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91_HB0402sam001
LRB9101586PTpkam02
1 AMENDMENT TO HOUSE BILL 402
2 AMENDMENT NO. . Amend House Bill 402 by replacing
3 everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5 Automobile Leasing Occupation and Use Tax Act.
6 Section 5. Definitions. As used in this Act:
7 "Automobile" means any motor vehicle of the first
8 division, a motor vehicle of the second division which is a
9 self-contained motor vehicle designed or permanently
10 converted to provide living quarters for recreational,
11 camping or travel use, with direct walk through access to the
12 living quarters from the driver's seat, or a motor vehicle of
13 the second division which is of the van configuration
14 designed for the transportation of not less than 7 nor more
15 than 16 passengers, as defined in Section 1-146 of the
16 Illinois Vehicle Code.
17 "Department" means the Department of Revenue.
18 "Person" means any natural individual, firm, partnership,
19 association, joint stock company, joint venture, public or
20 private corporation, or a receiver, executor, trustee,
21 conservator, or other representatives appointed by order of
22 any court.
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1 "Leasing" means any transfer of the possession or right
2 to possession of an automobile to a user for a valuable
3 consideration for a period of more than 1 year.
4 "Lessor" means any person, firm, corporation, or
5 association engaged in the business of leasing automobiles to
6 users. For this purpose, the objective of making a profit is
7 not necessary to make the leasing activity a business.
8 "Lessee" means any user to whom the possession, or the
9 right to possession, of an automobile is transferred for a
10 valuable consideration for a period more than one year which
11 is paid by such lessee or by someone else.
12 "Gross receipts" means the total leasing price for the
13 lease of an automobile. In the case of lease transactions in
14 which the consideration is paid to the lessor on an
15 installment basis, the amounts of such payments shall be
16 included by the lessor in gross receipts only as and when
17 payments are received by the lessor.
18 "Leasing price" means the consideration for leasing an
19 automobile valued in money, whether received in money or
20 otherwise, including cash, credits, property and services,
21 and shall be determined without any deduction on account of
22 the cost of the property leased, the cost of materials used,
23 labor or service cost or any other expense whatsoever, but
24 does not include charges that are added by lessors on account
25 of the lessor's tax liability under this Act, or on account
26 of the lessor's duty to collect, from the lessee, the tax
27 that is imposed by Section 20 of this Act. The phrase
28 "leasing price" does not include the residual value of the
29 automobile or any separately stated charge on the lessee's
30 bill for insurance.
31 "Maintaining a place of business in this State" means
32 having or maintaining within this State, directly or by a
33 subsidiary, an office, repair facilities, distribution house,
34 sales house, warehouse, or other place of business, or any
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1 agent, or other representative, operating within this State,
2 irrespective of whether the place of business or agent or
3 other representative is located here permanently or
4 temporarily.
5 "Residual value" means the estimated value of the vehicle
6 at the end of the scheduled lease term, used by the lessor in
7 determining the base lease payment, as established by the
8 lessor at the time the lessor and lessee enter into the
9 lease.
10 Section 10. Imposition of occupation tax. A tax is
11 imposed upon persons engaged in this State in the business of
12 leasing automobiles in Illinois at the rate of 5% of the
13 gross receipts received from such business. The tax herein
14 imposed does not apply to the leasing of automobiles to any
15 governmental body, nor to any corporation, society,
16 association, foundation or institution organized and operated
17 exclusively for charitable, religious or educational
18 purposes, nor to any not for profit corporation, society,
19 association, foundation, institution or organization which
20 has no compensated officers or employees and which is
21 organized and operated primarily for the recreation of
22 persons 55 years of age or older. Beginning July 1, 2000
23 through June 30, 2001, each month the Department shall pay
24 into the Tax Compliance and Administration Fund 3% of the
25 revenue realized from the tax imposed by this Section, and
26 the remaining such revenue shall be paid as provided for in
27 Section 3 of the Retailers' Occupation Tax Act. Beginning
28 July 1, 2001 and each month thereafter, the Department shall
29 pay into the Tax Compliance and Administration Fund 1% of the
30 revenue realized from the tax imposed by this Section, and
31 the remaining such revenue shall be paid as provided for in
32 Section 3 of the Retailers' Occupation Tax Act.
33 The Department shall have full power to administer and
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1 enforce this Section, to collect all taxes and penalties due
2 hereunder, to dispose of taxes and penalties so collected in
3 the manner hereinafter provided, and to determine all rights
4 to credit memoranda, arising on account of the erroneous
5 payment of tax or penalty hereunder. In the administration
6 of, and compliance with, this Section, the Department and
7 persons who are subject to this Section shall have the same
8 rights, remedies, privileges, immunities, powers and duties,
9 and be subject to the same conditions, restrictions,
10 limitation, penalties and definitions of terms, and employ
11 the same modes of procedure, as are prescribed in Sections 1,
12 1a, 2 through 2-65 (in respect to all provisions therein
13 other than the State rate of tax), 2a, 2b, 2c, 3 (except
14 provisions relating to transaction returns and quarter
15 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
16 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
17 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
18 Penalty and Interest Act as fully as if those provisions were
19 set forth herein. For purposes of this Section, references
20 in such incorporated Sections of the Retailers' Occupation
21 Tax Act to retailers, sellers or persons engaged in the
22 business of selling tangible personal property means persons
23 engaged in the leasing of automobiles under leases subject to
24 this Act.
25 Section 15. Registration. Every person engaged in this
26 State in the business of leasing automobiles shall apply to
27 the Department (upon a form prescribed and furnished by the
28 Department) for a certificate of registration under this Act.
29 The certificate of registration that is issued by the
30 Department to a retailer under the Retailers' Occupation Tax
31 Act shall permit such lessor to engage in a business that is
32 taxable under this Section without registering separately
33 with the Department.
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1 Section 20. Imposition of use tax. A tax is imposed upon
2 the privilege of using in this State, an automobile which is
3 leased from a lessor. Such tax is at the rate of 5% of the
4 leasing price of such automobile paid to the lessor under any
5 lease agreement. The tax herein imposed shall not apply to
6 any governmental body, nor to any corporation, society,
7 association, foundation or institution, organized and
8 operated exclusively for charitable, religious or educational
9 purposes, nor to any not for profit corporation, society,
10 association, foundation, institution or organization which
11 has no compensated officers or employees and which is
12 organized and operated primarily for the recreation of
13 persons 55 years of age or older, when using tangible
14 personal property as a lessee. Beginning July 1, 2000
15 through June 30, 2001, each month the Department shall pay
16 into the Tax Compliance and Administration Fund 3% of the
17 revenue realized from the tax imposed by this Section, and
18 the remaining such revenue shall be paid as provided for in
19 Section 9 of the Use Tax Act. Beginning July 1, 2001 and
20 each month thereafter, the Department shall pay into the Tax
21 Compliance and Administration Fund 1% of the revenue realized
22 from the tax imposed by this Section, and the remaining such
23 revenue shall be paid as provided for in Section 9 of the Use
24 Tax Act.
25 The Department shall have full power to administer and
26 enforce this Section; to collect all taxes, penalties and
27 interest due hereunder; to dispose of taxes, penalties and
28 interest so collected in the manner hereinafter provided, and
29 to determine all rights to credit memoranda or refunds
30 arising on account of the erroneous payment of tax, penalty
31 or interest hereunder. In the administration of, and
32 compliance with, this Section, the Department and persons who
33 are subject to this Section shall have the same rights,
34 remedies, privileges, immunities, powers and duties, and be
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1 subject to the same conditions, restrictions, limitations,
2 penalties and definitions of terms, and employ the same modes
3 of procedure, as are prescribed in Sections 2, 3 through
4 3-80, 4, 6, 7, 8, 9 (except provisions relating to
5 transaction returns and quarter monthly payments), 10, 11,
6 12, 12a, 12b, 13, 14, 15, 19, 20, 21 and 22 of the Use Tax
7 Act, and are not inconsistent with this Section, as fully as
8 if those provisions were set forth herein. For purposes of
9 this Section, references in such incorporated Sections of the
10 Use Tax Act to users or purchasers means lessees of
11 automobiles under leases subject to this Act.
12 Section 25. Use tax collected. The use tax imposed by
13 Section 20 shall be collected from the lessee and remitted to
14 the Department by a lessor maintaining a place of business in
15 this State or who titles or registers an automobile with an
16 agency of this State's government that is used for leasing in
17 this State.
18 The use tax imposed by Section 20 and not paid to a
19 lessor pursuant to the preceding paragraph of this Section
20 shall be paid to the Department directly by any person using
21 such automobile within this State.
22 Lessors shall collect the tax from lessees by adding the
23 tax to the leasing price of the automobile, when leased for
24 use, in the manner prescribed by the Department. The
25 Department shall have the power to adopt and promulgate
26 reasonable rules and regulations for the adding of such tax
27 by lessors to leasing prices by prescribing bracket systems
28 for the purpose of enabling such lessors to add and collect,
29 as far as practicable, the amount of such tax.
30 The tax imposed by this Section shall, when collected, be
31 stated as a distinct item on the customer's bill, separate
32 and apart from the leasing price of the automobile.
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1 Section 30. Severability clause. If any clause,
2 sentence, Section, provision or part thereof of this Act or
3 the application thereof to any person or circumstance shall
4 be adjudged to be unconstitutional, the remainder of this Act
5 or its application to persons or circumstances other than
6 those to which it is held invalid, shall not be affected
7 thereby. In particular, if any provision which exempts or
8 has the effect of exempting some class of users or some kind
9 of use from the tax imposed by this Act should be held to
10 constitute or to result in an invalid classification or to be
11 unconstitutional for some other reason, such provision shall
12 be deemed to be severable with the remainder of this Act
13 without said provision being held constitutional.
14 Section 80. The State Finance Act is amended by changing
15 Sections 6z-18 and 6z-20 as follows:
16 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
17 Sec. 6z-18. A portion of the money paid into the Local
18 Government Tax Fund from sales of food for human consumption
19 which is to be consumed off the premises where it is sold
20 (other than alcoholic beverages, soft drinks and food which
21 has been prepared for immediate consumption) and prescription
22 and nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes and needles used
24 by diabetics, which occurred in municipalities, shall be
25 distributed to each municipality based upon the sales which
26 occurred in that municipality. The remainder shall be
27 distributed to each county based upon the sales which
28 occurred in the unincorporated area of that county.
29 A portion of the money paid into the Local Government Tax
30 Fund from the 6.25% general use tax rate on the selling price
31 of tangible personal property which is purchased outside
32 Illinois at retail from a retailer and which is titled or
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1 registered by any agency of this State's government shall be
2 distributed to municipalities as provided in this paragraph.
3 Each municipality shall receive the amount attributable to
4 sales for which Illinois addresses for titling or
5 registration purposes are given as being in such
6 municipality. The remainder of the money paid into the Local
7 Government Tax Fund from such sales shall be distributed to
8 counties. Each county shall receive the amount attributable
9 to sales for which Illinois addresses for titling or
10 registration purposes are given as being located in the
11 unincorporated area of such county.
