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91_SB0677ham006
LRB9103095DJcdam07
1 AMENDMENT TO SENATE BILL 677
2 AMENDMENT NO. . Amend Senate Bill 677, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to government."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 2. The Illinois Act on the Aging is amended by
8 adding Section 4.12 as follows:
9 (20 ILCS 105/4.12 new)
10 Sec. 4.12. Department to be the primary administrator of
11 the Circuit Breaker and AABD programs. Notwithstanding any
12 other provision of law, beginning on July 1, 2000, the
13 Department on Aging shall be the primary administrator of the
14 Aid to the Aged, Blind and Disabled program and the Circuit
15 Breaker program created by the Senior Citizens and Disabled
16 Persons Property Tax Relief and Pharmaceutical Assistance
17 Act. The Department on Aging shall determine all policies
18 and promulgate all rules necessary to administer the
19 programs. All intake, case management, and administration
20 for these programs shall be performed by the Department on
21 Aging. The Department may enter into any intergovernmental
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1 agreements necessary in the administration of the programs.
2 The Secretary of Human Services and the Director of
3 Revenue shall work cooperatively with the Director of Aging
4 to transfer the primary administration of these programs to
5 the Department on Aging.
6 If the United States Congress passes legislation
7 providing assistance with prescription drugs for senior
8 citizens, the Department on Aging shall provide to the
9 General Assembly, within 90 days after the effective date of
10 the federal legislation, a report on the effects of the
11 federal legislation on these programs and recommendations for
12 changes to the programs as a result of the federal
13 legislation.
14 Section 4. The Illinois Income Tax Act is amended by
15 changing Section 204 and adding Section 212 as follows:
16 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
17 Sec. 204. Standard Exemption.
18 (a) Allowance of exemption. In computing net income
19 under this Act, there shall be allowed as an exemption the
20 sum of the amounts determined under subsections (b), (c) and
21 (d), multiplied by a fraction the numerator of which is the
22 amount of the taxpayer's base income allocable to this State
23 for the taxable year and the denominator of which is the
24 taxpayer's total base income for the taxable year.
25 (b) Basic amount. For the purpose of subsection (a) of
26 this Section, except as provided by subsection (a) of Section
27 205 and in this subsection, each taxpayer shall be allowed a
28 basic amount of $1000, except that for individuals the basic
29 amount shall be:
30 (1) for taxable years ending on or after December
31 31, 1998 and prior to December 31, 1999, $1,300;
32 (2) for taxable years ending on or after December
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1 31, 1999 and prior to December 31, 2000, $1,650;
2 (3) for taxable years ending on or after December
3 31, 2000, $3,000 $2,000.
4 For taxable years ending on or after December 31, 1992, a
5 taxpayer whose Illinois base income exceeds the basic amount
6 and who is claimed as a dependent on another person's tax
7 return under the Internal Revenue Code of 1986 shall not be
8 allowed any basic amount under this subsection.
9 (c) Additional amount for individuals. In the case of an
10 individual taxpayer, there shall be allowed for the purpose
11 of subsection (a), in addition to the basic amount provided
12 by subsection (b), an additional exemption equal to the basic
13 amount for each exemption in excess of one allowable to such
14 individual taxpayer for the taxable year under Section 151 of
15 the Internal Revenue Code.
16 (d) Additional exemptions for an individual taxpayer and
17 his or her spouse. In the case of an individual taxpayer and
18 his or her spouse, he or she shall each be allowed additional
19 exemptions as follows:
20 (1) Additional exemption for taxpayer or spouse 65
21 years of age or older.
22 (A) For taxpayer. An additional exemption of
23 $1,000 for the taxpayer if he or she has attained
24 the age of 65 before the end of the taxable year.
25 (B) For spouse when a joint return is not
26 filed. An additional exemption of $1,000 for the
27 spouse of the taxpayer if a joint return is not made
28 by the taxpayer and his spouse, and if the spouse
29 has attained the age of 65 before the end of such
30 taxable year, and, for the calendar year in which
31 the taxable year of the taxpayer begins, has no
32 gross income and is not the dependent of another
33 taxpayer.
34 (2) Additional exemption for blindness of taxpayer
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1 or spouse.
2 (A) For taxpayer. An additional exemption of
3 $1,000 for the taxpayer if he or she is blind at the
4 end of the taxable year.
