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91_SB0666
LRB9104001PTpk
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 1. Short title. This Act may be cited as the
5 Qualified Technological Equipment Leasing Occupation and Use
6 Tax Act.
7 Section 5. Definitions. As used in this Act, the
8 following terms have the following meanings:
9 "Computer" means a programmable electronically activated
10 device that:
11 (a) is capable of accepting information, applying
12 prescribed processes as to the information, and supplying the
13 results of these processes with or without human
14 intervention, and
15 (b) consists of a central processing unit containing
16 extensive storage, logic, arithmetic, and control
17 capabilities.
18 "Computer or peripheral equipment" means:
19 (a) any computer, and
20 (b) any related peripheral equipment, however
21 (c) the term "computer or peripheral equipment" does not
22 include:
23 (i) any equipment that is an integral part of other
24 property that is not a computer,
25 (ii) typewriters, calculators, adding and
26 accounting machines, copiers, duplicating equipment, and
27 similar equipment, and
28 (iii) equipment of a kind used primarily for
29 amusement or entertainment of the user.
30 "Department" means the Department of Revenue.
31 "High technology medical equipment" means any electronic,
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1 electromechanical, or computer-based high technology
2 equipment used in the screening, monitoring, observation,
3 diagnosis, or treatment of patients in a laboratory, medical,
4 or hospital environment.
5 "Person" means any natural individual, limited liability
6 company, firm, partnership, association, joint stock company,
7 joint venture, public or private corporation, or a receiver,
8 executor, trustee, conservator, or other representatives
9 appointed by order of any court.
10 "Leasing" means any transfer of the possession or right
11 to possession of qualified technological equipment to a user
12 for valuable consideration, for the purpose of use and not
13 for the purpose of re-lease or sublease.
14 "Lessor" means any person engaged in the business of
15 leasing qualified technological equipment to users. For this
16 purpose, the objective of making a profit is not necessary to
17 make the leasing activity a business.
18 "Lessee" means any user to whom the possession, or the
19 right to possession, of qualified technological equipment is
20 transferred for a valuable consideration that is paid by such
21 "lessee" or by someone else.
22 "Gross receipts" means the total leasing price for the
23 lease of qualified technological equipment. In the case of
24 lease transactions in which the consideration is paid to the
25 lessor on an installment basis, the amounts of such payments
26 shall be included by the lessor in gross receipts only as and
27 when payments are received by the lessor.
28 "Leasing price" means the consideration for leasing
29 qualified technological equipment valued in money, whether
30 received in money or otherwise, including cash, credits,
31 property, and services, and shall be determined without any
32 deduction on account of the cost of the property leased, the
33 cost of materials used, labor or service cost, or any other
34 expense whatsoever, but does not include charges that are
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1 added by lessors on account of the lessor's tax liability
2 under this Act, or on account of the lessor's duty to
3 collect, from the lessee, the tax that is imposed by Section
4 20 of this Act.
5 "Maintaining a place of business in this State" means
6 having or maintaining within this State, directly or by a
7 subsidiary, an office, repair facilities, distribution house,
8 sales house, warehouse, or other place of business, or any
9 agent, or other representative, operating within this State,
10 irrespective of whether the place of business or agent or
11 other representative is located here permanently or
12 temporarily.
13 "Qualified technological equipment" for purposes of this
14 Act means the following:
15 (a) any computer or peripheral equipment,
16 (b) any high technology telecommunication equipment,
17 including telephone station equipment installed on the
18 customer's premises and central office switching equipment,
19 and
20 (c) any high technology medical equipment.
21 "Related peripheral equipment" means any auxiliary
22 machine (whether on-line or off-line) that is designed to be
23 placed under the control of the central processing unit of a
24 computer.
25 Section 10. Imposition of occupation tax. Beginning with
26 leases for periods of one year or more entered into on and
27 after July 1, 1999, a tax is imposed upon persons engaged in
28 this State in the business of leasing qualified technological
29 equipment in Illinois at the rate of 8.25% of the gross
30 receipts received from the business.
31 The Department shall have full power to administer and
32 enforce this Section, to collect all taxes and penalties due
33 hereunder, to dispose of taxes and penalties so collected in
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1 the manner hereinafter provided, and to determine all rights
2 to credit memoranda, arising on account of the erroneous
3 payment of tax or penalty hereunder. In the administration
4 of, and compliance with, this Section, the Department and
5 persons who are subject to this Section shall have the same
6 rights, remedies, privileges, immunities, powers and duties,
7 and be subject to the same conditions, restrictions,
8 limitations, penalties, and definitions of terms, and employ
9 the same modes of procedure, as are prescribed in Sections 1,
10 la, 2 through 2-65 (except as to the rate of tax), 2a, 2b,
11 2c, 3 (except provisions relating to transaction returns and
12 quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
13 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12 and 13 of the
14 Retailers' Occupation Tax Act that are not inconsistent with
15 this Act and all Sections of the Uniform Penalty and Interest
16 Act as fully as if those provisions were set forth herein.
17 For purposes of this Section, references in such incorporated
18 Sections of the Retailers' Occupation Tax Act to retailers,
19 sellers, or persons engaged in the business of selling
20 tangible personal property means persons engaged in the
21 leasing of qualified technological equipment under leases
22 subject to this Act.
23 Each month the Department shall pay into the Local
24 Government Distributive Fund 20% of the net revenue realized
25 for the preceding month from the 8.25% tax imposed in this
26 Section. These amounts shall be distributed in the manner
27 provided in Section 2 of the State Revenue Sharing Act. The
28 remaining 80% of the revenue shall be paid as provided for in
29 Section 3 of the Retailers' Occupation Tax Act.
30 Section 15. Registration. Every person engaged in this
31 State in the business of leasing qualified technological
32 equipment shall apply to the Department (upon a form
33 prescribed and furnished by the Department) for a certificate
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1 of registration under this Act. The certificate of
2 registration that is issued by the Department to a retailer
3 under the Retailers' Occupation Tax Act shall permit the
4 lessor to engage in a business that is taxable under this
5 Section without registering separately with the Department.
6 Section 20. Imposition of use tax. Beginning with leases
7 for periods of one year or more entered into on and after
8 July 1, 1999, a tax is imposed upon the privilege of using in
9 this State qualified technological equipment that is leased
10 from a lessor. The tax is at the rate of 8.25% of the leasing
11 price of the qualified technological equipment paid to the
12 lessor under any lease agreement.
13 The Department shall have full power to administer and
14 enforce this Section; to collect all taxes, penalties, and
15 interest due hereunder; to dispose of taxes, penalties, and
16 interest so collected in the manner hereinafter provided; and
17 to determine all rights to credit memoranda or refunds
18 arising on account of the erroneous payment of tax, penalty,
19 or interest hereunder. In the administration of, and
20 compliance with, this Section, the Department and persons who
21 are subject to this Section shall have the same rights,
22 remedies, privileges, immunities, powers, and duties, and be
23 subject to the same conditions, restrictions, limitations,
24 penalties, and definitions of terms, and employ the same
25 modes of procedure, as are prescribed in Sections 2, 3
26 through 3-80 (except as to the rate of tax), 4, 6, 7, 8, 9
27 (except provisions relating to transaction returns and
28 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
29 19, 20, 21 and 22 of the Use Tax Act that are not
30 inconsistent with this Act as fully as if those provisions
31 were set forth herein. For purposes of this Section,
32 references in such incorporated Sections of the Use Tax Act
33 to users or purchasers means lessees of qualified
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1 technological equipment under leases subject to this Act.
2 Each month the Department shall pay into the Local
3 Government Distributive Fund 20% of the net revenue realized
4 for the preceding month from the 8.25% tax imposed in this
5 Section. These amounts shall be distributed in the manner
6 provided in Section 2 of the State Revenue Sharing Act. The
7 remaining 80% of the revenue shall be paid as provided for in
8 Section 9 of the Use Tax Act.
9 Section 25. Exemption due to prior taxation. The taxes
10 imposed under Sections 10 and 20 of this Act do not apply to
11 leases of qualified technological equipment as defined in
12 this Act if the lessor had properly paid, prior to July 1,
13 1999, Illinois use tax or service use tax to a retailer or
14 directly to the Department on the purchase or use of such
15 leased property.
16 Section 30. Use tax collected. The use tax imposed by
17 Section 20 shall be collected from the lessee and remitted to
18 the Department by a lessor maintaining a place of business in
19 this State.
20 The use tax imposed by Section 20 and not paid to a
21 lessor pursuant to the preceding paragraph of this Section
22 shall be paid to the Department directly by any person using
23 the leased qualified technological equipment within this
24 State.
25 Lessors shall collect the tax from lessees by adding the
26 tax to the leasing price of the qualified technological
27 equipment in the manner prescribed by the Department. The
28 Department shall have the power to adopt and promulgate
29 reasonable rules and regulations for the adding of the tax by
30 lessors to leasing prices by prescribing bracket systems for
31 the purpose of enabling the lessors to add and collect, as
32 far as practicable, the amount of the tax.
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1 The tax imposed by this Act shall, when collected, be
2 stated as a distinct item on the customer's bill, separate
3 and apart from the leasing price of the qualified
4 technological equipment.
5 Section 35. Severability clause. If any clause, sentence,
6 Section, provision, or part thereof of this Act or the
7 application thereof to any person or circumstance shall be
8 adjudged to be unconstitutional, the remainder of this Act or
9 its application to persons or circumstances other than those
10 to which it is held invalid, shall not be affected thereby.
11 In particular, if any provision that exempts or has the
12 effect of exempting some class of users or some kind of use
13 from the tax imposed by this Act should be held to constitute
14 or to result in an invalid classification or to be
15 unconstitutional for some other reason, that provision shall
16 be deemed to be severable, with the remainder of this Act
17 without the provision being held constitutional.
18 Section 105. The State Revenue Sharing Act is amended by
19 changing Section 1 as follows:
20 (30 ILCS 115/1) (from Ch. 85, par. 611)
21 Sec. 1. Local Government Distributive Fund. Through June
22 30, 1994, as soon as may be after the first day of each month
23 the Department of Revenue shall certify to the Treasurer an
24 amount equal to 1/12 of the net revenue realized from the tax
25 imposed by subsections (a) and (b) of Section 201 of the
26 Illinois Income Tax Act during the preceding month.
27 Beginning July 1, 1994, and continuing through June 30, 1995,
28 as soon as may be after the first day of each month, the
29 Department of Revenue shall certify to the Treasurer an
30 amount equal to 1/11 of the net revenue realized from the tax
31 imposed by subsections (a) and (b) of Section 201 of the
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1 Illinois Income Tax Act during the preceding month. Beginning
2 July 1, 1995, as soon as may be after the first day of each
3 month, the Department of Revenue shall certify to the
4 Treasurer an amount equal to 1/10 of the net revenue realized
5 from the tax imposed by subsections (a) and (b) of Section
6 201 of the Illinois Income Tax Act during the preceding
7 month. Net revenue realized for a month shall be defined as
8 the revenue from the tax imposed by subsections (a) and (b)
9 of Section 201 of the Illinois Income Tax Act which is
10 deposited in the General Revenue Fund, the Education
11 Assistance Fund and the Income Tax Surcharge Local Government
12 Distributive Fund during the month minus the amount paid out
13 of the General Revenue Fund in State warrants during that
14 same month as refunds to taxpayers for overpayment of
15 liability under the tax imposed by subsections (a) and (b) of
16 Section 201 of the Illinois Income Tax Act. In addition,
17 beginning July 1, 1999, as soon as may be after the first day
18 of each month, the Department shall certify to the Treasurer
19 an amount equal to 1/5 of the net revenue realized under the
20 Qualified Technological Equipment Leasing Occupation and Use
21 Tax Act. Upon receipt of such certification, the Treasurer
22 shall transfer from the General Revenue Fund to a special
23 fund in the State treasury, to be known as the "Local
24 Government Distributive Fund", the amount shown on such
25 certification.
26 All amounts paid into the Local Government Distributive
27 Fund in accordance with this Section and allocated pursuant
28 to this Act are appropriated on a continuing basis.
29 (Source: P.A. 88-89.)
30 Section 110. The Use Tax Act is amended by changing
31 Sections 3-5 and 9 and adding Section 9.5 as follows:
32 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
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1 Sec. 3-5. Exemptions. Use of the following tangible
2 personal property is exempt from the tax imposed by this Act:
3 (1) Personal property purchased from a corporation,
4 society, association, foundation, institution, or
5 organization, other than a limited liability company, that is
6 organized and operated as a not-for-profit service enterprise
7 for the benefit of persons 65 years of age or older if the
8 personal property was not purchased by the enterprise for the
9 purpose of resale by the enterprise.
10 (2) Personal property purchased by a not-for-profit
11 Illinois county fair association for use in conducting,
12 operating, or promoting the county fair.
