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91_HB4473
LRB9112104SMdv
1 AN ACT in relation to taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Sections 3-10 and 9 as follows:
6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
7 Sec. 3-10. Rate of tax. Unless otherwise provided in
8 this Section, the tax imposed by this Act is at the rate of
9 6.25% of either the selling price or the fair market value,
10 if any, of the tangible personal property. In all cases
11 where property functionally used or consumed is the same as
12 the property that was purchased at retail, then the tax is
13 imposed on the selling price of the property. In all cases
14 where property functionally used or consumed is a by-product
15 or waste product that has been refined, manufactured, or
16 produced from property purchased at retail, then the tax is
17 imposed on the lower of the fair market value, if any, of the
18 specific property so used in this State or on the selling
19 price of the property purchased at retail. For purposes of
20 this Section "fair market value" means the price at which
21 property would change hands between a willing buyer and a
22 willing seller, neither being under any compulsion to buy or
23 sell and both having reasonable knowledge of the relevant
24 facts. The fair market value shall be established by Illinois
25 sales by the taxpayer of the same property as that
26 functionally used or consumed, or if there are no such sales
27 by the taxpayer, then comparable sales or purchases of
28 property of like kind and character in Illinois.
29 With respect to motor fuel, as defined in Section 1.1 of
30 the Motor Fuel Tax Law, and gasohol, as defined in Section
31 3-40 of the Use Tax Act, the tax is imposed at the rate of
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1 1.25%. If, however, the aggregate tax revenues from motor
2 fuel and gasohol under the Use Tax Act, the Service Use Tax
3 Act, the Service Occupation Tax Act, and the Retailers'
4 Occupation Tax Act during the period from January 1, 2001
5 through December 31, 2001 are not at least 15% more than the
6 aggregate tax revenues from motor fuel and gasohol under
7 those Acts during the period from January 1, 2000 through
8 December 31, 2000, then beginning January 1, 2004 the tax is
9 imposed on motor fuel and gasohol at the 6.25% general rate.
10 With respect to gasohol, the tax imposed by this Act
11 applies to 70% of the proceeds of sales made on or after
12 January 1, 1990, and before July 1, 2003, and to 100% of the
13 proceeds of sales made thereafter.
14 With respect to food for human consumption that is to be
15 consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances,
19 modifications to a motor vehicle for the purpose of rendering
20 it usable by a disabled person, and insulin, urine testing
21 materials, syringes, and needles used by diabetics, for human
22 use, the tax is imposed at the rate of 1%. For the purposes
23 of this Section, the term "soft drinks" means any complete,
24 finished, ready-to-use, non-alcoholic drink, whether
25 carbonated or not, including but not limited to soda water,
26 cola, fruit juice, vegetable juice, carbonated water, and all
27 other preparations commonly known as soft drinks of whatever
28 kind or description that are contained in any closed or
29 sealed bottle, can, carton, or container, regardless of size.
30 "Soft drinks" does not include coffee, tea, non-carbonated
31 water, infant formula, milk or milk products as defined in
32 the Grade A Pasteurized Milk and Milk Products Act, or drinks
33 containing 50% or more natural fruit or vegetable juice.
34 Notwithstanding any other provisions of this Act, "food
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1 for human consumption that is to be consumed off the premises
2 where it is sold" includes all food sold through a vending
3 machine, except soft drinks and food products that are
4 dispensed hot from a vending machine, regardless of the
5 location of the vending machine.
6 If the property that is purchased at retail from a
7 retailer is acquired outside Illinois and used outside
8 Illinois before being brought to Illinois for use here and is
9 taxable under this Act, the "selling price" on which the tax
10 is computed shall be reduced by an amount that represents a
11 reasonable allowance for depreciation for the period of prior
12 out-of-state use.
13 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
14 91-51, eff. 6-30-99.)
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. Beginning October 1,
23 2000, a taxpayer who has an annual tax liability of $200,000
24 or more shall make all payments required by rules of the
25 Department by electronic funds transfer. The term "annual
26 tax liability" shall be the sum of the taxpayer's liabilities
27 under this Act, and under all other State and local
28 occupation and use tax laws administered by the Department,
29 for the immediately preceding calendar year. The term
30 "average monthly tax liability" means the sum of the
31 taxpayer's liabilities under this Act, and under all other
32 State and local occupation and use tax laws administered by
33 the Department, for the immediately preceding calendar year
34 divided by 12.
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1 Before August 1 of each year beginning in 1993, the
2 Department shall notify all taxpayers required to make
3 payments by electronic funds transfer. All taxpayers required
4 to make payments by electronic funds transfer shall make
5 those payments for a minimum of one year beginning on October
6 1.
7 Any taxpayer not required to make payments by electronic
8 funds transfer may make payments by electronic funds transfer
9 with the permission of the Department.
10 All taxpayers required to make payment by electronic
11 funds transfer and any taxpayers authorized to voluntarily
12 make payments by electronic funds transfer shall make those
13 payments in the manner authorized by the Department.
14 The Department shall adopt such rules as are necessary to
15 effectuate a program of electronic funds transfer and the
16 requirements of this Section.
17 Before October 1, 2000, if the taxpayer's average monthly
18 tax liability to the Department under this Act, the
19 Retailers' Occupation Tax Act, the Service Occupation Tax
20 Act, the Service Use Tax Act was $10,000 or more during the
21 preceding 4 complete calendar quarters, he shall file a
22 return with the Department each month by the 20th day of the
23 month next following the month during which such tax
24 liability is incurred and shall make payments to the
25 Department on or before the 7th, 15th, 22nd and last day of
26 the month during which such liability is incurred. On and
27 after October 1, 2000, if the taxpayer's average monthly tax
28 liability to the Department under this Act, the Retailers'
29 Occupation Tax Act, the Service Occupation Tax Act, and the
30 Service Use Tax Act was $20,000 or more during the preceding
31 4 complete calendar quarters, he shall file a return with the
32 Department each month by the 20th day of the month next
33 following the month during which such tax liability is
34 incurred and shall make payment to the Department on or
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1 before the 7th, 15th, 22nd and last day of or the month
2 during which such liability is incurred. If the month during
3 which such tax liability is incurred began prior to January
4 1, 1985, each payment shall be in an amount equal to 1/4 of
5 the taxpayer's actual liability for the month or an amount
6 set by the Department not to exceed 1/4 of the average
7 monthly liability of the taxpayer to the Department for the
8 preceding 4 complete calendar quarters (excluding the month
9 of highest liability and the month of lowest liability in
10 such 4 quarter period). If the month during which such tax
11 liability is incurred begins on or after January 1, 1985, and
12 prior to January 1, 1987, each payment shall be in an amount
13 equal to 22.5% of the taxpayer's actual liability for the
14 month or 27.5% of the taxpayer's liability for the same
15 calendar month of the preceding year. If the month during
16 which such tax liability is incurred begins on or after
17 January 1, 1987, and prior to January 1, 1988, each payment
18 shall be in an amount equal to 22.5% of the taxpayer's actual
19 liability for the month or 26.25% of the taxpayer's liability
20 for the same calendar month of the preceding year. If the
21 month during which such tax liability is incurred begins on
22 or after January 1, 1988, and prior to January 1, 1989, or
23 begins on or after January 1, 1996, each payment shall be in
24 an amount equal to 22.5% of the taxpayer's actual liability
25 for the month or 25% of the taxpayer's liability for the same
26 calendar month of the preceding year. If the month during
27 which such tax liability is incurred begins on or after
28 January 1, 1989, and prior to January 1, 1996, each payment
29 shall be in an amount equal to 22.5% of the taxpayer's actual
30 liability for the month or 25% of the taxpayer's liability
31 for the same calendar month of the preceding year or 100% of
32 the taxpayer's actual liability for the quarter monthly
33 reporting period. The amount of such quarter monthly
34 payments shall be credited against the final tax liability of
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1 the taxpayer's return for that month. Before October 1,
2 2000, once applicable, the requirement of the making of
3 quarter monthly payments to the Department shall continue
4 until such taxpayer's average monthly liability to the
5 Department during the preceding 4 complete calendar quarters
6 (excluding the month of highest liability and the month of
7 lowest liability) is less than $9,000, or until such
8 taxpayer's average monthly liability to the Department as
9 computed for each calendar quarter of the 4 preceding
10 complete calendar quarter period is less than $10,000.
11 However, if a taxpayer can show the Department that a
12 substantial change in the taxpayer's business has occurred
13 which causes the taxpayer to anticipate that his average
14 monthly tax liability for the reasonably foreseeable future
15 will fall below the $10,000 threshold stated above, then such
16 taxpayer may petition the Department for change in such
17 taxpayer's reporting status. On and after October 1, 2000,
18 once applicable, the requirement of the making of quarter
19 monthly 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 $19,000 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 $20,000. 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 the $20,000 threshold
31 stated above, then such taxpayer may petition the Department
32 for a change in such taxpayer's reporting status. The
33 Department shall change such taxpayer's reporting status
34 unless it finds that such change is seasonal in nature and
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1 not likely to be long term. If any such quarter monthly
2 payment is not paid at the time or in the amount required by
3 this Section, then the taxpayer shall be liable for penalties
4 and interest on the difference between the minimum amount due
5 and the amount of such quarter monthly payment actually and
6 timely paid, except insofar as the taxpayer has previously
7 made payments for that month to the Department in excess of
8 the minimum payments previously due as provided in this
9 Section. The Department shall make reasonable rules and
10 regulations to govern the quarter monthly payment amount and
11 quarter monthly payment dates for taxpayers who file on other
12 than a calendar monthly basis.
