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91_HB0171
LRB9100281NTmg
1 AN ACT concerning education funding, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Section 5.490 as follows:
6 (30 ILCS 105/5.490 new)
7 Sec. 5.490. The Teach Illinois Fund.
8 Section 10. The Illinois Income Tax Act is amended by
9 changing Section 901 as follows:
10 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
11 Sec. 901. Collection Authority.
12 (a) In general.
13 The Department shall collect the taxes imposed by this
14 Act. The Department shall collect certified past due child
15 support amounts under Section 39b52 of the Civil
16 Administrative Code of Illinois. Except as provided in
17 subsections (c), and (e), and (f) of this Section, money
18 collected pursuant to subsections (a) and (b) of Section 201
19 of this Act shall be paid into the General Revenue Fund in
20 the State treasury; money collected pursuant to subsections
21 (c) and (d) of Section 201 of this Act shall be paid into the
22 Personal Property Tax Replacement Fund, a special fund in the
23 State Treasury; and money collected under Section 39b52 of
24 the Civil Administrative Code of Illinois shall be paid into
25 the Child Support Enforcement Trust Fund, a special fund
26 outside the State Treasury.
27 (b) Local Governmental Distributive Fund.
28 Beginning August 1, 1969, and continuing through June 30,
29 1994, the Treasurer shall transfer each month from the
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1 General Revenue Fund to a special fund in the State treasury,
2 to be known as the "Local Government Distributive Fund", an
3 amount equal to 1/12 of the net revenue realized from the tax
4 imposed by subsections (a) and (b) of Section 201 of this Act
5 during the preceding month. Beginning July 1, 1994, and
6 continuing through June 30, 1995, the Treasurer shall
7 transfer each month from the General Revenue Fund to the
8 Local Government Distributive Fund an amount equal to 1/11 of
9 the net revenue realized from the tax imposed by subsections
10 (a) and (b) of Section 201 of this Act during the preceding
11 month. Beginning July 1, 1995, the Treasurer shall transfer
12 each month from the General Revenue Fund to the Local
13 Government Distributive Fund an amount equal to 1/10 of the
14 net revenue realized from the tax imposed by subsections (a)
15 and (b) of Section 201 of the Illinois Income Tax Act during
16 the preceding month. Net revenue realized for a month shall
17 be defined as the revenue from the tax imposed by subsections
18 (a) and (b) of Section 201 of this Act which is deposited in
19 the General Revenue Fund, the Educational Assistance Fund and
20 the Income Tax Surcharge Local Government Distributive Fund
21 during the month minus the amount paid out of the General
22 Revenue Fund in State warrants during that same month as
23 refunds to taxpayers for overpayment of liability under the
24 tax imposed by subsections (a) and (b) of Section 201 of this
25 Act.
26 (c) Deposits Into Income Tax Refund Fund.
27 (1) Beginning on January 1, 1989 and thereafter,
28 the Department shall deposit a percentage of the amounts
29 collected pursuant to subsections (a) and (b)(1), (2),
30 and (3), of Section 201 of this Act into a fund in the
31 State treasury known as the Income Tax Refund Fund. The
32 Department shall deposit 6% of such amounts during the
33 period beginning January 1, 1989 and ending on June 30,
34 1989. Beginning with State fiscal year 1990 and for each
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1 fiscal year thereafter, the percentage deposited into the
2 Income Tax Refund Fund during a fiscal year shall be the
3 Annual Percentage. For fiscal years 1999 through 2001,
4 the Annual Percentage shall be 7.1%. For all other
5 fiscal years, the Annual Percentage shall be calculated
6 as a fraction, the numerator of which shall be the amount
7 of refunds approved for payment by the Department during
8 the preceding fiscal year as a result of overpayment of
9 tax liability under subsections (a) and (b)(1), (2), and
10 (3) of Section 201 of this Act plus the amount of such
11 refunds remaining approved but unpaid at the end of the
12 preceding fiscal year, the denominator of which shall be
13 the amounts which will be collected pursuant to
14 subsections (a) and (b)(1), (2), and (3) of Section 201
15 of this Act during the preceding fiscal year. The
16 Director of Revenue shall certify the Annual Percentage
17 to the Comptroller on the last business day of the fiscal
18 year immediately preceding the fiscal year for which it
19 is to be effective.
20 (2) Beginning on January 1, 1989 and thereafter,
21 the Department shall deposit a percentage of the amounts
22 collected pursuant to subsections (a) and (b)(6), (7),
23 and (8), (c) and (d) of Section 201 of this Act into a
24 fund in the State treasury known as the Income Tax Refund
25 Fund. The Department shall deposit 18% of such amounts
26 during the period beginning January 1, 1989 and ending on
27 June 30, 1989. Beginning with State fiscal year 1990 and
28 for each fiscal year thereafter, the percentage deposited
29 into the Income Tax Refund Fund during a fiscal year
30 shall be the Annual Percentage. For fiscal years 1999,
31 2000, and 2001, the Annual Percentage shall be 19%. For
32 all other fiscal years, the Annual Percentage shall be
33 calculated as a fraction, the numerator of which shall be
34 the amount of refunds approved for payment by the
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1 Department during the preceding fiscal year as a result
2 of overpayment of tax liability under subsections (a) and
3 (b)(6), (7), and (8), (c) and (d) of Section 201 of this
4 Act plus the amount of such refunds remaining approved
5 but unpaid at the end of the preceding fiscal year, the
6 denominator of which shall be the amounts which will be
7 collected pursuant to subsections (a) and (b)(6), (7),
8 and (8), (c) and (d) of Section 201 of this Act during
9 the preceding fiscal year. The Director of Revenue shall
10 certify the Annual Percentage to the Comptroller on the
11 last business day of the fiscal year immediately
12 preceding the fiscal year for which it is to be
13 effective.
14 (d) Expenditures from Income Tax Refund Fund.
15 (1) Beginning January 1, 1989, money in the Income
16 Tax Refund Fund shall be expended exclusively for the
17 purpose of paying refunds resulting from overpayment of
18 tax liability under Section 201 of this Act and for
19 making transfers pursuant to this subsection (d).
20 (2) The Director shall order payment of refunds
21 resulting from overpayment of tax liability under Section
22 201 of this Act from the Income Tax Refund Fund only to
23 the extent that amounts collected pursuant to Section 201
24 of this Act and transfers pursuant to this subsection (d)
25 have been deposited and retained in the Fund.
26 (3) As soon as possible after the end of each
27 fiscal year, the Director shall order transferred and the
28 State Treasurer and State Comptroller shall transfer from
29 the Income Tax Refund Fund to the Personal Property Tax
30 Replacement Fund an amount, certified by the Director to
31 the Comptroller, equal to the excess of the amount
32 collected pursuant to subsections (c) and (d) of Section
33 201 of this Act deposited into the Income Tax Refund Fund
34 during the fiscal year over the amount of refunds
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1 resulting from overpayment of tax liability under
2 subsections (c) and (d) of Section 201 of this Act paid
3 from the Income Tax Refund Fund during the fiscal year.
4 (4) As soon as possible after the end of each
5 fiscal year, the Director shall order transferred and the
6 State Treasurer and State Comptroller shall transfer from
7 the Personal Property Tax Replacement Fund to the Income
8 Tax Refund Fund an amount, certified by the Director to
9 the Comptroller, equal to the excess of the amount of
10 refunds resulting from overpayment of tax liability under
11 subsections (c) and (d) of Section 201 of this Act paid
12 from the Income Tax Refund Fund during the fiscal year
13 over the amount collected pursuant to subsections (c) and
14 (d) of Section 201 of this Act deposited into the Income
15 Tax Refund Fund during the fiscal year.
16 (4.5) As soon as possible after the end of fiscal
17 year 1999 and of each fiscal year thereafter, the
18 Director shall order transferred and the State Treasurer
19 and State Comptroller shall transfer from the Income Tax
20 Refund Fund to the General Revenue Fund any surplus
21 remaining in the Income Tax Refund Fund as of the end of
22 such fiscal year.
23 (5) This Act shall constitute an irrevocable and
24 continuing appropriation from the Income Tax Refund Fund
25 for the purpose of paying refunds upon the order of the
26 Director in accordance with the provisions of this
27 Section.
28 (e) Deposits into the Education Assistance Fund and the
29 Income Tax Surcharge Local Government Distributive Fund.
30 On July 1, 1991, and thereafter, of the amounts collected
31 pursuant to subsections (a) and (b) of Section 201 of this
32 Act, minus deposits into the Income Tax Refund Fund, the
33 Department shall deposit 7.3% into the Education Assistance
34 Fund in the State Treasury. Beginning July 1, 1991, and
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1 continuing through January 31, 1993, of the amounts collected
2 pursuant to subsections (a) and (b) of Section 201 of the
3 Illinois Income Tax Act, minus deposits into the Income Tax
4 Refund Fund, the Department shall deposit 3.0% into the
5 Income Tax Surcharge Local Government Distributive Fund in
6 the State Treasury. Beginning February 1, 1993 and
7 continuing through June 30, 1993, of the amounts collected
8 pursuant to subsections (a) and (b) of Section 201 of the
9 Illinois Income Tax Act, minus deposits into the Income Tax
10 Refund Fund, the Department shall deposit 4.4% into the
11 Income Tax Surcharge Local Government Distributive Fund in
12 the State Treasury. Beginning July 1, 1993, and continuing
13 through June 30, 1994, of the amounts collected under
14 subsections (a) and (b) of Section 201 of this Act, minus
15 deposits into the Income Tax Refund Fund, the Department
16 shall deposit 1.475% into the Income Tax Surcharge Local
17 Government Distributive Fund in the State Treasury.
18 (f) Deposits into the Teach Illinois Fund. Beginning
19 July 1, 1999 and thereafter, of the amounts collected under
20 subsections (a) and (b) of Section 201 of this Act, minus
21 deposits into the Income Tax Refund Fund, the Department
22 shall deposit 1.79% into the Teach Illinois Fund in the State
23 treasury.
24 (Source: P.A. 89-6, eff. 12-31-95; 90-613, eff. 7-9-98;
25 90-655, eff. 7-30-98.)
26 Section 15. The Use Tax Act is amended by changing
27 Section 9 as follows:
28 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
29 Sec. 9. Except as to motor vehicles, watercraft,
30 aircraft, and trailers that are required to be registered
31 with an agency of this State, each retailer required or
32 authorized to collect the tax imposed by this Act shall pay
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1 to the Department the amount of such tax (except as otherwise
2 provided) at the time when he is required to file his return
3 for the period during which such tax was collected, less a
4 discount of 2.1% prior to January 1, 1990, and 1.75% on and
5 after January 1, 1990, or $5 per calendar year, whichever is
6 greater, which is allowed to reimburse the retailer for
7 expenses incurred in collecting the tax, keeping records,
8 preparing and filing returns, remitting the tax and supplying
9 data to the Department on request. In the case of retailers
10 who report and pay the tax on a transaction by transaction
11 basis, as provided in this Section, such discount shall be
12 taken with each such tax remittance instead of when such
13 retailer files his periodic return. A retailer need not
14 remit that part of any tax collected by him to the extent
15 that he is required to remit and does remit the tax imposed
16 by the Retailers' Occupation Tax Act, with respect to the
17 sale of the same property.
18 Where such tangible personal property is sold under a
19 conditional sales contract, or under any other form of sale
20 wherein the payment of the principal sum, or a part thereof,
21 is extended beyond the close of the period for which the
22 return is filed, the retailer, in collecting the tax (except
23 as to motor vehicles, watercraft, aircraft, and trailers that
24 are required to be registered with an agency of this State),
25 may collect for each tax return period, only the tax
26 applicable to that part of the selling price actually
27 received during such tax return period.
28 Except as provided in this Section, on or before the
29 twentieth day of each calendar month, such retailer shall
30 file a return for the preceding calendar month. Such return
31 shall be filed on forms prescribed by the Department and
32 shall furnish such information as the Department may
33 reasonably require.
34 The Department may require returns to be filed on a
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1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in the business of selling tangible
11 personal property at retail in this State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month from sales of
14 tangible personal property by him during such preceding
15 calendar month, including receipts from charge and time
16 sales, but less all deductions allowed by law;
17 4. The amount of credit provided in Section 2d of
18 this Act;
19 5. The amount of tax due;
20 5-5. The signature of the taxpayer; and
21 6. Such other reasonable information as the
22 Department may require.
23 If a taxpayer fails to sign a return within 30 days after
24 the proper notice and demand for signature by the Department,
25 the return shall be considered valid and any amount shown to
26 be due on the return shall be deemed assessed.