13 (3) Personal property purchased by a not-for-profit
14 music or dramatic arts organization that establishes, by
15 proof required by the Department by rule, that it has
16 received an exemption under Section 501(c)(3) of the Internal
17 Revenue Code and that is organized and operated for the
18 presentation of live public performances of musical or
19 theatrical works on a regular basis.
20 (4) Personal property purchased by a governmental body,
21 by a corporation, society, association, foundation, or
22 institution organized and operated exclusively for
23 charitable, religious, or educational purposes, or by a
24 not-for-profit corporation, society, association, foundation,
25 institution, or organization that has no compensated officers
26 or employees and that is organized and operated primarily for
27 the recreation of persons 55 years of age or older. A limited
28 liability company may qualify for the exemption under this
29 paragraph only if the limited liability company is organized
30 and operated exclusively for educational purposes. On and
31 after July 1, 1987, however, no entity otherwise eligible for
32 this exemption shall make tax-free purchases unless it has an
33 active exemption identification number issued by the
34 Department.
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1 (5) A passenger car that is a replacement vehicle to the
2 extent that the purchase price of the car is subject to the
3 Replacement Vehicle Tax.
4 (6) Graphic arts machinery and equipment, including
5 repair and replacement parts, both new and used, and
6 including that manufactured on special order, certified by
7 the purchaser to be used primarily for graphic arts
8 production, and including machinery and equipment purchased
9 for lease.
10 (7) Farm chemicals.
11 (8) Legal tender, currency, medallions, or gold or
12 silver coinage issued by the State of Illinois, the
13 government of the United States of America, or the government
14 of any foreign country, and bullion.
15 (9) Personal property purchased from a teacher-sponsored
16 student organization affiliated with an elementary or
17 secondary school located in Illinois.
18 (10) A motor vehicle of the first division, a motor
19 vehicle of the second division that is a self-contained motor
20 vehicle designed or permanently converted to provide living
21 quarters for recreational, camping, or travel use, with
22 direct walk through to the living quarters from the driver's
23 seat, or a motor vehicle of the second division that is of
24 the van configuration designed for the transportation of not
25 less than 7 nor more than 16 passengers, as defined in
26 Section 1-146 of the Illinois Vehicle Code, that is used for
27 automobile renting, as defined in the Automobile Renting
28 Occupation and Use Tax Act.
29 (11) Farm machinery and equipment, both new and used,
30 including that manufactured on special order, certified by
31 the purchaser to be used primarily for production agriculture
32 or State or federal agricultural programs, including
33 individual replacement parts for the machinery and equipment,
34 including machinery and equipment purchased for lease, and
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1 including implements of husbandry defined in Section 1-130 of
2 the Illinois Vehicle Code, farm machinery and agricultural
3 chemical and fertilizer spreaders, and nurse wagons required
4 to be registered under Section 3-809 of the Illinois Vehicle
5 Code, but excluding other motor vehicles required to be
6 registered under the Illinois Vehicle Code. Horticultural
7 polyhouses or hoop houses used for propagating, growing, or
8 overwintering plants shall be considered farm machinery and
9 equipment under this item (11). Agricultural chemical tender
10 tanks and dry boxes shall include units sold separately from
11 a motor vehicle required to be licensed and units sold
12 mounted on a motor vehicle required to be licensed if the
13 selling price of the tender is separately stated.
14 Farm machinery and equipment shall include precision
15 farming equipment that is installed or purchased to be
16 installed on farm machinery and equipment including, but not
17 limited to, tractors, harvesters, sprayers, planters,
18 seeders, or spreaders. Precision farming equipment includes,
19 but is not limited to, soil testing sensors, computers,
20 monitors, software, global positioning and mapping systems,
21 and other such equipment.
22 Farm machinery and equipment also includes computers,
23 sensors, software, and related equipment used primarily in
24 the computer-assisted operation of production agriculture
25 facilities, equipment, and activities such as, but not
26 limited to, the collection, monitoring, and correlation of
27 animal and crop data for the purpose of formulating animal
28 diets and agricultural chemicals. This item (11) is exempt
29 from the provisions of Section 3-90.
30 (12) Fuel and petroleum products sold to or used by an
31 air common carrier, certified by the carrier to be used for
32 consumption, shipment, or storage in the conduct of its
33 business as an air common carrier, for a flight destined for
34 or returning from a location or locations outside the United
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1 States without regard to previous or subsequent domestic
2 stopovers.
3 (13) Proceeds of mandatory service charges separately
4 stated on customers' bills for the purchase and consumption
5 of food and beverages purchased at retail from a retailer, to
6 the extent that the proceeds of the service charge are in
7 fact turned over as tips or as a substitute for tips to the
8 employees who participate directly in preparing, serving,
9 hosting or cleaning up the food or beverage function with
10 respect to which the service charge is imposed.
11 (14) Oil field exploration, drilling, and production
12 equipment, including (i) rigs and parts of rigs, rotary rigs,
13 cable tool rigs, and workover rigs, (ii) pipe and tubular
14 goods, including casing and drill strings, (iii) pumps and
15 pump-jack units, (iv) storage tanks and flow lines, (v) any
16 individual replacement part for oil field exploration,
17 drilling, and production equipment, and (vi) machinery and
18 equipment purchased for lease; but excluding motor vehicles
19 required to be registered under the Illinois Vehicle Code.
20 (15) Photoprocessing machinery and equipment, including
21 repair and replacement parts, both new and used, including
22 that manufactured on special order, certified by the
23 purchaser to be used primarily for photoprocessing, and
24 including photoprocessing machinery and equipment purchased
25 for lease.
26 (16) Coal exploration, mining, offhighway hauling,
27 processing, maintenance, and reclamation equipment, including
28 replacement parts and equipment, and including equipment
29 purchased for lease, but excluding motor vehicles required to
30 be registered under the Illinois Vehicle Code.
31 (17) Distillation machinery and equipment, sold as a
32 unit or kit, assembled or installed by the retailer,
33 certified by the user to be used only for the production of
34 ethyl alcohol that will be used for consumption as motor fuel
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1 or as a component of motor fuel for the personal use of the
2 user, and not subject to sale or resale.
3 (18) Manufacturing and assembling machinery and
4 equipment used primarily in the process of manufacturing or
5 assembling tangible personal property for wholesale or retail
6 sale or lease, whether that sale or lease is made directly by
7 the manufacturer or by some other person, whether the
8 materials used in the process are owned by the manufacturer
9 or some other person, or whether that sale or lease is made
10 apart from or as an incident to the seller's engaging in the
11 service occupation of producing machines, tools, dies, jigs,
12 patterns, gauges, or other similar items of no commercial
13 value on special order for a particular purchaser.
14 (19) Personal property delivered to a purchaser or
15 purchaser's donee inside Illinois when the purchase order for
16 that personal property was received by a florist located
17 outside Illinois who has a florist located inside Illinois
18 deliver the personal property.
19 (20) Semen used for artificial insemination of livestock
20 for direct agricultural production.
21 (21) Horses, or interests in horses, registered with and
22 meeting the requirements of any of the Arabian Horse Club
23 Registry of America, Appaloosa Horse Club, American Quarter
24 Horse Association, United States Trotting Association, or
25 Jockey Club, as appropriate, used for purposes of breeding or
26 racing for prizes.
27 (22) Computers and communications equipment utilized for
28 any hospital purpose and equipment used in the diagnosis,
29 analysis, or treatment of hospital patients purchased by a
30 lessor who leases the equipment, under a lease of one year or
31 longer executed or in effect at the time the lessor would
32 otherwise be subject to the tax imposed by this Act, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act. If the equipment is
2 leased in a manner that does not qualify for this exemption
3 or is used in any other non-exempt manner, the lessor shall
4 be liable for the tax imposed under this Act or the Service
5 Use Tax Act, as the case may be, based on the fair market
6 value of the property at the time the non-qualifying use
7 occurs. No lessor shall collect or attempt to collect an
8 amount (however designated) that purports to reimburse that
9 lessor for the tax imposed by this Act or the Service Use Tax
10 Act, as the case may be, if the tax has not been paid by the
11 lessor. If a lessor improperly collects any such amount from
12 the lessee, the lessee shall have a legal right to claim a
13 refund of that amount from the lessor. If, however, that
14 amount is not refunded to the lessee for any reason, the
15 lessor is liable to pay that amount to the Department. This
16 paragraph is exempt from the provisions of Section 3-90.
17 (23) Personal property purchased by a lessor who leases
18 the property, under a lease of one year or longer executed
19 or in effect at the time the lessor would otherwise be
20 subject to the tax imposed by this Act, to a governmental
21 body that has been issued an active sales tax exemption
22 identification number by the Department under Section 1g of
23 the Retailers' Occupation Tax Act. If the property is leased
24 in a manner that does not qualify for this exemption or used
25 in any other non-exempt manner, the lessor shall be liable
26 for the tax imposed under this Act or the Service Use Tax
27 Act, as the case may be, based on the fair market value of
28 the property at the time the non-qualifying use occurs. No
29 lessor shall collect or attempt to collect an amount (however
30 designated) that purports to reimburse that lessor for the
31 tax imposed by this Act or the Service Use Tax Act, as the
32 case may be, if the tax has not been paid by the lessor. If
33 a lessor improperly collects any such amount from the lessee,
34 the lessee shall have a legal right to claim a refund of that
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1 amount from the lessor. If, however, that amount is not
2 refunded to the lessee for any reason, the lessor is liable
3 to pay that amount to the Department. This paragraph is
4 exempt from the provisions of Section 3-90.
5 (24) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is donated
8 for disaster relief to be used in a State or federally
9 declared disaster area in Illinois or bordering Illinois by a
10 manufacturer or retailer that is registered in this State to
11 a corporation, society, association, foundation, or
12 institution that has been issued a sales tax exemption
13 identification number by the Department that assists victims
14 of the disaster who reside within the declared disaster area.
15 (25) Beginning with taxable years ending on or after
16 December 31, 1995 and ending with taxable years ending on or
17 before December 31, 2004, personal property that is used in
18 the performance of infrastructure repairs in this State,
19 including but not limited to municipal roads and streets,
20 access roads, bridges, sidewalks, waste disposal systems,
21 water and sewer line extensions, water distribution and
22 purification facilities, storm water drainage and retention
23 facilities, and sewage treatment facilities, resulting from a
24 State or federally declared disaster in Illinois or bordering
25 Illinois when such repairs are initiated on facilities
26 located in the declared disaster area within 6 months after
27 the disaster.
28 (26) Beginning July 1, 1999, qualified technological
29 equipment purchased for lease by lessors under leases subject
30 to the Qualified Technological Equipment Leasing Occupation
31 and Use Tax Act. However, this exemption will last only as
32 long as the property continues to be leased by the lessor.
33 When the property is no longer used for lease and the
34 property reverts to the lessor, the property is subject to
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1 the tax imposed by this Act upon the fair market value of the
2 property on the date of the reversion. The property will not
3 be considered to revert to the lessor as long as the lessor
4 holds the property in his or her lease inventory and does not
5 otherwise use the property, except for demonstration
6 purposes. In addition, property held in the lessor's lease
7 inventory that is subsequently leased for a period of less
8 than one year will not be considered to revert to the lessor
9 if the property is returned to lease inventory at the
10 termination of the lease. This paragraph is exempt from the
11 provisions of Section 3-90.
12 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
13 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
14 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
15 eff. 12-12-97; 90-605, eff. 6-30-98.)
16 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
17 Sec. 9. Except as to motor vehicles, watercraft,
18 aircraft, and trailers that are required to be registered
19 with an agency of this State, each retailer required or
20 authorized to collect the tax imposed by this Act shall pay
21 to the Department the amount of such tax (except as otherwise
22 provided) at the time when he is required to file his return
23 for the period during which such tax was collected, less a
24 discount of 2.1% prior to January 1, 1990, and 1.75% on and
25 after January 1, 1990, or $5 per calendar year, whichever is
26 greater, which is allowed to reimburse the retailer for
27 expenses incurred in collecting the tax, keeping records,
28 preparing and filing returns, remitting the tax and supplying
29 data to the Department on request. In the case of retailers
30 who report and pay the tax on a transaction by transaction
31 basis, as provided in this Section, such discount shall be
32 taken with each such tax remittance instead of when such
33 retailer files his periodic return. A retailer need not
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1 remit that part of any tax collected by him to the extent
2 that he is required to remit and does remit the tax imposed
3 by the Retailers' Occupation Tax Act, with respect to the
4 sale of the same property.
5 Where such tangible personal property is sold under a
6 conditional sales contract, or under any other form of sale
7 wherein the payment of the principal sum, or a part thereof,
8 is extended beyond the close of the period for which the
9 return is filed, the retailer, in collecting the tax (except
10 as to motor vehicles, watercraft, aircraft, and trailers that
11 are required to be registered with an agency of this State),
12 may collect for each tax return period, only the tax
13 applicable to that part of the selling price actually
14 received during such tax return period.
