may prescribe and furnish a combination or
34 joint return which will enable retailers, who are required to
SB1458 Engrossed -31- LRB9011307KDbd
1 file returns hereunder and also under the Retailers'
2 Occupation Tax Act, to furnish all the return information
3 required by both Acts on the one form.
4 Where the retailer has more than one business registered
5 with the Department under separate registration under this
6 Act, such retailer may not file each return that is due as a
7 single return covering all such registered businesses, but
8 shall file separate returns for each such registered
9 business.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the State and Local Sales Tax Reform Fund, a
12 special fund in the State Treasury which is hereby created,
13 the net revenue realized for the preceding month from the 1%
14 tax on sales of food for human consumption which is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks and food which has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances and
19 insulin, urine testing materials, syringes and needles used
20 by diabetics.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the County and Mass Transit District Fund 4%
23 of the net revenue realized for the preceding month from the
24 6.25% general rate on the selling price of tangible personal
25 property which is purchased outside Illinois at retail from a
26 retailer and which is titled or registered by an agency of
27 this State's government.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the State and Local Sales Tax Reform Fund, a
30 special fund in the State Treasury, 20% of the net revenue
31 realized for the preceding month from the 6.25% general rate
32 on the selling price of tangible personal property, other
33 than tangible personal property which is purchased outside
34 Illinois at retail from a retailer and which is titled or
SB1458 Engrossed -32- LRB9011307KDbd
1 registered by an agency of this State's government.
2 Beginning November 1, 1998, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the County and Mass Transit District Fund 20% of the net
5 revenue realized for the preceding month from the 1.25% rate
6 on the selling price of motor fuel and gasohol.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the Local Government Tax Fund 16% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property which is purchased outside Illinois at retail from a
12 retailer and which is titled or registered by an agency of
13 this State's government.
14 Beginning November 1, 1998, and so long as the rate
15 remains at 1.25%, each month the Department shall pay into
16 the Local Government Tax Fund 80% of the net revenue realized
17 for the preceding month from the 1.25% rate on the selling
18 price of motor fuel and gasohol.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, (a) 1.75% thereof shall be paid into
21 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
22 and on and after July 1, 1989, 3.8% thereof shall be paid
23 into the Build Illinois Fund; provided, however, that if in
24 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
25 as the case may be, of the moneys received by the Department
26 and required to be paid into the Build Illinois Fund pursuant
27 to Section 3 of the Retailers' Occupation Tax Act, Section 9
28 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
29 Section 9 of the Service Occupation Tax Act, such Acts being
30 hereinafter called the "Tax Acts" and such aggregate of 2.2%
31 or 3.8%, as the case may be, of moneys being hereinafter
32 called the "Tax Act Amount", and (2) the amount transferred
33 to the Build Illinois Fund from the State and Local Sales Tax
34 Reform Fund shall be less than the Annual Specified Amount
SB1458 Engrossed -33- LRB9011307KDbd
1 (as defined in Section 3 of the Retailers' Occupation Tax
2 Act), an amount equal to the difference shall be immediately
3 paid into the Build Illinois Fund from other moneys received
4 by the Department pursuant to the Tax Acts; and further
5 provided, that if on the last business day of any month the
6 sum of (1) the Tax Act Amount required to be deposited into
7 the Build Illinois Bond Account in the Build Illinois Fund
8 during such month and (2) the amount transferred during such
9 month to the Build Illinois Fund from the State and Local
10 Sales Tax Reform Fund shall have been less than 1/12 of the
11 Annual Specified Amount, an amount equal to the difference
12 shall be immediately paid into the Build Illinois Fund from
13 other moneys received by the Department pursuant to the Tax
14 Acts; and, further provided, that in no event shall the
15 payments required under the preceding proviso result in
16 aggregate payments into the Build Illinois Fund pursuant to
17 this clause (b) for any fiscal year in excess of the greater
18 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
19 for such fiscal year; and, further provided, that the amounts
20 payable into the Build Illinois Fund under this clause (b)
21 shall be payable only until such time as the aggregate amount
22 on deposit under each trust indenture securing Bonds issued
23 and outstanding pursuant to the Build Illinois Bond Act is
24 sufficient, taking into account any future investment income,
25 to fully provide, in accordance with such indenture, for the
26 defeasance of or the payment of the principal of, premium, if
27 any, and interest on the Bonds secured by such indenture and
28 on any Bonds expected to be issued thereafter and all fees
29 and costs payable with respect thereto, all as certified by
30 the Director of the Bureau of the Budget. If on the last
31 business day of any month in which Bonds are outstanding
32 pursuant to the Build Illinois Bond Act, the aggregate of the
33 moneys deposited in the Build Illinois Bond Account in the
34 Build Illinois Fund in such month shall be less than the
SB1458 Engrossed -34- LRB9011307KDbd
1 amount required to be transferred in such month from the
2 Build Illinois Bond Account to the Build Illinois Bond
3 Retirement and Interest Fund pursuant to Section 13 of the
4 Build Illinois Bond Act, an amount equal to such deficiency
5 shall be immediately paid from other moneys received by the
6 Department pursuant to the Tax Acts to the Build Illinois
7 Fund; provided, however, that any amounts paid to the Build
8 Illinois Fund in any fiscal year pursuant to this sentence
9 shall be deemed to constitute payments pursuant to clause (b)
10 of the preceding sentence and shall reduce the amount
11 otherwise payable for such fiscal year pursuant to clause (b)