12 A portion of the money paid into the Local Government Tax
13 Fund from the 1.25% rate imposed under the Use Tax Act upon
14 the selling price of any motor vehicle that is purchased
15 outside of Illinois at retail by a lessor for purposes of
16 leasing under a lease subject to the Automobile Leasing
17 Occupation and Use Tax Act which is titled or registered by
18 any agency of this State's government shall be distributed as
19 provided in this paragraph, less 3% for the first 12 monthly
20 distributions and 1% for each monthly distribution
21 thereafter, which sum shall be paid into the Tax Compliance
22 and Administration Fund. Each municipality shall receive the
23 amount attributable to sales for which Illinois addresses for
24 titling or registration purposes are given as being in such
25 municipality. The remainder of the money paid into the Local
26 Government Tax Fund from such sales shall be distributed to
27 counties. Each county shall receive the amount attributable
28 to sales for which Illinois addresses for titling or
29 registration purposes are given as being located in the
30 unincorporated area of such county.
31 A portion of the money paid into the Local Government Tax
32 Fund from the 6.25% general rate on sales subject to taxation
33 under the Retailers' Occupation Tax Act and the Service
34 Occupation Tax Act, which occurred in municipalities, shall
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1 be distributed to each municipality, based upon the sales
2 which occurred in that municipality. The remainder shall be
3 distributed to each county, based upon the sales which
4 occurred in the unincorporated area of such county.
5 A portion of the money paid into the Local Government Tax
6 Fund from the 1.25% rate imposed by the Retailers' Occupation
7 Tax Act upon the sale of any motor vehicle that is sold at
8 retail to a lessor for purposes of leasing under a lease
9 subject to the Automobile Leasing Occupation and Use Tax Act
10 shall be distributed as provided in this paragraph, less 3%
11 for the first 12 monthly distributions and 1% for each
12 monthly distribution thereafter, which sum shall be paid into
13 the Tax Compliance and Administration Fund. The funds shall
14 be distributed to each municipality, based upon the sales
15 which occurred in that municipality. The remainder shall be
16 distributed to each county, based upon the sales which
17 occurred in the unincorporated area of such county.
18 For the purpose of determining allocation to the local
19 government unit, a retail sale by a producer of coal or other
20 mineral mined in Illinois is a sale at retail at the place
21 where the coal or other mineral mined in Illinois is
22 extracted from the earth. This paragraph does not apply to
23 coal or other mineral when it is delivered or shipped by the
24 seller to the purchaser at a point outside Illinois so that
25 the sale is exempt under the United States Constitution as a
26 sale in interstate or foreign commerce.
27 Whenever the Department determines that a refund of money
28 paid into the Local Government Tax Fund should be made to a
29 claimant instead of issuing a credit memorandum, the
30 Department shall notify the State Comptroller, who shall
31 cause the order to be drawn for the amount specified, and to
32 the person named, in such notification from the Department.
33 Such refund shall be paid by the State Treasurer out of the
34 Local Government Tax Fund.
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1 On or before the 25th day of each calendar month, the
2 Department shall prepare and certify to the Comptroller the
3 disbursement of stated sums of money to named municipalities
4 and counties, the municipalities and counties to be those
5 entitled to distribution of taxes or penalties paid to the
6 Department during the second preceding calendar month. The
7 amount to be paid to each municipality or county shall be the
8 amount (not including credit memoranda) collected during the
9 second preceding calendar month by the Department and paid
10 into the Local Government Tax Fund, plus an amount the
11 Department determines is necessary to offset any amounts
12 which were erroneously paid to a different taxing body, and
13 not including an amount equal to the amount of refunds made
14 during the second preceding calendar month by the Department,
15 and not including any amount which the Department determines
16 is necessary to offset any amounts which are payable to a
17 different taxing body but were erroneously paid to the
18 municipality or county. Within 10 days after receipt, by the
19 Comptroller, of the disbursement certification to the
20 municipalities and counties, provided for in this Section to
21 be given to the Comptroller by the Department, the
22 Comptroller shall cause the orders to be drawn for the
23 respective amounts in accordance with the directions
24 contained in such certification.
25 When certifying the amount of monthly disbursement to a
26 municipality or county under this Section, the Department
27 shall increase or decrease that amount by an amount necessary
28 to offset any misallocation of previous disbursements. The
29 offset amount shall be the amount erroneously disbursed
30 within the 6 months preceding the time a misallocation is
31 discovered.
32 The provisions directing the distributions from the
33 special fund in the State Treasury provided for in this
34 Section shall constitute an irrevocable and continuing
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1 appropriation of all amounts as provided herein. The State
2 Treasurer and State Comptroller are hereby authorized to make
3 distributions as provided in this Section.
4 In construing any development, redevelopment, annexation,
5 preannexation or other lawful agreement in effect prior to
6 September 1, 1990, which describes or refers to receipts from
7 a county or municipal retailers' occupation tax, use tax or
8 service occupation tax which now cannot be imposed, such
9 description or reference shall be deemed to include the
10 replacement revenue for such abolished taxes, distributed
11 from the Local Government Tax Fund.
12 (Source: P.A. 90-491, eff. 1-1-98.)
13 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
14 Sec. 6z-20. Of the money received from the 6.25% general
15 rate on sales subject to taxation under the Retailers'
16 Occupation Tax Act and Service Occupation Tax Act and paid
17 into the County and Mass Transit District Fund, distribution
18 to the Regional Transportation Authority tax fund, created
19 pursuant to Section 4.03 of the Regional Transportation
20 Authority Act, for deposit therein shall be made based upon
21 the retail sales occurring in a county having more than
22 3,000,000 inhabitants. The remainder shall be distributed to
23 each county having 3,000,000 or fewer inhabitants based upon
24 the retail sales occurring in each such county.
25 Of the money received from the 1.25% rate imposed by the
26 Retailers' Occupation Tax Act upon the sale of any motor
27 vehicle that is sold at retail to a lessor for purposes of
28 leasing under a lease subject to the Automobile Leasing
29 Occupation and Use Tax Act, and paid into the County and Mass
30 Transit District Fund shall be distributed as provided in
31 this paragraph, less 3% for the first 12 monthly
32 distributions and 1% for each monthly distribution
33 thereafter, which sum shall be paid into the Tax Compliance
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1 and Administration Fund. Distribution to the Regional
2 Transportation Authority Tax Fund, created pursuant to
3 Section 4.03 of the Regional Transportation Authority Act,
4 for deposit therein shall be made based upon the retail sales
5 occurring in a county having more than 3,000,000 inhabitants.
6 The remainder shall be distributed to each county having
7 3,000,000 or fewer inhabitants based upon the retail sales
8 occurring in each such county.
9 For the purpose of determining allocation to the local
10 government unit, a retail sale by a producer of coal or other
11 mineral mined in Illinois is a sale at retail at the place
12 where the coal or other mineral mined in Illinois is
13 extracted from the earth. This paragraph does not apply to
14 coal or other mineral when it is delivered or shipped by the
15 seller to the purchaser at a point outside Illinois so that
16 the sale is exempt under the United States Constitution as a
17 sale in interstate or foreign commerce.
18 Of the money received from the 6.25% general use tax rate
19 on tangible personal property which is purchased outside
20 Illinois at retail from a retailer and which is titled or
21 registered by any agency of this State's government and paid
22 into the County and Mass Transit District Fund, the amount
23 for which Illinois addresses for titling or registration
24 purposes are given as being in each county having more than
25 3,000,000 inhabitants shall be distributed into the Regional
26 Transportation Authority tax fund, created pursuant to
27 Section 4.03 of the Regional Transportation Authority Act.
28 The remainder of the money paid from such sales shall be
29 distributed to each county based on sales for which Illinois
30 addresses for titling or registration purposes are given as
31 being located in the county. Any money paid into the
32 Regional Transportation Authority Occupation and Use Tax
33 Replacement Fund from the County and Mass Transit District
34 Fund prior to January 14, 1991, which has not been paid to
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1 the Authority prior to that date, shall be transferred to the
2 Regional Transportation Authority tax fund.
3 Of the money received from the 1.25% rate imposed under
4 the Use Tax Act upon the selling price of any motor vehicle
5 that is purchased outside of Illinois at retail by a lessor
6 for purposes of leasing under a lease subject to the
7 Automobile Leasing Occupation and Use Tax Act which is titled
8 or registered by any agency of this State's government and is
9 paid into the County and Mass Transit District Fund, shall be
10 distributed as provided in this paragraph, less 3% for the
11 first 12 monthly distributions and 1% for each monthly
12 distribution thereafter, which sum shall be paid into the Tax
13 Compliance and Administration Fund. The amount for which
14 Illinois addresses for titling or registration purposes are
15 given as being in each county having more than 3,000,000
16 inhabitants shall be distributed into the Regional
17 Transportation Authority Tax Fund, created pursuant to
18 Section 4.03 of the Regional Transportation Authority Act.
19 The remainder of the moneys paid from such sales shall be
20 distributed to each county based on sales for which Illinois
21 addresses for titling or registration purposes are given as
22 being located in that county.
23 Whenever the Department determines that a refund of money
24 paid into the County and Mass Transit District Fund should be
25 made to a claimant instead of issuing a credit memorandum,
26 the Department shall notify the State Comptroller, who shall
27 cause the order to be drawn for the amount specified, and to
28 the person named, in such notification from the Department.
29 Such refund shall be paid by the State Treasurer out of the
30 County and Mass Transit District Fund.
31 On or before the 25th day of each calendar month, the
32 Department shall prepare and certify to the Comptroller the
33 disbursement of stated sums of money to the Regional
34 Transportation Authority and to named counties, the counties
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1 to be those entitled to distribution, as hereinabove
2 provided, of taxes or penalties paid to the Department during
3 the second preceding calendar month. The amount to be paid
4 to the Regional Transportation Authority and each county
5 having 3,000,000 or fewer inhabitants shall be the amount
6 (not including credit memoranda) collected during the second
7 preceding calendar month by the Department and paid into the
8 County and Mass Transit District Fund, plus an amount the
9 Department determines is necessary to offset any amounts
10 which were erroneously paid to a different taxing body, and
11 not including an amount equal to the amount of refunds made
12 during the second preceding calendar month by the Department,
13 and not including any amount which the Department determines
14 is necessary to offset any amounts which were payable to a
15 different taxing body but were erroneously paid to the
16 Regional Transportation Authority or county. Within 10 days
17 after receipt, by the Comptroller, of the disbursement
18 certification to the Regional Transportation Authority and
19 counties, provided for in this Section to be given to the
20 Comptroller by the Department, the Comptroller shall cause
21 the orders to be drawn for the respective amounts in
22 accordance with the directions contained in such
23 certification.
24 When certifying the amount of a monthly disbursement to
25 the Regional Transportation Authority or to a county under
26 this Section, the Department shall increase or decrease that
27 amount by an amount necessary to offset any misallocation of
28 previous disbursements. The offset amount shall be the
29 amount erroneously disbursed within the 6 months preceding
30 the time a misallocation is discovered.
31 The provisions directing the distributions from the
32 special fund in the State Treasury provided for in this
33 Section and from the Regional Transportation Authority tax
34 fund created by Section 4.03 of the Regional Transportation
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1 Authority Act shall constitute an irrevocable and continuing
2 appropriation of all amounts as provided herein. The State
3 Treasurer and State Comptroller are hereby authorized to make
4 distributions as provided in this Section.
5 In construing any development, redevelopment, annexation,
6 preannexation or other lawful agreement in effect prior to
7 September 1, 1990, which describes or refers to receipts from
8 a county or municipal retailers' occupation tax, use tax or
9 service occupation tax which now cannot be imposed, such
10 description or reference shall be deemed to include the
11 replacement revenue for such abolished taxes, distributed
12 from the County and Mass Transit District Fund or Local
13 Government Distributive Fund, as the case may be.
14 (Source: P.A. 90-491, eff. 1-1-98.)