15 Except as provided in this Section, on or before the
16 twentieth day of each calendar month, such retailer shall
17 file a return for the preceding calendar month. Such return
18 shall be filed on forms prescribed by the Department and
19 shall furnish such information as the Department may
20 reasonably require.
21 The Department may require returns to be filed on a
22 quarterly basis. If so required, a return for each calendar
23 quarter shall be filed on or before the twentieth day of the
24 calendar month following the end of such calendar quarter.
25 The taxpayer shall also file a return with the Department for
26 each of the first two months of each calendar quarter, on or
27 before the twentieth day of the following calendar month,
28 stating:
29 1. The name of the seller;
30 2. The address of the principal place of business
31 from which he engages in the business of selling tangible
32 personal property at retail in this State;
33 3. The total amount of taxable receipts received by
34 him during the preceding calendar month from sales of
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1 tangible personal property by him during such preceding
2 calendar month, including receipts from charge and time
3 sales, but less all deductions allowed by law;
4 4. The amount of credit provided in Section 2d of
5 this Act;
6 5. The amount of tax due;
7 5-5. The signature of the taxpayer; and
8 6. Such other reasonable information as the
9 Department may require.
10 If a taxpayer fails to sign a return within 30 days after
11 the proper notice and demand for signature by the Department,
12 the return shall be considered valid and any amount shown to
13 be due on the return shall be deemed assessed.
14 Beginning October 1, 1993, a taxpayer who has an average
15 monthly tax liability of $150,000 or more shall make all
16 payments required by rules of the Department by electronic
17 funds transfer. Beginning October 1, 1994, a taxpayer who has
18 an average monthly tax liability of $100,000 or more shall
19 make all payments required by rules of the Department by
20 electronic funds transfer. Beginning October 1, 1995, a
21 taxpayer who has an average monthly tax liability of $50,000
22 or more shall make all payments required by rules of the
23 Department by electronic funds transfer. The term "average
24 monthly tax liability" means the sum of the taxpayer's
25 liabilities under this Act, and under all other State and
26 local occupation and use tax laws administered by the
27 Department, for the immediately preceding calendar year
28 divided by 12.
29 Before August 1 of each year beginning in 1993, the
30 Department shall notify all taxpayers required to make
31 payments by electronic funds transfer. All taxpayers required
32 to make payments by electronic funds transfer shall make
33 those payments for a minimum of one year beginning on October
34 1.
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1 Any taxpayer not required to make payments by electronic
2 funds transfer may make payments by electronic funds transfer
3 with the permission of the Department.
4 All taxpayers required to make payment by electronic
5 funds transfer and any taxpayers authorized to voluntarily
6 make payments by electronic funds transfer shall make those
7 payments in the manner authorized by the Department.
8 The Department shall adopt such rules as are necessary to
9 effectuate a program of electronic funds transfer and the
10 requirements of this Section.
11 If the taxpayer's average monthly tax liability to the
12 Department under this Act, the Retailers' Occupation Tax Act,
13 the Service Occupation Tax Act, the Service Use Tax Act was
14 $10,000 or more during the preceding 4 complete calendar
15 quarters, he shall file a return with the Department each
16 month by the 20th day of the month next following the month
17 during which such tax liability is incurred and shall make
18 payments to the Department on or before the 7th, 15th, 22nd
19 and last day of the month during which such liability is
20 incurred. If the month during which such tax liability is
21 incurred began prior to January 1, 1985, each payment shall
22 be in an amount equal to 1/4 of the taxpayer's actual
23 liability for the month or an amount set by the Department
24 not to exceed 1/4 of the average monthly liability of the
25 taxpayer to the Department for the preceding 4 complete
26 calendar quarters (excluding the month of highest liability
27 and the month of lowest liability in such 4 quarter period).
28 If the month during which such tax liability is incurred
29 begins on or after January 1, 1985, and prior to January 1,
30 1987, each payment shall be in an amount equal to 22.5% of
31 the taxpayer's actual liability for the month or 27.5% of the
32 taxpayer's liability for the same calendar month of the
33 preceding year. If the month during which such tax liability
34 is incurred begins on or after January 1, 1987, and prior to
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1 January 1, 1988, each payment shall be in an amount equal to
2 22.5% of the taxpayer's actual liability for the month or
3 26.25% of the taxpayer's liability for the same calendar
4 month of the preceding year. If the month during which such
5 tax liability is incurred begins on or after January 1, 1988,
6 and prior to January 1, 1989, or begins on or after January
7 1, 1996, each payment shall be in an amount equal to 22.5% of
8 the taxpayer's actual liability for the month or 25% of the
9 taxpayer's liability for the same calendar month of the
10 preceding year. If the month during which such tax liability
11 is incurred begins on or after January 1, 1989, and prior to
12 January 1, 1996, each payment shall be in an amount equal to
13 22.5% of the taxpayer's actual liability for the month or 25%
14 of the taxpayer's liability for the same calendar month of
15 the preceding year or 100% of the taxpayer's actual liability
16 for the quarter monthly reporting period. The amount of such
17 quarter monthly payments shall be credited against the final
18 tax liability of the taxpayer's return for that month. Once
19 applicable, the requirement of the making of quarter monthly
20 payments to the Department shall continue until such
21 taxpayer's average monthly liability to the Department during
22 the preceding 4 complete calendar quarters (excluding the
23 month of highest liability and the month of lowest liability)
24 is less than $9,000, or until such taxpayer's average monthly
25 liability to the Department as computed for each calendar
26 quarter of the 4 preceding complete calendar quarter period
27 is less than $10,000. However, if a taxpayer can show the
28 Department that a substantial change in the taxpayer's
29 business has occurred which causes the taxpayer to anticipate
30 that his average monthly tax liability for the reasonably
31 foreseeable future will fall below $10,000, then such
32 taxpayer may petition the Department for change in such
33 taxpayer's reporting status. The Department shall change
34 such taxpayer's reporting status unless it finds that such
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1 change is seasonal in nature and not likely to be long term.
2 If any such quarter monthly payment is not paid at the time
3 or in the amount required by this Section, then the taxpayer
4 shall be liable for penalties and interest on the difference
5 between the minimum amount due and the amount of such quarter
6 monthly payment actually and timely paid, except insofar as
7 the taxpayer has previously made payments for that month to
8 the Department in excess of the minimum payments previously
9 due as provided in this Section. The Department shall make
10 reasonable rules and regulations to govern the quarter
11 monthly payment amount and quarter monthly payment dates for
12 taxpayers who file on other 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,
-23- LRB9104001PTpk
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, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the net
3 revenue realized for the preceding month from the 6.25%
4 general rate on the selling price of tangible personal
5 property which is purchased outside Illinois at retail from a
6 retailer and which is titled or registered by an agency of
7 this State's government.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, (a) 1.75% thereof shall be paid into
10 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
11 and on and after July 1, 1989, 3.8% thereof shall be paid
12 into the Build Illinois Fund; provided, however, that if in
13 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
14 as the case may be, of the moneys received by the Department
15 and required to be paid into the Build Illinois Fund pursuant
16 to Section 3 of the Retailers' Occupation Tax Act, Section 9
17 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
18 Section 9 of the Service Occupation Tax Act, such Acts being
19 hereinafter called the "Tax Acts" and such aggregate of 2.2%
20 or 3.8%, as the case may be, of moneys being hereinafter
21 called the "Tax Act Amount", and (2) the amount transferred
22 to the Build Illinois Fund from the State and Local Sales Tax
23 Reform Fund shall be less than the Annual Specified Amount
24 (as defined in Section 3 of the Retailers' Occupation Tax
25 Act), an amount equal to the difference shall be immediately
26 paid into the Build Illinois Fund from other moneys received
27 by the Department pursuant to the Tax Acts; and further
28 provided, that if on the last business day of any month the
29 sum of (1) the Tax Act Amount required to be deposited into
30 the Build Illinois Bond Account in the Build Illinois Fund
31 during such month and (2) the amount transferred during such
32 month to the Build Illinois Fund from the State and Local
33 Sales Tax Reform Fund shall have been less than 1/12 of the
34 Annual Specified Amount, an amount equal to the difference
-29- LRB9104001PTpk
1 shall be immediately paid into the Build Illinois Fund from
2 other moneys received by the Department pursuant to the Tax
3 Acts; and, further provided, that in no event shall the
4 payments required under the preceding proviso result in
5 aggregate payments into the Build Illinois Fund pursuant to
6 this clause (b) for any fiscal year in excess of the greater
7 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
8 for such fiscal year; and, further provided, that the amounts
9 payable into the Build Illinois Fund under this clause (b)
10 shall be payable only until such time as the aggregate amount
11 on deposit under each trust indenture securing Bonds issued
12 and outstanding pursuant to the Build Illinois Bond Act is
13 sufficient, taking into account any future investment income,
14 to fully provide, in accordance with such indenture, for the
15 defeasance of or the payment of the principal of, premium, if
16 any, and interest on the Bonds secured by such indenture and
17 on any Bonds expected to be issued thereafter and all fees
18 and costs payable with respect thereto, all as certified by
19 the Director of the Bureau of the Budget. If on the last
20 business day of any month in which Bonds are outstanding
21 pursuant to the Build Illinois Bond Act, the aggregate of the
22 moneys deposited in the Build Illinois Bond Account in the
23 Build Illinois Fund in such month shall be less than the
24 amount required to be transferred in such month from the
25 Build Illinois Bond Account to the Build Illinois Bond
26 Retirement and Interest Fund pursuant to Section 13 of the
27 Build Illinois Bond Act, an amount equal to such deficiency
28 shall be immediately paid from other moneys received by the
29 Department pursuant to the Tax Acts to the Build Illinois
30 Fund; provided, however, that any amounts paid to the Build
31 Illinois Fund in any fiscal year pursuant to this sentence
32 shall be deemed to constitute payments pursuant to clause (b)
33 of the preceding sentence and shall reduce the amount
34 otherwise payable for such fiscal year pursuant to clause (b)
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1 of the preceding sentence. The moneys received by the
2 Department pursuant to this Act and required to be deposited
3 into the Build Illinois Fund are subject to the pledge, claim
4 and charge set forth in Section 12 of the Build Illinois Bond
5 Act.
6 Subject to payment of amounts into the Build Illinois
7 Fund as provided in the preceding paragraph or in any
8 amendment thereto hereafter enacted, the following specified
9 monthly installment of the amount requested in the
10 certificate of the Chairman of the Metropolitan Pier and
11 Exposition Authority provided under Section 8.25f of the
12 State Finance Act, but not in excess of the sums designated
13 as "Total Deposit", shall be deposited in the aggregate from
14 collections under Section 9 of the Use Tax Act, Section 9 of
15 the Service Use Tax Act, Section 9 of the Service Occupation
16 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
17 into the McCormick Place Expansion Project Fund in the
18 specified fiscal years.
19 Fiscal Year Total Deposit
20 1993 $0
21 1994 53,000,000
22 1995 58,000,000
23 1996 61,000,000
24 1997 64,000,000
25 1998 68,000,000
26 1999 71,000,000
27 2000 75,000,000
28 2001 80,000,000
29 2002 84,000,000
30 2003 89,000,000
31 2004 93,000,000
32 2005 97,000,000
33 2006 102,000,000
34 2007 and 106,000,000
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1 each fiscal year
2 thereafter that bonds
3 are outstanding under
4 Section 13.2 of the
5 Metropolitan Pier and
6 Exposition Authority
7 Act, but not after fiscal year 2029.
8 Beginning July 20, 1993 and in each month of each fiscal
9 year thereafter, one-eighth of the amount requested in the
10 certificate of the Chairman of the Metropolitan Pier and
11 Exposition Authority for that fiscal year, less the amount
12 deposited into the McCormick Place Expansion Project Fund by
13 the State Treasurer in the respective month under subsection
14 (g) of Section 13 of the Metropolitan Pier and Exposition
15 Authority Act, plus cumulative deficiencies in the deposits
16 required under this Section for previous months and years,
17 shall be deposited into the McCormick Place Expansion Project
18 Fund, until the full amount requested for the fiscal year,
19 but not in excess of the amount specified above as "Total
20 Deposit", has been deposited.
21 Subject to payment of amounts into the Build Illinois
22 Fund and the McCormick Place Expansion Project Fund pursuant
23 to the preceding paragraphs or in any amendment thereto
24 hereafter enacted, each month the Department shall pay into
25 the Local Government Distributive Fund .4% of the net revenue
26 realized for the preceding month from the 5% general rate, or
27 .4% of 80% of the net revenue realized for the preceding
28 month from the 6.25% general rate, as the case may be, on the
29 selling price of tangible personal property which amount
30 shall, subject to appropriation, be distributed as provided
31 in Section 2 of the State Revenue Sharing Act. No payments or
32 distributions pursuant to this paragraph shall be made if the
33 tax imposed by this Act on photoprocessing products is
34 declared unconstitutional, or if the proceeds from such tax
-32- LRB9104001PTpk
1 are unavailable for distribution because of litigation.