12 of the preceding sentence. The moneys received by the
13 Department pursuant to this Act and required to be deposited
14 into the Build Illinois Fund are subject to the pledge, claim
15 and charge set forth in Section 12 of the Build Illinois Bond
16 Act.
17 Subject to payment of amounts into the Build Illinois
18 Fund as provided in the preceding paragraph or in any
19 amendment thereto hereafter enacted, the following specified
20 monthly installment of the amount requested in the
21 certificate of the Chairman of the Metropolitan Pier and
22 Exposition Authority provided under Section 8.25f of the
23 State Finance Act, but not in excess of the sums designated
24 as "Total Deposit", shall be deposited in the aggregate from
25 collections under Section 9 of the Use Tax Act, Section 9 of
26 the Service Use Tax Act, Section 9 of the Service Occupation
27 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
28 into the McCormick Place Expansion Project Fund in the
29 specified fiscal years.
30 Fiscal Year Total Deposit
31 1993 $0
32 1994 53,000,000
33 1995 58,000,000
34 1996 61,000,000
SB1458 Engrossed -35- LRB9011307KDbd
1 1997 64,000,000
2 1998 68,000,000
3 1999 71,000,000
4 2000 75,000,000
5 2001 80,000,000
6 2002 84,000,000
7 2003 89,000,000
8 2004 and 93,000,000
9 each fiscal year
10 thereafter that bonds
11 are outstanding under
12 Section 13.2 of the
13 Metropolitan Pier and
14 Exposition Authority
15 Act.
16 Beginning July 20, 1993 and in each month of each fiscal
17 year thereafter, one-eighth of the amount requested in the
18 certificate of the Chairman of the Metropolitan Pier and
19 Exposition Authority for that fiscal year, less the amount
20 deposited into the McCormick Place Expansion Project Fund by
21 the State Treasurer in the respective month under subsection
22 (g) of Section 13 of the Metropolitan Pier and Exposition
23 Authority Act, plus cumulative deficiencies in the deposits
24 required under this Section for previous months and years,
25 shall be deposited into the McCormick Place Expansion Project
26 Fund, until the full amount requested for the fiscal year,
27 but not in excess of the amount specified above as "Total
28 Deposit", has been deposited.
29 Subject to payment of amounts into the Build Illinois
30 Fund and the McCormick Place Expansion Project Fund pursuant
31 to the preceding paragraphs or in any amendment thereto
32 hereafter enacted, each month the Department shall pay into
33 the Local Government Distributive Fund .4% of the net revenue
34 realized for the preceding month from the 5% general rate, or
SB1458 Engrossed -36- LRB9011307KDbd
1 .4% of 80% of the net revenue realized for the preceding
2 month from the 6.25% general rate, as the case may be, on the
3 selling price of tangible personal property which amount
4 shall, subject to appropriation, be distributed as provided
5 in Section 2 of the State Revenue Sharing Act. No payments or
6 distributions pursuant to this paragraph shall be made if the
7 tax imposed by this Act on photoprocessing products is
8 declared unconstitutional, or if the proceeds from such tax
9 are unavailable for distribution because of litigation.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project Fund, and the
12 Local Government Distributive Fund pursuant to the preceding
13 paragraphs or in any amendments thereto hereafter enacted,
14 beginning July 1, 1993, the Department shall each month pay
15 into the Illinois Tax Increment Fund 0.27% of 80% of the net
16 revenue realized for the preceding month from the 6.25%
17 general rate on the selling price of tangible personal
18 property.
19 Of the remainder of the moneys received by the Department
20 pursuant to this Act, 75% thereof shall be paid into the
21 State Treasury and 25% shall be reserved in a special account
22 and used only for the transfer to the Common School Fund as
23 part of the monthly transfer from the General Revenue Fund in
24 accordance with Section 8a of the State Finance Act.
25 As soon as possible after the first day of each month,
26 upon certification of the Department of Revenue, the
27 Comptroller shall order transferred and the Treasurer shall
28 transfer from the General Revenue Fund to the Motor Fuel Tax
29 Fund an amount equal to 1.7% of 80% of the net revenue
30 realized under this Act for the second preceding month;
31 except that this transfer shall not be made for the months
32 February through June of 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
SB1458 Engrossed -37- LRB9011307KDbd
1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 For greater simplicity of administration, manufacturers,
4 importers and wholesalers whose products are sold at retail
5 in Illinois by numerous retailers, and who wish to do so, may
6 assume the responsibility for accounting and paying to the
7 Department all tax accruing under this Act with respect to
8 such sales, if the retailers who are affected do not make
9 written objection to the Department to this arrangement.
10 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
11 90-491, eff. 1-1-99.)
12 Section 10. The Service Use Tax Act is amended by
13 changing Sections 3-10 and 9 as follows:
14 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
15 Sec. 3-10. Rate of tax. Unless otherwise provided in
16 this Section, the tax imposed by this Act is at the rate of
17 6.25% of the selling price of tangible personal property
18 transferred as an incident to the sale of service, but, for
19 the purpose of computing this tax, in no event shall the
20 selling price be less than the cost price of the property to
21 the serviceman.