15 Section 85. The Use Tax Act is amended by changing
16 Sections 1a, 3-10, and 9 as follows:
17 (35 ILCS 105/1a) (from Ch. 120, par. 439.1a)
18 Sec. 1a. A person who is engaged in the business of
19 leasing or renting motor vehicles to others and who, in
20 connection with such business sells any used motor vehicle to
21 a purchaser for his use and not for the purpose of resale, is
22 a retailer engaged in the business of selling tangible
23 personal property at retail under this Act to the extent of
24 the value of the vehicle sold. For the purpose of this
25 Section, "motor vehicle" means any motor vehicle of the first
26 division, a motor vehicle of the second division which is a
27 self-contained motor vehicle designed or permanently
28 converted to provide living quarters for recreational,
29 camping or travel use, with direct walk through access to the
30 living quarters from the driver's seat, or a motor vehicle of
31 a second division which is of the van configuration designed
32 for the transportation of not less than 7 nor more than 16
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1 passengers, as defined in Section 1-146 of the Illinois
2 Vehicle Code. For the purpose of this Section, "motor
3 vehicle" has the meaning prescribed in Section 1-157 of The
4 Illinois Vehicle Code, as now or hereafter amended. (Nothing
5 provided herein shall affect liability incurred under this
6 Act because of the use of such motor vehicles as a lessor.)
7 (Source: P.A. 80-598.)
8 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
9 Sec. 3-10. Rate of tax. Unless otherwise provided in
10 this Section, the tax imposed by this Act is at the rate of
11 6.25% of either the selling price or the fair market value,
12 if any, of the tangible personal property. In all cases
13 where property functionally used or consumed is the same as
14 the property that was purchased at retail, then the tax is
15 imposed on the selling price of the property. In all cases
16 where property functionally used or consumed is a by-product
17 or waste product that has been refined, manufactured, or
18 produced from property purchased at retail, then the tax is
19 imposed on the lower of the fair market value, if any, of the
20 specific property so used in this State or on the selling
21 price of the property purchased at retail. For purposes of
22 this Section "fair market value" means the price at which
23 property would change hands between a willing buyer and a
24 willing seller, neither being under any compulsion to buy or
25 sell and both having reasonable knowledge of the relevant
26 facts. The fair market value shall be established by Illinois
27 sales by the taxpayer of the same property as that
28 functionally used or consumed, or if there are no such sales
29 by the taxpayer, then comparable sales or purchases of
30 property of like kind and character in Illinois.
31 With respect to gasohol, the tax imposed by this Act
32 applies to 70% of the proceeds of sales made on or after
33 January 1, 1990, and before July 1, 2003, and to 100% of the
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1 proceeds of sales made thereafter.
2 With respect to food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances,
7 modifications to a motor vehicle for the purpose of rendering
8 it usable by a disabled person, and insulin, urine testing
9 materials, syringes, and needles used by diabetics, for human
10 use, the tax is imposed at the rate of 1%. For the purposes
11 of this Section, the term "soft drinks" means any complete,
12 finished, ready-to-use, non-alcoholic drink, whether
13 carbonated or not, including but not limited to soda water,
14 cola, fruit juice, vegetable juice, carbonated water, and all
15 other preparations commonly known as soft drinks of whatever
16 kind or description that are contained in any closed or
17 sealed bottle, can, carton, or container, regardless of size.
18 "Soft drinks" does not include coffee, tea, non-carbonated
19 water, infant formula, milk or milk products as defined in
20 the Grade A Pasteurized Milk and Milk Products Act, or drinks
21 containing 50% or more natural fruit or vegetable juice.
22 Notwithstanding any other provisions of this Act, "food
23 for human consumption that is to be consumed off the premises
24 where it is sold" includes all food sold through a vending
25 machine, except soft drinks and food products that are
26 dispensed hot from a vending machine, regardless of the
27 location of the vending machine.
28 With respect to any motor vehicle (as the term "motor
29 vehicle" is defined in Section 1a of this Act) that is
30 purchased by a lessor for purposes of leasing under a lease
31 subject to the Automobile Leasing Occupation and Use Tax Act,
32 the tax is imposed at the rate of 1.25%.
33 With respect to any motor vehicle (as the term "motor
34 vehicle" is defined in Section 1a of this Act) that has been
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1 leased by a lessor to a lessee under a lease that is subject
2 to the Automobile Leasing Occupation and Use Tax Act, and is
3 subsequently purchased by the lessee of such vehicle, the tax
4 is imposed at the rate of 5%.
5 If the property that is purchased at retail from a
6 retailer is acquired outside Illinois and used outside
7 Illinois before being brought to Illinois for use here and is
8 taxable under this Act, the "selling price" on which the tax
9 is computed shall be reduced by an amount that represents a
10 reasonable allowance for depreciation for the period of prior
11 out-of-state use.
12 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
13 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
14 6-30-98; 90-606, eff. 6-30-98.)
15 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
16 Sec. 9. Except as to motor vehicles, watercraft,
17 aircraft, and trailers that are required to be registered
18 with an agency of this State, each retailer required or
19 authorized to collect the tax imposed by this Act shall pay
20 to the Department the amount of such tax (except as otherwise
21 provided) at the time when he is required to file his return
22 for the period during which such tax was collected, less a
23 discount of 2.1% prior to January 1, 1990, and 1.75% on and
24 after January 1, 1990, or $5 per calendar year, whichever is
25 greater, which is allowed to reimburse the retailer for
26 expenses incurred in collecting the tax, keeping records,
27 preparing and filing returns, remitting the tax and supplying
28 data to the Department on request. In the case of retailers
29 who report and pay the tax on a transaction by transaction
30 basis, as provided in this Section, such discount shall be
31 taken with each such tax remittance instead of when such
32 retailer files his periodic return. A retailer need not
33 remit that part of any tax collected by him to the extent
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1 that he is required to remit and does remit the tax imposed
2 by the Retailers' Occupation Tax Act, with respect to the
3 sale of the same property.
4 Where such tangible personal property is sold under a
5 conditional sales contract, or under any other form of sale
6 wherein the payment of the principal sum, or a part thereof,
7 is extended beyond the close of the period for which the
8 return is filed, the retailer, in collecting the tax (except
9 as to motor vehicles, watercraft, aircraft, and trailers that
10 are required to be registered with an agency of this State),
11 may collect for each tax return period, only the tax
12 applicable to that part of the selling price actually
13 received during such tax return period.
14 Except as provided in this Section, on or before the
15 twentieth day of each calendar month, such retailer shall
16 file a return for the preceding calendar month. Such return
17 shall be filed on forms prescribed by the Department and
18 shall furnish such information as the Department may
19 reasonably require.
20 The Department may require returns to be filed on a
21 quarterly basis. If so required, a return for each calendar
22 quarter shall be filed on or before the twentieth day of the
23 calendar month following the end of such calendar quarter.
24 The taxpayer shall also file a return with the Department for
25 each of the first two months of each calendar quarter, on or
26 before the twentieth day of the following calendar month,
27 stating:
28 1. The name of the seller;
29 2. The address of the principal place of business
30 from which he engages in the business of selling tangible
31 personal property at retail in this State;
32 3. The total amount of taxable receipts received by
33 him during the preceding calendar month from sales of
34 tangible personal property by him during such preceding
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1 calendar month, including receipts from charge and time
2 sales, but less all deductions allowed by law;
3 4. The amount of credit provided in Section 2d of
4 this Act;
5 5. The amount of tax due;
6 5-5. The signature of the taxpayer; and
7 6. Such other reasonable information as the
8 Department may require.
9 If a taxpayer fails to sign a return within 30 days after
10 the proper notice and demand for signature by the Department,
11 the return shall be considered valid and any amount shown to
12 be due on the return shall be deemed assessed.
13 Beginning October 1, 1993, a taxpayer who has an average
14 monthly tax liability of $150,000 or more shall make all
15 payments required by rules of the Department by electronic
16 funds transfer. Beginning October 1, 1994, a taxpayer who has
17 an average monthly tax liability of $100,000 or more shall
18 make all payments required by rules of the Department by
19 electronic funds transfer. Beginning October 1, 1995, a
20 taxpayer who has an average monthly tax liability of $50,000
21 or more shall make all payments required by rules of the
22 Department by electronic funds transfer. The term "average
23 monthly tax liability" means the sum of the taxpayer's
24 liabilities under this Act, and under all other State and
25 local occupation and use tax laws administered by the
26 Department, for the immediately preceding calendar year
27 divided by 12.
28 Before August 1 of each year beginning in 1993, the
29 Department shall notify all taxpayers required to make
30 payments by electronic funds transfer. All taxpayers required
31 to make payments by electronic funds transfer shall make
32 those payments for a minimum of one year beginning on October
33 1.
34 Any taxpayer not required to make payments by electronic
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1 funds transfer may make payments by electronic funds transfer
2 with the permission of the Department.
3 All taxpayers required to make payment by electronic
4 funds transfer and any taxpayers authorized to voluntarily
5 make payments by electronic funds transfer shall make those
6 payments in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to
8 effectuate a program of electronic funds transfer and the
9 requirements of this Section.
10 If the taxpayer's average monthly tax liability to the
11 Department under this Act, the Retailers' Occupation Tax Act,
12 the Service Occupation Tax Act, the Service Use Tax Act was
13 $10,000 or more during the preceding 4 complete calendar
14 quarters, he shall file a return with the Department each
15 month by the 20th day of the month next following the month
16 during which such tax liability is incurred and shall make
17 payments to the Department on or before the 7th, 15th, 22nd
18 and last day of the month during which such liability is
19 incurred. If the month during which such tax liability is
20 incurred began prior to January 1, 1985, each payment shall
21 be in an amount equal to 1/4 of the taxpayer's actual
22 liability for the month or an amount set by the Department
23 not to exceed 1/4 of the average monthly liability of the
24 taxpayer to the Department for the preceding 4 complete
25 calendar quarters (excluding the month of highest liability
26 and the month of lowest liability in such 4 quarter period).
27 If the month during which such tax liability is incurred
28 begins on or after January 1, 1985, and prior to January 1,
29 1987, each payment shall be in an amount equal to 22.5% of
30 the taxpayer's actual liability for the month or 27.5% of the
31 taxpayer's liability for the same calendar month of the
32 preceding year. If the month during which such tax liability
33 is incurred begins on or after January 1, 1987, and prior to
34 January 1, 1988, each payment shall be in an amount equal to
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1 22.5% of the taxpayer's actual liability for the month or
2 26.25% of the taxpayer's liability for the same calendar
3 month of the preceding year. If the month during which such
4 tax liability is incurred begins on or after January 1, 1988,
5 and prior to January 1, 1989, or begins on or after January
6 1, 1996, each payment shall be in an amount equal to 22.5% of
7 the taxpayer's actual liability for the month or 25% of the
8 taxpayer's liability for the same calendar month of the
9 preceding year. If the month during which such tax liability
10 is incurred begins on or after January 1, 1989, and prior to
11 January 1, 1996, each payment shall be in an amount equal to
12 22.5% of the taxpayer's actual liability for the month or 25%
13 of the taxpayer's liability for the same calendar month of
14 the preceding year or 100% of the taxpayer's actual liability
15 for the quarter monthly reporting period. The amount of such
16 quarter monthly payments shall be credited against the final
17 tax liability of the taxpayer's return for that month. Once
18 applicable, the requirement of the making of quarter monthly
19 payments to the Department shall continue until such
20 taxpayer's average monthly liability to the Department during
21 the preceding 4 complete calendar quarters (excluding the
22 month of highest liability and the month of lowest liability)
23 is less than $9,000, or until such taxpayer's average monthly
24 liability to the Department as computed for each calendar
25 quarter of the 4 preceding complete calendar quarter period
26 is less than $10,000. However, if a taxpayer can show the
27 Department that a substantial change in the taxpayer's
28 business has occurred which causes the taxpayer to anticipate
29 that his average monthly tax liability for the reasonably
30 foreseeable future will fall below $10,000, then such
31 taxpayer may petition the Department for change in such
32 taxpayer's reporting status. The Department shall change
33 such taxpayer's reporting status unless it finds that such
34 change is seasonal in nature and not likely to be long term.