2 Subject to payment of amounts into the Build Illinois
3 Fund, the McCormick Place Expansion Project Fund, and the
4 Local Government Distributive Fund pursuant to the preceding
5 paragraphs or in any amendments thereto hereafter enacted,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% 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.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act and the moneys received by the
13 Department from the 80% of the 8.25% rate of use tax imposed
14 in Section 20 of the Qualified Technological Equipment
15 Leasing Occupation and Use Tax Act, 75% thereof shall be paid
16 into the State Treasury and 25% shall be reserved in a
17 special account and used only for the transfer to the Common
18 School Fund as part of the monthly transfer from the General
19 Revenue Fund in accordance with Section 8a of the State
20 Finance Act.
21 As soon as possible after the first day of each month,
22 upon certification of the Department of Revenue, the
23 Comptroller shall order transferred and the Treasurer shall
24 transfer from the General Revenue Fund to the Motor Fuel Tax
25 Fund an amount equal to 1.7% of 80% of the net revenue
26 realized under this Act for the second preceding month;
27 except that this transfer shall not be made for the months
28 February through June of 1992.
29 Net revenue realized for a month shall be the revenue
30 collected by the State pursuant to this Act, less the amount
31 paid out during that month as refunds to taxpayers for
32 overpayment of liability.
33 For greater simplicity of administration, manufacturers,
34 importers and wholesalers whose products are sold at retail
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1 in Illinois by numerous retailers, and who wish to do so, may
2 assume the responsibility for accounting and paying to the
3 Department all tax accruing under this Act with respect to
4 such sales, if the retailers who are affected do not make
5 written objection to the Department to this arrangement.
6 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
7 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
8 (35 ILCS 105/9.5 new)
9 Sec. 9.5. Refund; leaseback transaction. A purchaser of
10 qualified technological equipment, as defined in Section 5 of
11 the Qualified Technological Equipment Leasing Occupation and
12 Use Tax Act, may obtain a refund of all tax paid to a seller
13 under this Act or any other tax administered by the
14 Department if the purchaser sells the property to a rentor
15 under a bona fide sale and leaseback transaction (to such
16 purchaser) within 90 days of the first functional use of the
17 property. The purchaser shall request the refund from the
18 seller to whom he or she has paid the tax in the same manner
19 and subject to the same requirements as other refunds
20 provided in Section 9 of this Act. For purposes of this
21 Section, the first functional use of property shall be the
22 use for which the property is intended, which shall, in the
23 absence of other evidence, be presumed to be the date of
24 delivery of the property.
25 Section 115. The Service Use Tax Act is amended by
26 changing Section 3-5 as follows:
27 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
28 Sec. 3-5. Exemptions. Use of the following tangible
29 personal property is exempt from the tax imposed by this Act:
30 (1) Personal property purchased from a corporation,
31 society, association, foundation, institution, or
-34- LRB9104001PTpk
1 organization, other than a limited liability company, that is
2 organized and operated as a not-for-profit service enterprise
3 for the benefit of persons 65 years of age or older if the
4 personal property was not purchased by the enterprise for the
5 purpose of resale by the enterprise.
6 (2) Personal property purchased by a non-profit Illinois
7 county fair association for use in conducting, operating, or
8 promoting the county fair.
9 (3) Personal property purchased by a not-for-profit
10 music or dramatic arts organization that establishes, by
11 proof required by the Department by rule, that it has
12 received an exemption under Section 501(c)(3) of the Internal
13 Revenue Code and that is organized and operated for the
14 presentation of live public performances of musical or
15 theatrical works on a regular basis.
16 (4) Legal tender, currency, medallions, or gold or
17 silver coinage issued by the State of Illinois, the
18 government of the United States of America, or the government
19 of any foreign country, and bullion.
20 (5) Graphic arts machinery and equipment, including
21 repair and replacement parts, both new and used, and
22 including that manufactured on special order or purchased for
23 lease, certified by the purchaser to be used primarily for
24 graphic arts production.
25 (6) Personal property purchased from a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (7) Farm machinery and equipment, both new and used,
29 including that manufactured on special order, certified by
30 the purchaser to be used primarily for production agriculture
31 or State or federal agricultural programs, including
32 individual replacement parts for the machinery and equipment,
33 including machinery and equipment purchased for lease, and
34 including implements of husbandry defined in Section 1-130 of
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1 the Illinois Vehicle Code, farm machinery and agricultural
2 chemical and fertilizer spreaders, and nurse wagons required
3 to be registered under Section 3-809 of the Illinois Vehicle
4 Code, but excluding other motor vehicles required to be
5 registered under the Illinois Vehicle Code. Horticultural
6 polyhouses or hoop houses used for propagating, growing, or
7 overwintering plants shall be considered farm machinery and
8 equipment under this item (7). Agricultural chemical tender
9 tanks and dry boxes shall include units sold separately from
10 a motor vehicle required to be licensed and units sold
11 mounted on a motor vehicle required to be licensed if the
12 selling price of the tender is separately stated.
13 Farm machinery and equipment shall include precision
14 farming equipment that is installed or purchased to be
15 installed on farm machinery and equipment including, but not
16 limited to, tractors, harvesters, sprayers, planters,
17 seeders, or spreaders. Precision farming equipment includes,
18 but is not limited to, soil testing sensors, computers,
19 monitors, software, global positioning and mapping systems,
20 and other such equipment.
21 Farm machinery and equipment also includes computers,
22 sensors, software, and related equipment used primarily in
23 the computer-assisted operation of production agriculture
24 facilities, equipment, and activities such as, but not
25 limited to, the collection, monitoring, and correlation of
26 animal and crop data for the purpose of formulating animal
27 diets and agricultural chemicals. This item (7) is exempt
28 from the provisions of Section 3-75.
29 (8) Fuel and petroleum products sold to or used by an
30 air common carrier, certified by the carrier to be used for
31 consumption, shipment, or storage in the conduct of its
32 business as an air common carrier, for a flight destined for
33 or returning from a location or locations outside the United
34 States without regard to previous or subsequent domestic
-36- LRB9104001PTpk
1 stopovers.
2 (9) Proceeds of mandatory service charges separately
3 stated on customers' bills for the purchase and consumption
4 of food and beverages acquired as an incident to the purchase
5 of a service from a serviceman, to the extent that the
6 proceeds of the service charge are in fact turned over as
7 tips or as a substitute for tips to the employees who
8 participate directly in preparing, serving, hosting or
9 cleaning up the food or beverage function with respect to
10 which the service charge is imposed.
11 (10) Oil field exploration, drilling, and production
12 equipment, including (i) rigs and parts of rigs, rotary rigs,
13 cable tool rigs, and workover rigs, (ii) pipe and tubular
14 goods, including casing and drill strings, (iii) pumps and
15 pump-jack units, (iv) storage tanks and flow lines, (v) any
16 individual replacement part for oil field exploration,
17 drilling, and production equipment, and (vi) machinery and
18 equipment purchased for lease; but excluding motor vehicles
19 required to be registered under the Illinois Vehicle Code.
20 (11) Proceeds from the sale of photoprocessing machinery
21 and equipment, including repair and replacement parts, both
22 new and used, including that manufactured on special order,
23 certified by the purchaser to be used primarily for
24 photoprocessing, and including photoprocessing machinery and
25 equipment purchased for lease.
26 (12) Coal exploration, mining, offhighway hauling,
27 processing, maintenance, and reclamation equipment, including
28 replacement parts and equipment, and including equipment
29 purchased for lease, but excluding motor vehicles required to
30 be registered under the Illinois Vehicle Code.
31 (13) Semen used for artificial insemination of livestock
32 for direct agricultural production.
33 (14) Horses, or interests in horses, registered with and
34 meeting the requirements of any of the Arabian Horse Club
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1 Registry of America, Appaloosa Horse Club, American Quarter
2 Horse Association, United States Trotting Association, or
3 Jockey Club, as appropriate, used for purposes of breeding or
4 racing for prizes.
5 (15) Computers and communications equipment utilized for
6 any hospital purpose and equipment used in the diagnosis,
7 analysis, or treatment of hospital patients purchased by a
8 lessor who leases the equipment, under a lease of one year or
9 longer executed or in effect at the time the lessor would
10 otherwise be subject to the tax imposed by this Act, to a
11 hospital that has been issued an active tax exemption
12 identification number by the Department under Section 1g of
13 the Retailers' Occupation Tax Act. If the equipment is leased
14 in a manner that does not qualify for this exemption or is
15 used in any other non-exempt manner, the lessor shall be
16 liable for the tax imposed under this Act or the Use Tax Act,
17 as the case may be, based on the fair market value of the
18 property at the time the non-qualifying use occurs. No
19 lessor shall collect or attempt to collect an amount (however
20 designated) that purports to reimburse that lessor for the
21 tax imposed by this Act or the Use Tax Act, as the case may
22 be, if the tax has not been paid by the lessor. If a lessor
23 improperly collects any such amount from the lessee, the
24 lessee shall have a legal right to claim a refund of that
25 amount from the lessor. If, however, that amount is not
26 refunded to the lessee for any reason, the lessor is liable
27 to pay that amount to the Department. This paragraph is
28 exempt from the provisions of Section 3-75.
29 (16) Personal property purchased by a lessor who leases
30 the property, under a lease of one year or longer executed or
31 in effect at the time the lessor would otherwise be subject
32 to the tax imposed by this Act, to a governmental body that
33 has been issued an active tax exemption identification number
34 by the Department under Section 1g of the Retailers'
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1 Occupation Tax Act. If the property is leased in a manner
2 that does not qualify for this exemption or is used in any
3 other non-exempt manner, the lessor shall be liable for the
4 tax imposed under this Act or the Use Tax Act, as the case
5 may be, based on the fair market value of the property at the
6 time the non-qualifying use occurs. No lessor shall collect
7 or attempt to collect an amount (however designated) that
8 purports to reimburse that lessor for the tax imposed by this
9 Act or the Use Tax Act, as the case may be, if the tax has
10 not been paid by the lessor. If a lessor improperly collects
11 any such amount from the lessee, the lessee shall have a
12 legal right to claim a refund of that amount from the lessor.
13 If, however, that amount is not refunded to the lessee for
14 any reason, the lessor is liable to pay that amount to the
15 Department. This paragraph is exempt from the provisions of
16 Section 3-75.
17 (17) Beginning with taxable years ending on or after
18 December 31, 1995 and ending with taxable years ending on or
19 before December 31, 2004, personal property that is donated
20 for disaster relief to be used in a State or federally
21 declared disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department that assists victims
26 of the disaster who reside within the declared disaster area.
27 (18) Beginning with taxable years ending on or after
28 December 31, 1995 and ending with taxable years ending on or
29 before December 31, 2004, personal property that is used in
30 the performance of infrastructure repairs in this State,
31 including but not limited to municipal roads and streets,
32 access roads, bridges, sidewalks, waste disposal systems,
33 water and sewer line extensions, water distribution and
34 purification facilities, storm water drainage and retention
-39- LRB9104001PTpk
1 facilities, and sewage treatment facilities, resulting from a
2 State or federally declared disaster in Illinois or bordering
3 Illinois when such repairs are initiated on facilities
4 located in the declared disaster area within 6 months after
5 the disaster.
6 (19) Beginning July 1, 1999, qualified technological
7 equipment purchased for lease by lessors under leases subject
8 to the Qualified Technological Equipment Leasing Occupation
9 and Use Tax Act. However, this exemption will last only as
10 long as the property continues to be leased by the lessor.
11 When the property is no longer used for lease and the
12 property reverts to the lessor, the property is subject to
13 the tax imposed by this Act upon the fair market value of the
14 property on the date of the reversion. The property will not
15 be considered to revert to the lessor as long as the lessor
16 holds the property in his or her lease inventory and does not
17 otherwise use the property, except for demonstration
18 purposes. In addition, property held in the lessor's lease
19 inventory that is subsequently leased for a period of less
20 than one year will not be considered to revert to the lessor
21 if the property is returned to lease inventory at the
22 termination of the lease. This paragraph is exempt from the
23 provisions of Section 3-75.
24 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
25 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
26 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
27 eff. 12-12-97; 90-605, eff. 6-30-98.)
28 Section 120. The Service Occupation Tax Act is amended
29 by changing Section 3-5 as follows:
30 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
31 Sec. 3-5. Exemptions. The following tangible personal
32 property is exempt from the tax imposed by this Act:
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1 (1) Personal property sold by a corporation, society,
2 association, foundation, institution, or organization, other
3 than a limited liability company, that is organized and
4 operated as a not-for-profit service enterprise for the
5 benefit of persons 65 years of age or older if the personal
6 property was not purchased by the enterprise for the purpose
7 of resale by the enterprise.
8 (2) Personal property purchased by a not-for-profit
9 Illinois county fair association for use in conducting,
10 operating, or promoting the county fair.
11 (3) Personal property purchased by any not-for-profit
12 music or dramatic arts organization that establishes, by
13 proof required by the Department by rule, that it has
14 received an exemption under Section 501(c)(3) of the
15 Internal Revenue Code and that is organized and operated for
16 the presentation of live public performances of musical or
17 theatrical works on a regular basis.