27 Beginning October 1, 1993, a taxpayer who has an average
28 monthly tax liability of $150,000 or more shall make all
29 payments required by rules of the Department by electronic
30 funds transfer. Beginning October 1, 1994, a taxpayer who has
31 an average monthly tax liability of $100,000 or more shall
32 make all payments required by rules of the Department by
33 electronic funds transfer. Beginning October 1, 1995, a
34 taxpayer who has an average monthly tax liability of $50,000
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1 or more shall make all payments required by rules of the
2 Department by electronic funds transfer. The term "average
3 monthly tax liability" means the sum of the taxpayer's
4 liabilities under this Act, and under all other State and
5 local occupation and use tax laws administered by the
6 Department, for the immediately preceding calendar year
7 divided by 12.
8 Before August 1 of each year beginning in 1993, the
9 Department shall notify all taxpayers required to make
10 payments by electronic funds transfer. All taxpayers required
11 to make payments by electronic funds transfer shall make
12 those payments for a minimum of one year beginning on October
13 1.
14 Any taxpayer not required to make payments by electronic
15 funds transfer may make payments by electronic funds transfer
16 with the permission of the Department.
17 All taxpayers required to make payment by electronic
18 funds transfer and any taxpayers authorized to voluntarily
19 make payments by electronic funds transfer shall make those
20 payments in the manner authorized by the Department.
21 The Department shall adopt such rules as are necessary to
22 effectuate a program of electronic funds transfer and the
23 requirements of this Section.
24 If the taxpayer's average monthly tax liability to the
25 Department under this Act, the Retailers' Occupation Tax Act,
26 the Service Occupation Tax Act, the Service Use Tax Act was
27 $10,000 or more during the preceding 4 complete calendar
28 quarters, he shall file a return with the Department each
29 month by the 20th day of the month next following the month
30 during which such tax liability is incurred and shall make
31 payments to the Department on or before the 7th, 15th, 22nd
32 and last day of the month during which such liability is
33 incurred. If the month during which such tax liability is
34 incurred began prior to January 1, 1985, each payment shall
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1 be in an amount equal to 1/4 of the taxpayer's actual
2 liability for the month or an amount set by the Department
3 not to exceed 1/4 of the average monthly liability of the
4 taxpayer to the Department for the preceding 4 complete
5 calendar quarters (excluding the month of highest liability
6 and the month of lowest liability in such 4 quarter period).
7 If the month during which such tax liability is incurred
8 begins on or after January 1, 1985, and prior to January 1,
9 1987, each payment shall be in an amount equal to 22.5% of
10 the taxpayer's actual liability for the month or 27.5% of the
11 taxpayer's liability for the same calendar month of the
12 preceding year. If the month during which such tax liability
13 is incurred begins on or after January 1, 1987, and prior to
14 January 1, 1988, each payment shall be in an amount equal to
15 22.5% of the taxpayer's actual liability for the month or
16 26.25% of the taxpayer's liability for the same calendar
17 month of the preceding year. If the month during which such
18 tax liability is incurred begins on or after January 1, 1988,
19 and prior to January 1, 1989, or begins on or after January
20 1, 1996, each payment shall be in an amount equal to 22.5% of
21 the taxpayer's actual liability for the month or 25% of the
22 taxpayer's liability for the same calendar month of the
23 preceding year. If the month during which such tax liability
24 is incurred begins on or after January 1, 1989, and prior to
25 January 1, 1996, each payment shall be in an amount equal to
26 22.5% of the taxpayer's actual liability for the month or 25%
27 of the taxpayer's liability for the same calendar month of
28 the preceding year or 100% of the taxpayer's actual liability
29 for the quarter monthly reporting period. The amount of such
30 quarter monthly payments shall be credited against the final
31 tax liability of the taxpayer's return for that month. Once
32 applicable, the requirement of the making of quarter monthly
33 payments to the Department shall continue until such
34 taxpayer's average monthly liability to the Department during
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1 the preceding 4 complete calendar quarters (excluding the
2 month of highest liability and the month of lowest liability)
3 is less than $9,000, or until such taxpayer's average monthly
4 liability to the Department as computed for each calendar
5 quarter of the 4 preceding complete calendar quarter period
6 is less than $10,000. However, if a taxpayer can show the
7 Department that a substantial change in the taxpayer's
8 business has occurred which causes the taxpayer to anticipate
9 that his average monthly tax liability for the reasonably
10 foreseeable future will fall below $10,000, then such
11 taxpayer may petition the Department for change in such
12 taxpayer's reporting status. The Department shall change
13 such taxpayer's reporting status unless it finds that such
14 change is seasonal in nature and not likely to be long term.
15 If any such quarter monthly payment is not paid at the time
16 or in the amount required by this Section, then the taxpayer
17 shall be liable for penalties and interest on the difference
18 between the minimum amount due and the amount of such quarter
19 monthly payment actually and timely paid, except insofar as
20 the taxpayer has previously made payments for that month to
21 the Department in excess of the minimum payments previously
22 due as provided in this Section. The Department shall make
23 reasonable rules and regulations to govern the quarter
24 monthly payment amount and quarter monthly payment dates for
25 taxpayers who file on other than a calendar monthly basis.
26 If any such payment provided for in this Section exceeds
27 the taxpayer's liabilities under this Act, the Retailers'
28 Occupation Tax Act, the Service Occupation Tax Act and the
29 Service Use Tax Act, as shown by an original monthly return,
30 the Department shall issue to the taxpayer a credit
31 memorandum no later than 30 days after the date of payment,
32 which memorandum may be submitted by the taxpayer to the
33 Department in payment of tax liability subsequently to be
34 remitted by the taxpayer to the Department or be assigned by
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1 the taxpayer to a similar taxpayer under this Act, the
2 Retailers' Occupation Tax Act, the Service Occupation Tax Act
3 or the Service Use Tax Act, in accordance with reasonable
4 rules and regulations to be prescribed by the Department,
5 except that if such excess payment is shown on an original
6 monthly return and is made after December 31, 1986, no credit
7 memorandum shall be issued, unless requested by the taxpayer.
8 If no such request is made, the taxpayer may credit such
9 excess payment against tax liability subsequently to be
10 remitted by the taxpayer to the Department under this Act,
11 the Retailers' Occupation Tax Act, the Service Occupation Tax
12 Act or the Service Use Tax Act, in accordance with reasonable
13 rules and regulations prescribed by the Department. If the
14 Department subsequently determines that all or any part of
15 the credit taken was not actually due to the taxpayer, the
16 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
17 by 2.1% or 1.75% of the difference between the credit taken
18 and that actually due, and the taxpayer shall be liable for
19 penalties and interest on such difference.
20 If the retailer is otherwise required to file a monthly
21 return and if the retailer's average monthly tax liability to
22 the Department does not exceed $200, the Department may
23 authorize his returns to be filed on a quarter annual basis,
24 with the return for January, February, and March of a given
25 year being due by April 20 of such year; with the return for
26 April, May and June of a given year being due by July 20 of
27 such year; with the return for July, August and September of
28 a given year being due by October 20 of such year, and with
29 the return for October, November and December of a given year
30 being due by January 20 of the following year.
31 If the retailer is otherwise required to file a monthly
32 or quarterly return and if the retailer's average monthly tax
33 liability to the Department does not exceed $50, the
34 Department may authorize his returns to be filed on an annual
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1 basis, with the return for a given year being due by January
2 20 of the following year.
3 Such quarter annual and annual returns, as to form and
4 substance, shall be subject to the same requirements as
5 monthly returns.
6 Notwithstanding any other provision in this Act
7 concerning the time within which a retailer may file his
8 return, in the case of any retailer who ceases to engage in a
9 kind of business which makes him responsible for filing
10 returns under this Act, such retailer shall file a final
11 return under this Act with the Department not more than one
12 month after discontinuing such business.
13 In addition, with respect to motor vehicles, watercraft,
14 aircraft, and trailers that are required to be registered
15 with an agency of this State, every retailer selling this
16 kind of tangible personal property shall file, with the
17 Department, upon a form to be prescribed and supplied by the
18 Department, a separate return for each such item of tangible
19 personal property which the retailer sells, except that
20 where, in the same transaction, a retailer of aircraft,
21 watercraft, motor vehicles or trailers transfers more than
22 one aircraft, watercraft, motor vehicle or trailer to another
23 aircraft, watercraft, motor vehicle or trailer retailer for
24 the purpose of resale, that seller for resale may report the
25 transfer of all the aircraft, watercraft, motor vehicles or
26 trailers involved in that transaction to the Department on
27 the same uniform invoice-transaction reporting return form.
28 For purposes of this Section, "watercraft" means a Class 2,
29 Class 3, or Class 4 watercraft as defined in Section 3-2 of
30 the Boat Registration and Safety Act, a personal watercraft,
31 or any boat equipped with an inboard motor.
32 The transaction reporting return in the case of motor
33 vehicles or trailers that are required to be registered with
34 an agency of this State, shall be the same document as the
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1 Uniform Invoice referred to in Section 5-402 of the Illinois
2 Vehicle Code and must show the name and address of the
3 seller; the name and address of the purchaser; the amount of
4 the selling price including the amount allowed by the
5 retailer for traded-in property, if any; the amount allowed
6 by the retailer for the traded-in tangible personal property,
7 if any, to the extent to which Section 2 of this Act allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the retailer
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance, if that is claimed to be the fact); the
15 place and date of the sale; a sufficient identification of
16 the property sold; such other information as is required in
17 Section 5-402 of the Illinois Vehicle Code, and such other
18 information as the Department may reasonably require.
19 The transaction reporting return in the case of
20 watercraft and aircraft must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 2 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale, a sufficient identification of
34 the property sold, and such other information as the
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1 Department may reasonably require.
2 Such transaction reporting return shall be filed not
3 later than 20 days after the date of delivery of the item
4 that is being sold, but may be filed by the retailer at any
5 time sooner than that if he chooses to do so. The
6 transaction reporting return and tax remittance or proof of
7 exemption from the tax that is imposed by this Act may be
8 transmitted to the Department by way of the State agency with
9 which, or State officer with whom, the tangible personal
10 property must be titled or registered (if titling or
11 registration is required) if the Department and such agency
12 or State officer determine that this procedure will expedite
13 the processing of applications for title or registration.
14 With each such transaction reporting return, the retailer
15 shall remit the proper amount of tax due (or shall submit
16 satisfactory evidence that the sale is not taxable if that is
17 the case), to the Department or its agents, whereupon the
18 Department shall issue, in the purchaser's name, a tax
19 receipt (or a certificate of exemption if the Department is
20 satisfied that the particular sale is tax exempt) which such
21 purchaser may submit to the agency with which, or State
22 officer with whom, he must title or register the tangible
23 personal property that is involved (if titling or
24 registration is required) in support of such purchaser's
25 application for an Illinois certificate or other evidence of
26 title or registration to such tangible personal property.
27 No retailer's failure or refusal to remit tax under this
28 Act precludes a user, who has paid the proper tax to the
29 retailer, from obtaining his certificate of title or other
30 evidence of title or registration (if titling or registration
31 is required) upon satisfying the Department that such user
32 has paid the proper tax (if tax is due) to the retailer. The
33 Department shall adopt appropriate rules to carry out the
34 mandate of this paragraph.
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1 If the user who would otherwise pay tax to the retailer
2 wants the transaction reporting return filed and the payment
3 of tax or proof of exemption made to the Department before
4 the retailer is willing to take these actions and such user
5 has not paid the tax to the retailer, such user may certify
6 to the fact of such delay by the retailer, and may (upon the
7 Department being satisfied of the truth of such
8 certification) transmit the information required by the
9 transaction reporting return and the remittance for tax or
10 proof of exemption directly to the Department and obtain his
11 tax receipt or exemption determination, in which event the
12 transaction reporting return and tax remittance (if a tax
13 payment was required) shall be credited by the Department to
14 the proper retailer's account with the Department, but
15 without the 2.1% or 1.75% discount provided for in this
16 Section being allowed. When the user pays the tax directly
17 to the Department, he shall pay the tax in the same amount
18 and in the same form in which it would be remitted if the tax
19 had been remitted to the Department by the retailer.
20 Where a retailer collects the tax with respect to the
21 selling price of tangible personal property which he sells
22 and the purchaser thereafter returns such tangible personal
23 property and the retailer refunds the selling price thereof
24 to the purchaser, such retailer shall also refund, to the
25 purchaser, the tax so collected from the purchaser. When
26 filing his return for the period in which he refunds such tax
27 to the purchaser, the retailer may deduct the amount of the
28 tax so refunded by him to the purchaser from any other use
29 tax which such retailer may be required to pay or remit to
30 the Department, as shown by such return, if the amount of the
31 tax to be deducted was previously remitted to the Department
32 by such retailer. If the retailer has not previously
33 remitted the amount of such tax to the Department, he is
34 entitled to no deduction under this Act upon refunding such
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1 tax to the purchaser.
2 Any retailer filing a return under this Section shall
3 also include (for the purpose of paying tax thereon) the
4 total tax covered by such return upon the selling price of
5 tangible personal property purchased by him at retail from a
6 retailer, but as to which the tax imposed by this Act was not
7 collected from the retailer filing such return, and such
8 retailer shall remit the amount of such tax to the Department
9 when filing such return.