13 If any such payment provided for in this Section exceeds
14 the taxpayer's liabilities under this Act, the Retailers'
15 Occupation Tax Act, the Service Occupation Tax Act and the
16 Service Use Tax Act, as shown by an original monthly return,
17 the Department shall issue to the taxpayer a credit
18 memorandum no later than 30 days after the date of payment,
19 which memorandum may be submitted by the taxpayer to the
20 Department in payment of tax liability subsequently to be
21 remitted by the taxpayer to the Department or be assigned by
22 the taxpayer to a similar taxpayer under this Act, the
23 Retailers' Occupation Tax Act, the Service Occupation Tax Act
24 or the Service Use Tax Act, in accordance with reasonable
25 rules and regulations to be prescribed by the Department,
26 except that if such excess payment is shown on an original
27 monthly return and is made after December 31, 1986, no credit
28 memorandum shall be issued, unless requested by the taxpayer.
29 If no such request is made, the taxpayer may credit such
30 excess payment against tax liability subsequently to be
31 remitted by the taxpayer to the Department under this Act,
32 the Retailers' Occupation Tax Act, the Service Occupation Tax
33 Act or the Service Use Tax Act, in accordance with reasonable
34 rules and regulations prescribed by the Department. If the
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1 Department subsequently determines that all or any part of
2 the credit taken was not actually due to the taxpayer, the
3 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
4 by 2.1% or 1.75% of the difference between the credit taken
5 and that actually due, and the taxpayer shall be liable for
6 penalties and interest on such difference.
7 If the retailer is otherwise required to file a monthly
8 return and if the retailer's average monthly tax liability to
9 the Department does not exceed $200, the Department may
10 authorize his returns to be filed on a quarter annual basis,
11 with the return for January, February, and March of a given
12 year being due by April 20 of such year; with the return for
13 April, May and June of a given year being due by July 20 of
14 such year; with the return for July, August and September of
15 a given year being due by October 20 of such year, and with
16 the return for October, November and December of a given year
17 being due by January 20 of the following year.
18 If the retailer is otherwise required to file a monthly
19 or quarterly return and if the retailer's average monthly tax
20 liability to the Department does not exceed $50, the
21 Department may authorize his returns to be filed on an annual
22 basis, with the return for a given year being due by January
23 20 of the following year.
24 Such quarter annual and annual returns, as to form and
25 substance, shall be subject to the same requirements as
26 monthly returns.
27 Notwithstanding any other provision in this Act
28 concerning the time within which a retailer may file his
29 return, in the case of any retailer who ceases to engage in a
30 kind of business which makes him responsible for filing
31 returns under this Act, such retailer shall file a final
32 return under this Act with the Department not more than one
33 month after discontinuing such business.
34 In addition, with respect to motor vehicles, watercraft,
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1 aircraft, and trailers that are required to be registered
2 with an agency of this State, every retailer selling this
3 kind of tangible personal property shall file, with the
4 Department, upon a form to be prescribed and supplied by the
5 Department, a separate return for each such item of tangible
6 personal property which the retailer sells, except that
7 where, in the same transaction, a retailer of aircraft,
8 watercraft, motor vehicles or trailers transfers more than
9 one aircraft, watercraft, motor vehicle or trailer to another
10 aircraft, watercraft, motor vehicle or trailer retailer for
11 the purpose of resale, that seller for resale may report the
12 transfer of all the aircraft, watercraft, motor vehicles or
13 trailers involved in that transaction to the Department on
14 the same uniform invoice-transaction reporting return form.
15 For purposes of this Section, "watercraft" means a Class 2,
16 Class 3, or Class 4 watercraft as defined in Section 3-2 of
17 the Boat Registration and Safety Act, a personal watercraft,
18 or any boat equipped with an inboard motor.
19 The transaction reporting return in the case of motor
20 vehicles or trailers that are required to be registered with
21 an agency of this State, shall be the same document as the
22 Uniform Invoice referred to in Section 5-402 of the Illinois
23 Vehicle Code and must show the name and address of the
24 seller; the name and address of the purchaser; the amount of
25 the selling price including the amount allowed by the
26 retailer for traded-in property, if any; the amount allowed
27 by the retailer for the traded-in tangible personal property,
28 if any, to the extent to which Section 2 of this Act allows
29 an exemption for the value of traded-in property; the balance
30 payable after deducting such trade-in allowance from the
31 total selling price; the amount of tax due from the retailer
32 with respect to such transaction; the amount of tax collected
33 from the purchaser by the retailer on such transaction (or
34 satisfactory evidence that such tax is not due in that
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1 particular instance, if that is claimed to be the fact); the
2 place and date of the sale; a sufficient identification of
3 the property sold; such other information as is required in
4 Section 5-402 of the Illinois Vehicle Code, and such other
5 information as the Department may reasonably require.
6 The transaction reporting return in the case of
7 watercraft and aircraft must show the name and address of the
8 seller; the name and address of the purchaser; the amount of
9 the selling price including the amount allowed by the
10 retailer for traded-in property, if any; the amount allowed
11 by the retailer for the traded-in tangible personal property,
12 if any, to the extent to which Section 2 of this Act allows
13 an exemption for the value of traded-in property; the balance
14 payable after deducting such trade-in allowance from the
15 total selling price; the amount of tax due from the retailer
16 with respect to such transaction; the amount of tax collected
17 from the purchaser by the retailer on such transaction (or
18 satisfactory evidence that such tax is not due in that
19 particular instance, if that is claimed to be the fact); the
20 place and date of the sale, a sufficient identification of
21 the property sold, and such other information as the
22 Department may reasonably require.
23 Such transaction reporting return shall be filed not
24 later than 20 days after the date of delivery of the item
25 that is being sold, but may be filed by the retailer at any
26 time sooner than that if he chooses to do so. The
27 transaction reporting return and tax remittance or proof of
28 exemption from the tax that is imposed by this Act may be
29 transmitted to the Department by way of the State agency with
30 which, or State officer with whom, the tangible personal
31 property must be titled or registered (if titling or
32 registration is required) if the Department and such agency
33 or State officer determine that this procedure will expedite
34 the processing of applications for title or registration.
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1 With each such transaction reporting return, the retailer
2 shall remit the proper amount of tax due (or shall submit
3 satisfactory evidence that the sale is not taxable if that is
4 the case), to the Department or its agents, whereupon the
5 Department shall issue, in the purchaser's name, a tax
6 receipt (or a certificate of exemption if the Department is
7 satisfied that the particular sale is tax exempt) which such
8 purchaser may submit to the agency with which, or State
9 officer with whom, he must title or register the tangible
10 personal property that is involved (if titling or
11 registration is required) in support of such purchaser's
12 application for an Illinois certificate or other evidence of
13 title or registration to such tangible personal property.
14 No retailer's failure or refusal to remit tax under this
15 Act precludes a user, who has paid the proper tax to the
16 retailer, from obtaining his certificate of title or other
17 evidence of title or registration (if titling or registration
18 is required) upon satisfying the Department that such user
19 has paid the proper tax (if tax is due) to the retailer. The
20 Department shall adopt appropriate rules to carry out the
21 mandate of this paragraph.
22 If the user who would otherwise pay tax to the retailer
23 wants the transaction reporting return filed and the payment
24 of tax or proof of exemption made to the Department before
25 the retailer is willing to take these actions and such user
26 has not paid the tax to the retailer, such user may certify
27 to the fact of such delay by the retailer, and may (upon the
28 Department being satisfied of the truth of such
29 certification) transmit the information required by the
30 transaction reporting return and the remittance for tax or
31 proof of exemption directly to the Department and obtain his
32 tax receipt or exemption determination, in which event the
33 transaction reporting return and tax remittance (if a tax
34 payment was required) shall be credited by the Department to
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1 the proper retailer's account with the Department, but
2 without the 2.1% or 1.75% discount provided for in this
3 Section being allowed. When the user pays the tax directly
4 to the Department, he shall pay the tax in the same amount
5 and in the same form in which it would be remitted if the tax
6 had been remitted to the Department by the retailer.
7 Where a retailer collects the tax with respect to the
8 selling price of tangible personal property which he sells
9 and the purchaser thereafter returns such tangible personal
10 property and the retailer refunds the selling price thereof
11 to the purchaser, such retailer shall also refund, to the
12 purchaser, the tax so collected from the purchaser. When
13 filing his return for the period in which he refunds such tax
14 to the purchaser, the retailer may deduct the amount of the
15 tax so refunded by him to the purchaser from any other use
16 tax which such retailer may be required to pay or remit to
17 the Department, as shown by such return, if the amount of the
18 tax to be deducted was previously remitted to the Department
19 by such retailer. If the retailer has not previously
20 remitted the amount of such tax to the Department, he is
21 entitled to no deduction under this Act upon refunding such
22 tax to the purchaser.
23 Any retailer filing a return under this Section shall
24 also include (for the purpose of paying tax thereon) the
25 total tax covered by such return upon the selling price of
26 tangible personal property purchased by him at retail from a
27 retailer, but as to which the tax imposed by this Act was not
28 collected from the retailer filing such return, and such
29 retailer shall remit the amount of such tax to the Department
30 when filing such return.
31 If experience indicates such action to be practicable,
32 the Department may prescribe and furnish a combination or
33 joint return which will enable retailers, who are required to
34 file returns hereunder and also under the Retailers'
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1 Occupation Tax Act, to furnish all the return information
2 required by both Acts on the one form.
3 Where the retailer has more than one business registered
4 with the Department under separate registration under this
5 Act, such retailer may not file each return that is due as a
6 single return covering all such registered businesses, but
7 shall file separate returns for each such registered
8 business.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the State and Local Sales Tax Reform Fund, a
11 special fund in the State Treasury which is hereby created,
12 the net revenue realized for the preceding month from the 1%
13 tax on sales of food for human consumption which is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks and food which has been
16 prepared for immediate consumption) and prescription and
17 nonprescription medicines, drugs, medical appliances and
18 insulin, urine testing materials, syringes and needles used
19 by diabetics.