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1 If any such quarter monthly payment is not paid at the time
2 or in the amount required by this Section, then the taxpayer
3 shall be liable for penalties and interest on the difference
4 between the minimum amount due and the amount of such quarter
5 monthly payment actually and timely paid, except insofar as
6 the taxpayer has previously made payments for that month to
7 the Department in excess of the minimum payments previously
8 due as provided in this Section. The Department shall make
9 reasonable rules and regulations to govern the quarter
10 monthly payment amount and quarter monthly payment dates for
11 taxpayers who file on other than a calendar monthly basis.
12 If any such payment provided for in this Section exceeds
13 the taxpayer's liabilities under this Act, the Retailers'
14 Occupation Tax Act, the Service Occupation Tax Act and the
15 Service Use Tax Act, as shown by an original monthly return,
16 the Department shall issue to the taxpayer a credit
17 memorandum no later than 30 days after the date of payment,
18 which memorandum may be submitted by the taxpayer to the
19 Department in payment of tax liability subsequently to be
20 remitted by the taxpayer to the Department or be assigned by
21 the taxpayer to a similar taxpayer under this Act, the
22 Retailers' Occupation Tax Act, the Service Occupation Tax Act
23 or the Service Use Tax Act, in accordance with reasonable
24 rules and regulations to be prescribed by the Department,
25 except that if such excess payment is shown on an original
26 monthly return and is made after December 31, 1986, no credit
27 memorandum shall be issued, unless requested by the taxpayer.
28 If no such request is made, the taxpayer may credit such
29 excess payment against tax liability subsequently to be
30 remitted by the taxpayer to the Department under this Act,
31 the Retailers' Occupation Tax Act, the Service Occupation Tax
32 Act or the Service Use Tax Act, in accordance with reasonable
33 rules and regulations prescribed by the Department. If the
34 Department subsequently determines that all or any part of
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1 the credit taken was not actually due to the taxpayer, the
2 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
3 by 2.1% or 1.75% of the difference between the credit taken
4 and that actually due, and the taxpayer shall be liable for
5 penalties and interest on such difference.
6 If the retailer is otherwise required to file a monthly
7 return and if the retailer's average monthly tax liability to
8 the Department does not exceed $200, the Department may
9 authorize his returns to be filed on a quarter annual basis,
10 with the return for January, February, and March of a given
11 year being due by April 20 of such year; with the return for
12 April, May and June of a given year being due by July 20 of
13 such year; with the return for July, August and September of
14 a given year being due by October 20 of such year, and with
15 the return for October, November and December of a given year
16 being due by January 20 of the following year.
17 If the retailer is otherwise required to file a monthly
18 or quarterly return and if the retailer's average monthly tax
19 liability to the Department does not exceed $50, the
20 Department may authorize his returns to be filed on an annual
21 basis, with the return for a given year being due by January
22 20 of the following year.
23 Such quarter annual and annual returns, as to form and
24 substance, shall be subject to the same requirements as
25 monthly returns.
26 Notwithstanding any other provision in this Act
27 concerning the time within which a retailer may file his
28 return, in the case of any retailer who ceases to engage in a
29 kind of business which makes him responsible for filing
30 returns under this Act, such retailer shall file a final
31 return under this Act with the Department not more than one
32 month after discontinuing such business.
33 In addition, with respect to motor vehicles, watercraft,
34 aircraft, and trailers that are required to be registered
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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 or trailer retailer for
10 the purpose of resale, that seller for resale may report the
11 transfer of all the aircraft, watercraft, motor vehicles or
12 trailers involved in that transaction to the Department on
13 the same uniform invoice-transaction reporting return form.
14 For purposes of this Section, "watercraft" means a Class 2,
15 Class 3, or Class 4 watercraft as defined in Section 3-2 of
16 the Boat Registration and Safety Act, a personal watercraft,
17 or any boat equipped with an inboard motor.
18 The transaction reporting return in the case of motor
19 vehicles or trailers that are required to be registered with
20 an agency of this State, shall be the same document as the
21 Uniform Invoice referred to in Section 5-402 of the Illinois
22 Vehicle Code and must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 2 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale; a sufficient identification of
2 the property sold; such other information as is required in
3 Section 5-402 of the Illinois Vehicle Code, and such other
4 information as the Department may reasonably require.
5 The transaction reporting return in the case of
6 watercraft and aircraft must show the name and address of the
7 seller; the name and address of the purchaser; the amount of
8 the selling price including the amount allowed by the
9 retailer for traded-in property, if any; the amount allowed
10 by the retailer for the traded-in tangible personal property,
11 if any, to the extent to which Section 2 of this Act allows
12 an exemption for the value of traded-in property; the balance
13 payable after deducting such trade-in allowance from the
14 total selling price; the amount of tax due from the retailer
15 with respect to such transaction; the amount of tax collected
16 from the purchaser by the retailer on such transaction (or
17 satisfactory evidence that such tax is not due in that
18 particular instance, if that is claimed to be the fact); the
19 place and date of the sale, a sufficient identification of
20 the property sold, and such other information as the
21 Department may reasonably require.
22 Such transaction reporting return shall be filed not
23 later than 20 days after the date of delivery of the item
24 that is being sold, but may be filed by the retailer at any
25 time sooner than that if he chooses to do so. The
26 transaction reporting return and tax remittance or proof of
27 exemption from the tax that is imposed by this Act may be
28 transmitted to the Department by way of the State agency with
29 which, or State officer with whom, the tangible personal
30 property must be titled or registered (if titling or
31 registration is required) if the Department and such agency
32 or State officer determine that this procedure will expedite
33 the processing of applications for title or registration.
34 With each such transaction reporting return, the retailer
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1 shall remit the proper amount of tax due (or shall submit
2 satisfactory evidence that the sale is not taxable if that is
3 the case), to the Department or its agents, whereupon the
4 Department shall issue, in the purchaser's name, a tax
5 receipt (or a certificate of exemption if the Department is
6 satisfied that the particular sale is tax exempt) which such
7 purchaser may submit to the agency with which, or State
8 officer with whom, he must title or register the tangible
9 personal property that is involved (if titling or
10 registration is required) in support of such purchaser's
11 application for an Illinois certificate or other evidence of
12 title or registration to such tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14 Act precludes a user, who has paid the proper tax to the
15 retailer, from obtaining his certificate of title or other
16 evidence of title or registration (if titling or registration
17 is required) upon satisfying the Department that such user
18 has paid the proper tax (if tax is due) to the retailer. The
19 Department shall adopt appropriate rules to carry out the
20 mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22 wants the transaction reporting return filed and the payment
23 of tax or proof of exemption made to the Department before
24 the retailer is willing to take these actions and such user
25 has not paid the tax to the retailer, such user may certify
26 to the fact of such delay by the retailer, and may (upon the
27 Department being satisfied of the truth of such
28 certification) transmit the information required by the
29 transaction reporting return and the remittance for tax or
30 proof of exemption directly to the Department and obtain his
31 tax receipt or exemption determination, in which event the
32 transaction reporting return and tax remittance (if a tax
33 payment was required) shall be credited by the Department to
34 the proper retailer's account with the Department, but
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1 without the 2.1% or 1.75% discount provided for in this
2 Section being allowed. When the user pays the tax directly
3 to the Department, he shall pay the tax in the same amount
4 and in the same form in which it would be remitted if the tax
5 had been remitted to the Department by the retailer.
6 Where a retailer collects the tax with respect to the
7 selling price of tangible personal property which he sells
8 and the purchaser thereafter returns such tangible personal
9 property and the retailer refunds the selling price thereof
10 to the purchaser, such retailer shall also refund, to the
11 purchaser, the tax so collected from the purchaser. When
12 filing his return for the period in which he refunds such tax
13 to the purchaser, the retailer may deduct the amount of the
14 tax so refunded by him to the purchaser from any other use
15 tax which such retailer may be required to pay or remit to
16 the Department, as shown by such return, if the amount of the
17 tax to be deducted was previously remitted to the Department
18 by such retailer. If the retailer has not previously
19 remitted the amount of such tax to the Department, he is
20 entitled to no deduction under this Act upon refunding such
21 tax to the purchaser.
22 Any retailer filing a return under this Section shall
23 also include (for the purpose of paying tax thereon) the
24 total tax covered by such return upon the selling price of
25 tangible personal property purchased by him at retail from a
26 retailer, but as to which the tax imposed by this Act was not
27 collected from the retailer filing such return, and such
28 retailer shall remit the amount of such tax to the Department
29 when filing such return.
30 If experience indicates such action to be practicable,
31 the Department may prescribe and furnish a combination or
32 joint return which will enable retailers, who are required to
33 file returns hereunder and also under the Retailers'
34 Occupation Tax Act, to furnish all the return information
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1 required by both Acts on the one form.
2 Where the retailer has more than one business registered
3 with the Department under separate registration under this
4 Act, such retailer may not file each return that is due as a
5 single return covering all such registered businesses, but
6 shall file separate returns for each such registered
7 business.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the State and Local Sales Tax Reform Fund, a
10 special fund in the State Treasury which is hereby created,
11 the net revenue realized for the preceding month from the 1%
12 tax on sales of food for human consumption which is to be
13 consumed off the premises where it is sold (other than
14 alcoholic beverages, soft drinks and food which has been
15 prepared for immediate consumption) and prescription and
16 nonprescription medicines, drugs, medical appliances and
17 insulin, urine testing materials, syringes and needles used
18 by diabetics.
19 Beginning January 1, 1990, each month the Department
20 shall pay into the County and Mass Transit District Fund 4%
21 of the net revenue realized for the preceding month from the
22 6.25% general rate on the selling price of tangible personal
23 property which is purchased outside Illinois at retail from a
24 retailer and which is titled or registered by an agency of
25 this State's government.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the State and Local Sales Tax Reform Fund, a
28 special fund in the State Treasury, 20% of the net revenue
29 realized for the preceding month from the 6.25% general rate
30 on the selling price of tangible personal property, other
31 than tangible personal property which is purchased outside
32 Illinois at retail from a retailer and which is titled or
33 registered by an agency of this State's government.
34 Each month the Department shall pay into the County and
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1 Mass Transit District Fund 20% the net revenue realized for
2 the preceding month from the 1.25% rate imposed upon the
3 selling price of any motor vehicle that is purchased outside
4 Illinois at retail by a lessor for purposes of leasing under
5 a lease subject to the Automobile Leasing Occupation and Use
6 Tax Act and which is titled or registered by an agency of
7 this State's government.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the Local Government Tax Fund 16% 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 which is purchased outside Illinois at retail from a
13 retailer and which is titled or registered by an agency of
14 this State's government.