18 (4) Legal tender, currency, medallions, or gold or
19 silver coinage issued by the State of Illinois, the
20 government of the United States of America, or the government
21 of any foreign country, and bullion.
22 (5) Graphic arts machinery and equipment, including
23 repair and replacement parts, both new and used, and
24 including that manufactured on special order or purchased for
25 lease, certified by the purchaser to be used primarily for
26 graphic arts production.
27 (6) Personal property sold by a teacher-sponsored
28 student organization affiliated with an elementary or
29 secondary school located in Illinois.
30 (7) Farm machinery and equipment, both new and used,
31 including that manufactured on special order, certified by
32 the purchaser to be used primarily for production agriculture
33 or State or federal agricultural programs, including
34 individual replacement parts for the machinery and equipment,
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1 including machinery and equipment purchased for lease, and
2 including implements of husbandry defined in Section 1-130 of
3 the Illinois Vehicle Code, farm machinery and agricultural
4 chemical and fertilizer spreaders, and nurse wagons required
5 to be registered under Section 3-809 of the Illinois Vehicle
6 Code, but excluding other motor vehicles required to be
7 registered under the Illinois Vehicle Code. Horticultural
8 polyhouses or hoop houses used for propagating, growing, or
9 overwintering plants shall be considered farm machinery and
10 equipment under this item (7). Agricultural chemical tender
11 tanks and dry boxes shall include units sold separately from
12 a motor vehicle required to be licensed and units sold
13 mounted on a motor vehicle required to be licensed if the
14 selling price of the tender is separately stated.
15 Farm machinery and equipment shall include precision
16 farming equipment that is installed or purchased to be
17 installed on farm machinery and equipment including, but not
18 limited to, tractors, harvesters, sprayers, planters,
19 seeders, or spreaders. Precision farming equipment includes,
20 but is not limited to, soil testing sensors, computers,
21 monitors, software, global positioning and mapping systems,
22 and other such equipment.
23 Farm machinery and equipment also includes computers,
24 sensors, software, and related equipment used primarily in
25 the computer-assisted operation of production agriculture
26 facilities, equipment, and activities such as, but not
27 limited to, the collection, monitoring, and correlation of
28 animal and crop data for the purpose of formulating animal
29 diets and agricultural chemicals. This item (7) is exempt
30 from the provisions of Section 3-75.
31 (8) Fuel and petroleum products sold to or used by an
32 air common carrier, certified by the carrier to be used for
33 consumption, shipment, or storage in the conduct of its
34 business as an air common carrier, for a flight destined for
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1 or returning from a location or locations outside the United
2 States without regard to previous or subsequent domestic
3 stopovers.
4 (9) Proceeds of mandatory service charges separately
5 stated on customers' bills for the purchase and consumption
6 of food and beverages, to the extent that the proceeds of the
7 service charge are in fact turned over as tips or as a
8 substitute for tips to the employees who participate directly
9 in preparing, serving, hosting or cleaning up the food or
10 beverage function with respect to which the service charge is
11 imposed.
12 (10) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (11) Photoprocessing machinery and equipment, including
22 repair and replacement parts, both new and used, including
23 that manufactured on special order, certified by the
24 purchaser to be used primarily for photoprocessing, and
25 including photoprocessing machinery and equipment purchased
26 for lease.
27 (12) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (13) Food for human consumption that is to be consumed
33 off the premises where it is sold (other than alcoholic
34 beverages, soft drinks and food that has been prepared for
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1 immediate consumption) and prescription and non-prescription
2 medicines, drugs, medical appliances, and insulin, urine
3 testing materials, syringes, and needles used by diabetics,
4 for human use, when purchased for use by a person receiving
5 medical assistance under Article 5 of the Illinois Public Aid
6 Code who resides in a licensed long-term care facility, as
7 defined in the Nursing Home Care Act.
8 (14) Semen used for artificial insemination of livestock
9 for direct agricultural production.
10 (15) Horses, or interests in horses, registered with and
11 meeting the requirements of any of the Arabian Horse Club
12 Registry of America, Appaloosa Horse Club, American Quarter
13 Horse Association, United States Trotting Association, or
14 Jockey Club, as appropriate, used for purposes of breeding or
15 racing for prizes.
16 (16) Computers and communications equipment utilized for
17 any hospital purpose and equipment used in the diagnosis,
18 analysis, or treatment of hospital patients sold to a lessor
19 who leases the equipment, under a lease of one year or longer
20 executed or in effect at the time of the purchase, to a
21 hospital that has been issued an active tax exemption
22 identification number by the Department under Section 1g of
23 the Retailers' Occupation Tax Act. This paragraph is exempt
24 from the provisions of Section 3-55.
25 (17) Personal property sold to a lessor who leases the
26 property, under a lease of one year or longer executed or in
27 effect at the time of the purchase, to a governmental body
28 that has been issued an active tax exemption identification
29 number by the Department under Section 1g of the Retailers'
30 Occupation Tax Act. This paragraph is exempt from the
31 provisions of Section 3-55.
32 (18) Beginning with taxable years ending on or after
33 December 31, 1995 and ending with taxable years ending on or
34 before December 31, 2004, personal property that is donated
-44- LRB9104001PTpk
1 for disaster relief to be used in a State or federally
2 declared disaster area in Illinois or bordering Illinois by a
3 manufacturer or retailer that is registered in this State to
4 a corporation, society, association, foundation, or
5 institution that has been issued a sales tax exemption
6 identification number by the Department that assists victims
7 of the disaster who reside within the declared disaster area.
8 (19) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on or
10 before December 31, 2004, personal property that is used in
11 the performance of infrastructure repairs in this State,
12 including but not limited to municipal roads and streets,
13 access roads, bridges, sidewalks, waste disposal systems,
14 water and sewer line extensions, water distribution and
15 purification facilities, storm water drainage and retention
16 facilities, and sewage treatment facilities, resulting from a
17 State or federally declared disaster in Illinois or bordering
18 Illinois when such repairs are initiated on facilities
19 located in the declared disaster area within 6 months after
20 the disaster.
21 (20) Beginning July 1, 1999, qualified technological
22 equipment sold to lessors for lease under leases subject to
23 the Qualified Technological Equipment Leasing Occupation and
24 Use Tax Act. This paragraph is exempt from the provisions of
25 Section 3-55.
26 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
27 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
28 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
29 eff. 12-12-97; 90-605, eff. 6-30-98.)
30 Section 125. The Retailers' Occupation Tax Act is
31 amended by adding Sections 1c-5 and 3.5 and changing
32 Sections 2-5 and 3 as follows:
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1 (35 ILCS 120/1c-5 new)
2 Sec. 1c-5. Sale of used qualified technological
3 equipment by lessors. A person who is engaged in the
4 business of leasing qualified technological equipment under
5 leases subject to the Qualified Technological Equipment
6 Leasing Occupation and Use Tax Act and who, in connection
7 with that business, sells the property to a purchaser for his
8 or her use and not for the purpose of resale, is a retailer
9 engaged in the business of selling tangible personal property
10 at retail under this Act to the extent of the value of the
11 property sold.
12 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
13 Sec. 2-5. Exemptions. Gross receipts from proceeds from
14 the sale of the following tangible personal property are
15 exempt from the tax imposed by this Act:
16 (1) Farm chemicals.
17 (2) Farm machinery and equipment, both new and used,
18 including that manufactured on special order, certified by
19 the purchaser to be used primarily for production agriculture
20 or State or federal agricultural programs, including
21 individual replacement parts for the machinery and equipment,
22 including machinery and equipment purchased for lease, and
23 including implements of husbandry defined in Section 1-130 of
24 the Illinois Vehicle Code, farm machinery and agricultural
25 chemical and fertilizer spreaders, and nurse wagons required
26 to be registered under Section 3-809 of the Illinois Vehicle
27 Code, but excluding other motor vehicles required to be
28 registered under the Illinois Vehicle Code. Horticultural
29 polyhouses or hoop houses used for propagating, growing, or
30 overwintering plants shall be considered farm machinery and
31 equipment under this item (2). Agricultural chemical tender
32 tanks and dry boxes shall include units sold separately from
33 a motor vehicle required to be licensed and units sold
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1 mounted on a motor vehicle required to be licensed, if the
2 selling price of the tender is separately stated.
3 Farm machinery and equipment shall include precision
4 farming equipment that is installed or purchased to be
5 installed on farm machinery and equipment including, but not
6 limited to, tractors, harvesters, sprayers, planters,
7 seeders, or spreaders. Precision farming equipment includes,
8 but is not limited to, soil testing sensors, computers,
9 monitors, software, global positioning and mapping systems,
10 and other such equipment.
11 Farm machinery and equipment also includes computers,
12 sensors, software, and related equipment used primarily in
13 the computer-assisted operation of production agriculture
14 facilities, equipment, and activities such as, but not
15 limited to, the collection, monitoring, and correlation of
16 animal and crop data for the purpose of formulating animal
17 diets and agricultural chemicals. This item (7) is exempt
18 from the provisions of Section 3-75.
19 (3) Distillation machinery and equipment, sold as a unit
20 or kit, assembled or installed by the retailer, certified by
21 the user to be used only for the production of ethyl alcohol
22 that will be used for consumption as motor fuel or as a
23 component of motor fuel for the personal use of the user, and
24 not subject to sale or resale.
25 (4) Graphic arts machinery and equipment, including
26 repair and replacement parts, both new and used, and
27 including that manufactured on special order or purchased for
28 lease, certified by the purchaser to be used primarily for
29 graphic arts production.
30 (5) A motor vehicle of the first division, a motor
31 vehicle of the second division that is a self-contained motor
32 vehicle designed or permanently converted to provide living
33 quarters for recreational, camping, or travel use, with
34 direct walk through access to the living quarters from the
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1 driver's seat, or a motor vehicle of the second division that
2 is of the van configuration designed for the transportation
3 of not less than 7 nor more than 16 passengers, as defined in
4 Section 1-146 of the Illinois Vehicle Code, that is used for
5 automobile renting, as defined in the Automobile Renting
6 Occupation and Use Tax Act.
7 (6) Personal property sold by a teacher-sponsored
8 student organization affiliated with an elementary or
9 secondary school located in Illinois.
10 (7) Proceeds of that portion of the selling price of a
11 passenger car the sale of which is subject to the Replacement
12 Vehicle Tax.
13 (8) Personal property sold to an Illinois county fair
14 association for use in conducting, operating, or promoting
15 the county fair.
16 (9) Personal property sold to a not-for-profit music or
17 dramatic arts organization that establishes, by proof
18 required by the Department by rule, that it has received an
19 exemption under Section 501(c) (3) of the Internal Revenue
20 Code and that is organized and operated for the presentation
21 of live public performances of musical or theatrical works on
22 a regular basis.
23 (10) Personal property sold by a corporation, society,
24 association, foundation, institution, or organization, other
25 than a limited liability company, that is organized and
26 operated as a not-for-profit service enterprise for the
27 benefit of persons 65 years of age or older if the personal
28 property was not purchased by the enterprise for the purpose
29 of resale by the enterprise.
30 (11) Personal property sold to a governmental body, to a
31 corporation, society, association, foundation, or institution
32 organized and operated exclusively for charitable, religious,
33 or educational purposes, or to a not-for-profit corporation,
34 society, association, foundation, institution, or
-48- LRB9104001PTpk
1 organization that has no compensated officers or employees
2 and that is organized and operated primarily for the
3 recreation of persons 55 years of age or older. A limited
4 liability company may qualify for the exemption under this
5 paragraph only if the limited liability company is organized
6 and operated exclusively for educational purposes. On and
7 after July 1, 1987, however, no entity otherwise eligible for
8 this exemption shall make tax-free purchases unless it has an
9 active identification number issued by the Department.
10 (12) Personal property sold to interstate carriers for
11 hire for use as rolling stock moving in interstate commerce
12 or to lessors under leases of one year or longer executed or
13 in effect at the time of purchase by interstate carriers for
14 hire for use as rolling stock moving in interstate commerce
15 and equipment operated by a telecommunications provider,
16 licensed as a common carrier by the Federal Communications
17 Commission, which is permanently installed in or affixed to
18 aircraft moving in interstate commerce.
19 (13) Proceeds from sales to owners, lessors, or shippers
20 of tangible personal property that is utilized by interstate
21 carriers for hire for use as rolling stock moving in
22 interstate commerce and equipment operated by a
23 telecommunications provider, licensed as a common carrier by
24 the Federal Communications Commission, which is permanently
25 installed in or affixed to aircraft moving in interstate
26 commerce.