20 Beginning January 1, 1990, each month the Department
21 shall pay into the County and Mass Transit District Fund 4%
22 of the net revenue realized for the preceding month from the
23 6.25% general rate on the selling price of tangible personal
24 property which is purchased outside Illinois at retail from a
25 retailer and which is titled or registered by an agency of
26 this State's government.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the State and Local Sales Tax Reform Fund, a
29 special fund in the State Treasury, 20% of the net revenue
30 realized for the preceding month from the 6.25% general rate
31 on the selling price of tangible personal property, other
32 than tangible personal property which is purchased outside
33 Illinois at retail from a retailer and which is titled or
34 registered by an agency of this State's government.
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1 Beginning January 1, 2001, and so long as the rate
2 remains at 1.25%, each month the Department shall pay into
3 the County and Mass Transit District Fund 20% of the net
4 revenue realized for the preceding month from the 1.25% rate
5 on the proceeds of sales of motor fuel and gasohol.
6 Beginning January 1, 1990, each month the Department
7 shall pay into the Local Government Tax Fund 16% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property which is purchased outside Illinois at retail from a
11 retailer and which is titled or registered by an agency of
12 this State's government.
13 Beginning January 1, 2001, and so long as the rate
14 remains at 1.25%, each month the Department shall pay into
15 the Local Government Tax Fund 80% of the net revenue realized
16 for the preceding month from the 1.25% rate on the proceeds
17 of sales of motor fuel and gasohol.
18 Of the remainder of the moneys received by the Department
19 pursuant to this Act, (a) 1.75% thereof shall be paid into
20 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
21 and on and after July 1, 1989, 3.8% thereof shall be paid
22 into the Build Illinois Fund; provided, however, that if in
23 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24 as the case may be, of the moneys received by the Department
25 and required to be paid into the Build Illinois Fund pursuant
26 to Section 3 of the Retailers' Occupation Tax Act, Section 9
27 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
28 Section 9 of the Service Occupation Tax Act, such Acts being
29 hereinafter called the "Tax Acts" and such aggregate of 2.2%
30 or 3.8%, as the case may be, of moneys being hereinafter
31 called the "Tax Act Amount", and (2) the amount transferred
32 to the Build Illinois Fund from the State and Local Sales Tax
33 Reform Fund shall be less than the Annual Specified Amount
34 (as defined in Section 3 of the Retailers' Occupation Tax
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1 Act), an amount equal to the difference shall be immediately
2 paid into the Build Illinois Fund from other moneys received
3 by the Department pursuant to the Tax Acts; and further
4 provided, that if on the last business day of any month the
5 sum of (1) the Tax Act Amount required to be deposited into
6 the Build Illinois Bond Account in the Build Illinois Fund
7 during such month and (2) the amount transferred during such
8 month to the Build Illinois Fund from the State and Local
9 Sales Tax Reform Fund shall have been less than 1/12 of the
10 Annual Specified Amount, an amount equal to the difference
11 shall be immediately paid into the Build Illinois Fund from
12 other moneys received by the Department pursuant to the Tax
13 Acts; and, further provided, that in no event shall the
14 payments required under the preceding proviso result in
15 aggregate payments into the Build Illinois Fund pursuant to
16 this clause (b) for any fiscal year in excess of the greater
17 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
18 for such fiscal year; and, further provided, that the amounts
19 payable into the Build Illinois Fund under this clause (b)
20 shall be payable only until such time as the aggregate amount
21 on deposit under each trust indenture securing Bonds issued
22 and outstanding pursuant to the Build Illinois Bond Act is
23 sufficient, taking into account any future investment income,
24 to fully provide, in accordance with such indenture, for the
25 defeasance of or the payment of the principal of, premium, if
26 any, and interest on the Bonds secured by such indenture and
27 on any Bonds expected to be issued thereafter and all fees
28 and costs payable with respect thereto, all as certified by
29 the Director of the Bureau of the Budget. If on the last
30 business day of any month in which Bonds are outstanding
31 pursuant to the Build Illinois Bond Act, the aggregate of the
32 moneys deposited in the Build Illinois Bond Account in the
33 Build Illinois Fund in such month shall be less than the
34 amount required to be transferred in such month from the
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1 Build Illinois Bond Account to the Build Illinois Bond
2 Retirement and Interest Fund pursuant to Section 13 of the
3 Build Illinois Bond Act, an amount equal to such deficiency
4 shall be immediately paid from other moneys received by the
5 Department pursuant to the Tax Acts to the Build Illinois
6 Fund; provided, however, that any amounts paid to the Build
7 Illinois Fund in any fiscal year pursuant to this sentence
8 shall be deemed to constitute payments pursuant to clause (b)
9 of the preceding sentence and shall reduce the amount
10 otherwise payable for such fiscal year pursuant to clause (b)
11 of the preceding sentence. The moneys received by the
12 Department pursuant to this Act and required to be deposited
13 into the Build Illinois Fund are subject to the pledge, claim
14 and charge set forth in Section 12 of the Build Illinois Bond
15 Act.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in the preceding paragraph or in any
18 amendment thereto hereafter enacted, the following specified
19 monthly installment of the amount requested in the
20 certificate of the Chairman of the Metropolitan Pier and
21 Exposition Authority provided under Section 8.25f of the
22 State Finance Act, but not in excess of the sums designated
23 as "Total Deposit", shall be deposited in the aggregate from
24 collections under Section 9 of the Use Tax Act, Section 9 of
25 the Service Use Tax Act, Section 9 of the Service Occupation
26 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
27 into the McCormick Place Expansion Project Fund in the
28 specified fiscal years.
29 Fiscal Year Total Deposit
30 1993 $0
31 1994 53,000,000
32 1995 58,000,000
33 1996 61,000,000
34 1997 64,000,000
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1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 84,000,000
6 2003 89,000,000
7 2004 93,000,000
8 2005 97,000,000
9 2006 102,000,000
10 2007 108,000,000
11 2008 115,000,000
12 2009 120,000,000
13 2010 126,000,000
14 2011 132,000,000
15 2012 138,000,000
16 2013 and 145,000,000
17 each fiscal year
18 thereafter that bonds
19 are outstanding under
20 Section 13.2 of the
21 Metropolitan Pier and
22 Exposition Authority
23 Act, but not after fiscal year 2029.
24 Beginning July 20, 1993 and in each month of each fiscal
25 year thereafter, one-eighth of the amount requested in the
26 certificate of the Chairman of the Metropolitan Pier and
27 Exposition Authority for that fiscal year, less the amount
28 deposited into the McCormick Place Expansion Project Fund by
29 the State Treasurer in the respective month under subsection
30 (g) of Section 13 of the Metropolitan Pier and Exposition
31 Authority Act, plus cumulative deficiencies in the deposits
32 required under this Section for previous months and years,
33 shall be deposited into the McCormick Place Expansion Project
34 Fund, until the full amount requested for the fiscal year,
-20- LRB9112104SMdv
1 but not in excess of the amount specified above as "Total
2 Deposit", has been deposited.
3 Subject to payment of amounts into the Build Illinois
4 Fund and the McCormick Place Expansion Project Fund pursuant
5 to the preceding paragraphs or in any amendment thereto
6 hereafter enacted, each month the Department shall pay into
7 the Local Government Distributive Fund .4% of the net revenue
8 realized for the preceding month from the 5% general rate, or
9 .4% of 80% of the net revenue realized for the preceding
10 month from the 6.25% general rate, as the case may be, on the
11 selling price of tangible personal property which amount
12 shall, subject to appropriation, be distributed as provided
13 in Section 2 of the State Revenue Sharing Act. No payments or
14 distributions pursuant to this paragraph shall be made if the
15 tax imposed by this Act on photoprocessing products is
16 declared unconstitutional, or if the proceeds from such tax
17 are unavailable for distribution because of litigation.
18 Subject to payment of amounts into the Build Illinois
19 Fund, the McCormick Place Expansion Project Fund, and the
20 Local Government Distributive Fund pursuant to the preceding
21 paragraphs or in any amendments thereto hereafter enacted,
22 beginning July 1, 1993, the Department shall each month pay
23 into the Illinois Tax Increment Fund 0.27% of 80% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property.
27 Of the remainder of the moneys received by the Department
28 pursuant to this Act, 75% thereof shall be paid into the
29 State Treasury and 25% shall be reserved in a special account
30 and used only for the transfer to the Common School Fund as
31 part of the monthly transfer from the General Revenue Fund in
32 accordance with Section 8a of the State Finance Act.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month.
5 Beginning April 1, 2000, this transfer is no longer required
6 and shall not be made.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 For greater simplicity of administration, manufacturers,
12 importers and wholesalers whose products are sold at retail
13 in Illinois by numerous retailers, and who wish to do so, may
14 assume the responsibility for accounting and paying to the
15 Department all tax accruing under this Act with respect to
16 such sales, if the retailers who are affected do not make
17 written objection to the Department to this arrangement.
18 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
19 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
20 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
21 Section 10. The Service Use Tax Act is amended by
22 changing Sections 3-10 and 9 as follows:
23 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
24 Sec. 3-10. Rate of tax. Unless otherwise provided in
25 this Section, the tax imposed by this Act is at the rate of
26 6.25% of the selling price of tangible personal property
27 transferred as an incident to the sale of service, but, for
28 the purpose of computing this tax, in no event shall the
29 selling price be less than the cost price of the property to
30 the serviceman.
31 With respect to motor fuel, as defined in Section 1.1 of
32 the Motor Fuel Tax Law, and gasohol, as defined in Section
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1 3-40 of the Use Tax Act, the tax is imposed at the rate of
2 1.25%. If, however, the aggregate tax revenues from motor
3 fuel and gasohol under the Use Tax Act, the Service Use Tax
4 Act, the Service Occupation Tax Act, and the Retailers'
5 Occupation Tax Act during the period from January 1, 2001
6 through December 31, 2001 are not at least 15% more than the
7 aggregate tax revenues from motor fuel and gasohol under
8 those Acts during the period from January 1, 2000 through
9 December 31, 2000, then beginning January 1, 2004 the tax is
10 imposed on motor fuel and gasohol at the 6.25% general rate.