5 (B) For spouse when a joint return is not
6 filed. An additional exemption of $1,000 for the
7 spouse of the taxpayer if a separate return is made
8 by the taxpayer, and if the spouse is blind and, for
9 the calendar year in which the taxable year of the
10 taxpayer begins, has no gross income and is not the
11 dependent of another taxpayer. For purposes of this
12 paragraph, the determination of whether the spouse
13 is blind shall be made as of the end of the taxable
14 year of the taxpayer; except that if the spouse dies
15 during such taxable year such determination shall be
16 made as of the time of such death.
17 (C) Blindness defined. For purposes of this
18 subsection, an individual is blind only if his or
19 her central visual acuity does not exceed 20/200 in
20 the better eye with correcting lenses, or if his or
21 her visual acuity is greater than 20/200 but is
22 accompanied by a limitation in the fields of vision
23 such that the widest diameter of the visual fields
24 subtends an angle no greater than 20 degrees.
25 (e) Cross reference. See Article 3 for the manner of
26 determining base income allocable to this State.
27 (f) Application of Section 250. Section 250 does not
28 apply to the amendments to this Section made by Public Act
29 90-613 or this amendatory Act of the 91st General Assembly.
30 (Source: P.A. 90-613, eff. 7-9-98; 91-357, eff. 7-29-99.)
31 (35 ILCS 5/212 new)
32 Sec. 212. Earned income tax credit.
33 (a) For taxable years ending on or after December 31,
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1 2000, with respect to the federal earned income tax credit
2 allowed for the taxable year under Section 32 of the federal
3 Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
4 is entitled to a credit against the tax imposed by
5 subsections (a) and (b) of Section 201 in an amount equal to
6 20% of the federal credit. For a non resident or part-year
7 resident, the amount of the credit under this Section shall
8 be reduced by multiplying the amount of the credit by the
9 percentage of income allocated to this State.
10 (b) If the amount of the credit exceeds the tax
11 liability for the year, then the excess credit shall be
12 refunded to the taxpayer. The amount of a refund shall not
13 be included in the taxpayer's income or resources for the
14 purposes of determining eligibility or benefit level in any
15 means-tested benefit program administered by a governmental
16 entity unless required by federal law.
17 (c) The Department shall calculate the amount of the
18 earned income credit on behalf of an individual taxpayer if
19 the taxpayer (i) requests assistance on the prescribed form
20 and (ii) submits the required information.
21 Section 5. The Use Tax Act is amended by changing
22 Sections 3-10 and 9 as follows:
23 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
24 Sec. 3-10. Rate of tax. Unless otherwise provided in
25 this Section, the tax imposed by this Act is at the rate of
26 6.25% of either the selling price or the fair market value,
27 if any, of the tangible personal property. In all cases
28 where property functionally used or consumed is the same as
29 the property that was purchased at retail, then the tax is
30 imposed on the selling price of the property. In all cases
31 where property functionally used or consumed is a by-product
32 or waste product that has been refined, manufactured, or
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1 produced from property purchased at retail, then the tax is
2 imposed on the lower of the fair market value, if any, of the
3 specific property so used in this State or on the selling
4 price of the property purchased at retail. For purposes of
5 this Section "fair market value" means the price at which
6 property would change hands between a willing buyer and a
7 willing seller, neither being under any compulsion to buy or
8 sell and both having reasonable knowledge of the relevant
9 facts. The fair market value shall be established by Illinois
10 sales by the taxpayer of the same property as that
11 functionally used or consumed, or if there are no such sales
12 by the taxpayer, then comparable sales or purchases of
13 property of like kind and character in Illinois.
14 With respect to motor fuel, as defined in Section 1.1 of
15 the Motor Fuel Tax Law, and gasohol, as defined in Section
16 3-40 of the Use Tax Act, the tax is imposed at the rate of
17 1.25%. If, however, the aggregate tax revenues from motor
18 fuel and gasohol under the Motor Fuel Tax Law during the
19 period from October 1, 2002 through September 30, 2003 are
20 not at least 15% more than the aggregate tax revenues from
21 motor fuel and gasohol under that Law during the period from
22 October 1, 1999 through September 30, 2000, then beginning
23 January 1, 2004 the tax is imposed on motor fuel and gasohol
24 at the 6.25% general rate.
25 With respect to gasohol, the tax imposed by this Act
26 applies to 70% of the proceeds of sales made on or after
27 January 1, 1990, and before July 1, 2003, and to 100% of the
28 proceeds of sales made thereafter.