15 Each month the Department shall pay into the Local
16 Government Tax Fund 80% of the net revenue realized for the
17 preceding month from the 1.25% rate imposed upon the selling
18 price of any motor vehicle that is purchased outside Illinois
19 at retail by a lessor for purposes of leasing under a lease
20 subject to the Automobile Leasing Occupation and Use Tax Act
21 and which is titled or registered by an agency of this
22 State's government.
23 Of the remainder of the moneys received by the Department
24 pursuant to this Act, and including all moneys received by
25 the Department under Section 20 of the Automobile Leasing
26 Occupation and Use Tax Act and including all of the moneys
27 received pursuant to the 5% rate imposed upon the selling
28 price of any motor vehicle that is purchased from lessors by
29 lessees of such vehicles in connection with a lease that was
30 subject to the Automobile Leasing Occupation and Use Tax Act
31 Of the remainder of the moneys received by the Department
32 pursuant to this Act, (a) 1.75% thereof shall be paid into
33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
34 and on and after July 1, 1989, 3.8% thereof shall be paid
-31- LRB9101586PTpkam02
1 into the Build Illinois Fund; provided, however, that if in
2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
3 as the case may be, of the moneys received by the Department
4 and required to be paid into the Build Illinois Fund pursuant
5 to Section 3 of the Retailers' Occupation Tax Act, Section 9
6 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
7 Section 9 of the Service Occupation Tax Act, such Acts being
8 hereinafter called the "Tax Acts" and such aggregate of 2.2%
9 or 3.8%, as the case may be, of moneys being hereinafter
10 called the "Tax Act Amount", and (2) the amount transferred
11 to the Build Illinois Fund from the State and Local Sales Tax
12 Reform Fund shall be less than the Annual Specified Amount
13 (as defined in Section 3 of the Retailers' Occupation Tax
14 Act), an amount equal to the difference shall be immediately
15 paid into the Build Illinois Fund from other moneys received
16 by the Department pursuant to the Tax Acts; and further
17 provided, that if on the last business day of any month the
18 sum of (1) the Tax Act Amount required to be deposited into
19 the Build Illinois Bond Account in the Build Illinois Fund
20 during such month and (2) the amount transferred during such
21 month to the Build Illinois Fund from the State and Local
22 Sales Tax Reform Fund shall have been less than 1/12 of the
23 Annual Specified Amount, an amount equal to the difference
24 shall be immediately paid into the Build Illinois Fund from
25 other moneys received by the Department pursuant to the Tax
26 Acts; and, further provided, that in no event shall the
27 payments required under the preceding proviso result in
28 aggregate payments into the Build Illinois Fund pursuant to
29 this clause (b) for any fiscal year in excess of the greater
30 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
31 for such fiscal year; and, further provided, that the amounts
32 payable into the Build Illinois Fund under this clause (b)
33 shall be payable only until such time as the aggregate amount
34 on deposit under each trust indenture securing Bonds issued
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1 and outstanding pursuant to the Build Illinois Bond Act is
2 sufficient, taking into account any future investment income,
3 to fully provide, in accordance with such indenture, for the
4 defeasance of or the payment of the principal of, premium, if
5 any, and interest on the Bonds secured by such indenture and
6 on any Bonds expected to be issued thereafter and all fees
7 and costs payable with respect thereto, all as certified by
8 the Director of the Bureau of the Budget. If on the last
9 business day of any month in which Bonds are outstanding
10 pursuant to the Build Illinois Bond Act, the aggregate of the
11 moneys deposited in the Build Illinois Bond Account in the
12 Build Illinois Fund in such month shall be less than the
13 amount required to be transferred in such month from the
14 Build Illinois Bond Account to the Build Illinois Bond
15 Retirement and Interest Fund pursuant to Section 13 of the
16 Build Illinois Bond Act, an amount equal to such deficiency
17 shall be immediately paid from other moneys received by the
18 Department pursuant to the Tax Acts to the Build Illinois
19 Fund; provided, however, that any amounts paid to the Build
20 Illinois Fund in any fiscal year pursuant to this sentence
21 shall be deemed to constitute payments pursuant to clause (b)
22 of the preceding sentence and shall reduce the amount
23 otherwise payable for such fiscal year pursuant to clause (b)
24 of the preceding sentence. The moneys received by the
25 Department pursuant to this Act and required to be deposited
26 into the Build Illinois Fund are subject to the pledge, claim
27 and charge set forth in Section 12 of the Build Illinois Bond
28 Act.
29 Subject to payment of amounts into the Build Illinois
30 Fund as provided in the preceding paragraph or in any
31 amendment thereto hereafter enacted, the following specified
32 monthly installment of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority provided under Section 8.25f of the
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1 State Finance Act, but not in excess of the sums designated
2 as "Total Deposit", shall be deposited in the aggregate from
3 collections under Section 9 of the Use Tax Act, Section 9 of
4 the Service Use Tax Act, Section 9 of the Service Occupation
5 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
6 into the McCormick Place Expansion Project Fund in the
7 specified fiscal years.
8 Fiscal Year Total Deposit
9 1993 $0
10 1994 53,000,000
11 1995 58,000,000
12 1996 61,000,000
13 1997 64,000,000
14 1998 68,000,000
15 1999 71,000,000
16 2000 75,000,000
17 2001 80,000,000
18 2002 84,000,000
19 2003 89,000,000
20 2004 93,000,000
21 2005 97,000,000
22 2006 102,000,000
23 2007 and 106,000,000
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
27 Section 13.2 of the
28 Metropolitan Pier and
29 Exposition Authority
30 Act, but not after fiscal year 2029.
31 Beginning July 20, 1993 and in each month of each fiscal
32 year thereafter, one-eighth of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority for that fiscal year, less the amount
-34- LRB9101586PTpkam02
1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year,
8 but not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to the preceding paragraphs or in any amendment thereto
13 hereafter enacted, each month the Department shall pay into
14 the Local Government Distributive Fund .4% of the net revenue
15 realized for the preceding month from the 5% general rate, or
16 .4% of 80% of the net revenue realized for the preceding
17 month from the 6.25% general rate, as the case may be, on the
18 selling price of tangible personal property which amount
19 shall, subject to appropriation, be distributed as provided
20 in Section 2 of the State Revenue Sharing Act. No payments or
21 distributions pursuant to this paragraph shall be made if the
22 tax imposed by this Act on photoprocessing products is
23 declared unconstitutional, or if the proceeds from such tax
24 are unavailable for distribution because of litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund, the McCormick Place Expansion Project Fund, and the
27 Local Government Distributive Fund pursuant to the preceding
28 paragraphs or in any amendments thereto hereafter enacted,
29 beginning July 1, 1993, the Department shall each month pay
30 into the Illinois Tax Increment Fund 0.27% of 80% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property.
34 Of the remainder of the moneys received by the Department
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1 pursuant to this Act, 75% thereof shall be paid into the
2 State Treasury and 25% shall be reserved in a special account
3 and used only for the transfer to the Common School Fund as
4 part of the monthly transfer from the General Revenue Fund in
5 accordance with Section 8a of the State Finance Act.
6 As soon as possible after the first day of each month,
7 upon certification of the Department of Revenue, the
8 Comptroller shall order transferred and the Treasurer shall
9 transfer from the General Revenue Fund to the Motor Fuel Tax
10 Fund an amount equal to 1.7% of 80% of the net revenue
11 realized under this Act for the second preceding month;
12 except that this transfer shall not be made for the months
13 February through June of 1992.
14 Net revenue realized for a month shall be the revenue
15 collected by the State pursuant to this Act, less the amount
16 paid out during that month as refunds to taxpayers for
17 overpayment of liability.
18 For greater simplicity of administration, manufacturers,
19 importers and wholesalers whose products are sold at retail
20 in Illinois by numerous retailers, and who wish to do so, may
21 assume the responsibility for accounting and paying to the
22 Department all tax accruing under this Act with respect to
23 such sales, if the retailers who are affected do not make
24 written objection to the Department to this arrangement.
25 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
26 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
27 Section 90. The Retailers' Occupation Tax Act is amended
28 by changing Sections 1c, 2-10, and 3 as follows:
29 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
30 Sec. 1c. A person who is engaged in the business of
31 leasing or renting motor vehicles to others and who, in
32 connection with such business sells any used motor vehicle to
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1 a purchaser for his use and not for the purpose of resale, is
2 a retailer engaged in the business of selling tangible
3 personal property at retail under this Act to the extent of
4 the value of the vehicle sold. For the purpose of this
5 Section, "motor vehicle" means any motor vehicle of the first
6 division, a motor vehicle of the second division which is a
7 self-contained motor vehicle designed or permanently
8 converted to provide living quarters for recreational,
9 camping or travel use, with direct walk through access to the
10 living quarters from the driver's seat, or a motor vehicle of
11 a second division which is of the van configuration designed
12 for the transportation of not less than 7 nor more than 16
13 passengers, as defined in Section 1-146 of the Illinois
14 Vehicle Code. For the purpose of this Section "motor vehicle"
15 has the meaning prescribed in Section 1-157 of The Illinois
16 Vehicle Code, as now or hereafter amended. (Nothing provided
17 herein shall affect liability incurred under this Act because
18 of the sale at retail of such motor vehicles to a lessor.)
19 (Source: P.A. 80-598.)
20 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
21 Sec. 2-10. Rate of tax. Unless otherwise provided in
22 this Section, the tax imposed by this Act is at the rate of
23 6.25% of gross receipts from sales of tangible personal
24 property made in the course of business.
25 With respect to gasohol, as defined in the Use Tax Act,
26 the tax imposed by this Act applies to 70% of the proceeds of
27 sales made on or after January 1, 1990, and before July 1,
28 2003, and to 100% of the proceeds of sales made thereafter.
29 With respect to food for human consumption that is to be
30 consumed off the premises where it is sold (other than
31 alcoholic beverages, soft drinks, and food that has been
32 prepared for immediate consumption) and prescription and
33 nonprescription medicines, drugs, medical appliances,
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1 modifications to a motor vehicle for the purpose of rendering
2 it usable by a disabled person, and insulin, urine testing
3 materials, syringes, and needles used by diabetics, for human
4 use, the tax is imposed at the rate of 1%. For the purposes
5 of this Section, the term "soft drinks" means any complete,
6 finished, ready-to-use, non-alcoholic drink, whether
7 carbonated or not, including but not limited to soda water,
8 cola, fruit juice, vegetable juice, carbonated water, and all
9 other preparations commonly known as soft drinks of whatever
10 kind or description that are contained in any closed or
11 sealed bottle, can, carton, or container, regardless of size.
12 "Soft drinks" does not include coffee, tea, non-carbonated
13 water, infant formula, milk or milk products as defined in
14 the Grade A Pasteurized Milk and Milk Products Act, or drinks
15 containing 50% or more natural fruit or vegetable juice.
16 Notwithstanding any other provisions of this Act, "food
17 for human consumption that is to be consumed off the premises
18 where it is sold" includes all food sold through a vending
19 machine, except soft drinks and food products that are
20 dispensed hot from a vending machine, regardless of the
21 location of the vending machine.
22 With respect to any motor vehicle (as the term "motor
23 vehicle" is defined in Section 1c of this Act) that is sold
24 to a lessor for purposes of leasing under a lease subject to
25 the Automobile Leasing Occupation and Use Tax Act, the tax is
26 imposed at the rate of 1.25%.