11 With respect to gasohol, as defined in the Use Tax Act,
12 the tax imposed by this Act applies to 70% of the selling
13 price of property transferred as an incident to the sale of
14 service on or after January 1, 1990, and before July 1, 2003,
15 and to 100% of the selling price thereafter.
16 At the election of any registered serviceman made for
17 each fiscal year, sales of service in which the aggregate
18 annual cost price of tangible personal property transferred
19 as an incident to the sales of service is less than 35%, or
20 75% in the case of servicemen transferring prescription drugs
21 or servicemen engaged in graphic arts production, of the
22 aggregate annual total gross receipts from all sales of
23 service, the tax imposed by this Act shall be based on the
24 serviceman's cost price of the tangible personal property
25 transferred as an incident to the sale of those services.
26 The tax shall be imposed at the rate of 1% on food
27 prepared for immediate consumption and transferred incident
28 to a sale of service subject to this Act or the Service
29 Occupation Tax Act by an entity licensed under the Hospital
30 Licensing Act, the Nursing Home Care Act, or the Child Care
31 Act of 1969. The tax shall also be imposed at the rate of 1%
32 on food for human consumption that is to be consumed off the
33 premises where it is sold (other than alcoholic beverages,
34 soft drinks, and food that has been prepared for immediate
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1 consumption and is not otherwise included in this paragraph)
2 and prescription and nonprescription medicines, drugs,
3 medical appliances, modifications to a motor vehicle for the
4 purpose of rendering it usable by a disabled person, and
5 insulin, urine testing materials, syringes, and needles used
6 by diabetics, for human use. For the purposes of this
7 Section, the term "soft drinks" means any complete, finished,
8 ready-to-use, non-alcoholic drink, whether carbonated or not,
9 including but not limited to soda water, cola, fruit juice,
10 vegetable juice, carbonated water, and all other preparations
11 commonly known as soft drinks of whatever kind or description
12 that are contained in any closed or sealed bottle, can,
13 carton, or container, regardless of size. "Soft drinks" does
14 not include coffee, tea, non-carbonated water, infant
15 formula, milk or milk products as defined in the Grade A
16 Pasteurized Milk and Milk Products Act, or drinks containing
17 50% or more natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Act, "food
19 for human consumption that is to be consumed off the premises
20 where it is sold" includes all food sold through a vending
21 machine, except soft drinks and food products that are
22 dispensed hot from a vending machine, regardless of the
23 location of the vending machine.
24 If the property that is acquired from a serviceman is
25 acquired outside Illinois and used outside Illinois before
26 being brought to Illinois for use here and is taxable under
27 this Act, the "selling price" on which the tax is computed
28 shall be reduced by an amount that represents a reasonable
29 allowance for depreciation for the period of prior
30 out-of-state use.
31 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
32 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
33 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
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1 Sec. 9. Each serviceman required or authorized to
2 collect the tax herein imposed shall pay to the Department
3 the amount of such tax (except as otherwise provided) at the
4 time when he is required to file his return for the period
5 during which such tax was collected, less a discount of 2.1%
6 prior to January 1, 1990 and 1.75% on and after January 1,
7 1990, or $5 per calendar year, whichever is greater, which is
8 allowed to reimburse the serviceman for expenses incurred in
9 collecting the tax, keeping records, preparing and filing
10 returns, remitting the tax and supplying data to the
11 Department on request. A serviceman need not remit that part
12 of any tax collected by him to the extent that he is required
13 to pay and does pay the tax imposed by the Service Occupation
14 Tax Act with respect to his sale of service involving the
15 incidental transfer by him of the same property.
16 Except as provided hereinafter in this Section, on or
17 before the twentieth day of each calendar month, such
18 serviceman shall file a return for the preceding calendar
19 month in accordance with reasonable Rules and Regulations to
20 be promulgated by the Department. Such return shall be filed
21 on a form prescribed by the Department and shall contain such
22 information as the Department may reasonably require.
23 The Department may require returns to be filed on a
24 quarterly basis. If so required, a return for each calendar
25 quarter shall be filed on or before the twentieth day of the
26 calendar month following the end of such calendar quarter.
27 The taxpayer shall also file a return with the Department for
28 each of the first two months of each calendar quarter, on or
29 before the twentieth day of the following calendar month,
30 stating:
31 1. The name of the seller;
32 2. The address of the principal place of business
33 from which he engages in business as a serviceman in this
34 State;
-25- LRB9112104SMdv
1 3. The total amount of taxable receipts received by
2 him during the preceding calendar month, including
3 receipts from charge and time sales, but less all
4 deductions allowed by law;
5 4. The amount of credit provided in Section 2d of
6 this Act;
7 5. The amount of tax due;
8 5-5. The signature of the taxpayer; and
9 6. Such other reasonable information as the
10 Department may require.
11 If a taxpayer fails to sign a return within 30 days after
12 the proper notice and demand for signature by the Department,
13 the return shall be considered valid and any amount shown to
14 be due on the return shall be deemed assessed.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who
19 has an average monthly tax liability of $100,000 or more
20 shall make all payments required by rules of the Department
21 by electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. Beginning October 1,
25 2000, a taxpayer who has an annual tax liability of $200,000
26 or more shall make all payments required by rules of the
27 Department by electronic funds transfer. The term "annual
28 tax liability" shall be the sum of the taxpayer's liabilities
29 under this Act, and under all other State and local
30 occupation and use tax laws administered by the Department,
31 for the immediately preceding calendar year. The term
32 "average monthly tax liability" means the sum of the
33 taxpayer's liabilities under this Act, and under all other
34 State and local occupation and use tax laws administered by
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1 the Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers required
6 to make payments by electronic funds transfer shall make
7 those payments for a minimum of one year beginning on October
8 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 If the serviceman is otherwise required to file a monthly
20 return and if the serviceman's average monthly tax liability
21 to the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the serviceman is otherwise required to file a monthly
31 or quarterly return and if the serviceman's average monthly
32 tax liability to the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
-27- LRB9112104SMdv
1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a serviceman may file his
7 return, in the case of any serviceman who ceases to engage in
8 a kind of business which makes him responsible for filing
9 returns under this Act, such serviceman shall file a final
10 return under this Act with the Department not more than 1
11 month after discontinuing such business.
12 Where a serviceman collects the tax with respect to the
13 selling price of property which he sells and the purchaser
14 thereafter returns such property and the serviceman refunds
15 the selling price thereof to the purchaser, such serviceman
16 shall also refund, to the purchaser, the tax so collected
17 from the purchaser. When filing his return for the period in
18 which he refunds such tax to the purchaser, the serviceman
19 may deduct the amount of the tax so refunded by him to the
20 purchaser from any other Service Use Tax, Service Occupation
21 Tax, retailers' occupation tax or use tax which such
22 serviceman may be required to pay or remit to the Department,
23 as shown by such return, provided that the amount of the tax
24 to be deducted shall previously have been remitted to the
25 Department by such serviceman. If the serviceman shall not
26 previously have remitted the amount of such tax to the
27 Department, he shall be entitled to no deduction hereunder
28 upon refunding such tax to the purchaser.
29 Any serviceman filing a return hereunder shall also
30 include the total tax upon the selling price of tangible
31 personal property purchased for use by him as an incident to
32 a sale of service, and such serviceman shall remit the amount
33 of such tax to the Department when filing such return.
34 If experience indicates such action to be practicable,
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1 the Department may prescribe and furnish a combination or
2 joint return which will enable servicemen, who are required
3 to file returns hereunder and also under the Service
4 Occupation Tax Act, to furnish all the return information
5 required by both Acts on the one form.
6 Where the serviceman has more than one business
7 registered with the Department under separate registration
8 hereunder, such serviceman shall not file each return that is
9 due as a single return covering all such registered
10 businesses, but shall file separate returns for each such
11 registered business.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the State and Local Tax Reform Fund, a special
14 fund in the State Treasury, the net revenue realized for the
15 preceding month from the 1% tax on sales of food for human
16 consumption which is to be consumed off the premises where it
17 is sold (other than alcoholic beverages, soft drinks and food
18 which has been prepared for immediate consumption) and
19 prescription and nonprescription medicines, drugs, medical
20 appliances and insulin, urine testing materials, syringes and
21 needles used by diabetics.
22 Beginning January 1, 2001, and so long as the rate
23 remains at 1.25%, each month the Department shall pay into
24 the County and Mass Transit District Fund 20% of the net
25 revenue realized for the preceding month from the 1.25% rate
26 on the selling price of motor fuel and gasohol.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the State and Local Sales Tax Reform Fund 20%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on transfers of tangible personal
31 property, other than tangible personal property which is
32 purchased outside Illinois at retail from a retailer and
33 which is titled or registered by an agency of this State's
34 government.
-29- LRB9112104SMdv
1 Beginning January 1, 2001, and so long as the rate
2 remains at 1.25%, each month the Department shall pay into
3 the Local Government Tax Fund 80% of the net revenue realized
4 for the preceding month from the 1.25% rate on the selling
5 price of motor fuel and gasohol.