27 (14) Machinery and equipment that will be used by the
28 purchaser, or a lessee of the purchaser, primarily in the
29 process of manufacturing or assembling tangible personal
30 property for wholesale or retail sale or lease, whether the
31 sale or lease is made directly by the manufacturer or by some
32 other person, whether the materials used in the process are
33 owned by the manufacturer or some other person, or whether
34 the sale or lease is made apart from or as an incident to the
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1 seller's engaging in the service occupation of producing
2 machines, tools, dies, jigs, patterns, gauges, or other
3 similar items of no commercial value on special order for a
4 particular purchaser.
5 (15) Proceeds of mandatory service charges separately
6 stated on customers' bills for purchase and consumption of
7 food and beverages, to the extent that the proceeds of the
8 service charge are in fact turned over as tips or as a
9 substitute for tips to the employees who participate directly
10 in preparing, serving, hosting or cleaning up the food or
11 beverage function with respect to which the service charge is
12 imposed.
13 (16) Petroleum products sold to a purchaser if the
14 seller is prohibited by federal law from charging tax to the
15 purchaser.
16 (17) Tangible personal property sold to a common carrier
17 by rail or motor that receives the physical possession of the
18 property in Illinois and that transports the property, or
19 shares with another common carrier in the transportation of
20 the property, out of Illinois on a standard uniform bill of
21 lading showing the seller of the property as the shipper or
22 consignor of the property to a destination outside Illinois,
23 for use outside Illinois.
24 (18) Legal tender, currency, medallions, or gold or
25 silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion.
28 (19) Oil field exploration, drilling, and production
29 equipment, including (i) rigs and parts of rigs, rotary rigs,
30 cable tool rigs, and workover rigs, (ii) pipe and tubular
31 goods, including casing and drill strings, (iii) pumps and
32 pump-jack units, (iv) storage tanks and flow lines, (v) any
33 individual replacement part for oil field exploration,
34 drilling, and production equipment, and (vi) machinery and
-50- LRB9104001PTpk
1 equipment purchased for lease; but excluding motor vehicles
2 required to be registered under the Illinois Vehicle Code.
3 (20) Photoprocessing machinery and equipment, including
4 repair and replacement parts, both new and used, including
5 that manufactured on special order, certified by the
6 purchaser to be used primarily for photoprocessing, and
7 including photoprocessing machinery and equipment purchased
8 for lease.
9 (21) Coal exploration, mining, offhighway hauling,
10 processing, maintenance, and reclamation equipment, including
11 replacement parts and equipment, and including equipment
12 purchased for lease, but excluding motor vehicles required to
13 be registered under the Illinois Vehicle Code.
14 (22) Fuel and petroleum products sold to or used by an
15 air carrier, certified by the carrier to be used for
16 consumption, shipment, or storage in the conduct of its
17 business as an air common carrier, for a flight destined for
18 or returning from a location or locations outside the United
19 States without regard to previous or subsequent domestic
20 stopovers.
21 (23) A transaction in which the purchase order is
22 received by a florist who is located outside Illinois, but
23 who has a florist located in Illinois deliver the property to
24 the purchaser or the purchaser's donee in Illinois.
25 (24) Fuel consumed or used in the operation of ships,
26 barges, or vessels that are used primarily in or for the
27 transportation of property or the conveyance of persons for
28 hire on rivers bordering on this State if the fuel is
29 delivered by the seller to the purchaser's barge, ship, or
30 vessel while it is afloat upon that bordering river.
31 (25) A motor vehicle sold in this State to a nonresident
32 even though the motor vehicle is delivered to the nonresident
33 in this State, if the motor vehicle is not to be titled in
34 this State, and if a driveaway decal permit is issued to the
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1 motor vehicle as provided in Section 3-603 of the Illinois
2 Vehicle Code or if the nonresident purchaser has vehicle
3 registration plates to transfer to the motor vehicle upon
4 returning to his or her home state. The issuance of the
5 driveaway decal permit or having the out-of-state
6 registration plates to be transferred is prima facie evidence
7 that the motor vehicle will not be titled in this State.
8 (26) Semen used for artificial insemination of livestock
9 for direct agricultural production.
10 (27) Horses, or interests in horses, registered with and
11 meeting the requirements of any of the Arabian Horse Club
12 Registry of America, Appaloosa Horse Club, American Quarter
13 Horse Association, United States Trotting Association, or
14 Jockey Club, as appropriate, used for purposes of breeding or
15 racing for prizes.
16 (28) Computers and communications equipment utilized for
17 any hospital purpose and equipment used in the diagnosis,
18 analysis, or treatment of hospital patients sold to a lessor
19 who leases the equipment, under a lease of one year or longer
20 executed or in effect at the time of the purchase, to a
21 hospital that has been issued an active tax exemption
22 identification number by the Department under Section 1g of
23 this Act. This paragraph is exempt from the provisions of
24 Section 2-70.
25 (29) Personal property sold to a lessor who leases the
26 property, under a lease of one year or longer executed or in
27 effect at the time of the purchase, to a governmental body
28 that has been issued an active tax exemption identification
29 number by the Department under Section 1g of this Act. This
30 paragraph is exempt from the provisions of Section 2-70.
31 (30) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is donated
34 for disaster relief to be used in a State or federally
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1 declared disaster area in Illinois or bordering Illinois by a
2 manufacturer or retailer that is registered in this State to
3 a corporation, society, association, foundation, or
4 institution that has been issued a sales tax exemption
5 identification number by the Department that assists victims
6 of the disaster who reside within the declared disaster area.
7 (31) Beginning with taxable years ending on or after
8 December 31, 1995 and ending with taxable years ending on or
9 before December 31, 2004, personal property that is used in
10 the performance of infrastructure repairs in this State,
11 including but not limited to municipal roads and streets,
12 access roads, bridges, sidewalks, waste disposal systems,
13 water and sewer line extensions, water distribution and
14 purification facilities, storm water drainage and retention
15 facilities, and sewage treatment facilities, resulting from a
16 State or federally declared disaster in Illinois or bordering
17 Illinois when such repairs are initiated on facilities
18 located in the declared disaster area within 6 months after
19 the disaster.
20 (32) Beginning July 1, 1999, qualified technological
21 equipment sold to lessors for lease under leases subject to
22 the Qualified Technological Equipment Leasing Occupation and
23 Use Tax Act. This paragraph is exempt from the provisions of
24 Section 2-70.
25 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
26 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
27 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
28 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
29 (35 ILCS 120/3) (from Ch. 120, par. 442)
30 Sec. 3. Except as provided in this Section, on or before
31 the twentieth day of each calendar month, every person
32 engaged in the business of selling tangible personal property
33 at retail in this State during the preceding calendar month
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1 shall file a return with the Department, stating:
2 1. The name of the seller;
3 2. His residence address and the address of his
4 principal place of business and the address of the
5 principal place of business (if that is a different
6 address) from which he engages in the business of selling
7 tangible personal property at retail in this State;
8 3. Total amount of receipts received by him during
9 the preceding calendar month or quarter, as the case may
10 be, from sales of tangible personal property, and from
11 services furnished, by him during such preceding calendar
12 month or quarter;
13 4. Total amount received by him during the
14 preceding calendar month or quarter on charge and time
15 sales of tangible personal property, and from services
16 furnished, by him prior to the month or quarter for which
17 the return is filed;
18 5. Deductions allowed by law;
19 6. Gross receipts which were received by him during
20 the preceding calendar month or quarter and upon the
21 basis of which the tax is imposed;
22 7. The amount of credit provided in Section 2d of
23 this Act;
24 8. The amount of tax due;
25 9. The signature of the taxpayer; and
26 10. Such other reasonable information as the
27 Department may require.
28 If a taxpayer fails to sign a return within 30 days after
29 the proper notice and demand for signature by the Department,
30 the return shall be considered valid and any amount shown to
31 be due on the return shall be deemed assessed.
32 Each return shall be accompanied by the statement of
33 prepaid tax issued pursuant to Section 2e for which credit is
34 claimed.
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1 A retailer may accept a Manufacturer's Purchase Credit
2 certification from a purchaser in satisfaction of Use Tax as
3 provided in Section 3-85 of the Use Tax Act if the purchaser
4 provides the appropriate documentation as required by Section
5 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
6 certification, accepted by a retailer as provided in Section
7 3-85 of the Use Tax Act, may be used by that retailer to
8 satisfy Retailers' Occupation Tax liability in the amount
9 claimed in the certification, not to exceed 6.25% of the
10 receipts subject to tax from a qualifying purchase.
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 the business of selling tangible
22 personal property at retail in this State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month from sales of
25 tangible personal property by him during such preceding
26 calendar month, including receipts from charge and time
27 sales, but less all deductions allowed by law;
28 4. The amount of credit provided in Section 2d of
29 this Act;
30 5. The amount of tax due; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a total amount of less than $1 is payable, refundable
34 or creditable, such amount shall be disregarded if it is less
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1 than 50 cents and shall be increased to $1 if it is 50 cents
2 or more.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who
7 has an average monthly tax liability of $100,000 or more
8 shall make all payments required by rules of the Department
9 by electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. The term "average
13 monthly tax liability" shall be the sum of the taxpayer's
14 liabilities under this Act, and under all other State and
15 local occupation and use tax laws administered by the
16 Department, for the immediately preceding calendar year
17 divided by 12.
18 Before August 1 of each year beginning in 1993, the
19 Department shall notify all taxpayers required to make
20 payments by electronic funds transfer. All taxpayers
21 required to make payments by electronic funds transfer shall
22 make those payments for a minimum of one year beginning on
23 October 1.
24 Any taxpayer not required to make payments by electronic
25 funds transfer may make payments by electronic funds transfer
26 with the permission of the Department.
27 All taxpayers required to make payment by electronic
28 funds transfer and any taxpayers authorized to voluntarily
29 make payments by electronic funds transfer shall make those
30 payments in the manner authorized by the Department.
31 The Department shall adopt such rules as are necessary to
32 effectuate a program of electronic funds transfer and the
33 requirements of this Section.
34 Any amount which is required to be shown or reported on
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1 any return or other document under this Act shall, if such
2 amount is not a whole-dollar amount, be increased to the
3 nearest whole-dollar amount in any case where the fractional
4 part of a dollar is 50 cents or more, and decreased to the
5 nearest whole-dollar amount where the fractional part of a
6 dollar is less than 50 cents.
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 with 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 Where the same person has more than one business
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1 registered with the Department under separate registrations
2 under this Act, such person may not file each return that is
3 due as a single return covering all such registered
4 businesses, but shall file separate returns for each such
5 registered business.
6 In addition, with respect to motor vehicles, watercraft,
7 aircraft, and trailers that are required to be registered
8 with an agency of this State, every retailer selling this
9 kind of tangible personal property shall file, with the
10 Department, upon a form to be prescribed and supplied by the
11 Department, a separate return for each such item of tangible
12 personal property which the retailer sells, except that
13 where, in the same transaction, a retailer of aircraft,
14 watercraft, motor vehicles or trailers transfers more than
15 one aircraft, watercraft, motor vehicle or trailer to another
16 aircraft, watercraft, motor vehicle retailer or trailer
17 retailer for the purpose of resale, that seller for resale
18 may report the transfer of all aircraft, watercraft, motor
19 vehicles or trailers involved in that transaction to the
20 Department on the same uniform invoice-transaction reporting
21 return form. For purposes of this Section, "watercraft"
22 means a Class 2, Class 3, or Class 4 watercraft as defined in
23 Section 3-2 of the Boat Registration and Safety Act, a
24 personal watercraft, or any boat equipped with an inboard
25 motor.
26 Any retailer who sells only motor vehicles, watercraft,
27 aircraft, or trailers that are required to be registered with
28 an agency of this State, so that all retailers' occupation
29 tax liability is required to be reported, and is reported, on
30 such transaction reporting returns and who is not otherwise
31 required to file monthly or quarterly returns, need not file
32 monthly or quarterly returns. However, those retailers shall
33 be required to file returns on an annual basis.
34 The transaction reporting return, in the case of motor
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1 vehicles or trailers that are required to be registered with
2 an agency of this State, shall be the same document as the
3 Uniform Invoice referred to in Section 5-402 of The Illinois
4 Vehicle Code and must show the name and address of the
5 seller; the name and address of the purchaser; the amount of
6 the selling price including the amount allowed by the
7 retailer for traded-in property, if any; the amount allowed
8 by the retailer for the traded-in tangible personal property,
9 if any, to the extent to which Section 1 of this Act allows
10 an exemption for the value of traded-in property; the balance
11 payable after deducting such trade-in allowance from the
12 total selling price; the amount of tax due from the retailer
13 with respect to such transaction; the amount of tax collected
14 from the purchaser by the retailer on such transaction (or
15 satisfactory evidence that such tax is not due in that
16 particular instance, if that is claimed to be the fact); the
17 place and date of the sale; a sufficient identification of
18 the property sold; such other information as is required in
19 Section 5-402 of The Illinois Vehicle Code, and such other
20 information as the Department may reasonably require.