27 With respect to any motor vehicle (as the term "motor
28 vehicle" is defined in Section 1c of this Act) that has been
29 leased by a lessor to a lessee under a lease that is subject
30 to the Automobile Leasing Occupation and Use Tax Act, and is
31 subsequently sold to the lessee of such vehicle, the tax is
32 imposed at the rate of 5%.
33 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
34 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
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1 6-30-98; 90-606, eff. 6-30-98.)
2 (35 ILCS 120/3) (from Ch. 120, par. 442)
3 Sec. 3. Except as provided in this Section, on or before
4 the twentieth day of each calendar month, every person
5 engaged in the business of selling tangible personal property
6 at retail in this State during the preceding calendar month
7 shall file a return with the Department, stating:
8 1. The name of the seller;
9 2. His residence address and the address of his
10 principal place of business and the address of the
11 principal place of business (if that is a different
12 address) from which he engages in the business of selling
13 tangible personal property at retail in this State;
14 3. Total amount of receipts received by him during
15 the preceding calendar month or quarter, as the case may
16 be, from sales of tangible personal property, and from
17 services furnished, by him during such preceding calendar
18 month or quarter;
19 4. Total amount received by him during the
20 preceding calendar month or quarter on charge and time
21 sales of tangible personal property, and from services
22 furnished, by him prior to the month or quarter for which
23 the return is filed;
24 5. Deductions allowed by law;
25 6. Gross receipts which were received by him during
26 the preceding calendar month or quarter and upon the
27 basis of which the tax is imposed;
28 7. The amount of credit provided in Section 2d of
29 this Act;
30 8. The amount of tax due;
31 9. The signature of the taxpayer; and
32 10. Such other reasonable information as the
33 Department may require.
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1 If a taxpayer fails to sign a return within 30 days after
2 the proper notice and demand for signature by the Department,
3 the return shall be considered valid and any amount shown to
4 be due on the return shall be deemed assessed.
5 Each return shall be accompanied by the statement of
6 prepaid tax issued pursuant to Section 2e for which credit is
7 claimed.
8 A retailer may accept a Manufacturer's Purchase Credit
9 certification from a purchaser in satisfaction of Use Tax as
10 provided in Section 3-85 of the Use Tax Act if the purchaser
11 provides the appropriate documentation as required by Section
12 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
13 certification, accepted by a retailer as provided in Section
14 3-85 of the Use Tax Act, may be used by that retailer to
15 satisfy Retailers' Occupation Tax liability in the amount
16 claimed in the certification, not to exceed 6.25% of the
17 receipts subject to tax from a qualifying purchase.
18 The Department may require returns to be filed on a
19 quarterly basis. If so required, a return for each calendar
20 quarter shall be filed on or before the twentieth day of the
21 calendar month following the end of such calendar quarter.
22 The taxpayer shall also file a return with the Department for
23 each of the first two months of each calendar quarter, on or
24 before the twentieth day of the following calendar month,
25 stating:
26 1. The name of the seller;
27 2. The address of the principal place of business
28 from which he engages in the business of selling tangible
29 personal property at retail in this State;
30 3. The total amount of taxable receipts received by
31 him during the preceding calendar month from sales of
32 tangible personal property by him during such preceding
33 calendar month, including receipts from charge and time
34 sales, but less all deductions allowed by law;
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1 4. The amount of credit provided in Section 2d of
2 this Act;
3 5. The amount of tax due; and
4 6. Such other reasonable information as the
5 Department may require.
6 If a total amount of less than $1 is payable, refundable
7 or creditable, such amount shall be disregarded if it is less
8 than 50 cents and shall be increased to $1 if it is 50 cents
9 or more.
10 Beginning October 1, 1993, a taxpayer who has an average
11 monthly tax liability of $150,000 or more shall make all
12 payments required by rules of the Department by electronic
13 funds transfer. Beginning October 1, 1994, a taxpayer who
14 has an average monthly tax liability of $100,000 or more
15 shall make all payments required by rules of the Department
16 by electronic funds transfer. Beginning October 1, 1995, a
17 taxpayer who has an average monthly tax liability of $50,000
18 or more shall make all payments required by rules of the
19 Department by electronic funds transfer. The term "average
20 monthly tax liability" shall be the sum of the taxpayer's
21 liabilities under this Act, and under all other State and
22 local occupation and use tax laws administered by the
23 Department, for the immediately preceding calendar year
24 divided by 12.
25 Before August 1 of each year beginning in 1993, the
26 Department shall notify all taxpayers required to make
27 payments by electronic funds transfer. All taxpayers
28 required to make payments by electronic funds transfer shall
29 make those payments for a minimum of one year beginning on
30 October 1.
31 Any taxpayer not required to make payments by electronic
32 funds transfer may make payments by electronic funds transfer
33 with the permission of the Department.
34 All taxpayers required to make payment by electronic
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1 funds transfer and any taxpayers authorized to voluntarily
2 make payments by electronic funds transfer shall make those
3 payments in the manner authorized by the Department.
4 The Department shall adopt such rules as are necessary to
5 effectuate a program of electronic funds transfer and the
6 requirements of this Section.
7 Any amount which is required to be shown or reported on
8 any return or other document under this Act shall, if such
9 amount is not a whole-dollar amount, be increased to the
10 nearest whole-dollar amount in any case where the fractional
11 part of a dollar is 50 cents or more, and decreased to the
12 nearest whole-dollar amount where the fractional part of a
13 dollar is less than 50 cents.
14 If the retailer is otherwise required to file a monthly
15 return and if the retailer's average monthly tax liability to
16 the Department does not exceed $200, the Department may
17 authorize his returns to be filed on a quarter annual basis,
18 with the return for January, February and March of a given
19 year being due by April 20 of such year; with the return for
20 April, May and June of a given year being due by July 20 of
21 such year; with the return for July, August and September of
22 a given year being due by October 20 of such year, and with
23 the return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the retailer is otherwise required to file a monthly
26 or quarterly return and if the retailer's average monthly tax
27 liability with the Department does not exceed $50, the
28 Department may authorize his returns to be filed on an annual
29 basis, with the return for a given year being due by January
30 20 of the following year.
31 Such quarter annual and annual returns, as to form and
32 substance, shall be subject to the same requirements as
33 monthly returns.
34 Notwithstanding any other provision in this Act
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1 concerning the time within which a retailer may file his
2 return, in the case of any retailer who ceases to engage in a
3 kind of business which makes him responsible for filing
4 returns under this Act, such retailer shall file a final
5 return under this Act with the Department not more than one
6 month after discontinuing such business.
7 Where the same person has more than one business
8 registered with the Department under separate registrations
9 under this Act, such person may not file each return that is
10 due as a single return covering all such registered
11 businesses, but shall file separate returns for each such
12 registered 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 retailer or trailer
24 retailer for the purpose of resale, that seller for resale
25 may report the transfer of all aircraft, watercraft, motor
26 vehicles or trailers involved in that transaction to the
27 Department on the same uniform invoice-transaction reporting
28 return form. For purposes of this Section, "watercraft"
29 means a Class 2, Class 3, or Class 4 watercraft as defined in
30 Section 3-2 of the Boat Registration and Safety Act, a
31 personal watercraft, or any boat equipped with an inboard
32 motor.
33 Any retailer who sells only motor vehicles, watercraft,
34 aircraft, or trailers that are required to be registered with
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1 an agency of this State, so that all retailers' occupation
2 tax liability is required to be reported, and is reported, on
3 such transaction reporting returns and who is not otherwise
4 required to file monthly or quarterly returns, need not file
5 monthly or quarterly returns. However, those retailers shall
6 be required to file returns on an annual basis.
7 The transaction reporting return, in the case of motor
8 vehicles or trailers that are required to be registered with
9 an agency of this State, shall be the same document as the
10 Uniform Invoice referred to in Section 5-402 of The Illinois
11 Vehicle Code and must show the name and address of the
12 seller; the name and address of the purchaser; the amount of
13 the selling price including the amount allowed by the
14 retailer for traded-in property, if any; the amount allowed
15 by the retailer for the traded-in tangible personal property,
16 if any, to the extent to which Section 1 of this Act allows
17 an exemption for the value of traded-in property; the balance
18 payable after deducting such trade-in allowance from the
19 total selling price; the amount of tax due from the retailer
20 with respect to such transaction; the amount of tax collected
21 from the purchaser by the retailer on such transaction (or
22 satisfactory evidence that such tax is not due in that
23 particular instance, if that is claimed to be the fact); the
24 place and date of the sale; a sufficient identification of
25 the property sold; such other information as is required in
26 Section 5-402 of The Illinois Vehicle Code, and such other
27 information as the Department may reasonably require.
28 The transaction reporting return in the case of
29 watercraft or aircraft must show the name and address of the
30 seller; the name and address of the purchaser; the amount of
31 the selling price including the amount allowed by the
32 retailer for traded-in property, if any; the amount allowed
33 by the retailer for the traded-in tangible personal property,
34 if any, to the extent to which Section 1 of this Act allows
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1 an exemption for the value of traded-in property; the balance
2 payable after deducting such trade-in allowance from the
3 total selling price; the amount of tax due from the retailer
4 with respect to such transaction; the amount of tax collected
5 from the purchaser by the retailer on such transaction (or
6 satisfactory evidence that such tax is not due in that
7 particular instance, if that is claimed to be the fact); the
8 place and date of the sale, a sufficient identification of
9 the property sold, and such other information as the
10 Department may reasonably require.
11 Such transaction reporting return shall be filed not
12 later than 20 days after the day of delivery of the item that
13 is being sold, but may be filed by the retailer at any time
14 sooner than that if he chooses to do so. The transaction
15 reporting return and tax remittance or proof of exemption
16 from the Illinois use tax may be transmitted to the
17 Department by way of the State agency with which, or State
18 officer with whom the tangible personal property must be
19 titled or registered (if titling or registration is required)
20 if the Department and such agency or State officer determine
21 that this procedure will expedite the processing of
22 applications for title or registration.
23 With each such transaction reporting return, the retailer
24 shall remit the proper amount of tax due (or shall submit
25 satisfactory evidence that the sale is not taxable if that is
26 the case), to the Department or its agents, whereupon the
27 Department shall issue, in the purchaser's name, a use tax
28 receipt (or a certificate of exemption if the Department is
29 satisfied that the particular sale is tax exempt) which such
30 purchaser may submit to the agency with which, or State
31 officer with whom, he must title or register the tangible
32 personal property that is involved (if titling or
33 registration is required) in support of such purchaser's
34 application for an Illinois certificate or other evidence of
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1 title or registration to such tangible personal property.
2 No retailer's failure or refusal to remit tax under this
3 Act precludes a user, who has paid the proper tax to the
4 retailer, from obtaining his certificate of title or other
5 evidence of title or registration (if titling or registration
6 is required) upon satisfying the Department that such user
7 has paid the proper tax (if tax is due) to the retailer. The
8 Department shall adopt appropriate rules to carry out the
9 mandate of this paragraph.