6 Of the remainder of the moneys received by the Department
7 pursuant to this Act, (a) 1.75% thereof shall be paid into
8 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
9 and on and after July 1, 1989, 3.8% thereof shall be paid
10 into the Build Illinois Fund; provided, however, that if in
11 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12 as the case may be, of the moneys received by the Department
13 and required to be paid into the Build Illinois Fund pursuant
14 to Section 3 of the Retailers' Occupation Tax Act, Section 9
15 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
16 Section 9 of the Service Occupation Tax Act, such Acts being
17 hereinafter called the "Tax Acts" and such aggregate of 2.2%
18 or 3.8%, as the case may be, of moneys being hereinafter
19 called the "Tax Act Amount", and (2) the amount transferred
20 to the Build Illinois Fund from the State and Local Sales Tax
21 Reform Fund shall be less than the Annual Specified Amount
22 (as defined in Section 3 of the Retailers' Occupation Tax
23 Act), an amount equal to the difference shall be immediately
24 paid into the Build Illinois Fund from other moneys received
25 by the Department pursuant to the Tax Acts; and further
26 provided, that if on the last business day of any month the
27 sum of (1) the Tax Act Amount required to be deposited into
28 the Build Illinois Bond Account in the Build Illinois Fund
29 during such month and (2) the amount transferred during such
30 month to the Build Illinois Fund from the State and Local
31 Sales Tax Reform Fund shall have been less than 1/12 of the
32 Annual Specified Amount, an amount equal to the difference
33 shall be immediately paid into the Build Illinois Fund from
34 other moneys received by the Department pursuant to the Tax
-30- LRB9112104SMdv
1 Acts; and, further provided, that in no event shall the
2 payments required under the preceding proviso result in
3 aggregate payments into the Build Illinois Fund pursuant to
4 this clause (b) for any fiscal year in excess of the greater
5 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
6 for such fiscal year; and, further provided, that the amounts
7 payable into the Build Illinois Fund under this clause (b)
8 shall be payable only until such time as the aggregate amount
9 on deposit under each trust indenture securing Bonds issued
10 and outstanding pursuant to the Build Illinois Bond Act is
11 sufficient, taking into account any future investment income,
12 to fully provide, in accordance with such indenture, for the
13 defeasance of or the payment of the principal of, premium, if
14 any, and interest on the Bonds secured by such indenture and
15 on any Bonds expected to be issued thereafter and all fees
16 and costs payable with respect thereto, all as certified by
17 the Director of the Bureau of the Budget. If on the last
18 business day of any month in which Bonds are outstanding
19 pursuant to the Build Illinois Bond Act, the aggregate of the
20 moneys deposited in the Build Illinois Bond Account in the
21 Build Illinois Fund in such month shall be less than the
22 amount required to be transferred in such month from the
23 Build Illinois Bond Account to the Build Illinois Bond
24 Retirement and Interest Fund pursuant to Section 13 of the
25 Build Illinois Bond Act, an amount equal to such deficiency
26 shall be immediately paid from other moneys received by the
27 Department pursuant to the Tax Acts to the Build Illinois
28 Fund; provided, however, that any amounts paid to the Build
29 Illinois Fund in any fiscal year pursuant to this sentence
30 shall be deemed to constitute payments pursuant to clause (b)
31 of the preceding sentence and shall reduce the amount
32 otherwise payable for such fiscal year pursuant to clause (b)
33 of the preceding sentence. The moneys received by the
34 Department pursuant to this Act and required to be deposited
-31- LRB9112104SMdv
1 into the Build Illinois Fund are subject to the pledge, claim
2 and charge set forth in Section 12 of the Build Illinois Bond
3 Act.
4 Subject to payment of amounts into the Build Illinois
5 Fund as provided in the preceding paragraph or in any
6 amendment thereto hereafter enacted, the following specified
7 monthly installment of the amount requested in the
8 certificate of the Chairman of the Metropolitan Pier and
9 Exposition Authority provided under Section 8.25f of the
10 State Finance Act, but not in excess of the sums designated
11 as "Total Deposit", shall be deposited in the aggregate from
12 collections under Section 9 of the Use Tax Act, Section 9 of
13 the Service Use Tax Act, Section 9 of the Service Occupation
14 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
15 into the McCormick Place Expansion Project Fund in the
16 specified fiscal years.
17 Fiscal Year Total Deposit
18 1993 $0
19 1994 53,000,000
20 1995 58,000,000
21 1996 61,000,000
22 1997 64,000,000
23 1998 68,000,000
24 1999 71,000,000
25 2000 75,000,000
26 2001 80,000,000
27 2002 84,000,000
28 2003 89,000,000
29 2004 93,000,000
30 2005 97,000,000
31 2006 102,000,000
32 2007 108,000,000
33 2008 115,000,000
34 2009 120,000,000
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1 2010 126,000,000
2 2011 132,000,000
3 2012 138,000,000
4 2013 and 145,000,000
5 each fiscal year
6 thereafter that bonds
7 are outstanding under
8 Section 13.2 of the
9 Metropolitan Pier and
10 Exposition Authority Act,
11 but not after fiscal year 2029.
12 Beginning July 20, 1993 and in each month of each fiscal
13 year thereafter, one-eighth of the amount requested in the
14 certificate of the Chairman of the Metropolitan Pier and
15 Exposition Authority for that fiscal year, less the amount
16 deposited into the McCormick Place Expansion Project Fund by
17 the State Treasurer in the respective month under subsection
18 (g) of Section 13 of the Metropolitan Pier and Exposition
19 Authority Act, plus cumulative deficiencies in the deposits
20 required under this Section for previous months and years,
21 shall be deposited into the McCormick Place Expansion Project
22 Fund, until the full amount requested for the fiscal year,
23 but not in excess of the amount specified above as "Total
24 Deposit", has been deposited.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project Fund pursuant
27 to the preceding paragraphs or in any amendment thereto
28 hereafter enacted, each month the Department shall pay into
29 the Local Government Distributive Fund 0.4% of the net
30 revenue realized for the preceding month from the 5% general
31 rate or 0.4% of 80% of the net revenue realized for the
32 preceding month from the 6.25% general rate, as the case may
33 be, on the selling price of tangible personal property which
34 amount shall, subject to appropriation, be distributed as
-33- LRB9112104SMdv
1 provided in Section 2 of the State Revenue Sharing Act. No
2 payments or distributions pursuant to this paragraph shall be
3 made if the tax imposed by this Act on photo processing
4 products is declared unconstitutional, or if the proceeds
5 from such tax are unavailable for distribution because of
6 litigation.
7 Subject to payment of amounts into the Build Illinois
8 Fund, the McCormick Place Expansion Project Fund, and the
9 Local Government Distributive Fund pursuant to the preceding
10 paragraphs or in any amendments thereto hereafter enacted,
11 beginning July 1, 1993, the Department shall each month pay
12 into the Illinois Tax Increment Fund 0.27% of 80% of the net
13 revenue realized for the preceding month from the 6.25%
14 general rate on the selling price of tangible personal
15 property.
16 All remaining moneys received by the Department pursuant
17 to this Act shall be paid into the General Revenue Fund of
18 the State Treasury.
19 As soon as possible after the first day of each month,
20 upon certification of the Department of Revenue, the
21 Comptroller shall order transferred and the Treasurer shall
22 transfer from the General Revenue Fund to the Motor Fuel Tax
23 Fund an amount equal to 1.7% of 80% of the net revenue
24 realized under this Act for the second preceding month.
25 Beginning April 1, 2000, this transfer is no longer required
26 and shall not be made.
27 Net revenue realized for a month shall be the revenue
28 collected by the State pursuant to this Act, less the amount
29 paid out during that month as refunds to taxpayers for
30 overpayment of liability.
31 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
32 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
33 revised 9-27-99.)
-34- LRB9112104SMdv
1 Section 15. The Service Occupation Tax Act is amended by
2 changing Sections 3-10 and 9 as follows:
3 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
4 Sec. 3-10. Rate of tax. Unless otherwise provided in
5 this Section, the tax imposed by this Act is at the rate of
6 6.25% of the "selling price", as defined in Section 2 of the
7 Service Use Tax Act, of the tangible personal property. For
8 the purpose of computing this tax, in no event shall the
9 "selling price" be less than the cost price to the serviceman
10 of the tangible personal property transferred. The selling
11 price of each item of tangible personal property transferred
12 as an incident of a sale of service may be shown as a
13 distinct and separate item on the serviceman's billing to the
14 service customer. If the selling price is not so shown, the
15 selling price of the tangible personal property is deemed to
16 be 50% of the serviceman's entire billing to the service
17 customer. When, however, a serviceman contracts to design,
18 develop, and produce special order machinery or equipment,
19 the tax imposed by this Act shall be based on the
20 serviceman's cost price of the tangible personal property
21 transferred incident to the completion of the contract.
22 With respect to motor fuel, as defined in Section 1.1 of
23 the Motor Fuel Tax Law, and gasohol, as defined in Section
24 3-40 of the Use Tax Act, the tax is imposed at the rate of
25 1.25%. If, however, the aggregate tax revenues from motor
26 fuel and gasohol under the Use Tax Act, the Service Use Tax
27 Act, the Service Occupation Tax Act, and the Retailers'
28 Occupation Tax Act during the period from January 1, 2001
29 through December 31, 2001 are not at least 15% more than the
30 aggregate tax revenues from motor fuel and gasohol under
31 those Acts during the period from January 1, 2000 through
32 December 31, 2000, then beginning January 1, 2004 the tax is
33 imposed on motor fuel and gasohol at the 6.25% general rate.
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1 With respect to gasohol, as defined in the Use Tax Act,
2 the tax imposed by this Act shall apply to 70% of the cost
3 price of property transferred as an incident to the sale of
4 service on or after January 1, 1990, and before July 1, 2003,
5 and to 100% of the cost price thereafter.
6 At the election of any registered serviceman made for
7 each fiscal year, sales of service in which the aggregate
8 annual cost price of tangible personal property transferred
9 as an incident to the sales of service is less than 35%, or
10 75% in the case of servicemen transferring prescription drugs
11 or servicemen engaged in graphic arts production, of the
12 aggregate annual total gross receipts from all sales of
13 service, the tax imposed by this Act shall be based on the
14 serviceman's cost price of the tangible personal property
15 transferred incident to the sale of those services.