21 The transaction reporting return in the case of
22 watercraft or aircraft must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 1 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale, a sufficient identification of
2 the property sold, and such other information as the
3 Department may reasonably require.
4 Such transaction reporting return shall be filed not
5 later than 20 days after the day of delivery of the item that
6 is being sold, but may be filed by the retailer at any time
7 sooner than that if he chooses to do so. The transaction
8 reporting return and tax remittance or proof of exemption
9 from the Illinois use tax may be transmitted to the
10 Department by way of the State agency with which, or State
11 officer with whom the tangible personal property must be
12 titled or registered (if titling or registration is required)
13 if the Department and such agency or State officer determine
14 that this procedure will expedite the processing of
15 applications for title or registration.
16 With each such transaction reporting return, the retailer
17 shall remit the proper amount of tax due (or shall submit
18 satisfactory evidence that the sale is not taxable if that is
19 the case), to the Department or its agents, whereupon the
20 Department shall issue, in the purchaser's name, a use tax
21 receipt (or a certificate of exemption if the Department is
22 satisfied that the particular sale is tax exempt) which such
23 purchaser may submit to the agency with which, or State
24 officer with whom, he must title or register the tangible
25 personal property that is involved (if titling or
26 registration is required) in support of such purchaser's
27 application for an Illinois certificate or other evidence of
28 title or registration to such tangible personal property.
29 No retailer's failure or refusal to remit tax under this
30 Act precludes a user, who has paid the proper tax to the
31 retailer, from obtaining his certificate of title or other
32 evidence of title or registration (if titling or registration
33 is required) upon satisfying the Department that such user
34 has paid the proper tax (if tax is due) to the retailer. The
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1 Department shall adopt appropriate rules to carry out the
2 mandate of this paragraph.
3 If the user who would otherwise pay tax to the retailer
4 wants the transaction reporting return filed and the payment
5 of the tax or proof of exemption made to the Department
6 before the retailer is willing to take these actions and such
7 user has not paid the tax to the retailer, such user may
8 certify to the fact of such delay by the retailer and may
9 (upon the Department being satisfied of the truth of such
10 certification) transmit the information required by the
11 transaction reporting return and the remittance for tax or
12 proof of exemption directly to the Department and obtain his
13 tax receipt or exemption determination, in which event the
14 transaction reporting return and tax remittance (if a tax
15 payment was required) shall be credited by the Department to
16 the proper retailer's account with the Department, but
17 without the 2.1% or 1.75% discount provided for in this
18 Section being allowed. When the user pays the tax directly
19 to the Department, he shall pay the tax in the same amount
20 and in the same form in which it would be remitted if the tax
21 had been remitted to the Department by the retailer.
22 Refunds made by the seller during the preceding return
23 period to purchasers, on account of tangible personal
24 property returned to the seller, shall be allowed as a
25 deduction under subdivision 5 of his monthly or quarterly
26 return, as the case may be, in case the seller had
27 theretofore included the receipts from the sale of such
28 tangible personal property in a return filed by him and had
29 paid the tax imposed by this Act with respect to such
30 receipts.
31 Where the seller is a corporation, the return filed on
32 behalf of such corporation shall be signed by the president,
33 vice-president, secretary or treasurer or by the properly
34 accredited agent of such corporation.
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1 Where the seller is a limited liability company, the
2 return filed on behalf of the limited liability company shall
3 be signed by a manager, member, or properly accredited agent
4 of the limited liability company.
5 Except as provided in this Section, the retailer filing
6 the return under this Section shall, at the time of filing
7 such return, pay to the Department the amount of tax imposed
8 by this Act less a discount of 2.1% prior to January 1, 1990
9 and 1.75% on and after January 1, 1990, or $5 per calendar
10 year, whichever is greater, which is allowed to reimburse the
11 retailer for the expenses incurred in keeping records,
12 preparing and filing returns, remitting the tax and supplying
13 data to the Department on request. Any prepayment made
14 pursuant to Section 2d of this Act shall be included in the
15 amount on which such 2.1% or 1.75% discount is computed. In
16 the case of retailers who report and pay the tax on a
17 transaction by transaction basis, as provided in this
18 Section, such discount shall be taken with each such tax
19 remittance instead of when such retailer files his periodic
20 return.
21 If the taxpayer's average monthly tax liability to the
22 Department under this Act, the Use Tax Act, the Service
23 Occupation Tax Act, and the Service Use Tax Act, excluding
24 any liability for prepaid sales tax to be remitted in
25 accordance with Section 2d of this Act, was $10,000 or more
26 during the preceding 4 complete calendar quarters, he shall
27 file a return with the Department each month by the 20th day
28 of the month next following the month during which such tax
29 liability is incurred and shall make payments to the
30 Department on or before the 7th, 15th, 22nd and last day of
31 the month during which such liability is incurred. If the
32 month during which such tax liability is incurred began prior
33 to January 1, 1985, each payment shall be in an amount equal
34 to 1/4 of the taxpayer's actual liability for the month or an
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1 amount set by the Department not to exceed 1/4 of the average
2 monthly liability of the taxpayer to the Department for the
3 preceding 4 complete calendar quarters (excluding the month
4 of highest liability and the month of lowest liability in
5 such 4 quarter period). If the month during which such tax
6 liability is incurred begins on or after January 1, 1985 and
7 prior to January 1, 1987, each payment shall be in an amount
8 equal to 22.5% of the taxpayer's actual liability for the
9 month or 27.5% of the taxpayer's liability for the same
10 calendar month of the preceding year. If the month during
11 which such tax liability is incurred begins on or after
12 January 1, 1987 and prior to January 1, 1988, each payment
13 shall be in an amount equal to 22.5% of the taxpayer's actual
14 liability for the month or 26.25% of the taxpayer's liability
15 for the same calendar month of the preceding year. If the
16 month during which such tax liability is incurred begins on
17 or after January 1, 1988, and prior to January 1, 1989, or
18 begins on or after January 1, 1996, each payment shall be in
19 an amount equal to 22.5% of the taxpayer's actual liability
20 for the month or 25% of the taxpayer's liability for the same
21 calendar month of the preceding year. If the month during
22 which such tax liability is incurred begins on or after
23 January 1, 1989, and prior to January 1, 1996, each payment
24 shall be in an amount equal to 22.5% of the taxpayer's actual
25 liability for the month or 25% of the taxpayer's liability
26 for the same calendar month of the preceding year or 100% of
27 the taxpayer's actual liability for the quarter monthly
28 reporting period. The amount of such quarter monthly
29 payments shall be credited against the final tax liability of
30 the taxpayer's return for that month. Once applicable, the
31 requirement of the making of quarter monthly payments to the
32 Department by taxpayers having an average monthly tax
33 liability of $10,000 or more as determined in the manner
34 provided above shall continue until such taxpayer's average
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1 monthly liability to the Department during the preceding 4
2 complete calendar quarters (excluding the month of highest
3 liability and the month of lowest liability) is less than
4 $9,000, or until such taxpayer's average monthly liability to
5 the Department as computed for each calendar quarter of the 4
6 preceding complete calendar quarter period is less than
7 $10,000. However, if a taxpayer can show the Department that
8 a substantial change in the taxpayer's business has occurred
9 which causes the taxpayer to anticipate that his average
10 monthly tax liability for the reasonably foreseeable future
11 will fall below $10,000, then such taxpayer may petition the
12 Department for a change in such taxpayer's reporting status.
13 The Department shall change such taxpayer's reporting status
14 unless it finds that such change is seasonal in nature and
15 not likely to be long term. If any such quarter monthly
16 payment is not paid at the time or in the amount required by
17 this Section, then the taxpayer shall be liable for penalties
18 and interest on the difference between the minimum amount due
19 as a payment and the amount of such quarter monthly payment
20 actually and timely paid, except insofar as the taxpayer has
21 previously made payments for that month to the Department in
22 excess of the minimum payments previously due as provided in
23 this Section. The Department shall make reasonable rules and
24 regulations to govern the quarter monthly payment amount and
25 quarter monthly payment dates for taxpayers who file on other
26 than a calendar monthly basis.
27 Without regard to whether a taxpayer is required to make
28 quarter monthly payments as specified above, any taxpayer who
29 is required by Section 2d of this Act to collect and remit
30 prepaid taxes and has collected prepaid taxes which average
31 in excess of $25,000 per month during the preceding 2
32 complete calendar quarters, shall file a return with the
33 Department as required by Section 2f and shall make payments
34 to the Department on or before the 7th, 15th, 22nd and last
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1 day of the month during which such liability is incurred. If
2 the month during which such tax liability is incurred began
3 prior to the effective date of this amendatory Act of 1985,
4 each payment shall be in an amount not less than 22.5% of the
5 taxpayer's actual liability under Section 2d. If the month
6 during which such tax liability is incurred begins on or
7 after January 1, 1986, each payment shall be in an amount
8 equal to 22.5% of the taxpayer's actual liability for the
9 month or 27.5% of the taxpayer's liability for the same
10 calendar month of the preceding calendar year. If the month
11 during which such tax liability is incurred begins on or
12 after 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 26.25% of the taxpayer's liability for the same
15 calendar month of the preceding year. The amount of such
16 quarter monthly payments shall be credited against the final
17 tax liability of the taxpayer's return for that month filed
18 under this Section or Section 2f, as the case may be. Once
19 applicable, the requirement of the making of quarter monthly
20 payments to the Department pursuant to this paragraph shall
21 continue until such taxpayer's average monthly prepaid tax
22 collections during the preceding 2 complete calendar quarters
23 is $25,000 or less. If any such quarter monthly payment is
24 not paid at the time or in the amount required, the taxpayer
25 shall be liable for penalties and interest on such
26 difference, except insofar as the taxpayer has previously
27 made payments for that month in excess of the minimum
28 payments previously due.
29 If any payment provided for in this Section exceeds the
30 taxpayer's liabilities under this Act, the Use Tax Act, the
31 Service Occupation Tax Act and the Service Use Tax Act, as
32 shown on an original monthly return, the Department shall, if
33 requested by the taxpayer, issue to the taxpayer a credit
34 memorandum no later than 30 days after the date of payment.
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1 The credit evidenced by such credit memorandum may be
2 assigned by the taxpayer to a similar taxpayer under this
3 Act, the Use Tax Act, the Service Occupation Tax Act or the
4 Service Use Tax Act, in accordance with reasonable rules and
5 regulations to be prescribed by the Department. If no such
6 request is made, the taxpayer may credit such excess payment
7 against tax liability subsequently to be remitted to the
8 Department under this Act, the Use Tax Act, the Service
9 Occupation Tax Act or the Service Use Tax Act, in accordance
10 with reasonable rules and regulations prescribed by the
11 Department. If the Department subsequently determined that
12 all or any part of the credit taken was not actually due to
13 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
14 shall be reduced by 2.1% or 1.75% of the difference between
15 the credit taken and that actually due, and that taxpayer
16 shall be liable for penalties and interest on such
17 difference.
18 If a retailer of motor fuel is entitled to a credit under
19 Section 2d of this Act which exceeds the taxpayer's liability
20 to the Department under this Act for the month which the
21 taxpayer is filing a return, the Department shall issue the
22 taxpayer a credit memorandum for the excess.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the Local Government Tax Fund, a special fund
25 in the State treasury which is hereby created, the net
26 revenue realized for the preceding month from the 1% tax on
27 sales of food for human consumption which is to be consumed
28 off the premises where it is sold (other than alcoholic
29 beverages, soft drinks and food which has been prepared for
30 immediate consumption) and prescription and nonprescription
31 medicines, drugs, medical appliances and insulin, urine
32 testing materials, syringes and needles used by diabetics.
33 Beginning January 1, 1990, each month the Department
34 shall pay into the County and Mass Transit District Fund, a
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1 special fund in the State treasury which is hereby created,
2 4% of the net revenue realized for the preceding month from
3 the 6.25% general rate.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the Local Government Tax Fund 16% of the net
6 revenue realized for the preceding month from the 6.25%
7 general rate on the selling price of tangible personal
8 property.