29 With respect to food for human consumption that is to be
30 consumed off the premises where it is sold (other than
31 alcoholic beverages, soft drinks, and food that has been
32 prepared for immediate consumption) and prescription and
33 nonprescription medicines, drugs, medical appliances,
34 modifications to a motor vehicle for the purpose of rendering
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1 it usable by a disabled person, and insulin, urine testing
2 materials, syringes, and needles used by diabetics, for human
3 use, the tax is imposed at the rate of 1%. For the purposes
4 of this Section, the term "soft drinks" means any complete,
5 finished, ready-to-use, non-alcoholic drink, whether
6 carbonated or not, including but not limited to soda water,
7 cola, fruit juice, vegetable juice, carbonated water, and all
8 other preparations commonly known as soft drinks of whatever
9 kind or description that are contained in any closed or
10 sealed bottle, can, carton, or container, regardless of size.
11 "Soft drinks" does not include coffee, tea, non-carbonated
12 water, infant formula, milk or milk products as defined in
13 the Grade A Pasteurized Milk and Milk Products Act, or drinks
14 containing 50% or more natural fruit or vegetable juice.
15 Notwithstanding any other provisions of this Act, "food
16 for human consumption that is to be consumed off the premises
17 where it is sold" includes all food sold through a vending
18 machine, except soft drinks and food products that are
19 dispensed hot from a vending machine, regardless of the
20 location of the vending machine.
21 If the property that is purchased at retail from a
22 retailer is acquired outside Illinois and used outside
23 Illinois before being brought to Illinois for use here and is
24 taxable under this Act, the "selling price" on which the tax
25 is computed shall be reduced by an amount that represents a
26 reasonable allowance for depreciation for the period of prior
27 out-of-state use.
28 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
29 91-51, eff. 6-30-99.)
30 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
31 Sec. 9. Except as to motor vehicles, watercraft,
32 aircraft, and trailers that are required to be registered
33 with an agency of this State, each retailer required or
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1 authorized to collect the tax imposed by this Act shall pay
2 to the Department the amount of such tax (except as otherwise
3 provided) at the time when he is required to file his return
4 for the period during which such tax was collected, less a
5 discount of 2.1% prior to January 1, 1990, and 1.75% on and
6 after January 1, 1990, or $5 per calendar year, whichever is
7 greater, which is allowed to reimburse the retailer for
8 expenses incurred in collecting the tax, keeping records,
9 preparing and filing returns, remitting the tax and supplying
10 data to the Department on request. In the case of retailers
11 who report and pay the tax on a transaction by transaction
12 basis, as provided in this Section, such discount shall be
13 taken with each such tax remittance instead of when such
14 retailer files his periodic return. A retailer need not
15 remit that part of any tax collected by him to the extent
16 that he is required to remit and does remit the tax imposed
17 by the Retailers' Occupation Tax Act, with respect to the
18 sale of the same property.
19 Where such tangible personal property is sold under a
20 conditional sales contract, or under any other form of sale
21 wherein the payment of the principal sum, or a part thereof,
22 is extended beyond the close of the period for which the
23 return is filed, the retailer, in collecting the tax (except
24 as to motor vehicles, watercraft, aircraft, and trailers that
25 are required to be registered with an agency of this State),
26 may collect for each tax return period, only the tax
27 applicable to that part of the selling price actually
28 received during such tax return period.
29 Except as provided in this Section, on or before the
30 twentieth day of each calendar month, such retailer shall
31 file a return for the preceding calendar month. Such return
32 shall be filed on forms prescribed by the Department and
33 shall furnish such information as the Department may
34 reasonably require.
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1 The Department may require returns to be filed on a
2 quarterly basis. If so required, a return for each calendar
3 quarter shall be filed on or before the twentieth day of the
4 calendar month following the end of such calendar quarter.
5 The taxpayer shall also file a return with the Department for
6 each of the first two months of each calendar quarter, on or
7 before the twentieth day of the following calendar month,
8 stating:
9 1. The name of the seller;
10 2. The address of the principal place of business
11 from which he engages in the business of selling tangible
12 personal property at retail in this State;
13 3. The total amount of taxable receipts received by
14 him during the preceding calendar month from sales of
15 tangible personal property by him during such preceding
16 calendar month, including receipts from charge and time
17 sales, but less all deductions allowed by law;
18 4. The amount of credit provided in Section 2d of
19 this Act;
20 5. The amount of tax due;
21 5-5. The signature of the taxpayer; and
22 6. Such other reasonable information as the
23 Department may require.
24 If a taxpayer fails to sign a return within 30 days after
25 the proper notice and demand for signature by the Department,
26 the return shall be considered valid and any amount shown to
27 be due on the return shall be deemed assessed.