16 The tax shall be imposed at the rate of 1% on food
17 prepared for immediate consumption and transferred incident
18 to a sale of service subject to this Act or the Service
19 Occupation Tax Act by an entity licensed under the Hospital
20 Licensing Act, the Nursing Home Care Act, or the Child Care
21 Act of 1969. The tax shall also be imposed at the rate of 1%
22 on food for human consumption that is to be consumed off the
23 premises where it is sold (other than alcoholic beverages,
24 soft drinks, and food that has been prepared for immediate
25 consumption and is not otherwise included in this paragraph)
26 and prescription and nonprescription medicines, drugs,
27 medical appliances, modifications to a motor vehicle for the
28 purpose of rendering it usable by a disabled person, and
29 insulin, urine testing materials, syringes, and needles used
30 by diabetics, for human use. For the purposes of this
31 Section, the term "soft drinks" means any complete, finished,
32 ready-to-use, non-alcoholic drink, whether carbonated or not,
33 including but not limited to soda water, cola, fruit juice,
34 vegetable juice, carbonated water, and all other preparations
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1 commonly known as soft drinks of whatever kind or description
2 that are contained in any closed or sealed can, carton, or
3 container, regardless of size. "Soft drinks" does not
4 include coffee, tea, non-carbonated water, infant formula,
5 milk or milk products as defined in the Grade A Pasteurized
6 Milk and Milk Products Act, or drinks containing 50% or more
7 natural fruit or vegetable juice.
8 Notwithstanding any other provisions of this Act, "food
9 for human consumption that is to be consumed off the premises
10 where it is sold" includes all food sold through a vending
11 machine, except soft drinks and food products that are
12 dispensed hot from a vending machine, regardless of the
13 location of the vending machine.
14 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
15 91-51, 6-30-99; 91-541, eff. 8-13-99.)
16 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
17 Sec. 9. Each serviceman required or authorized to
18 collect the tax herein imposed shall pay to the Department
19 the amount of such tax at the time when he is required to
20 file his return for the period during which such tax was
21 collectible, less a discount of 2.1% prior to January 1,
22 1990, and 1.75% on and after January 1, 1990, or $5 per
23 calendar year, whichever is greater, which is allowed to
24 reimburse the serviceman for expenses incurred in collecting
25 the tax, keeping records, preparing and filing returns,
26 remitting the tax and supplying data to the Department on
27 request.
28 Where such tangible personal property is sold under a
29 conditional sales contract, or under any other form of sale
30 wherein the payment of the principal sum, or a part thereof,
31 is extended beyond the close of the period for which the
32 return is filed, the serviceman, in collecting the tax may
33 collect, for each tax return period, only the tax applicable
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1 to the part of the selling price actually received during
2 such tax return period.
3 Except as provided hereinafter in this Section, on or
4 before the twentieth day of each calendar month, such
5 serviceman shall file a return for the preceding calendar
6 month in accordance with reasonable rules and regulations to
7 be promulgated by the Department of Revenue. Such return
8 shall be filed on a form prescribed by the Department and
9 shall contain such information as the Department may
10 reasonably require.
11 The Department may require returns to be filed on a
12 quarterly basis. If so required, a return for each calendar
13 quarter shall be filed on or before the twentieth day of the
14 calendar month following the end of such calendar quarter.
15 The taxpayer shall also file a return with the Department for
16 each of the first two months of each calendar quarter, on or
17 before the twentieth day of the following calendar month,
18 stating:
19 1. The name of the seller;
20 2. The address of the principal place of business
21 from which he engages in business as a serviceman in this
22 State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month, including
25 receipts from charge and time sales, but less all
26 deductions allowed by law;
27 4. The amount of credit provided in Section 2d of
28 this Act;
29 5. The amount of tax due;
30 5-5. The signature of the taxpayer; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 A serviceman may accept a Manufacturer's Purchase Credit
4 certification from a purchaser in satisfaction of Service Use
5 Tax as provided in Section 3-70 of the Service Use Tax Act if
6 the purchaser provides the appropriate documentation as
7 required by Section 3-70 of the Service Use Tax Act. A
8 Manufacturer's Purchase Credit certification, accepted by a
9 serviceman as provided in Section 3-70 of the Service Use Tax
10 Act, may be used by that serviceman to satisfy Service
11 Occupation Tax liability in the amount claimed in the
12 certification, not to exceed 6.25% of the receipts subject to
13 tax from a qualifying purchase.
14 If the serviceman's average monthly tax liability to the
15 Department does not exceed $200, the Department may authorize
16 his returns to be filed on a quarter annual basis, with the
17 return for January, February and March of a given year being
18 due by April 20 of such year; with the return for April, May
19 and June of a given year being due by July 20 of such year;
20 with the return for July, August and September of a given
21 year being due by October 20 of such year, and with the
22 return for October, November and December of a given year
23 being due by January 20 of the following year.
24 If the serviceman's average monthly tax liability to the
25 Department does not exceed $50, the Department may authorize
26 his returns to be filed on an annual basis, with the return
27 for a given year being due by January 20 of the following
28 year.
29 Such quarter annual and annual returns, as to form and
30 substance, shall be subject to the same requirements as
31 monthly returns.
32 Notwithstanding any other provision in this Act
33 concerning the time within which a serviceman may file his
34 return, in the case of any serviceman who ceases to engage in
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1 a kind of business which makes him responsible for filing
2 returns under this Act, such serviceman shall file a final
3 return under this Act with the Department not more than 1
4 month after discontinuing such business.
5 Beginning October 1, 1993, a taxpayer who has an average
6 monthly tax liability of $150,000 or more shall make all
7 payments required by rules of the Department by electronic
8 funds transfer. Beginning October 1, 1994, a taxpayer who
9 has an average monthly tax liability of $100,000 or more
10 shall make all payments required by rules of the Department
11 by electronic funds transfer. Beginning October 1, 1995, a
12 taxpayer who has an average monthly tax liability of $50,000
13 or more shall make all payments required by rules of the
14 Department by electronic funds transfer. Beginning October
15 1, 2000, a taxpayer who has an annual tax liability of
16 $200,000 or more shall make all payments required by rules of
17 the Department by electronic funds transfer. The term
18 "annual tax liability" shall be the sum of the taxpayer's
19 liabilities under this Act, and under all other State and
20 local occupation and use tax laws administered by the
21 Department, for the immediately preceding calendar year. The
22 term "average monthly tax liability" means the sum of the
23 taxpayer's liabilities under this Act, and under all other
24 State and local occupation and use tax laws administered by
25 the Department, for the immediately preceding calendar year
26 divided by 12.
27 Before August 1 of each year beginning in 1993, the
28 Department shall notify all taxpayers required to make
29 payments by electronic funds transfer. All taxpayers
30 required to make payments by electronic funds transfer shall
31 make those payments for a minimum of one year beginning on
32 October 1.
33 Any taxpayer not required to make payments by electronic
34 funds transfer may make payments by electronic funds transfer
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1 with the permission of the Department.
2 All taxpayers required to make payment by electronic
3 funds transfer and any taxpayers authorized to voluntarily
4 make payments by electronic funds transfer shall make those
5 payments in the manner authorized by the Department.
6 The Department shall adopt such rules as are necessary to
7 effectuate a program of electronic funds transfer and the
8 requirements of this Section.
9 Where a serviceman collects the tax with respect to the
10 selling price of tangible personal property which he sells
11 and the purchaser thereafter returns such tangible personal
12 property and the serviceman refunds the selling price thereof
13 to the purchaser, such serviceman shall also refund, to the
14 purchaser, the tax so collected from the purchaser. When
15 filing his return for the period in which he refunds such tax
16 to the purchaser, the serviceman may deduct the amount of the
17 tax so refunded by him to the purchaser from any other
18 Service Occupation Tax, Service Use Tax, Retailers'
19 Occupation Tax or Use Tax which such serviceman may be
20 required to pay or remit to the Department, as shown by such
21 return, provided that the amount of the tax to be deducted
22 shall previously have been remitted to the Department by such
23 serviceman. If the serviceman shall not previously have
24 remitted the amount of such tax to the Department, he shall
25 be entitled to no deduction hereunder upon refunding such tax
26 to the purchaser.
27 If experience indicates such action to be practicable,
28 the Department may prescribe and furnish a combination or
29 joint return which will enable servicemen, who are required
30 to file returns hereunder and also under the Retailers'
31 Occupation Tax Act, the Use Tax Act or the Service Use Tax
32 Act, to furnish all the return information required by all
33 said Acts on the one form.
34 Where the serviceman has more than one business
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1 registered with the Department under separate registrations
2 hereunder, such serviceman shall file separate returns for
3 each registered business.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the Local Government Tax Fund the revenue
6 realized for the preceding month from the 1% tax on sales of
7 food for human consumption which is to be consumed off the
8 premises where it is sold (other than alcoholic beverages,
9 soft drinks and food which has been prepared for immediate
10 consumption) and prescription and nonprescription medicines,
11 drugs, medical appliances and insulin, urine testing
12 materials, syringes and needles used by diabetics.
13 Beginning January 1, 1990, each month the Department
14 shall pay into the County and Mass Transit District Fund 4%
15 of the revenue realized for the preceding month from the
16 6.25% general rate.
17 Beginning January 1, 2001, and so long as the rate
18 remains at 1.25%, each month the Department shall pay into
19 the County and Mass Transit District Fund 20% of the net
20 revenue realized for the preceding month from the 1.25% rate
21 on the cost price of motor fuel and gasohol.
22 Beginning January 1, 1990, each month the Department
23 shall pay into the Local Government Tax Fund 16% of the
24 revenue realized for the preceding month from the 6.25%
25 general rate on transfers of tangible personal property.
26 Beginning January 1, 2001, and so long as the rate
27 remains at 1.25%, each month the Department shall pay into
28 the Local Government Tax Fund 80% of the net revenue realized
29 for the preceding month from the 1.25% rate on the cost price
30 of motor fuel and gasohol.