9 Of the remainder of the moneys received by the Department
10 pursuant to this Act and the moneys received by the
11 Department from the 80% of the 8.25% occupation tax imposed
12 in Section 10 of the Qualified Technological Equipment
13 Leasing Occupation and Use Tax Act, (a) 1.75% thereof shall
14 be paid into the Build Illinois Fund and (b) prior to July 1,
15 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall
16 be paid into the Build Illinois Fund; provided, however, that
17 if in any fiscal year the sum of (1) the aggregate of 2.2% or
18 3.8%, as the case may be, of the moneys received by the
19 Department and required to be paid into the Build Illinois
20 Fund pursuant to this Act, Section 9 of the Use Tax Act,
21 Section 9 of the Service Use Tax Act, and Section 9 of the
22 Service Occupation Tax Act, such Acts being hereinafter
23 called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
24 the case may be, of moneys being hereinafter called the "Tax
25 Act Amount", and (2) the amount transferred to the Build
26 Illinois Fund from the State and Local Sales Tax Reform Fund
27 shall be less than the Annual Specified Amount (as
28 hereinafter defined), an amount equal to the difference shall
29 be immediately paid into the Build Illinois Fund from other
30 moneys received by the Department pursuant to the Tax Acts;
31 the "Annual Specified Amount" means the amounts specified
32 below for fiscal years 1986 through 1993:
33 Fiscal Year Annual Specified Amount
34 1986 $54,800,000
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1 1987 $76,650,000
2 1988 $80,480,000
3 1989 $88,510,000
4 1990 $115,330,000
5 1991 $145,470,000
6 1992 $182,730,000
7 1993 $206,520,000;
8 and means the Certified Annual Debt Service Requirement (as
9 defined in Section 13 of the Build Illinois Bond Act) or the
10 Tax Act Amount, whichever is greater, for fiscal year 1994
11 and each fiscal year thereafter; and further provided, that
12 if on the last business day of any month the sum of (1) the
13 Tax Act Amount required to be deposited into the Build
14 Illinois Bond Account in the Build Illinois Fund during such
15 month and (2) the amount transferred to the Build Illinois
16 Fund from the State and Local Sales Tax Reform Fund shall
17 have been less than 1/12 of the Annual Specified Amount, an
18 amount equal to the difference shall be immediately paid into
19 the Build Illinois Fund from other moneys received by the
20 Department pursuant to the Tax Acts; and, further provided,
21 that in no event shall the payments required under the
22 preceding proviso result in aggregate payments into the Build
23 Illinois Fund pursuant to this clause (b) for any fiscal year
24 in excess of the greater of (i) the Tax Act Amount or (ii)
25 the Annual Specified Amount for such fiscal year. The
26 amounts payable into the Build Illinois Fund under clause (b)
27 of the first sentence in this paragraph shall be payable only
28 until such time as the aggregate amount on deposit under each
29 trust indenture securing Bonds issued and outstanding
30 pursuant to the Build Illinois Bond Act is sufficient, taking
31 into account any future investment income, to fully provide,
32 in accordance with such indenture, for the defeasance of or
33 the payment of the principal of, premium, if any, and
34 interest on the Bonds secured by such indenture and on any
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1 Bonds expected to be issued thereafter and all fees and costs
2 payable with respect thereto, all as certified by the
3 Director of the Bureau of the Budget. If on the last
4 business day of any month in which Bonds are outstanding
5 pursuant to the Build Illinois Bond Act, the aggregate of
6 moneys deposited in the Build Illinois Bond Account in the
7 Build Illinois Fund in such month shall be less than the
8 amount required to be transferred in such month from the
9 Build Illinois Bond Account to the Build Illinois Bond
10 Retirement and Interest Fund pursuant to Section 13 of the
11 Build Illinois Bond Act, an amount equal to such deficiency
12 shall be immediately paid from other moneys received by the
13 Department pursuant to the Tax Acts to the Build Illinois
14 Fund; provided, however, that any amounts paid to the Build
15 Illinois Fund in any fiscal year pursuant to this sentence
16 shall be deemed to constitute payments pursuant to clause (b)
17 of the first sentence of this paragraph and shall reduce the
18 amount otherwise payable for such fiscal year pursuant to
19 that clause (b). The moneys received by the Department
20 pursuant to this Act and required to be deposited into the
21 Build Illinois Fund are subject to the pledge, claim and
22 charge set forth in Section 12 of the Build Illinois Bond
23 Act.
24 Subject to payment of amounts into the Build Illinois
25 Fund as provided in the preceding paragraph or in any
26 amendment thereto hereafter enacted, the following specified
27 monthly installment of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority provided under Section 8.25f of the
30 State Finance Act, but not in excess of sums designated as
31 "Total Deposit", shall be deposited in the aggregate from
32 collections under Section 9 of the Use Tax Act, Section 9 of
33 the Service Use Tax Act, Section 9 of the Service Occupation
34 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
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1 into the McCormick Place Expansion Project Fund in the
2 specified fiscal years.
3 Fiscal Year Total Deposit
4 1993 $0
5 1994 53,000,000
6 1995 58,000,000
7 1996 61,000,000
8 1997 64,000,000
9 1998 68,000,000
10 1999 71,000,000
11 2000 75,000,000
12 2001 80,000,000
13 2002 84,000,000
14 2003 89,000,000
15 2004 93,000,000
16 2005 97,000,000
17 2006 102,000,000
18 2007 and 106,000,000
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority
25 Act, but not after fiscal year 2029.
26 Beginning July 20, 1993 and in each month of each fiscal
27 year thereafter, one-eighth of the amount requested in the
28 certificate of the Chairman of the Metropolitan Pier and
29 Exposition Authority for that fiscal year, less the amount
30 deposited into the McCormick Place Expansion Project Fund by
31 the State Treasurer in the respective month under subsection
32 (g) of Section 13 of the Metropolitan Pier and Exposition
33 Authority Act, plus cumulative deficiencies in the deposits
34 required under this Section for previous months and years,
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1 shall be deposited into the McCormick Place Expansion Project
2 Fund, until the full amount requested for the fiscal year,
3 but not in excess of the amount specified above as "Total
4 Deposit", has been deposited.
5 Subject to payment of amounts into the Build Illinois
6 Fund and the McCormick Place Expansion Project Fund pursuant
7 to the preceding paragraphs or in any amendment thereto
8 hereafter enacted, each month the Department shall pay into
9 the Local Government Distributive Fund 0.4% of the net
10 revenue realized for the preceding month from the 5% general
11 rate or 0.4% of 80% of the net revenue realized for the
12 preceding month from the 6.25% general rate, as the case may
13 be, on the selling price of tangible personal property which
14 amount shall, subject to appropriation, be distributed as
15 provided in Section 2 of the State Revenue Sharing Act. No
16 payments or distributions pursuant to this paragraph shall be
17 made if the tax imposed by this Act on photoprocessing
18 products is declared unconstitutional, or if the proceeds
19 from such tax are unavailable for distribution because of
20 litigation.
21 Subject to payment of amounts into the Build Illinois
22 Fund, the McCormick Place Expansion Project to the preceding
23 paragraphs or in any amendments thereto hereafter enacted,
24 beginning July 1, 1993, the Department shall each month pay
25 into the Illinois Tax Increment Fund 0.27% of 80% of the net
26 revenue realized for the preceding month from the 6.25%
27 general rate on the selling price of tangible personal
28 property.
29 Of the remainder of the moneys received by the Department
30 pursuant to this Act, 75% thereof shall be paid into the
31 State Treasury and 25% shall be reserved in a special account
32 and used only for the transfer to the Common School Fund as
33 part of the monthly transfer from the General Revenue Fund in
34 accordance with Section 8a of the State Finance Act.
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1 The Department may, upon separate written notice to a
2 taxpayer, require the taxpayer to prepare and file with the
3 Department on a form prescribed by the Department within not
4 less than 60 days after receipt of the notice an annual
5 information return for the tax year specified in the notice.
6 Such annual return to the Department shall include a
7 statement of gross receipts as shown by the retailer's last
8 Federal income tax return. If the total receipts of the
9 business as reported in the Federal income tax return do not
10 agree with the gross receipts reported to the Department of
11 Revenue for the same period, the retailer shall attach to his
12 annual return a schedule showing a reconciliation of the 2
13 amounts and the reasons for the difference. The retailer's
14 annual return to the Department shall also disclose the cost
15 of goods sold by the retailer during the year covered by such
16 return, opening and closing inventories of such goods for
17 such year, costs of goods used from stock or taken from stock
18 and given away by the retailer during such year, payroll
19 information of the retailer's business during such year and
20 any additional reasonable information which the Department
21 deems would be helpful in determining the accuracy of the
22 monthly, quarterly or annual returns filed by such retailer
23 as provided for in this Section.
24 If the annual information return required by this Section
25 is not filed when and as required, the taxpayer shall be
26 liable as follows:
27 (i) Until January 1, 1994, the taxpayer shall be
28 liable for a penalty equal to 1/6 of 1% of the tax due
29 from such taxpayer under this Act during the period to be
30 covered by the annual return for each month or fraction
31 of a month until such return is filed as required, the
32 penalty to be assessed and collected in the same manner
33 as any other penalty provided for in this Act.
34 (ii) On and after January 1, 1994, the taxpayer
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1 shall be liable for a penalty as described in Section 3-4
2 of the Uniform Penalty and Interest Act.
3 The chief executive officer, proprietor, owner or highest
4 ranking manager shall sign the annual return to certify the
5 accuracy of the information contained therein. Any person
6 who willfully signs the annual return containing false or
7 inaccurate information shall be guilty of perjury and
8 punished accordingly. The annual return form prescribed by
9 the Department shall include a warning that the person
10 signing the return may be liable for perjury.
11 The provisions of this Section concerning the filing of
12 an annual information return do not apply to a retailer who
13 is not required to file an income tax return with the United
14 States Government.
15 As soon as possible after the first day of each month,
16 upon certification of the Department of Revenue, the
17 Comptroller shall order transferred and the Treasurer shall
18 transfer from the General Revenue Fund to the Motor Fuel Tax
19 Fund an amount equal to 1.7% of 80% of the net revenue
20 realized under this Act for the second preceding month;
21 except that this transfer shall not be made for the months
22 February through June, 1992.
23 Net revenue realized for a month shall be the revenue
24 collected by the State pursuant to this Act, less the amount
25 paid out during that month as refunds to taxpayers for
26 overpayment of liability.
27 For greater simplicity of administration, manufacturers,
28 importers and wholesalers whose products are sold at retail
29 in Illinois by numerous retailers, and who wish to do so, may
30 assume the responsibility for accounting and paying to the
31 Department all tax accruing under this Act with respect to
32 such sales, if the retailers who are affected do not make
33 written objection to the Department to this arrangement.
34 Any person who promotes, organizes, provides retail
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1 selling space for concessionaires or other types of sellers
2 at the Illinois State Fair, DuQuoin State Fair, county fairs,
3 local fairs, art shows, flea markets and similar exhibitions
4 or events, including any transient merchant as defined by
5 Section 2 of the Transient Merchant Act of 1987, is required
6 to file a report with the Department providing the name of
7 the merchant's business, the name of the person or persons
8 engaged in merchant's business, the permanent address and
9 Illinois Retailers Occupation Tax Registration Number of the
10 merchant, the dates and location of the event and other
11 reasonable information that the Department may require. The
12 report must be filed not later than the 20th day of the month
13 next following the month during which the event with retail
14 sales was held. Any person who fails to file a report
15 required by this Section commits a business offense and is
16 subject to a fine not to exceed $250.
17 Any person engaged in the business of selling tangible
18 personal property at retail as a concessionaire or other type
19 of seller at the Illinois State Fair, county fairs, art
20 shows, flea markets and similar exhibitions or events, or any
21 transient merchants, as defined by Section 2 of the Transient
22 Merchant Act of 1987, may be required to make a daily report
23 of the amount of such sales to the Department and to make a
24 daily payment of the full amount of tax due. The Department
25 shall impose this requirement when it finds that there is a
26 significant risk of loss of revenue to the State at such an
27 exhibition or event. Such a finding shall be based on
28 evidence that a substantial number of concessionaires or
29 other sellers who are not residents of Illinois will be
30 engaging in the business of selling tangible personal
31 property at retail at the exhibition or event, or other
32 evidence of a significant risk of loss of revenue to the
33 State. The Department shall notify concessionaires and other
34 sellers affected by the imposition of this requirement. In
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1 the absence of notification by the Department, the
2 concessionaires and other sellers shall file their returns as
3 otherwise required in this Section.
4 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
5 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
6 1-1-99; 90-612, eff. 7-8-98.)
7 (35 ILCS 120/3.5 new)
8 Sec. 3.5. Refund; leaseback transaction. A purchaser of
9 qualified technological equipment, as defined in Section 5 of
10 the Qualified Technological Equipment Leasing Occupation and
11 Use Tax Act, may obtain a refund of all tax paid to a seller
12 under this Act or any other tax administered by the
13 Department if the purchaser sells the property to a rentor
14 under a bona fide sale and leaseback transaction (to such
15 purchaser) within 90 days of the first functional use of the
16 property. The purchaser shall request the refund from the
17 seller to whom he or she has paid the tax in the same manner
18 and subject to the same requirements as other refunds
19 provided in Section 3 of this Act. For purposes of this
20 Section, the first functional use of property shall be the
21 use for which the property is intended, which shall, in the
22 absence of other evidence, be presumed to be the date of
23 delivery of the property.
24 Section 999. Effective date. This Act takes effect July
25 1, 1999.
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1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 30 ILCS 115/1 from Ch. 85, par. 611
5 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
6 35 ILCS 105/9 from Ch. 120, par. 439.9
7 35 ILCS 105/9.5 new
8 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
9 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
10 35 ILCS 120/1c-5 new
11 35 ILCS 120/2-5 from Ch. 120, par. 441-5
12 35 ILCS 120/3 from Ch. 120, par. 442
13 35 ILCS 120/3.5 new