28 Beginning October 1, 1993, a taxpayer who has an average
29 monthly tax liability of $150,000 or more shall make all
30 payments required by rules of the Department by electronic
31 funds transfer. Beginning October 1, 1994, a taxpayer who has
32 an average monthly tax liability of $100,000 or more shall
33 make all payments required by rules of the Department by
34 electronic funds transfer. Beginning October 1, 1995, a
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1 taxpayer who has an average monthly tax liability of $50,000
2 or more shall make all payments required by rules of the
3 Department by electronic funds transfer. Beginning October 1,
4 2000, a taxpayer who has an annual tax liability of $200,000
5 or more shall make all payments required by rules of the
6 Department by electronic funds transfer. The term "annual
7 tax liability" shall be the sum of the taxpayer's liabilities
8 under this Act, and under all other State and local
9 occupation and use tax laws administered by the Department,
10 for the immediately preceding calendar year. The term
11 "average monthly tax liability" means the sum of the
12 taxpayer's liabilities under this Act, and under all other
13 State and local occupation and use tax laws administered by
14 the Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers required
19 to make payments by electronic funds transfer shall make
20 those payments for a minimum of one year beginning on October
21 1.
22 Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25 All taxpayers required to make payment by electronic
26 funds transfer and any taxpayers authorized to voluntarily
27 make payments by electronic funds transfer shall make those
28 payments in the manner authorized by the Department.
29 The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32 Before October 1, 2000, if the taxpayer's average monthly
33 tax liability to the Department under this Act, the
34 Retailers' Occupation Tax Act, the Service Occupation Tax
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1 Act, the Service Use Tax Act was $10,000 or more during the
2 preceding 4 complete calendar quarters, he shall file a
3 return with the Department each month by the 20th day of the
4 month next following the month during which such tax
5 liability is incurred and shall make payments to the
6 Department on or before the 7th, 15th, 22nd and last day of
7 the month during which such liability is incurred. On and
8 after October 1, 2000, if the taxpayer's average monthly tax
9 liability to the Department under this Act, the Retailers'
10 Occupation Tax Act, the Service Occupation Tax Act, and the
11 Service Use Tax Act was $20,000 or more during the preceding
12 4 complete calendar quarters, he shall file a return with the
13 Department each month by the 20th day of the month next
14 following the month during which such tax liability is
15 incurred and shall make payment to the Department on or
16 before the 7th, 15th, 22nd and last day of or the month
17 during which such liability is incurred. If the month during
18 which such tax liability is incurred began prior to January
19 1, 1985, each payment shall be in an amount equal to 1/4 of
20 the taxpayer's actual liability for the month or an amount
21 set by the Department not to exceed 1/4 of the average
22 monthly liability of the taxpayer to the Department for the
23 preceding 4 complete calendar quarters (excluding the month
24 of highest liability and the month of lowest liability in
25 such 4 quarter period). If the month during which such tax
26 liability is incurred begins on or after January 1, 1985, and
27 prior to January 1, 1987, each payment shall be in an amount
28 equal to 22.5% of the taxpayer's actual liability for the
29 month or 27.5% of the taxpayer's liability for the same
30 calendar month of the preceding year. If the month during
31 which such tax liability is incurred begins on or after
32 January 1, 1987, and prior to January 1, 1988, each payment
33 shall be in an amount equal to 22.5% of the taxpayer's actual
34 liability for the month or 26.25% of the taxpayer's liability
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1 for the same calendar month of the preceding year. If the
2 month during which such tax liability is incurred begins on
3 or after January 1, 1988, and prior to January 1, 1989, or
4 begins on or after January 1, 1996, each payment shall be in
5 an amount equal to 22.5% of the taxpayer's actual liability
6 for the month or 25% of the taxpayer's liability for the same
7 calendar month of the preceding year. If the month during
8 which such tax liability is incurred begins on or after
9 January 1, 1989, and prior to January 1, 1996, each payment
10 shall be in an amount equal to 22.5% of the taxpayer's actual
11 liability for the month or 25% of the taxpayer's liability
12 for the same calendar month of the preceding year or 100% of
13 the taxpayer's actual liability for the quarter monthly
14 reporting period. The amount of such quarter monthly
15 payments shall be credited against the final tax liability of
16 the taxpayer's return for that month. Before October 1,
17 2000, once applicable, the requirement of the making of
18 quarter monthly payments to the Department shall continue
19 until such taxpayer's average monthly liability to the
20 Department during the preceding 4 complete calendar quarters
21 (excluding the month of highest liability and the month of
22 lowest liability) is less than $9,000, or until such
23 taxpayer's average monthly liability to the Department as
24 computed for each calendar quarter of the 4 preceding
25 complete calendar quarter period is less than $10,000.