10 If experience indicates such action to be practicable,
11 the Department may prescribe and furnish a combination or
12 joint return which will enable retailers, who are required to
13 file returns hereunder and also under the Retailers'
14 Occupation Tax Act, to furnish all the return information
15 required by both Acts on the one form.
16 Where the retailer has more than one business registered
17 with the Department under separate registration under this
18 Act, such retailer may not file each return that is due as a
19 single return covering all such registered businesses, but
20 shall file separate returns for each such registered
21 business.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the State and Local Sales Tax Reform Fund, a
24 special fund in the State Treasury which is hereby created,
25 the net revenue realized for the preceding month from the 1%
26 tax on sales of food for human consumption which is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks and food which has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances and
31 insulin, urine testing materials, syringes and needles used
32 by diabetics.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the County and Mass Transit District Fund 4%
-18- LRB9100281NTmg
1 of the net revenue realized for the preceding month from the
2 6.25% general rate on the selling price of tangible personal
3 property which is purchased outside Illinois at retail from a
4 retailer and which is titled or registered by an agency of
5 this State's government.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund, a
8 special fund in the State Treasury, 20% of the net revenue
9 realized for the preceding month from the 6.25% general rate
10 on the selling price of tangible personal property, other
11 than tangible personal property which is purchased outside
12 Illinois at retail from a retailer and which is titled or
13 registered by an agency of this State's government.
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 July 1, 1999, each month the Department shall
22 pay into the Teach Illinois Fund 1.81% of the net revenue
23 realized for the preceding month from the 6.25% general rate
24 on the selling price of tangible personal property.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, (a) 1.75% thereof shall be paid into
27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
28 and on and after July 1, 1989, 3.8% thereof shall be paid
29 into the Build Illinois Fund; provided, however, that if in
30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31 as the case may be, of the moneys received by the Department
32 and required to be paid into the Build Illinois Fund pursuant
33 to Section 3 of the Retailers' Occupation Tax Act, Section 9
34 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
-19- LRB9100281NTmg
1 Section 9 of the Service Occupation Tax Act, such Acts being
2 hereinafter called the "Tax Acts" and such aggregate of 2.2%
3 or 3.8%, as the case may be, of moneys being hereinafter
4 called the "Tax Act Amount", and (2) the amount transferred
5 to the Build Illinois Fund from the State and Local Sales Tax
6 Reform Fund shall be less than the Annual Specified Amount
7 (as defined in Section 3 of the Retailers' Occupation Tax
8 Act), an amount equal to the difference shall be immediately
9 paid into the Build Illinois Fund from other moneys received
10 by the Department pursuant to the Tax Acts; and further
11 provided, that if on the last business day of any month the
12 sum of (1) the Tax Act Amount required to be deposited into
13 the Build Illinois Bond Account in the Build Illinois Fund
14 during such month and (2) the amount transferred during such
15 month to the Build Illinois Fund from the State and Local
16 Sales Tax Reform Fund shall have been less than 1/12 of the
17 Annual Specified Amount, an amount equal to the difference
18 shall be immediately paid into the Build Illinois Fund from
19 other moneys received by the Department pursuant to the Tax
20 Acts; and, further provided, that in no event shall the
21 payments required under the preceding proviso result in
22 aggregate payments into the Build Illinois Fund pursuant to
23 this clause (b) for any fiscal year in excess of the greater
24 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
25 for such fiscal year; and, further provided, that the amounts
26 payable into the Build Illinois Fund under this clause (b)
27 shall be payable only until such time as the aggregate amount
28 on deposit under each trust indenture securing Bonds issued
29 and outstanding pursuant to the Build Illinois Bond Act is
30 sufficient, taking into account any future investment income,
31 to fully provide, in accordance with such indenture, for the
32 defeasance of or the payment of the principal of, premium, if
33 any, and interest on the Bonds secured by such indenture and
34 on any Bonds expected to be issued thereafter and all fees
-20- LRB9100281NTmg
1 and costs payable with respect thereto, all as certified by
2 the Director of the Bureau of the Budget. If on the last
3 business day of any month in which Bonds are outstanding
4 pursuant to the Build Illinois Bond Act, the aggregate of the
5 moneys deposited in the Build Illinois Bond Account in the
6 Build Illinois Fund in such month shall be less than the
7 amount required to be transferred in such month from the
8 Build Illinois Bond Account to the Build Illinois Bond
9 Retirement and Interest Fund pursuant to Section 13 of the
10 Build Illinois Bond Act, an amount equal to such deficiency
11 shall be immediately paid from other moneys received by the
12 Department pursuant to the Tax Acts to the Build Illinois
13 Fund; provided, however, that any amounts paid to the Build
14 Illinois Fund in any fiscal year pursuant to this sentence
15 shall be deemed to constitute payments pursuant to clause (b)
16 of the preceding sentence and shall reduce the amount
17 otherwise payable for such fiscal year pursuant to clause (b)
18 of the preceding sentence. The moneys received by the
19 Department pursuant to this Act and required to be deposited
20 into the Build Illinois Fund are subject to the pledge, claim
21 and charge set forth in Section 12 of the Build Illinois Bond
22 Act.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in the preceding paragraph or in any
25 amendment thereto hereafter enacted, the following specified
26 monthly installment of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority provided under Section 8.25f of the
29 State Finance Act, but not in excess of the sums designated
30 as "Total Deposit", shall be deposited in the aggregate from
31 collections under Section 9 of the Use Tax Act, Section 9 of
32 the Service Use Tax Act, Section 9 of the Service Occupation
33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
34 into the McCormick Place Expansion Project Fund in the
-21- LRB9100281NTmg
1 specified fiscal years.
2 Fiscal Year Total Deposit
3 1993 $0
4 1994 53,000,000
5 1995 58,000,000
6 1996 61,000,000
7 1997 64,000,000
8 1998 68,000,000
9 1999 71,000,000
10 2000 75,000,000
11 2001 80,000,000
12 2002 84,000,000
13 2003 89,000,000
14 2004 93,000,000
15 2005 97,000,000
16 2006 102,000,000
17 2007 and 106,000,000
18 each fiscal year
19 thereafter that bonds
20 are outstanding under
21 Section 13.2 of the
22 Metropolitan Pier and
23 Exposition Authority
24 Act, but not after fiscal year 2029.
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
-22- LRB9100281NTmg
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 .4% of the net revenue
9 realized for the preceding month from the 5% general rate, or
10 .4% of 80% of the net revenue realized for the preceding
11 month from the 6.25% general rate, as the case may be, on the
12 selling price of tangible personal property which amount
13 shall, subject to appropriation, be distributed as provided
14 in Section 2 of the State Revenue Sharing Act. No payments or
15 distributions pursuant to this paragraph shall be made if the
16 tax imposed by this Act on photoprocessing products is
17 declared unconstitutional, or if the proceeds from such tax
18 are unavailable for distribution because of litigation.
19 Subject to payment of amounts into the Build Illinois
20 Fund, the McCormick Place Expansion Project Fund, and the
21 Local Government Distributive Fund pursuant to the preceding
22 paragraphs or in any amendments thereto hereafter enacted,
23 beginning July 1, 1993, the Department shall each month pay
24 into the Illinois Tax Increment Fund 0.27% of 80% of the net
25 revenue realized for the preceding month from the 6.25%
26 general rate on the selling price of tangible personal
27 property.
28 Of the remainder of the moneys received by the Department
29 pursuant to this Act, 75% thereof shall be paid into the
30 State Treasury and 25% shall be reserved in a special account
31 and used only for the transfer to the Common School Fund as
32 part of the monthly transfer from the General Revenue Fund in
33 accordance with Section 8a of the State Finance Act.
34 As soon as possible after the first day of each month,
-23- LRB9100281NTmg
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month;
6 except that this transfer shall not be made for the months
7 February through June of 1992.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 For greater simplicity of administration, manufacturers,
13 importers and wholesalers whose products are sold at retail
14 in Illinois by numerous retailers, and who wish to do so, may
15 assume the responsibility for accounting and paying to the
16 Department all tax accruing under this Act with respect to
17 such sales, if the retailers who are affected do not make
18 written objection to the Department to this arrangement.
19 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
20 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
21 Section 20. The Service Use Tax Act is amended by
22 changing Section 9 as follows:
23 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
24 Sec. 9. Each serviceman required or authorized to
25 collect the tax herein imposed shall pay to the Department
26 the amount of such tax (except as otherwise provided) at the
27 time when he is required to file his return for the period
28 during which such tax was collected, less a discount of 2.1%
29 prior to January 1, 1990 and 1.75% on and after January 1,
30 1990, or $5 per calendar year, whichever is greater, which is
31 allowed to reimburse the serviceman for expenses incurred in
32 collecting the tax, keeping records, preparing and filing
-24- LRB9100281NTmg
1 returns, remitting the tax and supplying data to the
2 Department on request. A serviceman need not remit that part
3 of any tax collected by him to the extent that he is required
4 to pay and does pay the tax imposed by the Service Occupation
5 Tax Act with respect to his sale of service involving the
6 incidental transfer by him of the same property.
7 Except as provided hereinafter in this Section, on or
8 before the twentieth day of each calendar month, such
9 serviceman shall file a return for the preceding calendar
10 month in accordance with reasonable Rules and Regulations to
11 be promulgated by the Department. Such return shall be filed
12 on a form prescribed by the Department and shall contain such
13 information as the Department may reasonably require.
14 The Department may require returns to be filed on a
15 quarterly basis. If so required, a return for each calendar
16 quarter shall be filed on or before the twentieth day of the
17 calendar month following the end of such calendar quarter.
18 The taxpayer shall also file a return with the Department for
19 each of the first two months of each calendar quarter, on or
20 before the twentieth day of the following calendar month,
21 stating:
22 1. The name of the seller;
23 2. The address of the principal place of business
24 from which he engages in business as a serviceman in this
25 State;
26 3. The total amount of taxable receipts received by
27 him during the preceding calendar month, including
28 receipts from charge and time sales, but less all
29 deductions allowed by law;
30 4. The amount of credit provided in Section 2d of
31 this Act;
32 5. The amount of tax due;
33 5-5. The signature of the taxpayer; and
34 6. Such other reasonable information as the
-25- LRB9100281NTmg
1 Department may require.
2 If a taxpayer fails to sign a return within 30 days after
3 the proper notice and demand for signature by the Department,
4 the return shall be considered valid and any amount shown to
5 be due on the return shall be deemed assessed.
6 Beginning October 1, 1993, a taxpayer who has an average
7 monthly tax liability of $150,000 or more shall make all
8 payments required by rules of the Department by electronic
9 funds transfer. Beginning October 1, 1994, a taxpayer who
10 has an average monthly tax liability of $100,000 or more
11 shall make all payments required by rules of the Department
12 by electronic funds transfer. Beginning October 1, 1995, a
13 taxpayer who has an average monthly tax liability of $50,000
14 or more shall make all payments required by rules of the
15 Department by electronic funds transfer. The term "average
16 monthly tax liability" means the sum of the taxpayer's
17 liabilities under this Act, and under all other State and
18 local occupation and use tax laws administered by the
19 Department, for the immediately preceding calendar year
20 divided by 12.
21 Before August 1 of each year beginning in 1993, the
22 Department shall notify all taxpayers required to make
23 payments by electronic funds transfer. All taxpayers required
24 to make payments by electronic funds transfer shall make
25 those payments for a minimum of one year beginning on October
26 1.
27 Any taxpayer not required to make payments by electronic
28 funds transfer may make payments by electronic funds transfer
29 with the permission of the Department.
30 All taxpayers required to make payment by electronic
31 funds transfer and any taxpayers authorized to voluntarily
32 make payments by electronic funds transfer shall make those
33 payments in the manner authorized by the Department.
34 The Department shall adopt such rules as are necessary to
-26- LRB9100281NTmg
1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 If the serviceman is otherwise required to file a monthly
4 return and if the serviceman's average monthly tax liability
5 to the Department does not exceed $200, the Department may
6 authorize his returns to be filed on a quarter annual basis,
7 with the return for January, February and March of a given
8 year being due by April 20 of such year; with the return for
9 April, May and June of a given year being due by July 20 of
10 such year; with the return for July, August and September of
11 a given year being due by October 20 of such year, and with
12 the return for October, November and December of a given year
13 being due by January 20 of the following year.
14 If the serviceman is otherwise required to file a monthly
15 or quarterly return and if the serviceman's average monthly
16 tax liability to the Department does not exceed $50, the
17 Department may authorize his returns to be filed on an annual
18 basis, with the return for a given year being due by January
19 20 of the following year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a serviceman may file his
25 return, in the case of any serviceman who ceases to engage in
26 a kind of business which makes him responsible for filing
27 returns under this Act, such serviceman shall file a final
28 return under this Act with the Department not more than 1
29 month after discontinuing such business.