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
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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 Account in the Build Illinois Fund during
20 such month and (2) the amount transferred during such month
21 to the Build Illinois Fund from the State and Local Sales Tax
22 Reform Fund shall have been less than 1/12 of the Annual
23 Specified Amount, an amount equal to the difference shall be
24 immediately paid into the Build Illinois Fund from other
25 moneys received by the Department pursuant to the Tax Acts;
26 and, further provided, that in no event shall the payments
27 required under the preceding proviso result in aggregate
28 payments into the Build Illinois Fund pursuant to this clause
29 (b) for any fiscal year in excess of the greater of (i) the
30 Tax Act Amount or (ii) the Annual Specified Amount for such
31 fiscal year; and, further provided, that the amounts payable
32 into the Build Illinois Fund under this clause (b) shall be
33 payable only until such time as the aggregate amount on
34 deposit under each trust indenture securing Bonds issued and
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1 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 108,000,000
24 2008 115,000,000
25 2009 120,000,000
26 2010 126,000,000
27 2011 132,000,000
28 2012 138,000,000
29 2013 and 145,000,000
30 each fiscal year
31 thereafter that bonds
32 are outstanding under
33 Section 13.2 of the
34 Metropolitan Pier and
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1 Exposition Authority
2 Act, but not after fiscal year 2029.
3 Beginning July 20, 1993 and in each month of each fiscal
4 year thereafter, one-eighth of the amount requested in the
5 certificate of the Chairman of the Metropolitan Pier and
6 Exposition Authority for that fiscal year, less the amount
7 deposited into the McCormick Place Expansion Project Fund by
8 the State Treasurer in the respective month under subsection
9 (g) of Section 13 of the Metropolitan Pier and Exposition
10 Authority Act, plus cumulative deficiencies in the deposits
11 required under this Section for previous months and years,
12 shall be deposited into the McCormick Place Expansion Project
13 Fund, until the full amount requested for the fiscal year,
14 but not in excess of the amount specified above as "Total
15 Deposit", has been deposited.
16 Subject to payment of amounts into the Build Illinois
17 Fund and the McCormick Place Expansion Project Fund pursuant
18 to the preceding paragraphs or in any amendment thereto
19 hereafter enacted, each month the Department shall pay into
20 the Local Government Distributive Fund 0.4% of the net
21 revenue realized for the preceding month from the 5% general
22 rate or 0.4% of 80% of the net revenue realized for the
23 preceding month from the 6.25% general rate, as the case may
24 be, on the selling price of tangible personal property which
25 amount shall, subject to appropriation, be distributed as
26 provided in Section 2 of the State Revenue Sharing Act. No
27 payments or distributions pursuant to this paragraph shall be
28 made if the tax imposed by this Act on photoprocessing
29 products is declared unconstitutional, or if the proceeds
30 from such tax are unavailable for distribution because of
31 litigation.
32 Subject to payment of amounts into the Build Illinois
33 Fund, the McCormick Place Expansion Project Fund, and the
34 Local Government Distributive Fund pursuant to the preceding
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1 paragraphs or in any amendments thereto hereafter enacted,
2 beginning July 1, 1993, the Department shall each month pay
3 into the Illinois Tax Increment Fund 0.27% of 80% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Remaining moneys received by the Department pursuant to
8 this Act shall be paid into the General Revenue Fund of the
9 State Treasury.
10 The Department may, upon separate written notice to a
11 taxpayer, require the taxpayer to prepare and file with the
12 Department on a form prescribed by the Department within not
13 less than 60 days after receipt of the notice an annual
14 information return for the tax year specified in the notice.
15 Such annual return to the Department shall include a
16 statement of gross receipts as shown by the taxpayer's last
17 Federal income tax return. If the total receipts of the
18 business as reported in the Federal income tax return do not
19 agree with the gross receipts reported to the Department of
20 Revenue for the same period, the taxpayer shall attach to his
21 annual return a schedule showing a reconciliation of the 2
22 amounts and the reasons for the difference. The taxpayer's
23 annual return to the Department shall also disclose the cost
24 of goods sold by the taxpayer during the year covered by such
25 return, opening and closing inventories of such goods for
26 such year, cost of goods used from stock or taken from stock
27 and given away by the taxpayer during such year, pay roll
28 information of the taxpayer's business during such year and
29 any additional reasonable information which the Department
30 deems would be helpful in determining the accuracy of the
31 monthly, quarterly or annual returns filed by such taxpayer
32 as hereinbefore provided for in this Section.
33 If the annual information return required by this Section
34 is not filed when and as required, the taxpayer shall be
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1 liable as follows:
2 (i) Until January 1, 1994, the taxpayer shall be
3 liable for a penalty equal to 1/6 of 1% of the tax due
4 from such taxpayer under this Act during the period to be
5 covered by the annual return for each month or fraction
6 of a month until such return is filed as required, the
7 penalty to be assessed and collected in the same manner
8 as any other penalty provided for in this Act.
9 (ii) On and after January 1, 1994, the taxpayer
10 shall be liable for a penalty as described in Section 3-4
11 of the Uniform Penalty and Interest Act.
12 The chief executive officer, proprietor, owner or highest
13 ranking manager shall sign the annual return to certify the
14 accuracy of the information contained therein. Any person
15 who willfully signs the annual return containing false or
16 inaccurate information shall be guilty of perjury and
17 punished accordingly. The annual return form prescribed by
18 the Department shall include a warning that the person
19 signing the return may be liable for perjury.
20 The foregoing portion of this Section concerning the
21 filing of an annual information return shall not apply to a
22 serviceman who is not required to file an income tax return
23 with the United States Government.
24 As soon as possible after the first day of each month,
25 upon certification of the Department of Revenue, the
26 Comptroller shall order transferred and the Treasurer shall
27 transfer from the General Revenue Fund to the Motor Fuel Tax
28 Fund an amount equal to 1.7% of 80% of the net revenue
29 realized under this Act for the second preceding month.
30 Beginning April 1, 2000, this transfer is no longer required
31 and shall not be made.
32 Net revenue realized for a month shall be the revenue
33 collected by the State pursuant to this Act, less the amount
34 paid out during that month as refunds to taxpayers for
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1 overpayment of liability.
2 For greater simplicity of administration, it shall be
3 permissible for manufacturers, importers and wholesalers
4 whose products are sold by numerous servicemen in Illinois,
5 and who wish to do so, to assume the responsibility for
6 accounting and paying to the Department all tax accruing
7 under this Act with respect to such sales, if the servicemen
8 who are affected do not make written objection to the
9 Department to this arrangement.
10 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
11 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
12 revised 9-28-99.)
13 Section 20. The Retailers' Occupation Tax Act is amended
14 by changing Sections 2-10, 2d, and 3 as follows:
15 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
16 Sec. 2-10. Rate of tax. Unless otherwise provided in
17 this Section, the tax imposed by this Act is at the rate of
18 6.25% of gross receipts from sales of tangible personal
19 property made in the course of business.
20 With respect to motor fuel, as defined in Section 1.1 of
21 the Motor Fuel Tax Law, and gasohol, as defined in Section
22 3-40 of the Use Tax Act, the tax is imposed at the rate of
23 1.25%. If, however, the aggregate tax revenues from motor
24 fuel and gasohol under the Use Tax Act, the Service Use Tax
25 Act, the Service Occupation Tax Act, and the Retailers'
26 Occupation Tax Act during the period from January 1, 2001
27 through December 31, 2001 are not at least 15% more than the
28 aggregate tax revenues from motor fuel and gasohol under
29 those Acts during the period from January 1, 2000 through
30 December 31, 2000, then beginning January 1, 2004 the tax is
31 imposed on motor fuel and gasohol at the 6.25% general rate.
32 With respect to gasohol, as defined in the Use Tax Act,
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1 the tax imposed by this Act applies to 70% of the proceeds of
2 sales made on or after January 1, 1990, and before July 1,
3 2003, and to 100% of the proceeds of sales made thereafter.
4 With respect to food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks, and food that has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances,
9 modifications to a motor vehicle for the purpose of rendering
10 it usable by a disabled person, and insulin, urine testing
11 materials, syringes, and needles used by diabetics, for human
12 use, the tax is imposed at the rate of 1%. For the purposes
13 of this Section, the term "soft drinks" means any complete,
14 finished, ready-to-use, non-alcoholic drink, whether
15 carbonated or not, including but not limited to soda water,
16 cola, fruit juice, vegetable juice, carbonated water, and all
17 other preparations commonly known as soft drinks of whatever
18 kind or description that are contained in any closed or
19 sealed bottle, can, carton, or container, regardless of size.
20 "Soft drinks" does not include coffee, tea, non-carbonated
21 water, infant formula, milk or milk products as defined in
22 the Grade A Pasteurized Milk and Milk Products Act, or drinks
23 containing 50% or more natural fruit or vegetable juice.
24 Notwithstanding any other provisions of this Act, "food
25 for human consumption that is to be consumed off the premises
26 where it is sold" includes all food sold through a vending
27 machine, except soft drinks and food products that are
28 dispensed hot from a vending machine, regardless of the
29 location of the vending machine.
30 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
31 91-51, eff. 6-30-99.)
32 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
33 Sec. 2d. Tax prepayment by motor fuel retailer. Any
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1 person engaged in the business of selling motor fuel at
2 retail, as defined in the Motor Fuel Tax Law, and who is not
3 a licensed distributor or supplier, as defined in the Motor
4 Fuel Tax Law, shall prepay to his or her distributor,
5 supplier, or other reseller of motor fuel a portion of the
6 tax imposed by this Act if the distributor, supplier, or
7 other reseller of motor fuel is registered under Section 2a
8 or Section 2c of this Act. The prepayment requirement
9 provided for in this Section does not apply to liquid propane
10 gas.