26 However, if a taxpayer can show the Department that a
27 substantial change in the taxpayer's business has occurred
28 which causes the taxpayer to anticipate that his average
29 monthly tax liability for the reasonably foreseeable future
30 will fall below the $10,000 threshold stated above, then such
31 taxpayer may petition the Department for change in such
32 taxpayer's reporting status. On and after October 1, 2000,
33 once applicable, the requirement of the making of quarter
34 monthly payments to the Department shall continue until such
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1 taxpayer's average monthly liability to the Department during
2 the preceding 4 complete calendar quarters (excluding the
3 month of highest liability and the month of lowest liability)
4 is less than $19,000 or until such taxpayer's average monthly
5 liability to the Department as computed for each calendar
6 quarter of the 4 preceding complete calendar quarter period
7 is less than $20,000. However, if a taxpayer can show the
8 Department that a substantial change in the taxpayer's
9 business has occurred which causes the taxpayer to anticipate
10 that his average monthly tax liability for the reasonably
11 foreseeable future will fall below the $20,000 threshold
12 stated above, then such taxpayer may petition the Department
13 for a change in such taxpayer's reporting status. The
14 Department shall change such taxpayer's reporting status
15 unless it finds that such change is seasonal in nature and
16 not likely to be long term. If any such quarter monthly
17 payment is not paid at the time or in the amount required by
18 this Section, then the taxpayer shall be liable for penalties
19 and interest on the difference between the minimum amount due
20 and the amount of such quarter monthly payment actually and
21 timely paid, except insofar as the taxpayer has previously
22 made payments for that month to the Department in excess of
23 the minimum payments previously due as provided in this
24 Section. The Department shall make reasonable rules and
25 regulations to govern the quarter monthly payment amount and
26 quarter monthly payment dates for taxpayers who file on other
27 than a calendar monthly basis.
28 If any such payment provided for in this Section exceeds
29 the taxpayer's liabilities under this Act, the Retailers'
30 Occupation Tax Act, the Service Occupation Tax Act and the
31 Service Use Tax Act, as shown by an original monthly return,
32 the Department shall issue to the taxpayer a credit
33 memorandum no later than 30 days after the date of payment,
34 which memorandum may be submitted by the taxpayer to the
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1 Department in payment of tax liability subsequently to be
2 remitted by the taxpayer to the Department or be assigned by
3 the taxpayer to a similar taxpayer under this Act, the
4 Retailers' Occupation Tax Act, the Service Occupation Tax Act
5 or the Service Use Tax Act, in accordance with reasonable
6 rules and regulations to be prescribed by the Department,
7 except that if such excess payment is shown on an original
8 monthly return and is made after December 31, 1986, no credit
9 memorandum shall be issued, unless requested by the taxpayer.
10 If no such request is made, the taxpayer may credit such
11 excess payment against tax liability subsequently to be
12 remitted by the taxpayer to the Department under this Act,
13 the Retailers' Occupation Tax Act, the Service Occupation Tax
14 Act or the Service Use Tax Act, in accordance with reasonable
15 rules and regulations prescribed by the Department. If the
16 Department subsequently determines that all or any part of
17 the credit taken was not actually due to the taxpayer, the
18 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
19 by 2.1% or 1.75% of the difference between the credit taken
20 and that actually due, and the taxpayer shall be liable for
21 penalties and interest on such difference.
22 If the retailer is otherwise required to file a monthly
23 return and if the retailer's average monthly tax liability to
24 the Department does not exceed $200, the Department may
25 authorize his returns to be filed on a quarter annual basis,
26 with the return for January, February, and March of a given
27 year being due by April 20 of such year; with the return for
28 April, May and June of a given year being due by July 20 of
29 such year; with the return for July, August and September of
30 a given year being due by October 20 of such year, and with
31 the return for October, November and December of a given year
32 being due by January 20 of the following year.
33 If the retailer is otherwise required to file a monthly
34 or quarterly return and if the retailer's average monthly tax
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1 liability to the Department does not exceed $50, the
2 Department may authorize his returns to be filed on an annual
3 basis, with the return for a given year being due by January
4 20 of the following year.