30 Where a serviceman collects the tax with respect to the
31 selling price of property which he sells and the purchaser
32 thereafter returns such property and the serviceman refunds
33 the selling price thereof to the purchaser, such serviceman
34 shall also refund, to the purchaser, the tax so collected
-27- LRB9100281NTmg
1 from the purchaser. When filing his return for the period in
2 which he refunds such tax to the purchaser, the serviceman
3 may deduct the amount of the tax so refunded by him to the
4 purchaser from any other Service Use Tax, Service Occupation
5 Tax, retailers' occupation tax or use tax which such
6 serviceman may be required to pay or remit to the Department,
7 as shown by such return, provided that the amount of the tax
8 to be deducted shall previously have been remitted to the
9 Department by such serviceman. If the serviceman shall not
10 previously have remitted the amount of such tax to the
11 Department, he shall be entitled to no deduction hereunder
12 upon refunding such tax to the purchaser.
13 Any serviceman filing a return hereunder shall also
14 include the total tax upon the selling price of tangible
15 personal property purchased for use by him as an incident to
16 a sale of service, and such serviceman shall remit the amount
17 of such tax to the Department when filing such return.
18 If experience indicates such action to be practicable,
19 the Department may prescribe and furnish a combination or
20 joint return which will enable servicemen, who are required
21 to file returns hereunder and also under the Service
22 Occupation Tax Act, to furnish all the return information
23 required by both Acts on the one form.
24 Where the serviceman has more than one business
25 registered with the Department under separate registration
26 hereunder, such serviceman shall not file each return that is
27 due as a single return covering all such registered
28 businesses, but shall file separate returns for each such
29 registered business.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the State and Local Tax Reform Fund, a special
32 fund in the State Treasury, the net revenue realized for the
33 preceding month from the 1% tax on sales of food for human
34 consumption which is to be consumed off the premises where it
-28- LRB9100281NTmg
1 is sold (other than alcoholic beverages, soft drinks and food
2 which has been prepared for immediate consumption) and
3 prescription and nonprescription medicines, drugs, medical
4 appliances and insulin, urine testing materials, syringes and
5 needles used by diabetics.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the State and Local Sales Tax Reform Fund 20%
8 of the net revenue realized for the preceding month from the
9 6.25% general rate on transfers of tangible personal
10 property, other than tangible personal property which is
11 purchased outside Illinois at retail from a retailer and
12 which is titled or registered by an agency of this State's
13 government.
14 Beginning July 1, 1999, each month the Department shall
15 pay into the Teach Illinois Fund 1.81% of the net revenue
16 realized for the preceding month from the 6.25% general rate
17 on the transfer of tangible personal property.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, (a) 1.75% thereof shall be paid into
20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
21 and on and after July 1, 1989, 3.8% thereof shall be paid
22 into the Build Illinois Fund; provided, however, that if in
23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24 as the case may be, of the moneys received by the Department
25 and required to be paid into the Build Illinois Fund pursuant
26 to Section 3 of the Retailers' Occupation Tax Act, Section 9
27 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
28 Section 9 of the Service Occupation Tax Act, such Acts being
29 hereinafter called the "Tax Acts" and such aggregate of 2.2%
30 or 3.8%, as the case may be, of moneys being hereinafter
31 called the "Tax Act Amount", and (2) the amount transferred
32 to the Build Illinois Fund from the State and Local Sales Tax
33 Reform Fund shall be less than the Annual Specified Amount
34 (as defined in Section 3 of the Retailers' Occupation Tax
-29- LRB9100281NTmg
1 Act), an amount equal to the difference shall be immediately
2 paid into the Build Illinois Fund from other moneys received
3 by the Department pursuant to the Tax Acts; and further
4 provided, that if on the last business day of any month the
5 sum of (1) the Tax Act Amount required to be deposited into
6 the Build Illinois Bond Account in the Build Illinois Fund
7 during such month and (2) the amount transferred during such
8 month to the Build Illinois Fund from the State and Local
9 Sales Tax Reform Fund shall have been less than 1/12 of the
10 Annual Specified Amount, an amount equal to the difference
11 shall be immediately paid into the Build Illinois Fund from
12 other moneys received by the Department pursuant to the Tax
13 Acts; and, further provided, that in no event shall the
14 payments required under the preceding proviso result in
15 aggregate payments into the Build Illinois Fund pursuant to
16 this clause (b) for any fiscal year in excess of the greater
17 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
18 for such fiscal year; and, further provided, that the amounts
19 payable into the Build Illinois Fund under this clause (b)
20 shall be payable only until such time as the aggregate amount
21 on deposit under each trust indenture securing Bonds issued
22 and outstanding pursuant to the Build Illinois Bond Act is
23 sufficient, taking into account any future investment income,
24 to fully provide, in accordance with such indenture, for the
25 defeasance of or the payment of the principal of, premium, if
26 any, and interest on the Bonds secured by such indenture and
27 on any Bonds expected to be issued thereafter and all fees
28 and costs payable with respect thereto, all as certified by
29 the Director of the Bureau of the Budget. If on the last
30 business day of any month in which Bonds are outstanding
31 pursuant to the Build Illinois Bond Act, the aggregate of the
32 moneys deposited in the Build Illinois Bond Account in the
33 Build Illinois Fund in such month shall be less than the
34 amount required to be transferred in such month from the
-30- LRB9100281NTmg
1 Build Illinois Bond Account to the Build Illinois Bond
2 Retirement and Interest Fund pursuant to Section 13 of the
3 Build Illinois Bond Act, an amount equal to such deficiency
4 shall be immediately paid from other moneys received by the
5 Department pursuant to the Tax Acts to the Build Illinois
6 Fund; provided, however, that any amounts paid to the Build
7 Illinois Fund in any fiscal year pursuant to this sentence
8 shall be deemed to constitute payments pursuant to clause (b)
9 of the preceding sentence and shall reduce the amount
10 otherwise payable for such fiscal year pursuant to clause (b)
11 of the preceding sentence. The moneys received by the
12 Department pursuant to this Act and required to be deposited
13 into the Build Illinois Fund are subject to the pledge, claim
14 and charge set forth in Section 12 of the Build Illinois Bond
15 Act.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in the preceding paragraph or in any
18 amendment thereto hereafter enacted, the following specified
19 monthly installment of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority provided under Section 8.25f of the
22 State Finance Act, but not in excess of the sums designated
23 as "Total Deposit", shall be deposited in the aggregate from
24 collections under Section 9 of the Use Tax Act, Section 9 of
25 the Service Use Tax Act, Section 9 of the Service Occupation
26 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
27 into the McCormick Place Expansion Project Fund in the
28 specified fiscal years.
29 Fiscal Year Total Deposit
30 1993 $0
31 1994 53,000,000
32 1995 58,000,000
33 1996 61,000,000
34 1997 64,000,000
-31- LRB9100281NTmg
1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 84,000,000
6 2003 89,000,000
7 2004 93,000,000
8 2005 97,000,000
9 2006 102,000,000
10 2007 and 106,000,000
11 each fiscal year
12 thereafter that bonds
13 are outstanding under
14 Section 13.2 of the
15 Metropolitan Pier and
16 Exposition Authority Act,
17 but not after fiscal year 2029.
18 Beginning July 20, 1993 and in each month of each fiscal
19 year thereafter, one-eighth of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority for that fiscal year, less the amount
22 deposited into the McCormick Place Expansion Project Fund by
23 the State Treasurer in the respective month under subsection
24 (g) of Section 13 of the Metropolitan Pier and Exposition
25 Authority Act, plus cumulative deficiencies in the deposits
26 required under this Section for previous months and years,
27 shall be deposited into the McCormick Place Expansion Project
28 Fund, until the full amount requested for the fiscal year,
29 but not in excess of the amount specified above as "Total
30 Deposit", has been deposited.
31 Subject to payment of amounts into the Build Illinois
32 Fund and the McCormick Place Expansion Project Fund pursuant
33 to the preceding paragraphs or in any amendment thereto
34 hereafter enacted, each month the Department shall pay into
-32- LRB9100281NTmg
1 the Local Government Distributive Fund 0.4% of the net
2 revenue realized for the preceding month from the 5% general
3 rate or 0.4% of 80% of the net revenue realized for the
4 preceding month from the 6.25% general rate, as the case may
5 be, on the selling price of tangible personal property which
6 amount shall, subject to appropriation, be distributed as
7 provided in Section 2 of the State Revenue Sharing Act. No
8 payments or distributions pursuant to this paragraph shall be
9 made if the tax imposed by this Act on photo processing
10 products is declared unconstitutional, or if the proceeds
11 from such tax are unavailable for distribution because of
12 litigation.
13 Subject to payment of amounts into the Build Illinois
14 Fund, the McCormick Place Expansion Project Fund, and the
15 Local Government Distributive Fund pursuant to the preceding
16 paragraphs or in any amendments thereto hereafter enacted,
17 beginning July 1, 1993, the Department shall each month pay
18 into the Illinois Tax Increment Fund 0.27% of 80% of the net
19 revenue realized for the preceding month from the 6.25%
20 general rate on the selling price of tangible personal
21 property.
22 All remaining moneys received by the Department pursuant
23 to this Act shall be paid into the General Revenue Fund of
24 the State Treasury.
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, 1992.
33 Net revenue realized for a month shall be the revenue
34 collected by the State pursuant to this Act, less the amount
-33- LRB9100281NTmg
1 paid out during that month as refunds to taxpayers for
2 overpayment of liability.
3 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
4 Section 25. The Service Occupation Tax Act is amended by
5 changing Section 9 as follows:
6 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
7 Sec. 9. Each serviceman required or authorized to
8 collect the tax herein imposed shall pay to the Department
9 the amount of such tax at the time when he is required to
10 file his return for the period during which such tax was
11 collectible, less a discount of 2.1% prior to January 1,
12 1990, and 1.75% on and after January 1, 1990, or $5 per
13 calendar year, whichever is greater, which is allowed to
14 reimburse the serviceman for expenses incurred in collecting
15 the tax, keeping records, preparing and filing returns,
16 remitting the tax and supplying data to the Department on
17 request.
18 Where such tangible personal property is sold under a
19 conditional sales contract, or under any other form of sale
20 wherein the payment of the principal sum, or a part thereof,
21 is extended beyond the close of the period for which the
22 return is filed, the serviceman, in collecting the tax may
23 collect, for each tax return period, only the tax applicable
24 to the part of the selling price actually received during
25 such tax return period.
26 Except as provided hereinafter in this Section, on or
27 before the twentieth day of each calendar month, such
28 serviceman shall file a return for the preceding calendar
29 month in accordance with reasonable rules and regulations to
30 be promulgated by the Department of Revenue. Such return
31 shall be filed on a form prescribed by the Department and
32 shall contain such information as the Department may
-34- LRB9100281NTmg
1 reasonably require.
2 The Department may require returns to be filed on a
3 quarterly basis. If so required, a return for each calendar
4 quarter shall be filed on or before the twentieth day of the
5 calendar month following the end of such calendar quarter.
6 The taxpayer shall also file a return with the Department for
7 each of the first two months of each calendar quarter, on or
8 before the twentieth day of the following calendar month,
9 stating:
10 1. The name of the seller;
11 2. The address of the principal place of business
12 from which he engages in business as a serviceman in this
13 State;
14 3. The total amount of taxable receipts received by
15 him during the preceding calendar month, including
16 receipts from charge and time sales, but less all
17 deductions allowed by law;
18 4. The amount of credit provided in Section 2d of
19 this Act;
20 5. The amount of tax due;
21 5-5. The signature of the taxpayer; and
22 6. Such other reasonable information as the
23 Department may require.
24 If a taxpayer fails to sign a return within 30 days after
25 the proper notice and demand for signature by the Department,
26 the return shall be considered valid and any amount shown to
27 be due on the return shall be deemed assessed.
28 A serviceman may accept a Manufacturer's Purchase Credit
29 certification from a purchaser in satisfaction of Service Use
30 Tax as provided in Section 3-70 of the Service Use Tax Act if
31 the purchaser provides the appropriate documentation as
32 required by Section 3-70 of the Service Use Tax Act. A
33 Manufacturer's Purchase Credit certification, accepted by a
34 serviceman as provided in Section 3-70 of the Service Use Tax
-35- LRB9100281NTmg
1 Act, may be used by that serviceman to satisfy Service
2 Occupation Tax liability in the amount claimed in the
3 certification, not to exceed 6.25% of the receipts subject to
4 tax from a qualifying purchase.
5 If the serviceman's average monthly tax liability to the
6 Department does not exceed $200, the Department may authorize
7 his returns to be filed on a quarter annual basis, with the
8 return for January, February and March of a given year being
9 due by April 20 of such year; with the return for April, May
10 and June of a given year being due by July 20 of such year;
11 with the return for July, August and September of a given
12 year being due by October 20 of such year, and with the
13 return for October, November and December of a given year
14 being due by January 20 of the following year.