22 With respect to motor fuel, as defined in Section 1.1 of
23 the Motor Fuel Tax Law, and gasohol, as defined in Section
24 3-40 of the Use Tax Act, the tax is imposed at the rate of
25 1.25%. If, however, the aggregate tax revenues from motor
26 fuel and gasohol under the Use Tax Act, the Service Use Tax
27 Act, the Service Occupation Tax Act, and the Retailers'
28 Occupation Tax Act during the period from October 1, 2001
29 through September 30, 2002 are not at least 15% more than the
30 aggregate tax revenues from motor fuel and gasohol under
31 those Acts during the period from October 1, 1998 through
32 September 30, 1999, then beginning January 1, 2003 the tax is
SB1458 Engrossed -38- LRB9011307KDbd
1 imposed on motor fuel and gasohol at the 6.25% general rate.
2 With respect to gasohol, as defined in the Use Tax Act,
3 the tax imposed by this Act applies to 70% of the selling
4 price of property transferred as an incident to the sale of
5 service on or after January 1, 1990, and before July 1, 1999,
6 and to 100% of the selling price thereafter, except that from
7 July 1, 1997 to July 1, 1999, the rate shall be 85% for
8 gasohol sold in this State during the 12 months beginning
9 July 1 following any calendar year for which the Department
10 has determined that the percentages in Section 10 of the
11 Gasohol Fuels Tax Abatement Act have not been met.
12 At the election of any registered serviceman made for
13 each fiscal year, sales of service in which the aggregate
14 annual cost price of tangible personal property transferred
15 as an incident to the sales of service is less than 35%, or
16 75% in the case of servicemen transferring prescription drugs
17 or servicemen engaged in graphic arts production, of the
18 aggregate annual total gross receipts from all sales of
19 service, the tax imposed by this Act shall be based on the
20 serviceman's cost price of the tangible personal property
21 transferred as an incident to the sale of those services.
22 The tax shall be imposed at the rate of 1% on food
23 prepared for immediate consumption and transferred incident
24 to a sale of service subject to this Act or the Service
25 Occupation Tax Act by an entity licensed under the Hospital
26 Licensing Act or the Nursing Home Care Act. The tax shall
27 also be imposed at the rate of 1% on food for human
28 consumption that is to be consumed off the premises where it
29 is sold (other than alcoholic beverages, soft drinks, and
30 food that has been prepared for immediate consumption and is
31 not otherwise included in this paragraph) and prescription
32 and nonprescription medicines, drugs, medical appliances,
33 modifications to a motor vehicle for the purpose of rendering
34 it usable by a disabled person, and insulin, urine testing
SB1458 Engrossed -39- LRB9011307KDbd
1 materials, syringes, and needles used by diabetics, for human
2 use. For the purposes of this Section, the term "soft drinks"
3 means any complete, finished, ready-to-use, non-alcoholic
4 drink, whether carbonated or not, including but not limited
5 to soda water, cola, fruit juice, vegetable juice, carbonated
6 water, and all other preparations commonly known as soft
7 drinks of whatever kind or description that are contained in
8 any closed or sealed bottle, can, carton, or container,
9 regardless of size. "Soft drinks" does not include coffee,
10 tea, non-carbonated water, infant formula, milk or milk
11 products as defined in the Grade A Pasteurized Milk and Milk
12 Products Act, or drinks containing 50% or more natural fruit
13 or vegetable juice.
14 Notwithstanding any other provisions of this Act, "food
15 for human consumption that is to be consumed off the premises
16 where it is sold" includes all food sold through a vending
17 machine, except soft drinks and food products that are
18 dispensed hot from a vending machine, regardless of the
19 location of the vending machine.
20 If the property that is acquired from a serviceman is
21 acquired outside Illinois and used outside Illinois before
22 being brought to Illinois for use here and is taxable under
23 this Act, the "selling price" on which the tax is computed
24 shall be reduced by an amount that represents a reasonable
25 allowance for depreciation for the period of prior
26 out-of-state use.
27 (Source: P.A. 88-45; 89-359, eff. 8-17-95; 89-420, eff.
28 6-1-96; 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
29 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
30 Sec. 9. Each serviceman required or authorized to
31 collect the tax herein imposed shall pay to the Department
32 the amount of such tax (except as otherwise provided) at the
33 time when he is required to file his return for the period
SB1458 Engrossed -40- LRB9011307KDbd
1 during which such tax was collected, less a discount of 2.1%
2 prior to January 1, 1990 and 1.75% on and after January 1,
3 1990, or $5 per calendar year, whichever is greater, which is
4 allowed to reimburse the serviceman for expenses incurred in
5 collecting the tax, keeping records, preparing and filing
6 returns, remitting the tax and supplying data to the
7 Department on request. A serviceman need not remit that part
8 of any tax collected by him to the extent that he is required
9 to pay and does pay the tax imposed by the Service Occupation
10 Tax Act with respect to his sale of service involving the
11 incidental transfer by him of the same property.
12 Except as provided hereinafter in this Section, on or
13 before the twentieth day of each calendar month, such
14 serviceman shall file a return for the preceding calendar
15 month in accordance with reasonable Rules and Regulations to
16 be promulgated by the Department. Such return shall be filed
17 on a form prescribed by the Department and shall contain such
18 information as the Department may reasonably require.