5 Such quarter annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Act
9 concerning the time within which a retailer may file his
10 return, in the case of any retailer who ceases to engage in a
11 kind of business which makes him responsible for filing
12 returns under this Act, such retailer shall file a final
13 return under this Act with the Department not more than one
14 month after discontinuing such business.
15 In addition, with respect to motor vehicles, watercraft,
16 aircraft, and trailers that are required to be registered
17 with an agency of this State, every retailer selling this
18 kind of tangible personal property shall file, with the
19 Department, upon a form to be prescribed and supplied by the
20 Department, a separate return for each such item of tangible
21 personal property which the retailer sells, except that
22 where, in the same transaction, a retailer of aircraft,
23 watercraft, motor vehicles or trailers transfers more than
24 one aircraft, watercraft, motor vehicle or trailer to another
25 aircraft, watercraft, motor vehicle or trailer retailer for
26 the purpose of resale, that seller for resale may report the
27 transfer of all the aircraft, watercraft, motor vehicles or
28 trailers involved in that transaction to the Department on
29 the same uniform invoice-transaction reporting return form.
30 For purposes of this Section, "watercraft" means a Class 2,
31 Class 3, or Class 4 watercraft as defined in Section 3-2 of
32 the Boat Registration and Safety Act, a personal watercraft,
33 or any boat equipped with an inboard motor.
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 2 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 and 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 2 of this Act allows
28 an exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale, a sufficient identification of
2 the property sold, 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 date of delivery of the item
6 that is being sold, but may be filed by the retailer at any
7 time sooner than that if he chooses to do so. The
8 transaction reporting return and tax remittance or proof of
9 exemption from the tax that is imposed by this Act may be
10 transmitted to the Department by way of the State agency with
11 which, or State officer with whom, the tangible personal
12 property must be titled or registered (if titling or
13 registration is required) if the Department and such agency
14 or State officer determine that this procedure will expedite
15 the processing of 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 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
-18- LRB9103095DJcdam07
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 tax or proof of exemption made to the Department before
6 the retailer is willing to take these actions and such user
7 has not paid the tax to the retailer, such user may certify
8 to the fact of such delay by the retailer, and may (upon the
9 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 Where a retailer collects the tax with respect to the
23 selling price of tangible personal property which he sells
24 and the purchaser thereafter returns such tangible personal
25 property and the retailer refunds the selling price thereof
26 to the purchaser, such retailer shall also refund, to the
27 purchaser, the tax so collected from the purchaser. When
28 filing his return for the period in which he refunds such tax
29 to the purchaser, the retailer may deduct the amount of the
30 tax so refunded by him to the purchaser from any other use
31 tax which such retailer may be required to pay or remit to
32 the Department, as shown by such return, if the amount of the
33 tax to be deducted was previously remitted to the Department
34 by such retailer. If the retailer has not previously
-19- LRB9103095DJcdam07
1 remitted the amount of such tax to the Department, he is
2 entitled to no deduction under this Act upon refunding such
3 tax to the purchaser.
4 Any retailer filing a return under this Section shall
5 also include (for the purpose of paying tax thereon) the
6 total tax covered by such return upon the selling price of
7 tangible personal property purchased by him at retail from a
8 retailer, but as to which the tax imposed by this Act was not
9 collected from the retailer filing such return, and such
10 retailer shall remit the amount of such tax to the Department
11 when filing such return.
12 If experience indicates such action to be practicable,
13 the Department may prescribe and furnish a combination or
14 joint return which will enable retailers, who are required to
15 file returns hereunder and also under the Retailers'
16 Occupation Tax Act, to furnish all the return information
17 required by both Acts on the one form.
18 Where the retailer has more than one business registered
19 with the Department under separate registration under this
20 Act, such retailer may not file each return that is due as a
21 single return covering all such registered businesses, but
22 shall file separate returns for each such registered
23 business.
24 Beginning January 1, 1990, each month the Department
25 shall pay into the State and Local Sales Tax Reform Fund, a
26 special fund in the State Treasury which is hereby created,
27 the net revenue realized for the preceding month from the 1%
28 tax on sales of food for human consumption which is to be
29 consumed off the premises where it is sold (other than
30 alcoholic beverages, soft drinks and food which has been
31 prepared for immediate consumption) and prescription and
32 nonprescription medicines, drugs, medical appliances and
33 insulin, urine testing materials, syringes and needles used
34 by diabetics.