10 If the user who would otherwise pay tax to the retailer
11 wants the transaction reporting return filed and the payment
12 of the tax or proof of exemption made to the Department
13 before the retailer is willing to take these actions and such
14 user has not paid the tax to the retailer, such user may
15 certify to the fact of such delay by the retailer and may
16 (upon the Department being satisfied of the truth of such
17 certification) transmit the information required by the
18 transaction reporting return and the remittance for tax or
19 proof of exemption directly to the Department and obtain his
20 tax receipt or exemption determination, in which event the
21 transaction reporting return and tax remittance (if a tax
22 payment was required) shall be credited by the Department to
23 the proper retailer's account with the Department, but
24 without the 2.1% or 1.75% discount provided for in this
25 Section being allowed. When the user pays the tax directly
26 to the Department, he shall pay the tax in the same amount
27 and in the same form in which it would be remitted if the tax
28 had been remitted to the Department by the retailer.
29 Refunds made by the seller during the preceding return
30 period to purchasers, on account of tangible personal
31 property returned to the seller, shall be allowed as a
32 deduction under subdivision 5 of his monthly or quarterly
33 return, as the case may be, in case the seller had
34 theretofore included the receipts from the sale of such
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1 tangible personal property in a return filed by him and had
2 paid the tax imposed by this Act with respect to such
3 receipts.
4 Where the seller is a corporation, the return filed on
5 behalf of such corporation shall be signed by the president,
6 vice-president, secretary or treasurer or by the properly
7 accredited agent of such corporation.
8 Where the seller is a limited liability company, the
9 return filed on behalf of the limited liability company shall
10 be signed by a manager, member, or properly accredited agent
11 of the limited liability company.
12 Except as provided in this Section, the retailer filing
13 the return under this Section shall, at the time of filing
14 such return, pay to the Department the amount of tax imposed
15 by this Act less a discount of 2.1% prior to January 1, 1990
16 and 1.75% on and after January 1, 1990, or $5 per calendar
17 year, whichever is greater, which is allowed to reimburse the
18 retailer for the expenses incurred in keeping records,
19 preparing and filing returns, remitting the tax and supplying
20 data to the Department on request. Any prepayment made
21 pursuant to Section 2d of this Act shall be included in the
22 amount on which such 2.1% or 1.75% discount is computed. In
23 the case of retailers who report and pay the tax on a
24 transaction by transaction basis, as provided in this
25 Section, such discount shall be taken with each such tax
26 remittance instead of when such retailer files his periodic
27 return.
28 If the taxpayer's average monthly tax liability to the
29 Department under this Act, the Use Tax Act, the Service
30 Occupation Tax Act, and the Service Use Tax Act, excluding
31 any liability for prepaid sales tax to be remitted in
32 accordance with Section 2d of this Act, was $10,000 or more
33 during the preceding 4 complete calendar quarters, he shall
34 file a return with the Department each month by the 20th day
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1 of the month next following the month during which such tax
2 liability is incurred and shall make payments to the
3 Department on or before the 7th, 15th, 22nd and last day of
4 the month during which such liability is incurred. If the
5 month during which such tax liability is incurred began prior
6 to January 1, 1985, each payment shall be in an amount equal
7 to 1/4 of the taxpayer's actual liability for the month or an
8 amount set by the Department not to exceed 1/4 of the average
9 monthly liability of the taxpayer to the Department for the
10 preceding 4 complete calendar quarters (excluding the month
11 of highest liability and the month of lowest liability in
12 such 4 quarter period). If the month during which such tax
13 liability is incurred begins on or after January 1, 1985 and
14 prior to January 1, 1987, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 27.5% of the taxpayer's liability for the same
17 calendar month of the preceding year. If the month during
18 which such tax liability is incurred begins on or after
19 January 1, 1987 and prior to January 1, 1988, each payment
20 shall be in an amount equal to 22.5% of the taxpayer's actual
21 liability for the month or 26.25% of the taxpayer's liability
22 for the same calendar month of the preceding year. If the
23 month during which such tax liability is incurred begins on
24 or after January 1, 1988, and prior to January 1, 1989, or
25 begins on or after January 1, 1996, each payment shall be in
26 an amount equal to 22.5% of the taxpayer's actual liability
27 for the month or 25% of the taxpayer's liability for the same
28 calendar month of the preceding year. If the month during
29 which such tax liability is incurred begins on or after
30 January 1, 1989, and prior to January 1, 1996, each payment
31 shall be in an amount equal to 22.5% of the taxpayer's actual
32 liability for the month or 25% of the taxpayer's liability
33 for the same calendar month of the preceding year or 100% of
34 the taxpayer's actual liability for the quarter monthly
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1 reporting period. The amount of such quarter monthly
2 payments shall be credited against the final tax liability of
3 the taxpayer's return for that month. Once applicable, the
4 requirement of the making of quarter monthly payments to the
5 Department by taxpayers having an average monthly tax
6 liability of $10,000 or more as determined in the manner
7 provided above shall continue until such taxpayer's average
8 monthly liability to the Department during the preceding 4
9 complete calendar quarters (excluding the month of highest
10 liability and the month of lowest liability) is less than
11 $9,000, or until such taxpayer's average monthly liability to
12 the Department as computed for each calendar quarter of the 4
13 preceding complete calendar quarter period is less than
14 $10,000. However, if a taxpayer can show the Department that
15 a substantial change in the taxpayer's business has occurred
16 which causes the taxpayer to anticipate that his average
17 monthly tax liability for the reasonably foreseeable future
18 will fall below $10,000, then such taxpayer may petition the
19 Department for a change in such taxpayer's reporting status.
20 The Department shall change such taxpayer's reporting status
21 unless it finds that such change is seasonal in nature and
22 not likely to be long term. If any such quarter monthly
23 payment is not paid at the time or in the amount required by
24 this Section, then the taxpayer shall be liable for penalties
25 and interest on the difference between the minimum amount due
26 as a payment and the amount of such quarter monthly payment
27 actually and timely paid, except insofar as the taxpayer has
28 previously made payments for that month to the Department in
29 excess of the minimum payments previously due as provided in
30 this Section. The Department shall make reasonable rules and
31 regulations to govern the quarter monthly payment amount and
32 quarter monthly payment dates for taxpayers who file on other
33 than a calendar monthly basis.
34 Without regard to whether a taxpayer is required to make
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1 quarter monthly payments as specified above, any taxpayer who
2 is required by Section 2d of this Act to collect and remit
3 prepaid taxes and has collected prepaid taxes which average
4 in excess of $25,000 per month during the preceding 2
5 complete calendar quarters, shall file a return with the
6 Department as required by Section 2f and shall make payments
7 to the Department on or before the 7th, 15th, 22nd and last
8 day of the month during which such liability is incurred. If
9 the month during which such tax liability is incurred began
10 prior to the effective date of this amendatory Act of 1985,
11 each payment shall be in an amount not less than 22.5% of the
12 taxpayer's actual liability under Section 2d. If the month
13 during which such tax liability is incurred begins on or
14 after January 1, 1986, each payment shall be in an amount
15 equal to 22.5% of the taxpayer's actual liability for the
16 month or 27.5% of the taxpayer's liability for the same
17 calendar month of the preceding calendar year. If the month
18 during which such tax liability is incurred begins on or
19 after January 1, 1987, each payment shall be in an amount
20 equal to 22.5% of the taxpayer's actual liability for the
21 month or 26.25% of the taxpayer's liability for the same
22 calendar month of the preceding year. The amount of such
23 quarter monthly payments shall be credited against the final
24 tax liability of the taxpayer's return for that month filed
25 under this Section or Section 2f, as the case may be. Once
26 applicable, the requirement of the making of quarter monthly
27 payments to the Department pursuant to this paragraph shall
28 continue until such taxpayer's average monthly prepaid tax
29 collections during the preceding 2 complete calendar quarters
30 is $25,000 or less. If any such quarter monthly payment is
31 not paid at the time or in the amount required, the taxpayer
32 shall be liable for penalties and interest on such
33 difference, except insofar as the taxpayer has previously
34 made payments for that month in excess of the minimum
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1 payments previously due.
2 If any payment provided for in this Section exceeds the
3 taxpayer's liabilities under this Act, the Use Tax Act, the
4 Service Occupation Tax Act and the Service Use Tax Act, as
5 shown on an original monthly return, the Department shall, if
6 requested by the taxpayer, issue to the taxpayer a credit
7 memorandum no later than 30 days after the date of payment.
8 The credit evidenced by such credit memorandum may be
9 assigned by the taxpayer to a similar taxpayer under this
10 Act, the Use Tax Act, the Service Occupation Tax Act or the
11 Service Use Tax Act, in accordance with reasonable rules and
12 regulations to be prescribed by the Department. If no such
13 request is made, the taxpayer may credit such excess payment
14 against tax liability subsequently to be remitted to the
15 Department under this Act, the Use Tax Act, the Service
16 Occupation Tax Act or the Service Use Tax Act, in accordance
17 with reasonable rules and regulations prescribed by the
18 Department. If the Department subsequently determined that
19 all or any part of the credit taken was not actually due to
20 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
21 shall be reduced by 2.1% or 1.75% of the difference between
22 the credit taken and that actually due, and that taxpayer
23 shall be liable for penalties and interest on such
24 difference.
25 If a retailer of motor fuel is entitled to a credit under
26 Section 2d of this Act which exceeds the taxpayer's liability
27 to the Department under this Act for the month which the
28 taxpayer is filing a return, the Department shall issue the
29 taxpayer a credit memorandum for the excess.
30 Beginning January 1, 1990, each month the Department
31 shall pay into the Local Government Tax Fund, a special fund
32 in the State treasury which is hereby created, the net
33 revenue realized for the preceding month from the 1% tax on
34 sales of food for human consumption which is to be consumed
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1 off the premises where it is sold (other than alcoholic
2 beverages, soft drinks and food which has been prepared for
3 immediate consumption) and prescription and nonprescription
4 medicines, drugs, medical appliances and insulin, urine
5 testing materials, syringes and needles used by diabetics.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the County and Mass Transit District Fund, a
8 special fund in the State treasury which is hereby created,
9 4% of the net revenue realized for the preceding month from
10 the 6.25% general rate.