19 The Department may require returns to be filed on a
20 quarterly basis. If so required, a return for each calendar
21 quarter shall be filed on or before the twentieth day of the
22 calendar month following the end of such calendar quarter.
23 The taxpayer shall also file a return with the Department for
24 each of the first two months of each calendar quarter, on or
25 before the twentieth day of the following calendar month,
26 stating:
27 1. The name of the seller;
28 2. The address of the principal place of business
29 from which he engages in business as a serviceman in this
30 State;
31 3. The total amount of taxable receipts received by
32 him during the preceding calendar month, including
33 receipts from charge and time sales, but less all
34 deductions allowed by law;
SB1458 Engrossed -41- LRB9011307KDbd
1 4. The amount of credit provided in Section 2d of
2 this Act;
3 5. The amount of tax due;
4 5-5. The signature of the taxpayer; and
5 6. Such other reasonable information as the
6 Department may require.
7 If a taxpayer fails to sign a return within 30 days after
8 the proper notice and demand for signature by the Department,
9 the return shall be considered valid and any amount shown to
10 be due on the return shall be deemed assessed.
11 Beginning October 1, 1993, a taxpayer who has an average
12 monthly tax liability of $150,000 or more shall make all
13 payments required by rules of the Department by electronic
14 funds transfer. Beginning October 1, 1994, a taxpayer who
15 has an average monthly tax liability of $100,000 or more
16 shall make all payments required by rules of the Department
17 by electronic funds transfer. Beginning October 1, 1995, a
18 taxpayer who has an average monthly tax liability of $50,000
19 or more shall make all payments required by rules of the
20 Department by electronic funds transfer. The term "average
21 monthly tax liability" means the sum of the taxpayer's
22 liabilities under this Act, and under all other State and
23 local occupation and use tax laws administered by the
24 Department, for the immediately preceding calendar year
25 divided by 12.
26 Before August 1 of each year beginning in 1993, the
27 Department shall notify all taxpayers required to make
28 payments by electronic funds transfer. All taxpayers required
29 to make payments by electronic funds transfer shall make
30 those payments for a minimum of one year beginning on October
31 1.
32 Any taxpayer not required to make payments by electronic
33 funds transfer may make payments by electronic funds transfer
34 with the permission of the Department.
SB1458 Engrossed -42- LRB9011307KDbd
1 All taxpayers required to make payment by electronic
2 funds transfer and any taxpayers authorized to voluntarily
3 make payments by electronic funds transfer shall make those
4 payments in the manner authorized by the Department.
5 The Department shall adopt such rules as are necessary to
6 effectuate a program of electronic funds transfer and the
7 requirements of this Section.
8 If the serviceman is otherwise required to file a monthly
9 return and if the serviceman's average monthly tax liability
10 to the Department does not exceed $200, the Department may
11 authorize his returns to be filed on a quarter annual basis,
12 with the return for January, February and March of a given
13 year being due by April 20 of such year; with the return for
14 April, May and June of a given year being due by July 20 of
15 such year; with the return for July, August and September of
16 a given year being due by October 20 of such year, and with
17 the return for October, November and December of a given year
18 being due by January 20 of the following year.
19 If the serviceman is otherwise required to file a monthly
20 or quarterly return and if the serviceman's average monthly
21 tax liability to the Department does not exceed $50, the
22 Department may authorize his returns to be filed on an annual
23 basis, with the return for a given year being due by January
24 20 of the following year.
25 Such quarter annual and annual returns, as to form and
26 substance, shall be subject to the same requirements as
27 monthly returns.
28 Notwithstanding any other provision in this Act
29 concerning the time within which a serviceman may file his
30 return, in the case of any serviceman who ceases to engage in
31 a kind of business which makes him responsible for filing
32 returns under this Act, such serviceman shall file a final
33 return under this Act with the Department not more than 1
34 month after discontinuing such business.
SB1458 Engrossed -43- LRB9011307KDbd
1 Where a serviceman collects the tax with respect to the
2 selling price of property which he sells and the purchaser
3 thereafter returns such property and the serviceman refunds
4 the selling price thereof to the purchaser, such serviceman
5 shall also refund, to the purchaser, the tax so collected
6 from the purchaser. When filing his return for the period in
7 which he refunds such tax to the purchaser, the serviceman
8 may deduct the amount of the tax so refunded by him to the
9 purchaser from any other Service Use Tax, Service Occupation
10 Tax, retailers' occupation tax or use tax which such
11 serviceman may be required to pay or remit to the Department,
12 as shown by such return, provided that the amount of the tax
13 to be deducted shall previously have been remitted to the
14 Department by such serviceman. If the serviceman shall not
15 previously have remitted the amount of such tax to the
16 Department, he shall be entitled to no deduction hereunder
17 upon refunding such tax to the purchaser.
18 Any serviceman filing a return hereunder shall also
19 include the total tax upon the selling price of tangible
20 personal property purchased for use by him as an incident to
21 a sale of service, and such serviceman shall remit the amount
22 of such tax to the Department when filing such return.
23 If experience indicates such action to be practicable,
24 the Department may prescribe and furnish a combination or
25 joint return which will enable servicemen, who are required
26 to file returns hereunder and also under the Service
27 Occupation Tax Act, to furnish all the return information
28 required by both Acts on the one form.