15 If the serviceman's average monthly tax liability to the
16 Department does not exceed $50, the Department may authorize
17 his returns to be filed on an annual basis, with the return
18 for a given year being due by January 20 of the following
19 year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a serviceman may file his
25 return, in the case of any serviceman who ceases to engage in
26 a kind of business which makes him responsible for filing
27 returns under this Act, such serviceman shall file a final
28 return under this Act with the Department not more than 1
29 month after discontinuing such business.
30 Beginning October 1, 1993, a taxpayer who has an average
31 monthly tax liability of $150,000 or more shall make all
32 payments required by rules of the Department by electronic
33 funds transfer. Beginning October 1, 1994, a taxpayer who
34 has an average monthly tax liability of $100,000 or more
-36- LRB9100281NTmg
1 shall make all payments required by rules of the Department
2 by electronic funds transfer. Beginning October 1, 1995, a
3 taxpayer who has an average monthly tax liability of $50,000
4 or more shall make all payments required by rules of the
5 Department by electronic funds transfer. The term "average
6 monthly tax liability" means the sum of the taxpayer's
7 liabilities under this Act, and under all other State and
8 local occupation and use tax laws administered by the
9 Department, for the immediately preceding calendar year
10 divided by 12.
11 Before August 1 of each year beginning in 1993, the
12 Department shall notify all taxpayers required to make
13 payments by electronic funds transfer. All taxpayers
14 required to make payments by electronic funds transfer shall
15 make those payments for a minimum of one year beginning on
16 October 1.
17 Any taxpayer not required to make payments by electronic
18 funds transfer may make payments by electronic funds transfer
19 with the permission of the Department.
20 All taxpayers required to make payment by electronic
21 funds transfer and any taxpayers authorized to voluntarily
22 make payments by electronic funds transfer shall make those
23 payments in the manner authorized by the Department.
24 The Department shall adopt such rules as are necessary to
25 effectuate a program of electronic funds transfer and the
26 requirements of this Section.
27 Where a serviceman collects the tax with respect to the
28 selling price of tangible personal property which he sells
29 and the purchaser thereafter returns such tangible personal
30 property and the serviceman refunds the selling price thereof
31 to the purchaser, such serviceman shall also refund, to the
32 purchaser, the tax so collected from the purchaser. When
33 filing his return for the period in which he refunds such tax
34 to the purchaser, the serviceman may deduct the amount of the
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1 tax so refunded by him to the purchaser from any other
2 Service Occupation Tax, Service Use Tax, Retailers'
3 Occupation Tax or Use Tax which such serviceman may be
4 required to pay or remit to the Department, as shown by such
5 return, provided that the amount of the tax to be deducted
6 shall previously have been remitted to the Department by such
7 serviceman. If the serviceman shall not previously have
8 remitted the amount of such tax to the Department, he shall
9 be entitled to no deduction hereunder upon refunding such tax
10 to the purchaser.
11 If experience indicates such action to be practicable,
12 the Department may prescribe and furnish a combination or
13 joint return which will enable servicemen, who are required
14 to file returns hereunder and also under the Retailers'
15 Occupation Tax Act, the Use Tax Act or the Service Use Tax
16 Act, to furnish all the return information required by all
17 said Acts on the one form.
18 Where the serviceman has more than one business
19 registered with the Department under separate registrations
20 hereunder, such serviceman shall file separate returns for
21 each registered business.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund the revenue
24 realized for the preceding month from the 1% tax on sales of
25 food for human consumption which is to be consumed off the
26 premises where it is sold (other than alcoholic beverages,
27 soft drinks and food which has been prepared for immediate
28 consumption) and prescription and nonprescription medicines,
29 drugs, medical appliances and insulin, urine testing
30 materials, syringes and needles used by diabetics.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the County and Mass Transit District Fund 4%
33 of the revenue realized for the preceding month from the
34 6.25% general rate.
-38- LRB9100281NTmg
1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the
3 revenue realized for the preceding month from the 6.25%
4 general rate on transfers of tangible personal property.
5 Beginning July 1, 1999, each month the Department shall
6 pay into the Teach Illinois Fund 1.81% of the net revenue
7 realized for the preceding month from the 6.25% general rate
8 on the transfer of tangible personal property.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act, (a) 1.75% thereof shall be paid into
11 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
12 and on and after July 1, 1989, 3.8% thereof shall be paid
13 into the Build Illinois Fund; provided, however, that if in
14 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
15 as the case may be, of the moneys received by the Department
16 and required to be paid into the Build Illinois Fund pursuant
17 to Section 3 of the Retailers' Occupation Tax Act, Section 9
18 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
19 Section 9 of the Service Occupation Tax Act, such Acts being
20 hereinafter called the "Tax Acts" and such aggregate of 2.2%
21 or 3.8%, as the case may be, of moneys being hereinafter
22 called the "Tax Act Amount", and (2) the amount transferred
23 to the Build Illinois Fund from the State and Local Sales Tax
24 Reform Fund shall be less than the Annual Specified Amount
25 (as defined in Section 3 of the Retailers' Occupation Tax
26 Act), an amount equal to the difference shall be immediately
27 paid into the Build Illinois Fund from other moneys received
28 by the Department pursuant to the Tax Acts; and further
29 provided, that if on the last business day of any month the
30 sum of (1) the Tax Act Amount required to be deposited into
31 the Build Illinois Account in the Build Illinois Fund during
32 such month and (2) the amount transferred during such month
33 to the Build Illinois Fund from the State and Local Sales Tax
34 Reform Fund shall have been less than 1/12 of the Annual
-39- LRB9100281NTmg
1 Specified Amount, an amount equal to the difference shall be
2 immediately paid into the Build Illinois Fund from other
3 moneys received by the Department pursuant to the Tax Acts;
4 and, further provided, that in no event shall the payments
5 required under the preceding proviso result in aggregate
6 payments into the Build Illinois Fund pursuant to this clause
7 (b) for any fiscal year in excess of the greater of (i) the
8 Tax Act Amount or (ii) the Annual Specified Amount for such
9 fiscal year; and, further provided, that the amounts payable
10 into the Build Illinois Fund under this clause (b) shall be
11 payable only until such time as the aggregate amount on
12 deposit under each trust indenture securing Bonds issued and
13 outstanding pursuant to the Build Illinois Bond Act is
14 sufficient, taking into account any future investment income,
15 to fully provide, in accordance with such indenture, for the
16 defeasance of or the payment of the principal of, premium, if
17 any, and interest on the Bonds secured by such indenture and
18 on any Bonds expected to be issued thereafter and all fees
19 and costs payable with respect thereto, all as certified by
20 the Director of the Bureau of the Budget. If on the last
21 business day of any month in which Bonds are outstanding
22 pursuant to the Build Illinois Bond Act, the aggregate of the
23 moneys deposited in the Build Illinois Bond Account in the
24 Build Illinois Fund in such month shall be less than the
25 amount required to be transferred in such month from the
26 Build Illinois Bond Account to the Build Illinois Bond
27 Retirement and Interest Fund pursuant to Section 13 of the
28 Build Illinois Bond Act, an amount equal to such deficiency
29 shall be immediately paid from other moneys received by the
30 Department pursuant to the Tax Acts to the Build Illinois
31 Fund; provided, however, that any amounts paid to the Build
32 Illinois Fund in any fiscal year pursuant to this sentence
33 shall be deemed to constitute payments pursuant to clause (b)
34 of the preceding sentence and shall reduce the amount
-40- LRB9100281NTmg
1 otherwise payable for such fiscal year pursuant to clause (b)
2 of the preceding sentence. The moneys received by the
3 Department pursuant to this Act and required to be deposited
4 into the Build Illinois Fund are subject to the pledge, claim
5 and charge set forth in Section 12 of the Build Illinois Bond
6 Act.
7 Subject to payment of amounts into the Build Illinois
8 Fund as provided in the preceding paragraph or in any
9 amendment thereto hereafter enacted, the following specified
10 monthly installment of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority provided under Section 8.25f of the
13 State Finance Act, but not in excess of the sums designated
14 as "Total Deposit", shall be deposited in the aggregate from
15 collections under Section 9 of the Use Tax Act, Section 9 of
16 the Service Use Tax Act, Section 9 of the Service Occupation
17 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
18 into the McCormick Place Expansion Project Fund in the
19 specified fiscal years.
20 Fiscal Year Total Deposit
21 1993 $0
22 1994 53,000,000
23 1995 58,000,000
24 1996 61,000,000
25 1997 64,000,000
26 1998 68,000,000
27 1999 71,000,000
28 2000 75,000,000
29 2001 80,000,000
30 2002 84,000,000
31 2003 89,000,000
32 2004 93,000,000
33 2005 97,000,000
34 2006 102,000,000
-41- LRB9100281NTmg
1 2007 and 106,000,000
2 each fiscal year
3 thereafter that bonds
4 are outstanding under
5 Section 13.2 of the
6 Metropolitan Pier and
7 Exposition Authority
8 Act, but not after fiscal year 2029.
9 Beginning July 20, 1993 and in each month of each fiscal
10 year thereafter, one-eighth of the amount requested in the
11 certificate of the Chairman of the Metropolitan Pier and
12 Exposition Authority for that fiscal year, less the amount
13 deposited into the McCormick Place Expansion Project Fund by
14 the State Treasurer in the respective month under subsection
15 (g) of Section 13 of the Metropolitan Pier and Exposition
16 Authority Act, plus cumulative deficiencies in the deposits
17 required under this Section for previous months and years,
18 shall be deposited into the McCormick Place Expansion Project
19 Fund, until the full amount requested for the fiscal year,
20 but not in excess of the amount specified above as "Total
21 Deposit", has been deposited.
22 Subject to payment of amounts into the Build Illinois
23 Fund and the McCormick Place Expansion Project Fund pursuant
24 to the preceding paragraphs or in any amendment thereto
25 hereafter enacted, each month the Department shall pay into
26 the Local Government Distributive Fund 0.4% of the net
27 revenue realized for the preceding month from the 5% general
28 rate or 0.4% of 80% of the net revenue realized for the
29 preceding month from the 6.25% general rate, as the case may
30 be, on the selling price of tangible personal property which
31 amount shall, subject to appropriation, be distributed as
32 provided in Section 2 of the State Revenue Sharing Act. No
33 payments or distributions pursuant to this paragraph shall be
34 made if the tax imposed by this Act on photoprocessing
-42- LRB9100281NTmg
1 products is declared unconstitutional, or if the proceeds
2 from such tax are unavailable for distribution because of
3 litigation.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project Fund, and the
6 Local Government Distributive Fund pursuant to the preceding
7 paragraphs or in any amendments thereto hereafter enacted,
8 beginning July 1, 1993, the Department shall each month pay
9 into the Illinois Tax Increment Fund 0.27% of 80% of the net
10 revenue realized for the preceding month from the 6.25%
11 general rate on the selling price of tangible personal
12 property.
13 Remaining moneys received by the Department pursuant to
14 this Act shall be paid into the General Revenue Fund of the
15 State Treasury.
16 The Department may, upon separate written notice to a
17 taxpayer, require the taxpayer to prepare and file with the
18 Department on a form prescribed by the Department within not
19 less than 60 days after receipt of the notice an annual
20 information return for the tax year specified in the notice.
21 Such annual return to the Department shall include a
22 statement of gross receipts as shown by the taxpayer's last
23 Federal income tax return. If the total receipts of the
24 business as reported in the Federal income tax return do not
25 agree with the gross receipts reported to the Department of
26 Revenue for the same period, the taxpayer shall attach to his
27 annual return a schedule showing a reconciliation of the 2
28 amounts and the reasons for the difference. The taxpayer's
29 annual return to the Department shall also disclose the cost
30 of goods sold by the taxpayer during the year covered by such
31 return, opening and closing inventories of such goods for
32 such year, cost of goods used from stock or taken from stock
33 and given away by the taxpayer during such year, pay roll
34 information of the taxpayer's business during such year and
-43- LRB9100281NTmg
1 any additional reasonable information which the Department
2 deems would be helpful in determining the accuracy of the
3 monthly, quarterly or annual returns filed by such taxpayer
4 as hereinbefore provided for in this Section.
5 If the annual information return required by this Section
6 is not filed when and as required, the taxpayer shall be
7 liable as follows:
8 (i) Until January 1, 1994, the taxpayer shall be
9 liable for a penalty equal to 1/6 of 1% of the tax due
10 from such taxpayer under this Act during the period to be
11 covered by the annual return for each month or fraction
12 of a month until such return is filed as required, the
13 penalty to be assessed and collected in the same manner
14 as any other penalty provided for in this Act.
15 (ii) On and after January 1, 1994, the taxpayer
16 shall be liable for a penalty as described in Section 3-4
17 of the Uniform Penalty and Interest Act.