11 Each month the Department shall pay into the County and
12 Mass Transit District Fund 20% of the net revenue realized
13 for the preceding month from the 1.25% rate imposed upon the
14 sale of any motor vehicle that is sold at retail to a lessor
15 for purposes of leasing under a lease subject to the
16 Automobile Leasing Occupation and Use Tax Act.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the Local Government Tax Fund 16% 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 Each month the Department shall pay into the Local
23 Government Tax Fund 80% of the net revenue realized for the
24 preceding month from the 1.25% rate imposed upon the sale of
25 any motor vehicle that is sold at retail to a lessor for
26 purposes of leasing under a lease subject to the Automobile
27 Leasing Occupation and Use Tax Act.
28 Of the remainder of the moneys received by the Department
29 pursuant to this Act, and including all moneys received by
30 the Department pursuant to Section 10 of the Automobile
31 Leasing Occupation and Use Tax Act, and including all of the
32 moneys received pursuant to the 5% rate imposed upon sales of
33 motor vehicles by lessors to the lessees of such vehicles in
34 connection with a lease that was subject to the Automobile
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1 Leasing Occupation and Use Tax Act Of the remainder of the
2 moneys received by the Department pursuant to this Act, (a)
3 1.75% thereof shall be paid into the Build Illinois Fund and
4 (b) prior to July 1, 1989, 2.2% and on and after July 1,
5 1989, 3.8% thereof shall be paid into the Build Illinois
6 Fund; provided, however, that if in any fiscal year the sum
7 of (1) the aggregate of 2.2% or 3.8%, as the case may be, of
8 the moneys received by the Department and required to be paid
9 into the Build Illinois Fund pursuant to this Act, Section 9
10 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
11 Section 9 of the Service Occupation Tax Act, such Acts being
12 hereinafter called the "Tax Acts" and such aggregate of 2.2%
13 or 3.8%, as the case may be, of moneys being hereinafter
14 called the "Tax Act Amount", and (2) the amount transferred
15 to the Build Illinois Fund from the State and Local Sales Tax
16 Reform Fund shall be less than the Annual Specified Amount
17 (as hereinafter defined), 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; the "Annual Specified Amount" means the amounts
21 specified below for fiscal years 1986 through 1993:
22 Fiscal Year Annual Specified Amount
23 1986 $54,800,000
24 1987 $76,650,000
25 1988 $80,480,000
26 1989 $88,510,000
27 1990 $115,330,000
28 1991 $145,470,000
29 1992 $182,730,000
30 1993 $206,520,000;
31 and means the Certified Annual Debt Service Requirement (as
32 defined in Section 13 of the Build Illinois Bond Act) or the
33 Tax Act Amount, whichever is greater, for fiscal year 1994
34 and each fiscal year thereafter; and further provided, that
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1 if on the last business day of any month the sum of (1) the
2 Tax Act Amount required to be deposited into the Build
3 Illinois Bond Account in the Build Illinois Fund during such
4 month and (2) the amount transferred to the Build Illinois
5 Fund from the State and Local Sales Tax Reform Fund shall
6 have been less than 1/12 of the Annual Specified Amount, an
7 amount equal to the difference shall be immediately paid into
8 the Build Illinois Fund from other moneys received by the
9 Department pursuant to the Tax Acts; and, further provided,
10 that in no event shall the payments required under the
11 preceding proviso result in aggregate payments into the Build
12 Illinois Fund pursuant to this clause (b) for any fiscal year
13 in excess of the greater of (i) the Tax Act Amount or (ii)
14 the Annual Specified Amount for such fiscal year. The
15 amounts payable into the Build Illinois Fund under clause (b)
16 of the first sentence in this paragraph shall be payable only
17 until such time as the aggregate amount on deposit under each
18 trust indenture securing Bonds issued and outstanding
19 pursuant to the Build Illinois Bond Act is sufficient, taking
20 into account any future investment income, to fully provide,
21 in accordance with such indenture, for the defeasance of or
22 the payment of the principal of, premium, if any, and
23 interest on the Bonds secured by such indenture and on any
24 Bonds expected to be issued thereafter and all fees and costs
25 payable with respect thereto, all as certified by the
26 Director of the Bureau of the Budget. If on the last
27 business day of any month in which Bonds are outstanding
28 pursuant to the Build Illinois Bond Act, the aggregate of
29 moneys deposited in the Build Illinois Bond Account in the
30 Build Illinois Fund in such month shall be less than the
31 amount required to be transferred in such month from the
32 Build Illinois Bond Account to the Build Illinois Bond
33 Retirement and Interest Fund pursuant to Section 13 of the
34 Build Illinois Bond Act, an amount equal to such deficiency
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1 shall be immediately paid from other moneys received by the
2 Department pursuant to the Tax Acts to the Build Illinois
3 Fund; provided, however, that any amounts paid to the Build
4 Illinois Fund in any fiscal year pursuant to this sentence
5 shall be deemed to constitute payments pursuant to clause (b)
6 of the first sentence of this paragraph and shall reduce the
7 amount otherwise payable for such fiscal year pursuant to
8 that clause (b). The moneys received by the Department
9 pursuant to this Act and required to be deposited into the
10 Build Illinois Fund are subject to the pledge, claim and
11 charge set forth in Section 12 of the Build Illinois Bond
12 Act.
13 Subject to payment of amounts into the Build Illinois
14 Fund as provided in the preceding paragraph or in any
15 amendment thereto hereafter enacted, the following specified
16 monthly installment of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority provided under Section 8.25f of the
19 State Finance Act, but not in excess of sums designated as
20 "Total Deposit", shall be deposited in the aggregate from
21 collections under Section 9 of the Use Tax Act, Section 9 of
22 the Service Use Tax Act, Section 9 of the Service Occupation
23 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
24 into the McCormick Place Expansion Project Fund in the
25 specified fiscal years.
26 Fiscal Year Total Deposit
27 1993 $0
28 1994 53,000,000
29 1995 58,000,000
30 1996 61,000,000
31 1997 64,000,000
32 1998 68,000,000
33 1999 71,000,000
34 2000 75,000,000
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1 2001 80,000,000
2 2002 84,000,000
3 2003 89,000,000
4 2004 93,000,000
5 2005 97,000,000
6 2006 102,000,000
7 2007 and 106,000,000
8 each fiscal year
9 thereafter that bonds
10 are outstanding under
11 Section 13.2 of the
12 Metropolitan Pier and
13 Exposition Authority
14 Act, but not after fiscal year 2029.
15 Beginning July 20, 1993 and in each month of each fiscal
16 year thereafter, one-eighth of the amount requested in the
17 certificate of the Chairman of the Metropolitan Pier and
18 Exposition Authority for that fiscal year, less the amount
19 deposited into the McCormick Place Expansion Project Fund by
20 the State Treasurer in the respective month under subsection
21 (g) of Section 13 of the Metropolitan Pier and Exposition
22 Authority Act, plus cumulative deficiencies in the deposits
23 required under this Section for previous months and years,
24 shall be deposited into the McCormick Place Expansion Project
25 Fund, until the full amount requested for the fiscal year,
26 but not in excess of the amount specified above as "Total
27 Deposit", has been deposited.
28 Subject to payment of amounts into the Build Illinois
29 Fund and the McCormick Place Expansion Project Fund pursuant
30 to the preceding paragraphs or in any amendment thereto
31 hereafter enacted, each month the Department shall pay into
32 the Local Government Distributive Fund 0.4% of the net
33 revenue realized for the preceding month from the 5% general
34 rate or 0.4% of 80% of the net revenue realized for the
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1 preceding month from the 6.25% general rate, as the case may
2 be, on the selling price of tangible personal property which
3 amount shall, subject to appropriation, be distributed as
4 provided in Section 2 of the State Revenue Sharing Act. No
5 payments or distributions pursuant to this paragraph shall be
6 made if the tax imposed by this Act on photoprocessing
7 products is declared unconstitutional, or if the proceeds
8 from such tax are unavailable for distribution because of
9 litigation.
10 Subject to payment of amounts into the Build Illinois
11 Fund, the McCormick Place Expansion Project to the preceding
12 paragraphs or in any amendments thereto hereafter enacted,
13 beginning July 1, 1993, the Department shall each month pay
14 into the Illinois Tax Increment Fund 0.27% of 80% of the net
15 revenue realized for the preceding month from the 6.25%
16 general rate on the selling price of tangible personal
17 property.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, 75% thereof shall be paid into the
20 State Treasury and 25% shall be reserved in a special account
21 and used only for the transfer to the Common School Fund as
22 part of the monthly transfer from the General Revenue Fund in
23 accordance with Section 8a of the State Finance Act.
24 The Department may, upon separate written notice to a
25 taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the retailer's last
31 Federal income tax return. If the total receipts of the
32 business as reported in the Federal income tax return do not
33 agree with the gross receipts reported to the Department of
34 Revenue for the same period, the retailer shall attach to his
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1 annual return a schedule showing a reconciliation of the 2
2 amounts and the reasons for the difference. The retailer's
3 annual return to the Department shall also disclose the cost
4 of goods sold by the retailer during the year covered by such
5 return, opening and closing inventories of such goods for
6 such year, costs of goods used from stock or taken from stock
7 and given away by the retailer during such year, payroll
8 information of the retailer's business during such year and
9 any additional reasonable information which the Department
10 deems would be helpful in determining the accuracy of the
11 monthly, quarterly or annual returns filed by such retailer
12 as provided for in this Section.
13 If the annual information return required by this Section
14 is not filed when and as required, the taxpayer shall be
15 liable as follows:
16 (i) Until January 1, 1994, the taxpayer shall be
17 liable for a penalty equal to 1/6 of 1% of the tax due
18 from such taxpayer under this Act during the period to be
19 covered by the annual return for each month or fraction
20 of a month until such return is filed as required, the
21 penalty to be assessed and collected in the same manner
22 as any other penalty provided for in this Act.
23 (ii) On and after January 1, 1994, the taxpayer
24 shall be liable for a penalty as described in Section 3-4
25 of the Uniform Penalty and Interest Act.
26 The chief executive officer, proprietor, owner or highest
27 ranking manager shall sign the annual return to certify the
28 accuracy of the information contained therein. Any person
29 who willfully signs the annual return containing false or
30 inaccurate information shall be guilty of perjury and
31 punished accordingly. The annual return form prescribed by
32 the Department shall include a warning that the person
33 signing the return may be liable for perjury.
34 The provisions of this Section concerning the filing of
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1 an annual information return do not apply to a retailer who
2 is not required to file an income tax return with the United
3 States Government.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under this Act for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 Net revenue realized for a month shall be the revenue
13 collected by the State pursuant to this Act, less the amount
14 paid out during that month as refunds to taxpayers for
15 overpayment of liability.
16 For greater simplicity of administration, manufacturers,
17 importers and wholesalers whose products are sold at retail
18 in Illinois by numerous retailers, and who wish to do so, may
19 assume the responsibility for accounting and paying to the
20 Department all tax accruing under this Act with respect to
21 such sales, if the retailers who are affected do not make
22 written objection to the Department to this arrangement.
23 Any person who promotes, organizes, provides retail
24 selling space for concessionaires or other types of sellers
25 at the Illinois State Fair, DuQuoin State Fair, county fairs,
26 local fairs, art shows, flea markets and similar exhibitions
27 or events, including any transient merchant as defined by
28 Section 2 of the Transient Merchant Act of 1987, is required
29 to file a report with the Department providing the name of
30 the merchant's business, the name of the person or persons
31 engaged in merchant's business, the permanent address and
32 Illinois Retailers Occupation Tax Registration Number of the
33 merchant, the dates and location of the event and other
34 reasonable information that the Department may require. The
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1 report must be filed not later than the 20th day of the month
2 next following the month during which the event with retail
3 sales was held. Any person who fails to file a report
4 required by this Section commits a business offense and is
5 subject to a fine not to exceed $250.
6 Any person engaged in the business of selling tangible
7 personal property at retail as a concessionaire or other type
8 of seller at the Illinois State Fair, county fairs, art
9 shows, flea markets and similar exhibitions or events, or any
10 transient merchants, as defined by Section 2 of the Transient
11 Merchant Act of 1987, may be required to make a daily report
12 of the amount of such sales to the Department and to make a
13 daily payment of the full amount of tax due. The Department
14 shall impose this requirement when it finds that there is a
15 significant risk of loss of revenue to the State at such an
16 exhibition or event. Such a finding shall be based on
17 evidence that a substantial number of concessionaires or
18 other sellers who are not residents of Illinois will be
19 engaging in the business of selling tangible personal
20 property at retail at the exhibition or event, or other
21 evidence of a significant risk of loss of revenue to the
22 State. The Department shall notify concessionaires and other
23 sellers affected by the imposition of this requirement. In
24 the absence of notification by the Department, the
25 concessionaires and other sellers shall file their returns as
26 otherwise required in this Section.
27 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
28 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
29 1-1-99; 90-612, eff. 7-8-98.)
30 Section 99. Effective date. This Act takes effect on
31 July 1, 2000.".