29 Where the serviceman has more than one business
30 registered with the Department under separate registration
31 hereunder, such serviceman shall not file each return that is
32 due as a single return covering all such registered
33 businesses, but shall file separate returns for each such
34 registered business.
SB1458 Engrossed -44- LRB9011307KDbd
1 Beginning January 1, 1990, each month the Department
2 shall pay into the State and Local Tax Reform Fund, a special
3 fund in the State Treasury, the net revenue realized for the
4 preceding month from the 1% tax on sales of food for human
5 consumption which is to be consumed off the premises where it
6 is sold (other than alcoholic beverages, soft drinks and food
7 which has been prepared for immediate consumption) and
8 prescription and nonprescription medicines, drugs, medical
9 appliances and insulin, urine testing materials, syringes and
10 needles used by diabetics.
11 Beginning November 1, 1998, and so long as the rate
12 remains at 1.25%, each month the Department shall pay into
13 the County and Mass Transit District Fund 20% of the net
14 revenue realized for the preceding month from the 1.25% rate
15 on the selling price of motor fuel and gasohol.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the State and Local Sales Tax Reform Fund 20%
18 of the net revenue realized for the preceding month from the
19 6.25% general rate on transfers of tangible personal
20 property, other than tangible personal property which is
21 purchased outside Illinois at retail from a retailer and
22 which is titled or registered by an agency of this State's
23 government.
24 Beginning November 1, 1998, and so long as the rate
25 remains at 1.25%, each month the Department shall pay into
26 the Local Government Tax Fund 80% of the net revenue realized
27 for the preceding month from the 1.25% rate on the selling
28 price of motor fuel and gasohol.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, (a) 1.75% thereof shall be paid into
31 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
32 and on and after July 1, 1989, 3.8% thereof shall be paid
33 into the Build Illinois Fund; provided, however, that if in
34 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
SB1458 Engrossed -45- LRB9011307KDbd
1 as the case may be, of the moneys received by the Department
2 and required to be paid into the Build Illinois Fund pursuant
3 to Section 3 of the Retailers' Occupation Tax Act, Section 9
4 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
5 Section 9 of the Service Occupation Tax Act, such Acts being
6 hereinafter called the "Tax Acts" and such aggregate of 2.2%
7 or 3.8%, as the case may be, of moneys being hereinafter
8 called the "Tax Act Amount", and (2) the amount transferred
9 to the Build Illinois Fund from the State and Local Sales Tax
10 Reform Fund shall be less than the Annual Specified Amount
11 (as defined in Section 3 of the Retailers' Occupation Tax
12 Act), an amount equal to the difference shall be immediately
13 paid into the Build Illinois Fund from other moneys received
14 by the Department pursuant to the Tax Acts; and further
15 provided, that if on the last business day of any month the
16 sum of (1) the Tax Act Amount required to be deposited into
17 the Build Illinois Bond Account in the Build Illinois Fund
18 during such month and (2) the amount transferred during such
19 month to the Build Illinois Fund from the State and Local
20 Sales Tax Reform Fund shall have been less than 1/12 of the
21 Annual Specified Amount, an amount equal to the difference
22 shall be immediately paid into the Build Illinois Fund from
23 other moneys received by the Department pursuant to the Tax
24 Acts; and, further provided, that in no event shall the
25 payments required under the preceding proviso result in
26 aggregate payments into the Build Illinois Fund pursuant to
27 this clause (b) for any fiscal year in excess of the greater
28 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
29 for such fiscal year; and, further provided, that the amounts
30 payable into the Build Illinois Fund under this clause (b)
31 shall be payable only until such time as the aggregate amount
32 on deposit under each trust indenture securing Bonds issued
33 and outstanding pursuant to the Build Illinois Bond Act is
34 sufficient, taking into account any future investment income,
SB1458 Engrossed -46- LRB9011307KDbd
1 to fully provide, in accordance with such indenture, for the
2 defeasance of or the payment of the principal of, premium, if
3 any, and interest on the Bonds secured by such indenture and
4 on any Bonds expected to be issued thereafter and all fees
5 and costs payable with respect thereto, all as certified by
6 the Director of the Bureau of the Budget. If on the last
7 business day of any month in which Bonds are outstanding
8 pursuant to the Build Illinois Bond Act, the aggregate of the
9 moneys deposited in the Build Illinois Bond Account in the
10 Build Illinois Fund in such month shall be less than the
11 amount required to be transferred in such month from the
12 Build Illinois Bond Account to the Build Illinois Bond
13 Retirement and Interest Fund pursuant to Section 13 of the
14 Build Illinois Bond Act, an amount equal to such deficiency
15 shall be immediately paid from other moneys received by the
16 Department pursuant to the Tax Acts to the Build Illinois
17 Fund; provided, however, that any amounts paid to the Build
18 Illinois Fund in any fiscal year pursuant to this sentence
19 shall be deemed to constitute payments pursuant to clause (b)
20 of the preceding sentence and shall reduce the amount
21 otherwise payable for such fiscal year pursuant to clause (b)
22 of the preceding sentence. The moneys received by the
23 Department pursuant to this Act and required to be deposited
24 into the Build Illinois Fund are subject to the pledge, claim
25 and charge set forth in Section 12 of the Build Illinois Bond
26 Act.
27 Subject to payment of amounts into the Build Illinois
28 Fund as provided in the preceding paragraph or in any
29 amendment thereto hereafter enacted, the following specified
30 monthly installment of the amount requested in the
31 certificate of the Chairman of the Metropolitan Pier and
32 Exposition Authority provided under Section 8.25f of the
33 State Finance Act, but not in excess of the sums designated
34 as "Total Deposit", shall be deposited in the aggregate from
SB1458 Engrossed -47- LRB9011307KDbd
1 collections under Section 9 of the Use Tax Act, Section 9 of
2 the Service Use Tax Act, Section 9 of the Service Occupation
3 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
4 into the McCormick Place Expansion Project Fund in the
5 specified fiscal years.