18 The chief executive officer, proprietor, owner or highest
19 ranking manager shall sign the annual return to certify the
20 accuracy of the information contained therein. Any person
21 who willfully signs the annual return containing false or
22 inaccurate information shall be guilty of perjury and
23 punished accordingly. The annual return form prescribed by
24 the Department shall include a warning that the person
25 signing the return may be liable for perjury.
26 The foregoing portion of this Section concerning the
27 filing of an annual information return shall not apply to a
28 serviceman who is not required to file an income tax return
29 with the United States Government.
30 As soon as possible after the first day of each month,
31 upon certification of the Department of Revenue, the
32 Comptroller shall order transferred and the Treasurer shall
33 transfer from the General Revenue Fund to the Motor Fuel Tax
34 Fund an amount equal to 1.7% of 80% of the net revenue
-44- LRB9100281NTmg
1 realized under this Act for the second preceding month;
2 except that this transfer shall not be made for the months
3 February through June, 1992.
4 Net revenue realized for a month shall be the revenue
5 collected by the State pursuant to this Act, less the amount
6 paid out during that month as refunds to taxpayers for
7 overpayment of liability.
8 For greater simplicity of administration, it shall be
9 permissible for manufacturers, importers and wholesalers
10 whose products are sold by numerous servicemen in Illinois,
11 and who wish to do so, to assume the responsibility for
12 accounting and paying to the Department all tax accruing
13 under this Act with respect to such sales, if the servicemen
14 who are affected do not make written objection to the
15 Department to this arrangement.
16 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
17 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
18 7-8-98.)
19 Section 30. The Retailers' Occupation Tax Act is amended
20 by changing Section 3 as follows:
21 (35 ILCS 120/3) (from Ch. 120, par. 442)
22 Sec. 3. Except as provided in this Section, on or before
23 the twentieth day of each calendar month, every person
24 engaged in the business of selling tangible personal property
25 at retail in this State during the preceding calendar month
26 shall file a return with the Department, stating:
27 1. The name of the seller;
28 2. His residence address and the address of his
29 principal place of business and the address of the
30 principal place of business (if that is a different
31 address) from which he engages in the business of selling
32 tangible personal property at retail in this State;
-45- LRB9100281NTmg
1 3. Total amount of receipts received by him during
2 the preceding calendar month or quarter, as the case may
3 be, from sales of tangible personal property, and from
4 services furnished, by him during such preceding calendar
5 month or quarter;
6 4. Total amount received by him during the
7 preceding calendar month or quarter on charge and time
8 sales of tangible personal property, and from services
9 furnished, by him prior to the month or quarter for which
10 the return is filed;
11 5. Deductions allowed by law;
12 6. Gross receipts which were received by him during
13 the preceding calendar month or quarter and upon the
14 basis of which the tax is imposed;
15 7. The amount of credit provided in Section 2d of
16 this Act;
17 8. The amount of tax due;
18 9. The signature of the taxpayer; and
19 10. Such other reasonable information as the
20 Department may require.
21 If a taxpayer fails to sign a return within 30 days after
22 the proper notice and demand for signature by the Department,
23 the return shall be considered valid and any amount shown to
24 be due on the return shall be deemed assessed.
25 Each return shall be accompanied by the statement of
26 prepaid tax issued pursuant to Section 2e for which credit is
27 claimed.
28 A retailer may accept a Manufacturer's Purchase Credit
29 certification from a purchaser in satisfaction of Use Tax as
30 provided in Section 3-85 of the Use Tax Act if the purchaser
31 provides the appropriate documentation as required by Section
32 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
33 certification, accepted by a retailer as provided in Section
34 3-85 of the Use Tax Act, may be used by that retailer to
-46- LRB9100281NTmg
1 satisfy Retailers' Occupation Tax liability in the amount
2 claimed in the certification, not to exceed 6.25% of the
3 receipts subject to tax from a qualifying purchase.
4 The Department may require returns to be filed on a
5 quarterly basis. If so required, a return for each calendar
6 quarter shall be filed on or before the twentieth day of the
7 calendar month following the end of such calendar quarter.
8 The taxpayer shall also file a return with the Department for
9 each of the first two months of each calendar quarter, on or
10 before the twentieth day of the following calendar month,
11 stating:
12 1. The name of the seller;
13 2. The address of the principal place of business
14 from which he engages in the business of selling tangible
15 personal property at retail in this State;
16 3. The total amount of taxable receipts received by
17 him during the preceding calendar month from sales of
18 tangible personal property by him during such preceding
19 calendar month, including receipts from charge and time
20 sales, but less all deductions allowed by law;
21 4. The amount of credit provided in Section 2d of
22 this Act;
23 5. The amount of tax due; and
24 6. Such other reasonable information as the
25 Department may require.
26 If a total amount of less than $1 is payable, refundable
27 or creditable, such amount shall be disregarded if it is less
28 than 50 cents and shall be increased to $1 if it is 50 cents
29 or more.
30 Beginning October 1, 1993, a taxpayer who has an average
31 monthly tax liability of $150,000 or more shall make all
32 payments required by rules of the Department by electronic
33 funds transfer. Beginning October 1, 1994, a taxpayer who
34 has an average monthly tax liability of $100,000 or more
-47- LRB9100281NTmg
1 shall make all payments required by rules of the Department
2 by electronic funds transfer. Beginning October 1, 1995, a
3 taxpayer who has an average monthly tax liability of $50,000
4 or more shall make all payments required by rules of the
5 Department by electronic funds transfer. The term "average
6 monthly tax liability" shall be the sum of the taxpayer's
7 liabilities under this Act, and under all other State and
8 local occupation and use tax laws administered by the
9 Department, for the immediately preceding calendar year
10 divided by 12.
11 Before August 1 of each year beginning in 1993, the
12 Department shall notify all taxpayers required to make
13 payments by electronic funds transfer. All taxpayers
14 required to make payments by electronic funds transfer shall
15 make those payments for a minimum of one year beginning on
16 October 1.
17 Any taxpayer not required to make payments by electronic
18 funds transfer may make payments by electronic funds transfer
19 with the permission of the Department.
20 All taxpayers required to make payment by electronic
21 funds transfer and any taxpayers authorized to voluntarily
22 make payments by electronic funds transfer shall make those
23 payments in the manner authorized by the Department.
24 The Department shall adopt such rules as are necessary to
25 effectuate a program of electronic funds transfer and the
26 requirements of this Section.
27 Any amount which is required to be shown or reported on
28 any return or other document under this Act shall, if such
29 amount is not a whole-dollar amount, be increased to the
30 nearest whole-dollar amount in any case where the fractional
31 part of a dollar is 50 cents or more, and decreased to the
32 nearest whole-dollar amount where the fractional part of a
33 dollar is less than 50 cents.
34 If the retailer is otherwise required to file a monthly
-48- LRB9100281NTmg
1 return and if the retailer's average monthly tax liability to
2 the Department does not exceed $200, the Department may
3 authorize his returns to be filed on a quarter annual basis,
4 with the return for January, February and March of a given
5 year being due by April 20 of such year; with the return for
6 April, May and June of a given year being due by July 20 of
7 such year; with the return for July, August and September of
8 a given year being due by October 20 of such year, and with
9 the return for October, November and December of a given year
10 being due by January 20 of the following year.
11 If the retailer is otherwise required to file a monthly
12 or quarterly return and if the retailer's average monthly tax
13 liability with the Department does not exceed $50, the
14 Department may authorize his returns to be filed on an annual
15 basis, with the return for a given year being due by January
16 20 of the following year.
17 Such quarter annual and annual returns, as to form and
18 substance, shall be subject to the same requirements as
19 monthly returns.
20 Notwithstanding any other provision in this Act
21 concerning the time within which a retailer may file his
22 return, in the case of any retailer who ceases to engage in a
23 kind of business which makes him responsible for filing
24 returns under this Act, such retailer shall file a final
25 return under this Act with the Department not more than one
26 month after discontinuing such business.
27 Where the same person has more than one business
28 registered with the Department under separate registrations
29 under this Act, such person may not file each return that is
30 due as a single return covering all such registered
31 businesses, but shall file separate returns for each such
32 registered business.
33 In addition, with respect to motor vehicles, watercraft,
34 aircraft, and trailers that are required to be registered
-49- LRB9100281NTmg
1 with an agency of this State, every retailer selling this
2 kind of tangible personal property shall file, with the
3 Department, upon a form to be prescribed and supplied by the
4 Department, a separate return for each such item of tangible
5 personal property which the retailer sells, except that
6 where, in the same transaction, a retailer of aircraft,
7 watercraft, motor vehicles or trailers transfers more than
8 one aircraft, watercraft, motor vehicle or trailer to another
9 aircraft, watercraft, motor vehicle retailer or trailer
10 retailer for the purpose of resale, that seller for resale
11 may report the transfer of all aircraft, watercraft, motor
12 vehicles or trailers involved in that transaction to the
13 Department on the same uniform invoice-transaction reporting
14 return form. For purposes of this Section, "watercraft"
15 means a Class 2, Class 3, or Class 4 watercraft as defined in
16 Section 3-2 of the Boat Registration and Safety Act, a
17 personal watercraft, or any boat equipped with an inboard
18 motor.
19 Any retailer who sells only motor vehicles, watercraft,
20 aircraft, or trailers that are required to be registered with
21 an agency of this State, so that all retailers' occupation
22 tax liability is required to be reported, and is reported, on
23 such transaction reporting returns and who is not otherwise
24 required to file monthly or quarterly returns, need not file
25 monthly or quarterly returns. However, those retailers shall
26 be required to file returns on an annual basis.
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
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1 by the retailer for the traded-in tangible personal property,
2 if any, to the extent to which Section 1 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 or 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 1 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 day of delivery of the item that
33 is being sold, but may be filed by the retailer at any time
34 sooner than that if he chooses to do so. The transaction
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1 reporting return and tax remittance or proof of exemption
2 from the Illinois use tax may be transmitted to the
3 Department by way of the State agency with which, or State
4 officer with whom the tangible personal property must be
5 titled or registered (if titling or registration is required)
6 if the Department and such agency or State officer determine
7 that this procedure will expedite the processing of
8 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 use 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 the tax or proof of exemption made to the Department
33 before the retailer is willing to take these actions and such
34 user has not paid the tax to the retailer, such user may
-52- LRB9100281NTmg
1 certify to the fact of such delay by the retailer and may
2 (upon the 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 Refunds made by the seller during the preceding return
16 period to purchasers, on account of tangible personal
17 property returned to the seller, shall be allowed as a
18 deduction under subdivision 5 of his monthly or quarterly
19 return, as the case may be, in case the seller had
20 theretofore included the receipts from the sale of such
21 tangible personal property in a return filed by him and had
22 paid the tax imposed by this Act with respect to such
23 receipts.
24 Where the seller is a corporation, the return filed on
25 behalf of such corporation shall be signed by the president,
26 vice-president, secretary or treasurer or by the properly
27 accredited agent of such corporation.
28 Where the seller is a limited liability company, the
29 return filed on behalf of the limited liability company shall
30 be signed by a manager, member, or properly accredited agent
31 of the limited liability company.
32 Except as provided in this Section, the retailer filing
33 the return under this Section shall, at the time of filing
34 such return, pay to the Department the amount of tax imposed
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1 by this Act less a discount of 2.1% prior to January 1, 1990
2 and 1.75% on and after January 1, 1990, or $5 per calendar
3 year, whichever is greater, which is allowed to reimburse the
4 retailer for the expenses incurred in keeping records,
5 preparing and filing returns, remitting the tax and supplying
6 data to the Department on request. Any prepayment made
7 pursuant to Section 2d of this Act shall be included in the
8 amount on which such 2.1% or 1.75% discount is computed. In
9 the case of retailers who report and pay the tax on a
10 transaction by transaction basis, as provided in this
11 Section, such discount shall be taken with each such tax
12 remittance instead of when such retailer files his periodic
13 return.