-20- LRB9103095DJcdam07
1 Beginning January 1, 1990, each month the Department
2 shall pay into the County and Mass Transit District Fund 4%
3 of the net revenue realized for the preceding month from the
4 6.25% 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 Beginning January 1, 1990, each month the Department
9 shall pay into the State and Local Sales Tax Reform Fund, a
10 special fund in the State Treasury, 20% of the net revenue
11 realized for the preceding month from the 6.25% general rate
12 on the selling price of tangible personal property, other
13 than tangible personal property which is purchased outside
14 Illinois at retail from a retailer and which is titled or
15 registered by an agency of this State's government.
16 Beginning November 1, 2000, and so long as the rate
17 remains at 1.25%, each month the Department shall pay into
18 the County and Mass Transit District Fund 20% of the net
19 revenue realized for the preceding month from the 1.25% rate
20 on the selling price of motor fuel and gasohol.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the Local Government Tax Fund 16% of the net
23 revenue realized for the preceding month from the 6.25%
24 general rate on the selling price of tangible personal
25 property which is purchased outside Illinois at retail from a
26 retailer and which is titled or registered by an agency of
27 this State's government.
28 Beginning November 1, 2000, and so long as the rate
29 remains at 1.25%, each month the Department shall pay into
30 the Local Government Tax Fund 80% of the net revenue realized
31 for the preceding month from the 1.25% rate on the selling
32 price of motor fuel and gasohol.
33 Of the remainder of the moneys received by the Department
34 pursuant to this Act, (a) 1.75% thereof shall be paid into
-21- LRB9103095DJcdam07
1 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
2 and on and after July 1, 1989, 3.8% thereof shall be paid
3 into the Build Illinois Fund; provided, however, that if in
4 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
5 as the case may be, of the moneys received by the Department
6 and required to be paid into the Build Illinois Fund pursuant
7 to Section 3 of the Retailers' Occupation Tax Act, Section 9
8 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
9 Section 9 of the Service Occupation Tax Act, such Acts being
10 hereinafter called the "Tax Acts" and such aggregate of 2.2%
11 or 3.8%, as the case may be, of moneys being hereinafter
12 called the "Tax Act Amount", and (2) the amount transferred
13 to the Build Illinois Fund from the State and Local Sales Tax
14 Reform Fund shall be less than the Annual Specified Amount
15 (as defined in Section 3 of the Retailers' Occupation Tax
16 Act), an amount equal to the difference shall be immediately
17 paid into the Build Illinois Fund from other moneys received
18 by the Department pursuant to the Tax Acts; and further
19 provided, that if on the last business day of any month the
20 sum of (1) the Tax Act Amount required to be deposited into
21 the Build Illinois Bond Account in the Build Illinois Fund
22 during such month and (2) the amount transferred during such
23 month to the Build Illinois Fund from the State and Local
24 Sales Tax Reform Fund shall have been less than 1/12 of the
25 Annual Specified Amount, an amount equal to the difference
26 shall be immediately paid into the Build Illinois Fund from
27 other moneys received by the Department pursuant to the Tax
28 Acts; and, further provided, that in no event shall the
29 payments required under the preceding proviso result in
30 aggregate payments into the Build Illinois Fund pursuant to
31 this clause (b) for any fiscal year in excess of the greater
32 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
33 for such fiscal year; and, further provided, that the amounts
34 payable into the Build Illinois Fund under this clause (b)
-22- LRB9103095DJcdam07
1 shall be payable only until such time as the aggregate amount
2 on deposit under each trust indenture securing Bonds issued
3 and outstanding pursuant to the Build Illinois Bond Act is
4 sufficient, taking into account any future investment income,
5 to fully provide, in accordance with such indenture, for the
6 defeasance of or the payment of the principal of, premium, if
7 any, and interest on the Bonds secured by such indenture and
8 on any Bonds expected to be issued thereafter and all fees
9 and costs payable with respect thereto, all as certified by
10 the Director of the Bureau of the Budget. If on the last
11 business day of any month in which Bonds are outstanding
12 pursuant to the Build Illinois Bond Act, the aggregate of the
13 moneys deposited in the Build Illinois Bond Account in the
14 Build Illinois Fund in such month shall be less than the
15 amount required to be transferred in such month from the
16 Build Illinois Bond Account to the Build Illinois Bond
17 Retirement and Interest Fund pursuant to Section 13 of the
18 Build Illinois Bond Act, an amount equal to such deficiency
19 shall be immediately paid from other moneys received by the
20 Department pursuant to the Tax Acts to the Build Illinois
21 Fund; provided, however, that any amounts paid to the Build
22 Illinois Fund in any fiscal year pursuant to this sentence
23 shall be deemed to constitute payments pursuant to clause (b)
24 of the preceding sentence and shall reduce the amount
25 otherwise payable for such fiscal year pursuant to clause (b)