6 Fiscal Year Total Deposit
7 1993 $0
8 1994 53,000,000
9 1995 58,000,000
10 1996 61,000,000
11 1997 64,000,000
12 1998 68,000,000
13 1999 71,000,000
14 2000 75,000,000
15 2001 80,000,000
16 2002 84,000,000
17 2003 89,000,000
18 2004 and 93,000,000
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority Act.
25 Beginning July 20, 1993 and in each month of each fiscal
26 year thereafter, one-eighth of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority for that fiscal year, less the amount
29 deposited into the McCormick Place Expansion Project Fund by
30 the State Treasurer in the respective month under subsection
31 (g) of Section 13 of the Metropolitan Pier and Exposition
32 Authority Act, plus cumulative deficiencies in the deposits
33 required under this Section for previous months and years,
34 shall be deposited into the McCormick Place Expansion Project
SB1458 Engrossed -48- LRB9011307KDbd
1 Fund, until the full amount requested for the fiscal year,
2 but not in excess of the amount specified above as "Total
3 Deposit", has been deposited.
4 Subject to payment of amounts into the Build Illinois
5 Fund and the McCormick Place Expansion Project Fund pursuant
6 to the preceding paragraphs or in any amendment thereto
7 hereafter enacted, each month the Department shall pay into
8 the Local Government Distributive Fund 0.4% of the net
9 revenue realized for the preceding month from the 5% general
10 rate or 0.4% of 80% of the net revenue realized for the
11 preceding month from the 6.25% general rate, as the case may
12 be, on the selling price of tangible personal property which
13 amount shall, subject to appropriation, be distributed as
14 provided in Section 2 of the State Revenue Sharing Act. No
15 payments or distributions pursuant to this paragraph shall be
16 made if the tax imposed by this Act on photo processing
17 products is declared unconstitutional, or if the proceeds
18 from such tax are unavailable for distribution because of
19 litigation.
20 Subject to payment of amounts into the Build Illinois
21 Fund, the McCormick Place Expansion Project Fund, and the
22 Local Government Distributive Fund pursuant to the preceding
23 paragraphs or in any amendments thereto hereafter enacted,
24 beginning July 1, 1993, the Department shall each month pay
25 into the Illinois Tax Increment Fund 0.27% of 80% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 All remaining moneys received by the Department pursuant
30 to this Act shall be paid into the General Revenue Fund of
31 the State Treasury.
32 As soon as possible after the first day of each month,
33 upon certification of the Department of Revenue, the
34 Comptroller shall order transferred and the Treasurer shall
SB1458 Engrossed -49- LRB9011307KDbd
1 transfer from the General Revenue Fund to the Motor Fuel Tax
2 Fund an amount equal to 1.7% of 80% of the net revenue
3 realized under this Act for the second preceding month;
4 except that this transfer shall not be made for the months
5 February through June, 1992.
6 Net revenue realized for a month shall be the revenue
7 collected by the State pursuant to this Act, less the amount
8 paid out during that month as refunds to taxpayers for
9 overpayment of liability.
10 (Source: P.A. 88-45; 88-116; 88-669, eff. 11-29-94; 89-379,
11 eff. 1-1-96.)
12 Section 15. The Service Occupation Tax Act is amended by
13 changing Sections 3-10 and 9 as follows:
14 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
15 Sec. 3-10. Rate of tax. Unless otherwise provided in
16 this Section, the tax imposed by this Act is at the rate of
17 6.25% of the "selling price", as defined in Section 2 of the
18 Service Use Tax Act, of the tangible personal property. For
19 the purpose of computing this tax, in no event shall the
20 "selling price" be less than the cost price to the serviceman
21 of the tangible personal property transferred. The selling
22 price of each item of tangible personal property transferred
23 as an incident of a sale of service may be shown as a
24 distinct and separate item on the serviceman's billing to the
25 service customer. If the selling price is not so shown, the
26 selling price of the tangible personal property is deemed to
27 be 50% of the serviceman's entire billing to the service
28 customer. When, however, a serviceman contracts to design,
29 develop, and produce special order machinery or equipment,
30 the tax imposed by this Act shall be based on the
31 serviceman's cost price of the tangible personal property
32 transferred incident to the completion of the contract.
SB1458 Engrossed -50- LRB9011307KDbd
1 With respect to motor fuel, as defined in Section 1.1 of
2 the Motor Fuel Tax Law, and gasohol, as defined in Section
3 3-40 of the Use Tax Act, the tax is imposed at the rate of
4 1.25%. If, however, the aggregate tax revenues from motor
5 fuel and gasohol under the Use Tax Act, the Service Use Tax
6 Act, the Service Occupation Tax Act, and the Retailers'
7 Occupation Tax Act during the period from October 1, 2001
8 through September 30, 2002 are not at least 15% more than the
9 aggregate tax revenues from motor fuel and gasohol under
10 those Acts during the period from October 1, 1998 through
11 September 30, 1999, then beginning January 1, 2003 the tax is
12 imposed on motor fuel and gasohol at the 6.25% general rate.