14 If the taxpayer's average monthly tax liability to the
15 Department under this Act, the Use Tax Act, the Service
16 Occupation Tax Act, and the Service Use Tax Act, excluding
17 any liability for prepaid sales tax to be remitted in
18 accordance with Section 2d of this Act, was $10,000 or more
19 during the preceding 4 complete calendar quarters, he shall
20 file a return with the Department each month by the 20th day
21 of the month next following the month during which such tax
22 liability is incurred and shall make payments to the
23 Department on or before the 7th, 15th, 22nd and last day of
24 the month during which such liability is incurred. If the
25 month during which such tax liability is incurred began prior
26 to January 1, 1985, each payment shall be in an amount equal
27 to 1/4 of the taxpayer's actual liability for the month or an
28 amount set by the Department not to exceed 1/4 of the average
29 monthly liability of the taxpayer to the Department for the
30 preceding 4 complete calendar quarters (excluding the month
31 of highest liability and the month of lowest liability in
32 such 4 quarter period). If the month during which such tax
33 liability is incurred begins on or after January 1, 1985 and
34 prior to January 1, 1987, each payment shall be in an amount
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1 equal to 22.5% of the taxpayer's actual liability for the
2 month or 27.5% of the taxpayer's liability for the same
3 calendar month of the preceding year. If the month during
4 which such tax liability is incurred begins on or after
5 January 1, 1987 and prior to January 1, 1988, each payment
6 shall be in an amount equal to 22.5% of the taxpayer's actual
7 liability for the month or 26.25% of the taxpayer's liability
8 for the same calendar month of the preceding year. If the
9 month during which such tax liability is incurred begins on
10 or after January 1, 1988, and prior to January 1, 1989, or
11 begins on or after January 1, 1996, each payment shall be in
12 an amount equal to 22.5% of the taxpayer's actual liability
13 for the month or 25% of the taxpayer's liability for the same
14 calendar month of the preceding year. If the month during
15 which such tax liability is incurred begins on or after
16 January 1, 1989, and prior to January 1, 1996, each payment
17 shall be in an amount equal to 22.5% of the taxpayer's actual
18 liability for the month or 25% of the taxpayer's liability
19 for the same calendar month of the preceding year or 100% of
20 the taxpayer's actual liability for the quarter monthly
21 reporting period. The amount of such quarter monthly
22 payments shall be credited against the final tax liability of
23 the taxpayer's return for that month. Once applicable, the
24 requirement of the making of quarter monthly payments to the
25 Department by taxpayers having an average monthly tax
26 liability of $10,000 or more as determined in the manner
27 provided above shall continue until such taxpayer's average
28 monthly liability to the Department during the preceding 4
29 complete calendar quarters (excluding the month of highest
30 liability and the month of lowest liability) is less than
31 $9,000, or until such taxpayer's average monthly liability to
32 the Department as computed for each calendar quarter of the 4
33 preceding complete calendar quarter period is less than
34 $10,000. However, if a taxpayer can show the Department that
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1 a substantial change in the taxpayer's business has occurred
2 which causes the taxpayer to anticipate that his average
3 monthly tax liability for the reasonably foreseeable future
4 will fall below $10,000, then such taxpayer may petition the
5 Department for a change in such taxpayer's reporting status.
6 The Department shall change such taxpayer's reporting status
7 unless it finds that such change is seasonal in nature and
8 not likely to be long term. If any such quarter monthly
9 payment is not paid at the time or in the amount required by
10 this Section, then the taxpayer shall be liable for penalties
11 and interest on the difference between the minimum amount due
12 as a payment and the amount of such quarter monthly payment
13 actually and timely paid, except insofar as the taxpayer has
14 previously made payments for that month to the Department in
15 excess of the minimum payments previously due as provided in
16 this Section. The Department shall make reasonable rules and
17 regulations to govern the quarter monthly payment amount and
18 quarter monthly payment dates for taxpayers who file on other
19 than a calendar monthly basis.
20 Without regard to whether a taxpayer is required to make
21 quarter monthly payments as specified above, any taxpayer who
22 is required by Section 2d of this Act to collect and remit
23 prepaid taxes and has collected prepaid taxes which average
24 in excess of $25,000 per month during the preceding 2
25 complete calendar quarters, shall file a return with the
26 Department as required by Section 2f and shall make payments
27 to the Department on or before the 7th, 15th, 22nd and last
28 day of the month during which such liability is incurred. If
29 the month during which such tax liability is incurred began
30 prior to the effective date of this amendatory Act of 1985,
31 each payment shall be in an amount not less than 22.5% of the
32 taxpayer's actual liability under Section 2d. If the month
33 during which such tax liability is incurred begins on or
34 after January 1, 1986, each payment shall be in an amount
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1 equal to 22.5% of the taxpayer's actual liability for the
2 month or 27.5% of the taxpayer's liability for the same
3 calendar month of the preceding calendar year. If the month
4 during which such tax liability is incurred begins on or
5 after January 1, 1987, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 26.25% of the taxpayer's liability for the same
8 calendar month of the preceding year. The amount of such
9 quarter monthly payments shall be credited against the final
10 tax liability of the taxpayer's return for that month filed
11 under this Section or Section 2f, as the case may be. Once
12 applicable, the requirement of the making of quarter monthly
13 payments to the Department pursuant to this paragraph shall
14 continue until such taxpayer's average monthly prepaid tax
15 collections during the preceding 2 complete calendar quarters
16 is $25,000 or less. If any such quarter monthly payment is
17 not paid at the time or in the amount required, the taxpayer
18 shall be liable for penalties and interest on such
19 difference, except insofar as the taxpayer has previously
20 made payments for that month in excess of the minimum
21 payments previously due.
22 If any payment provided for in this Section exceeds the
23 taxpayer's liabilities under this Act, the Use Tax Act, the
24 Service Occupation Tax Act and the Service Use Tax Act, as
25 shown on an original monthly return, the Department shall, if
26 requested by the taxpayer, issue to the taxpayer a credit
27 memorandum no later than 30 days after the date of payment.
28 The credit evidenced by such credit memorandum may be
29 assigned by the taxpayer to a similar taxpayer under this
30 Act, the Use Tax Act, the Service Occupation Tax Act or the
31 Service Use Tax Act, in accordance with reasonable rules and
32 regulations to be prescribed by the Department. If no such
33 request is made, the taxpayer may credit such excess payment
34 against tax liability subsequently to be remitted to the
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1 Department under this Act, the Use Tax Act, the Service
2 Occupation Tax Act or the Service Use Tax Act, in accordance
3 with reasonable rules and regulations prescribed by the
4 Department. If the Department subsequently determined that
5 all or any part of the credit taken was not actually due to
6 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
7 shall be reduced by 2.1% or 1.75% of the difference between
8 the credit taken and that actually due, and that taxpayer
9 shall be liable for penalties and interest on such
10 difference.
11 If a retailer of motor fuel is entitled to a credit under
12 Section 2d of this Act which exceeds the taxpayer's liability
13 to the Department under this Act for the month which the
14 taxpayer is filing a return, the Department shall issue the
15 taxpayer a credit memorandum for the excess.
16 Beginning January 1, 1990, each month the Department
17 shall pay into the Local Government Tax Fund, a special fund
18 in the State treasury which is hereby created, the net
19 revenue realized for the preceding month from the 1% tax on
20 sales of food for human consumption which is to be consumed
21 off the premises where it is sold (other than alcoholic
22 beverages, soft drinks and food which has been prepared for
23 immediate consumption) and prescription and nonprescription
24 medicines, drugs, medical appliances and insulin, urine
25 testing materials, syringes and needles used by diabetics.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the County and Mass Transit District Fund, a
28 special fund in the State treasury which is hereby created,
29 4% of the net revenue realized for the preceding month from
30 the 6.25% general rate.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
33 revenue realized for the preceding month from the 6.25%
34 general rate on the selling price of tangible personal
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1 property.
2 Beginning July 1, 1999, each month the Department shall
3 pay into the Teach Illinois Fund 1.81% of the net revenues
4 realized for the preceding month from the 6.25% general rate
5 on the selling price of tangible personal property.
6 Of the remainder of the moneys received by the Department
7 pursuant to this Act, (a) 1.75% thereof shall be paid into
8 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
9 and on and after July 1, 1989, 3.8% thereof shall be paid
10 into the Build Illinois Fund; provided, however, that if in
11 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12 as the case may be, of the moneys received by the Department
13 and required to be paid into the Build Illinois Fund pursuant
14 to this Act, Section 9 of the Use Tax Act, Section 9 of the
15 Service Use Tax Act, and Section 9 of the Service Occupation
16 Tax Act, such Acts being hereinafter called the "Tax Acts"
17 and such aggregate of 2.2% or 3.8%, as the case may be, of
18 moneys being hereinafter called the "Tax Act Amount", and (2)
19 the amount transferred to the Build Illinois Fund from the
20 State and Local Sales Tax Reform Fund shall be less than the
21 Annual Specified Amount (as hereinafter defined), an amount
22 equal to the difference shall be immediately paid into the
23 Build Illinois Fund from other moneys received by the
24 Department pursuant to the Tax Acts; the "Annual Specified
25 Amount" means the amounts specified below for fiscal years
26 1986 through 1993:
27 Fiscal Year Annual Specified Amount
28 1986 $54,800,000
29 1987 $76,650,000
30 1988 $80,480,000
31 1989 $88,510,000
32 1990 $115,330,000
33 1991 $145,470,000
34 1992 $182,730,000
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1 1993 $206,520,000;
2 and means the Certified Annual Debt Service Requirement (as
3 defined in Section 13 of the Build Illinois Bond Act) or the
4 Tax Act Amount, whichever is greater, for fiscal year 1994
5 and each fiscal year thereafter; and further provided, that
6 if on the last business day of any month the sum of (1) the
7 Tax Act Amount required to be deposited into the Build
8 Illinois Bond Account in the Build Illinois Fund during such
9 month and (2) the amount transferred to the Build Illinois
10 Fund from the State and Local Sales Tax Reform Fund shall
11 have been less than 1/12 of the Annual Specified Amount, an
12 amount equal to the difference shall be immediately paid into
13 the Build Illinois Fund from other moneys received by the
14 Department pursuant to the Tax Acts; and, further provided,
15 that in no event shall the payments required under the
16 preceding proviso result in aggregate payments into the Build
17 Illinois Fund pursuant to this clause (b) for any fiscal year
18 in excess of the greater of (i) the Tax Act Amount or (ii)
19 the Annual Specified Amount for such fiscal year. The
20 amounts payable into the Build Illinois Fund under clause (b)
21 of the first sentence in this paragraph shall be payable only
22 until such time as the aggregate amount on deposit under each
23 trust indenture securing Bonds issued and outstanding
24 pursuant to the Build Illinois Bond Act is sufficient, taking
25 into account any future investment income, to fully provide,
26 in accordance with such indenture, for the defeasance of or
27 the payment of the principal of, premium, if any, and
28 interest on the Bonds secured by such indenture and on any
29 Bonds expected to be issued thereafter and all fees and costs
30 payable with respect thereto, all as certified by the
31 Director of the Bureau of the Budget. If on the last
32 business day of any month in which Bonds are outstanding
33 pursuant to the Build Illinois Bond Act, the aggregate of
34 moneys deposited in the Build Illinois Bond Account in the
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1 Build Illinois Fund in such month shall be less than the
2 amount required to be transferred in such month from the
3 Build Illinois Bond Account to the Build Illinois Bond
4 Retirement and Interest Fund pursuant to Section 13 of the
5 Build Illinois Bond Act, an amount equal to such deficiency
6 shall be immediately paid from other moneys received by the
7 Department pursuant to the Tax Acts to the Build Illinois
8 Fund; provided, however, that any amounts paid to the Build
9 Illinois Fund in any fiscal year pursuant to this sentence
10 shall be deemed to constitute payments pursuant to clause (b)
11 of the first sentence of this paragraph and shall reduce the
12 amount otherwise payable for such fiscal year pursuant to
13 that clause (b). The moneys received by the Department
14 pursuant to this Act and required to be deposited into the
15 Build Illinois Fund are subject to the pledge, claim and
16 charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois
19 Fund as provided in the preceding paragraph or in any
20 amendment thereto hereafter enacted, the following specified
21 monthly installment of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority provided under Section 8.25f of the
24 State Finance Act, but not in excess of sums designated as
25 "Total Deposit", shall be deposited in the aggregate from
26 collections under Section 9 of the Use Tax Act, Section 9 of
27 the Service Use Tax Act, Section 9 of the Service Occupation
28 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
29 into the McCormick Place Expansion Project Fund in the
30 specified fiscal years.
31 Fiscal Year Total Deposit
32 1993 $0
33 1994 53,000,000
34 1995 58,000,000
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1 1996 61,000,000
2 1997 64,000,000
3 1998 68,000,000
4 1999 71,000,000
5 2000 75,000,000
6 2001 80,000,000
7 2002 84,000,000
8 2003 89,000,000
9 2004 93,000,000
10 2005 97,000,000
11 2006 102,000,000
12 2007 and 106,000,000
13 each fiscal year
14 thereafter that bonds
15 are outstanding under
16 Section 13.2 of the
17 Metropolitan Pier and
18 Exposition Authority
19 Act, but not after fiscal year 2029.
20 Beginning July 20, 1993 and in each month of each fiscal
21 year thereafter, one-eighth of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority for that fiscal year, less the amount
24 deposited into the McCormick Place Expansion Project Fund by
25 the State Treasurer in the respective month under subsection
26 (g) of Section 13 of the Metropolitan Pier and Exposition
27 Authority Act, plus cumulative deficiencies in the deposits
28 required under this Section for previous months and years,
29 shall be deposited into the McCormick Place Expansion Project
30 Fund, until the full amount requested for the fiscal year,
31 but not in excess of the amount specified above as "Total
32 Deposit", has been deposited.
33 Subject to payment of amounts into the Build Illinois
34 Fund and the McCormick Place Expansion Project Fund pursuant
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1 to the preceding paragraphs or in any amendment thereto
2 hereafter enacted, each month the Department shall pay into
3 the Local Government Distributive Fund 0.4% of the net
4 revenue realized for the preceding month from the 5% general
5 rate or 0.4% of 80% of the net revenue realized for the
6 preceding month from the 6.25% general rate, as the case may
7 be, on the selling price of tangible personal property which
8 amount shall, subject to appropriation, be distributed as
9 provided in Section 2 of the State Revenue Sharing Act. No
10 payments or distributions pursuant to this paragraph shall be
11 made if the tax imposed by this Act on photoprocessing
12 products is declared unconstitutional, or if the proceeds
13 from such tax are unavailable for distribution because of
14 litigation.