11 The Retailers' Occupation Tax paid to the distributor,
12 supplier, or other reseller shall be an amount equal to 0.8
13 cents $0.04 per gallon of the motor fuel, except gasohol as
14 defined in Section 2-10 of this Act which shall be an amount
15 equal to 0.6 cents $0.03 per gallon, purchased from the
16 distributor, supplier, or other reseller.
17 Any person engaged in the business of selling motor fuel
18 at retail shall be entitled to a credit against tax due under
19 this Act in an amount equal to the tax paid to the
20 distributor, supplier, or other reseller.
21 Every distributor, supplier, or other reseller registered
22 as provided in Section 2a or Section 2c of this Act shall
23 remit the prepaid tax on all motor fuel that is due from any
24 person engaged in the business of selling at retail motor
25 fuel with the returns filed under Section 2f or Section 3 of
26 this Act, but the vendors discount provided in Section 3
27 shall not apply to the amount of prepaid tax that is
28 remitted. Any distributor or supplier who fails to properly
29 collect and remit the tax shall be liable for the tax. For
30 purposes of this Section, the prepaid tax is due on invoiced
31 gallons sold during a month by the 20th day of the following
32 month.
33 (Source: P.A. 86-1475; 87-14.)
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1 (35 ILCS 120/3) (from Ch. 120, par. 442)
2 Sec. 3. Except as provided in this Section, on or before
3 the twentieth day of each calendar month, every person
4 engaged in the business of selling tangible personal property
5 at retail in this State during the preceding calendar month
6 shall file a return with the Department, stating:
7 1. The name of the seller;
8 2. His residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 3. Total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 4. Total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 5. Deductions allowed by law;
24 6. Gross receipts which were received by him during
25 the preceding calendar month or quarter and upon the
26 basis of which the tax is imposed;
27 7. The amount of credit provided in Section 2d of
28 this Act;
29 8. The amount of tax due;
30 9. The signature of the taxpayer; and
31 10. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Each return shall be accompanied by the statement of
4 prepaid tax issued pursuant to Section 2e for which credit is
5 claimed.
6 A retailer may accept a Manufacturer's Purchase Credit
7 certification from a purchaser in satisfaction of Use Tax as
8 provided in Section 3-85 of the Use Tax Act if the purchaser
9 provides the appropriate documentation as required by Section
10 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
11 certification, accepted by a retailer as provided in Section
12 3-85 of the Use Tax Act, may be used by that retailer to
13 satisfy Retailers' Occupation Tax liability in the amount
14 claimed in the certification, not to exceed 6.25% of the
15 receipts subject to tax from a qualifying purchase.
16 The Department may require returns to be filed on a
17 quarterly basis. If so required, a return for each calendar
18 quarter shall be filed on or before the twentieth day of the
19 calendar month following the end of such calendar quarter.
20 The taxpayer shall also file a return with the Department for
21 each of the first two months of each calendar quarter, on or
22 before the twentieth day of the following calendar month,
23 stating:
24 1. The name of the seller;
25 2. The address of the principal place of business
26 from which he engages in the business of selling tangible
27 personal property at retail in this State;
28 3. The total amount of taxable receipts received by
29 him during the preceding calendar month from sales of
30 tangible personal property by him during such preceding
31 calendar month, including receipts from charge and time
32 sales, but less all deductions allowed by law;
33 4. The amount of credit provided in Section 2d of
34 this Act;
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1 5. The amount of tax due; and
2 6. Such other reasonable information as the
3 Department may require.
4 If a total amount of less than $1 is payable, refundable
5 or creditable, such amount shall be disregarded if it is less
6 than 50 cents and shall be increased to $1 if it is 50 cents
7 or more.
8 Beginning October 1, 1993, a taxpayer who has an average
9 monthly tax liability of $150,000 or more shall make all
10 payments required by rules of the Department by electronic
11 funds transfer. Beginning October 1, 1994, a taxpayer who
12 has an average monthly tax liability of $100,000 or more
13 shall make all payments required by rules of the Department
14 by electronic funds transfer. Beginning October 1, 1995, a
15 taxpayer who has an average monthly tax liability of $50,000
16 or more shall make all payments required by rules of the
17 Department by electronic funds transfer. Beginning October
18 1, 2000, a taxpayer who has an annual tax liability of
19 $200,000 or more shall make all payments required by rules of
20 the Department by electronic funds transfer. The term
21 "annual tax liability" shall be the sum of the taxpayer's
22 liabilities under this Act, and under all other State and
23 local occupation and use tax laws administered by the
24 Department, for the immediately preceding calendar year. The
25 term "average monthly tax liability" shall be the sum of the
26 taxpayer's liabilities under this Act, and under all other
27 State and local occupation and use tax laws administered by
28 the Department, for the immediately preceding calendar year
29 divided by 12.
30 Before August 1 of each year beginning in 1993, the
31 Department shall notify all taxpayers required to make
32 payments by electronic funds transfer. All taxpayers
33 required to make payments by electronic funds transfer shall
34 make those payments for a minimum of one year beginning on
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1 October 1.
2 Any taxpayer not required to make payments by electronic
3 funds transfer may make payments by electronic funds transfer
4 with the permission of the Department.
5 All taxpayers required to make payment by electronic
6 funds transfer and any taxpayers authorized to voluntarily
7 make payments by electronic funds transfer shall make those
8 payments in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10 effectuate a program of electronic funds transfer and the
11 requirements of this Section.
12 Any amount which is required to be shown or reported on
13 any return or other document under this Act shall, if such
14 amount is not a whole-dollar amount, be increased to the
15 nearest whole-dollar amount in any case where the fractional
16 part of a dollar is 50 cents or more, and decreased to the
17 nearest whole-dollar amount where the fractional part of a
18 dollar is less than 50 cents.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability with the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
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1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 Where the same person has more than one business
13 registered with the Department under separate registrations
14 under this Act, such person may not file each return that is
15 due as a single return covering all such registered
16 businesses, but shall file separate returns for each such
17 registered business.
18 In addition, with respect to motor vehicles, watercraft,
19 aircraft, and trailers that are required to be registered
20 with an agency of this State, every retailer selling this
21 kind of tangible personal property shall file, with the
22 Department, upon a form to be prescribed and supplied by the
23 Department, a separate return for each such item of tangible
24 personal property which the retailer sells, except that
25 where, in the same transaction, a retailer of aircraft,
26 watercraft, motor vehicles or trailers transfers more than
27 one aircraft, watercraft, motor vehicle or trailer to another
28 aircraft, watercraft, motor vehicle retailer or trailer
29 retailer for the purpose of resale, that seller for resale
30 may report the transfer of all aircraft, watercraft, motor
31 vehicles or trailers involved in that transaction to the
32 Department on the same uniform invoice-transaction reporting
33 return form. For purposes of this Section, "watercraft"
34 means a Class 2, Class 3, or Class 4 watercraft as defined in
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1 Section 3-2 of the Boat Registration and Safety Act, a
2 personal watercraft, or any boat equipped with an inboard
3 motor.
4 Any retailer who sells only motor vehicles, watercraft,
5 aircraft, or trailers that are required to be registered with
6 an agency of this State, so that all retailers' occupation
7 tax liability is required to be reported, and is reported, on
8 such transaction reporting returns and who is not otherwise
9 required to file monthly or quarterly returns, need not file
10 monthly or quarterly returns. However, those retailers shall
11 be required to file returns on an annual basis.
12 The transaction reporting return, in the case of motor
13 vehicles or trailers that are required to be registered with
14 an agency of this State, shall be the same document as the
15 Uniform Invoice referred to in Section 5-402 of The Illinois
16 Vehicle Code and must show the name and address of the
17 seller; the name and address of the purchaser; the amount of
18 the selling price including the amount allowed by the
19 retailer for traded-in property, if any; the amount allowed
20 by the retailer for the traded-in tangible personal property,
21 if any, to the extent to which Section 1 of this Act allows
22 an exemption for the value of traded-in property; the balance
23 payable after deducting such trade-in allowance from the
24 total selling price; the amount of tax due from the retailer
25 with respect to such transaction; the amount of tax collected
26 from the purchaser by the retailer on such transaction (or
27 satisfactory evidence that such tax is not due in that
28 particular instance, if that is claimed to be the fact); the
29 place and date of the sale; a sufficient identification of
30 the property sold; such other information as is required in
31 Section 5-402 of The Illinois Vehicle Code, and such other
32 information as the Department may reasonably require.
33 The transaction reporting return in the case of
34 watercraft or aircraft must show the name and address of the
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1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale, a sufficient identification of
14 the property sold, and such other information as the
15 Department may reasonably require.
16 Such transaction reporting return shall be filed not
17 later than 20 days after the day of delivery of the item that
18 is being sold, but may be filed by the retailer at any time
19 sooner than that if he chooses to do so. The transaction
20 reporting return and tax remittance or proof of exemption
21 from the Illinois use tax may be transmitted to the
22 Department by way of the State agency with which, or State
23 officer with whom the tangible personal property must be
24 titled or registered (if titling or registration is required)
25 if the Department and such agency or State officer determine
26 that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such transaction reporting return, the retailer
29 shall remit the proper amount of tax due (or shall submit
30 satisfactory evidence that the sale is not taxable if that is
31 the case), to the Department or its agents, whereupon the
32 Department shall issue, in the purchaser's name, a use tax
33 receipt (or a certificate of exemption if the Department is
34 satisfied that the particular sale is tax exempt) which such
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1 purchaser may submit to the agency with which, or State
2 officer with whom, he must title or register the tangible
3 personal property that is involved (if titling or
4 registration is required) in support of such purchaser's
5 application for an Illinois certificate or other evidence of
6 title or registration to such tangible personal property.
7 No retailer's failure or refusal to remit tax under this
8 Act precludes a user, who has paid the proper tax to the
9 retailer, from obtaining his certificate of title or other
10 evidence of title