13 With respect to gasohol, as defined in the Use Tax Act,
14 the tax imposed by this Act shall apply to 70% of the cost
15 price of property transferred as an incident to the sale of
16 service on or after January 1, 1990, and before July 1, 1999,
17 and to 100% of the cost price thereafter, except that from
18 July 1, 1997 to July 1, 1999, the rate shall be 85% for
19 gasohol sold in this State during the 12 months beginning
20 July 1 following any calendar year for which the Department
21 has determined that the percentages in Section 10 of the
22 Gasohol Fuels Tax Abatement Act have not been met.
23 At the election of any registered serviceman made for
24 each fiscal year, sales of service in which the aggregate
25 annual cost price of tangible personal property transferred
26 as an incident to the sales of service is less than 35%, or
27 75% in the case of servicemen transferring prescription drugs
28 or servicemen engaged in graphic arts production, of the
29 aggregate annual total gross receipts from all sales of
30 service, the tax imposed by this Act shall be based on the
31 serviceman's cost price of the tangible personal property
32 transferred incident to the sale of those services.
33 The tax shall be imposed at the rate of 1% on food
34 prepared for immediate consumption and transferred incident
SB1458 Engrossed -51- LRB9011307KDbd
1 to a sale of service subject to this Act or the Service
2 Occupation Tax Act by an entity licensed under the Hospital
3 Licensing Act or the Nursing Home Care Act. The tax shall
4 also be imposed at the rate of 1% on food for human
5 consumption that is to be consumed off the premises where it
6 is sold (other than alcoholic beverages, soft drinks, and
7 food that has been prepared for immediate consumption and is
8 not otherwise included in this paragraph) and prescription
9 and nonprescription medicines, drugs, medical appliances,
10 modifications to a motor vehicle for the purpose of rendering
11 it usable by a disabled person, and insulin, urine testing
12 materials, syringes, and needles used by diabetics, for human
13 use. For the purposes of this Section, the term "soft
14 drinks" means any complete, finished, ready-to-use,
15 non-alcoholic drink, whether carbonated or not, including but
16 not limited to soda water, cola, fruit juice, vegetable
17 juice, carbonated water, and all other preparations commonly
18 known as soft drinks of whatever kind or description that are
19 contained in any closed or sealed can, carton, or container,
20 regardless of size. "Soft drinks" does not include coffee,
21 tea, non-carbonated water, infant formula, milk or milk
22 products as defined in the Grade A Pasteurized Milk and Milk
23 Products Act, or drinks containing 50% or more natural fruit
24 or vegetable juice.
25 Notwithstanding any other provisions of this Act, "food
26 for human consumption that is to be consumed off the premises
27 where it is sold" includes all food sold through a vending
28 machine, except soft drinks and food products that are
29 dispensed hot from a vending machine, regardless of the
30 location of the vending machine.
31 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
32 89-463, eff. 5-31-96; 89-626, eff. 8-9-96.)
33 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
SB1458 Engrossed -52- LRB9011307KDbd
1 Sec. 9. Each serviceman required or authorized to
2 collect the tax herein imposed shall pay to the Department
3 the amount of such tax at the time when he is required to
4 file his return for the period during which such tax was
5 collectible, less a discount of 2.1% prior to January 1,
6 1990, and 1.75% on and after January 1, 1990, or $5 per
7 calendar year, whichever is greater, which is allowed to
8 reimburse the serviceman for expenses incurred in collecting
9 the tax, keeping records, preparing and filing returns,
10 remitting the tax and supplying data to the Department on
11 request.
12 Where such tangible personal property is sold under a
13 conditional sales contract, or under any other form of sale
14 wherein the payment of the principal sum, or a part thereof,
15 is extended beyond the close of the period for which the
16 return is filed, the serviceman, in collecting the tax may
17 collect, for each tax return period, only the tax applicable
18 to the part of the selling price actually received during
19 such tax return period.
20 Except as provided hereinafter in this Section, on or
21 before the twentieth day of each calendar month, such
22 serviceman shall file a return for the preceding calendar
23 month in accordance with reasonable rules and regulations to
24 be promulgated by the Department of Revenue. Such return
25 shall be filed on a form prescribed by the Department and
26 shall contain such information as the Department may
27 reasonably require.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
34 before the twentieth day of the following calendar month,
SB1458 Engrossed -53- LRB9011307KDbd
1 stating:
2 1. The name of the seller;
3 2. The address of the principal place of business
4 from which he engages in business as a serviceman in this
5 State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month, including
8 receipts from charge and time sales, but less all
9 deductions allowed by law;
10 4. The amount of credit provided in Section 2d of
11 this Act;
12 5. The amount of tax due;
13 5-5. The signature of the taxpayer; and
14 6. Such other reasonable information as the
15 Department may require.
16 If a taxpayer fails to sign a return within 30 days after
17 the proper notice and demand for signature by the Department,
18 the return shall be considered valid and any amount shown to
19 be due on the return shall be deemed assessed.