15 Subject to payment of amounts into the Build Illinois
16 Fund, the McCormick Place Expansion Project to the preceding
17 paragraphs or in any amendments thereto hereafter enacted,
18 beginning July 1, 1993, the Department shall each month pay
19 into the Illinois Tax Increment Fund 0.27% of 80% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, 75% thereof shall be paid into the
25 State Treasury and 25% shall be reserved in a special account
26 and used only for the transfer to the Common School Fund as
27 part of the monthly transfer from the General Revenue Fund in
28 accordance with Section 8a of the State Finance Act.
29 The Department may, upon separate written notice to a
30 taxpayer, require the taxpayer to prepare and file with the
31 Department on a form prescribed by the Department within not
32 less than 60 days after receipt of the notice an annual
33 information return for the tax year specified in the notice.
34 Such annual return to the Department shall include a
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1 statement of gross receipts as shown by the retailer's last
2 Federal income tax return. If the total receipts of the
3 business as reported in the Federal income tax return do not
4 agree with the gross receipts reported to the Department of
5 Revenue for the same period, the retailer shall attach to his
6 annual return a schedule showing a reconciliation of the 2
7 amounts and the reasons for the difference. The retailer's
8 annual return to the Department shall also disclose the cost
9 of goods sold by the retailer during the year covered by such
10 return, opening and closing inventories of such goods for
11 such year, costs of goods used from stock or taken from stock
12 and given away by the retailer during such year, payroll
13 information of the retailer's business during such year and
14 any additional reasonable information which the Department
15 deems would be helpful in determining the accuracy of the
16 monthly, quarterly or annual returns filed by such retailer
17 as provided for in this Section.
18 If the annual information return required by this Section
19 is not filed when and as required, the taxpayer shall be
20 liable as follows:
21 (i) Until January 1, 1994, the taxpayer shall be
22 liable for a penalty equal to 1/6 of 1% of the tax due
23 from such taxpayer under this Act during the period to be
24 covered by the annual return for each month or fraction
25 of a month until such return is filed as required, the
26 penalty to be assessed and collected in the same manner
27 as any other penalty provided for in this Act.
28 (ii) On and after January 1, 1994, the taxpayer
29 shall be liable for a penalty as described in Section 3-4
30 of the Uniform Penalty and Interest Act.
31 The chief executive officer, proprietor, owner or highest
32 ranking manager shall sign the annual return to certify the
33 accuracy of the information contained therein. Any person
34 who willfully signs the annual return containing false or
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1 inaccurate information shall be guilty of perjury and
2 punished accordingly. The annual return form prescribed by
3 the Department shall include a warning that the person
4 signing the return may be liable for perjury.
5 The provisions of this Section concerning the filing of
6 an annual information return do not apply to a retailer who
7 is not required to file an income tax return with the United
8 States Government.
9 As soon as possible after the first day of each month,
10 upon certification of the Department of Revenue, the
11 Comptroller shall order transferred and the Treasurer shall
12 transfer from the General Revenue Fund to the Motor Fuel Tax
13 Fund an amount equal to 1.7% of 80% of the net revenue
14 realized under this Act for the second preceding month;
15 except that this transfer shall not be made for the months
16 February through June, 1992.
17 Net revenue realized for a month shall be the revenue
18 collected by the State pursuant to this Act, less the amount
19 paid out during that month as refunds to taxpayers for
20 overpayment of liability.
21 For greater simplicity of administration, manufacturers,
22 importers and wholesalers whose products are sold at retail
23 in Illinois by numerous retailers, and who wish to do so, may
24 assume the responsibility for accounting and paying to the
25 Department all tax accruing under this Act with respect to
26 such sales, if the retailers who are affected do not make
27 written objection to the Department to this arrangement.
28 Any person who promotes, organizes, provides retail
29 selling space for concessionaires or other types of sellers
30 at the Illinois State Fair, DuQuoin State Fair, county fairs,
31 local fairs, art shows, flea markets and similar exhibitions
32 or events, including any transient merchant as defined by
33 Section 2 of the Transient Merchant Act of 1987, is required
34 to file a report with the Department providing the name of
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1 the merchant's business, the name of the person or persons
2 engaged in merchant's business, the permanent address and
3 Illinois Retailers Occupation Tax Registration Number of the
4 merchant, the dates and location of the event and other
5 reasonable information that the Department may require. The
6 report must be filed not later than the 20th day of the month
7 next following the month during which the event with retail
8 sales was held. Any person who fails to file a report
9 required by this Section commits a business offense and is
10 subject to a fine not to exceed $250.
11 Any person engaged in the business of selling tangible
12 personal property at retail as a concessionaire or other type
13 of seller at the Illinois State Fair, county fairs, art
14 shows, flea markets and similar exhibitions or events, or any
15 transient merchants, as defined by Section 2 of the Transient
16 Merchant Act of 1987, may be required to make a daily report
17 of the amount of such sales to the Department and to make a
18 daily payment of the full amount of tax due. The Department
19 shall impose this requirement when it finds that there is a
20 significant risk of loss of revenue to the State at such an
21 exhibition or event. Such a finding shall be based on
22 evidence that a substantial number of concessionaires or
23 other sellers who are not residents of Illinois will be
24 engaging in the business of selling tangible personal
25 property at retail at the exhibition or event, or other
26 evidence of a significant risk of loss of revenue to the
27 State. The Department shall notify concessionaires and other
28 sellers affected by the imposition of this requirement. In
29 the absence of notification by the Department, the
30 concessionaires and other sellers shall file their returns as
31 otherwise required in this Section.
32 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
33 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
34 1-1-99; 90-612, eff. 7-8-98.)
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1 Section 35. The School Code is amended by adding Sections
2 18-21, 18-22, 18-23, 18-24, and 18-25 as follows:
3 (105 ILCS 5/18-21 new)
4 Sec. 18-21. Teach Illinois Fund. Beginning July 1, 1999,
5 of the amounts collected under subsections (a) and (b) of
6 Section 201 of the Illinois Income Tax Act, minus deposits
7 into the Income Tax Refund Fund, the Department of Revenue
8 shall deposit 1.79% into the Teach Illinois Fund, a special
9 fund created in the State treasury. Beginning July 1, 1999,
10 each month the Department of Revenue shall pay into the Teach
11 Illinois Fund 1.81% of the net revenue realized for the
12 preceding month from the 6.25% general rate on the transfer
13 or selling price of tangible personal property under the Use
14 Tax Code, the Service Use Tax Act, the Service Occupation Tax
15 Act, and the Retailers' Occupation Tax Act. Amounts deposited
16 into the Teach Illinois Fund shall be allocated and
17 distributed to school districts in accordance with Section
18 18-22 of this Code.
19 (105 ILCS 5/18-22 new)
20 Sec. 18-22. Allocation and disbursement of Teach Illinois
21 Fund. Beginning January 1, 2000, and on the first day of each
22 month thereafter, the Department of Revenue shall allocate
23 among the several school districts of this State, except
24 those school districts determined to be ineligible or not
25 participating as provided in Section 18-25 of this Code, the
26 amount available in the Teach Illinois Fund. The Department
27 shall then certify these allocations to the State
28 Comptroller, who shall pay over to the State Board for
29 distribution to the several school districts the respective
30 amounts allocated to the districts. The amount of the Fund
31 allocable to each school district shall be in the proportion
32 that the average daily attendance of that school district
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1 bears to the difference between the total average daily
2 attendance of all school districts of the State and the
3 average daily attendance of those school districts that are
4 ineligible for or choose not to receive distributions from
5 the Fund as provided in Section 18-25 of this Code,
6 determined in each case on the basis of the most recently
7 available average daily attendance figures of the several
8 school districts of this State as annually computed by the
9 State Board and certified by the State Superintendent of
10 Education to the Department of Revenue.
11 Subject to appropriation, in January of each year, before
12 the Department of Revenue determines the amount to be
13 allocated to each school district, the Comptroller shall
14 distribute $100,000 from the Fund to the State Board for
15 expenses related to audits and certifications required under
16 Sections 18-24 and 18-25 of this Code.
17 (105 ILCS 5/18-23 new)
18 Sec. 18-23. Use of Teach Illinois Fund. The amount
19 allocated and distributed to the school districts of this
20 State under Section 18-22 of this Code shall be deposited in
21 a segregated fund by each school district and shall be used
22 by each district solely for the purpose of employing
23 additional classroom teachers and paying their compensation.
24 For purposes of this Section, "compensation" means all wages,
25 salaries, benefits, and any other form of remuneration
26 payable to an additional classroom teacher employed by a
27 school district; and "additional classroom teacher" means a
28 classroom teacher who is employed to fill a newly created
29 position and whose employment increases the aggregate number
30 of classroom teaching positions within the district, or a
31 classroom teacher employed to fill a position held or vacated
32 by a person initially employed as an additional classroom
33 teacher as defined in this Section, but the term does not
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1 include a newly hired teacher who is employed to fill an
2 existing classroom teaching position that is currently or was
3 last held by another teacher who was not initially employed
4 as an additional classroom teacher. In the event the
5 amounts allocated and distributed to a school district under
6 Section 18-22 in any school year are not sufficient, after
7 paying the compensation of any additional classroom teachers
8 already employed by the district, to employ and pay the
9 compensation of any new additional classroom teacher or
10 teachers, or in the event a school district already employs
11 the maximum number of additional classroom teachers that can
12 be beneficially and efficiently used to educate the students
13 of the district and the amounts allocated and distributed to
14 the district under Section 18-22 in any school year exceed
15 the amount required by the district to pay the compensation
16 of those additional classroom teachers, then the district
17 shall use and apply those funds to provide further training
18 or continuing education or both for teachers, including
19 additional classroom teachers, already employed by the
20 district or to assist in paying the compensation of those
21 teachers.
22 (105 ILCS 5/18-24 new)
23 Sec. 18-24. Teach Illinois Fund audits. The State Board
24 shall conduct random audits of school districts receiving
25 distributions from the State Board of funds appropriated from
26 the Teach Illinois Fund to ensure that all proceeds from that
27 Fund are being used solely for the purposes set forth in
28 Section 18-23 of this Code.
29 (105 ILCS 5/18-25 new)
30 Sec. 18-25. Certification to the Department of Revenue.
31 In the event that the State Board determines that a school
32 district has not used funds received from the Teach Illinois
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1 Fund exclusively as required by Section 18-23 of this Code,
2 the school district is ineligible to receive any funds from
3 the Teach Illinois Fund for a period of one year from the
4 date the school district is certified to be ineligible. The
5 State Board shall certify the name of each school district
6 determined to be in violation of Section 18-23 of this Code
7 to the Department of Revenue, which shall withhold payments
8 to that school district for a period of one year from the
9 date the school district is certified to be ineligible.
10 A school district may, at any time, notify the State
11 Board that it does not wish to receive funds from the Teach
12 Illinois Fund. The State Board shall certify the name of each
13 such school district to the Department of Revenue, which
14 shall terminate all future allocations from the Fund for that
15 school district.
16 A school district that has notified the State Board that
17 it does not wish to receive funds from the Teach Illinois
18 Fund may subsequently notify the State Board that it does
19 wish to receive funds from that Fund. The Board shall certify
20 to the Department of Revenue the name of each school district
21 that so notifies the State Board. Beginning with the month
22 following the month in which the Department of Revenue
23 receives the certification from the State Board, the
24 Department of Revenue shall allocate a portion of the moneys
25 in the Fund to that school district, as provided in Section
26 18-22 of this Code.
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.
-70- LRB9100281NTmg
1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/5.490 new
4 35 ILCS 5/901 from Ch. 120, par. 9-901
5 35 ILCS 105/9 from Ch. 120, par. 439.9
6 35 ILCS 110/9 from Ch. 120, par. 439.39
7 35 ILCS 115/9 from Ch. 120, par. 439.109
8 35 ILCS 120/3 from Ch. 120, par. 442
9 105 ILCS 5/18-21 new
10 105 ILCS 5/18-22 new
11 105 ILCS 5/18-23 new
12 105 ILCS 5/18-24 new
13 105 ILCS 5/18-25 new