20 A serviceman may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of Service Use
22 Tax as provided in Section 3-70 of the Service Use Tax Act if
23 the purchaser provides the appropriate documentation as
24 required by Section 3-70 of the Service Use Tax Act. A
25 Manufacturer's Purchase Credit certification, accepted by a
26 serviceman as provided in Section 3-70 of the Service Use Tax
27 Act, may be used by that serviceman to satisfy Service
28 Occupation Tax liability in the amount claimed in the
29 certification, not to exceed 6.25% of the receipts subject to
30 tax from a qualifying purchase.
31 If the serviceman's average monthly tax liability to the
32 Department does not exceed $200, the Department may authorize
33 his returns to be filed on a quarter annual basis, with the
34 return for January, February and March of a given year being
SB1458 Engrossed -54- LRB9011307KDbd
1 due by April 20 of such year; with the return for April, May
2 and June of a given year being due by July 20 of such year;
3 with the return for July, August and September of a given
4 year being due by October 20 of such year, and with the
5 return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the serviceman's average monthly tax liability to the
8 Department does not exceed $50, the Department may authorize
9 his returns to be filed on an annual basis, with the return
10 for a given year being due by January 20 of the following
11 year.
12 Such quarter annual and annual returns, as to form and
13 substance, shall be subject to the same requirements as
14 monthly returns.
15 Notwithstanding any other provision in this Act
16 concerning the time within which a serviceman may file his
17 return, in the case of any serviceman who ceases to engage in
18 a kind of business which makes him responsible for filing
19 returns under this Act, such serviceman shall file a final
20 return under this Act with the Department not more than 1
21 month after discontinuing such business.
22 Beginning October 1, 1993, a taxpayer who has an average
23 monthly tax liability of $150,000 or more shall make all
24 payments required by rules of the Department by electronic
25 funds transfer. Beginning October 1, 1994, a taxpayer who
26 has an average monthly tax liability of $100,000 or more
27 shall make all payments required by rules of the Department
28 by electronic funds transfer. Beginning October 1, 1995, a
29 taxpayer who has an average monthly tax liability of $50,000
30 or more shall make all payments required by rules of the
31 Department by electronic funds transfer. The term "average
32 monthly tax liability" means the sum of the taxpayer's
33 liabilities under this Act, and under all other State and
34 local occupation and use tax laws administered by the
SB1458 Engrossed -55- LRB9011307KDbd
1 Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers
6 required to make payments by electronic funds transfer shall
7 make those payments for a minimum of one year beginning on
8 October 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 Where a serviceman collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the serviceman refunds the selling price thereof
23 to the purchaser, such serviceman shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the serviceman may deduct the amount of the
27 tax so refunded by him to the purchaser from any other
28 Service Occupation Tax, Service Use Tax, Retailers'
29 Occupation Tax or Use Tax which such serviceman may be
30 required to pay or remit to the Department, as shown by such
31 return, provided that the amount of the tax to be deducted
32 shall previously have been remitted to the Department by such
33 serviceman. If the serviceman shall not previously have
34 remitted the amount of such tax to the Department, he shall
SB1458 Engrossed -56- LRB9011307KDbd
1 be entitled to no deduction hereunder upon refunding such tax
2 to the purchaser.
3 If experience indicates such action to be practicable,
4 the Department may prescribe and furnish a combination or
5 joint return which will enable servicemen, who are required
6 to file returns hereunder and also under the Retailers'
7 Occupation Tax Act, the Use Tax Act or the Service Use Tax
8 Act, to furnish all the return information required by all
9 said Acts on the one form.
10 Where the serviceman has more than one business
11 registered with the Department under separate registrations
12 hereunder, such serviceman shall file separate returns for
13 each registered business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund the revenue
16 realized for the preceding month from the 1% tax on sales of
17 food for human consumption which is to be consumed off the
18 premises where it is sold (other than alcoholic beverages,
19 soft drinks and food which has been prepared for immediate
20 consumption) and prescription and nonprescription medicines,
21 drugs, medical appliances and insulin, urine testing
22 materials, syringes and needles used by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund 4%
25 of the revenue realized for the preceding month from the
26 6.25% general rate.
27 Beginning November 1, 1998, and so long as the rate
28 remains at 1.25%, each month the Department shall pay into
29 the County and Mass Transit District Fund 20% of the net
30 revenue realized for the preceding month from the 1.25% rate
31 on the selling price of motor fuel and gasohol.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the
34 revenue realized for the preceding month from the 6.25%
SB1458 Engrossed -57- LRB9011307KDbd
1 general rate on transfers of tangible personal property.
2 Beginning November 1, 1998, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the Local Government Tax Fund 80% of the net revenue realized
5 for the preceding month from the 1.25% rate on the selling
6 price of motor fuel and gasohol.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into
9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
10 and on and after July 1, 1989, 3.8% thereof shall be paid
11 into the Build Illinois Fund; provided, however, that if in
12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13 as the case may be, of the moneys received by the Department
14 and required to be paid into the Build Illinois Fund pursuant
15 to Section 3 of the Retailers' Occupation Tax Act, Section 9
16 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
17 Section 9 of the Service Occupation Tax Act, such Acts being
18 hereinafter called the "Tax Acts" and such aggregate of 2.2%
19 or 3.8%, as the case may be, of moneys being herei