26 of the preceding sentence. The moneys received by the
27 Department pursuant to this Act and required to be deposited
28 into the Build Illinois Fund are subject to the pledge, claim
29 and charge set forth in Section 12 of the Build Illinois Bond
30 Act.
31 Subject to payment of amounts into the Build Illinois
32 Fund as provided in the preceding paragraph or in any
33 amendment thereto hereafter enacted, the following specified
34 monthly installment of the amount requested in the
-23- LRB9103095DJcdam07
1 certificate of the Chairman of the Metropolitan Pier and
2 Exposition Authority provided under Section 8.25f of the
3 State Finance Act, but not in excess of the sums designated
4 as "Total Deposit", shall be deposited in the aggregate from
5 collections under Section 9 of the Use Tax Act, Section 9 of
6 the Service Use Tax Act, Section 9 of the Service Occupation
7 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
8 into the McCormick Place Expansion Project Fund in the
9 specified fiscal years.
10 Fiscal Year Total Deposit
11 1993 $0
12 1994 53,000,000
13 1995 58,000,000
14 1996 61,000,000
15 1997 64,000,000
16 1998 68,000,000
17 1999 71,000,000
18 2000 75,000,000
19 2001 80,000,000
20 2002 84,000,000
21 2003 89,000,000
22 2004 93,000,000
23 2005 97,000,000
24 2006 102,000,000
25 2007 108,000,000
26 2008 115,000,000
27 2009 120,000,000
28 2010 126,000,000
29 2011 132,000,000
30 2012 138,000,000
31 2013 and 145,000,000
32 each fiscal year
33 thereafter that bonds
34 are outstanding under
-24- LRB9103095DJcdam07
1 Section 13.2 of the
2 Metropolitan Pier and
3 Exposition Authority
4 Act, but not after fiscal year 2029.
5 Beginning July 20, 1993 and in each month of each fiscal
6 year thereafter, one-eighth of the amount requested in the
7 certificate of the Chairman of the Metropolitan Pier and
8 Exposition Authority for that fiscal year, less the amount
9 deposited into the McCormick Place Expansion Project Fund by
10 the State Treasurer in the respective month under subsection
11 (g) of Section 13 of the Metropolitan Pier and Exposition
12 Authority Act, plus cumulative deficiencies in the deposits
13 required under this Section for previous months and years,
14 shall be deposited into the McCormick Place Expansion Project
15 Fund, until the full amount requested for the fiscal year,
16 but not in excess of the amount specified above as "Total
17 Deposit", has been deposited.
18 Subject to payment of amounts into the Build Illinois
19 Fund and the McCormick Place Expansion Project Fund pursuant
20 to the preceding paragraphs or in any amendment thereto
21 hereafter enacted, each month the Department shall pay into
22 the Local Government Distributive Fund .4% of the net revenue
23 realized for the preceding month from the 5% general rate, or
24 .4% of 80% of the net revenue realized for the preceding
25 month from the 6.25% general rate, as the case may be, on the
26 selling price of tangible personal property which amount
27 shall, subject to appropriation, be distributed as provided
28 in Section 2 of the State Revenue Sharing Act. No payments or
29 distributions pursuant to this paragraph shall be made if the
30 tax imposed by this Act on photoprocessing products is
31 declared unconstitutional, or if the proceeds from such tax
32 are unavailable for distribution because of litigation.
33 Subject to payment of amounts into the Build Illinois
34 Fund, the McCormick Place Expansion Project Fund, and the
-25- LRB9103095DJcdam07
1 Local Government Distributive Fund pursuant to the preceding
2 paragraphs or in any amendments thereto hereafter enacted,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 Of the remainder of the moneys received by the Department
9 pursuant to this Act, 75% thereof shall be paid into the
10 State Treasury and 25% shall be reserved in a special account
11 and used only for the transfer to the Common School Fund as
12 part of the monthly transfer from the General Revenue Fund in
13 accordance with Section 8a of the State Finance Act.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Act for the second preceding month.
20 Beginning April 1, 2000, this transfer is no longer required
21 and shall not be made.
22 Net revenue realized for a month shall be the revenue
23 collected by the State pursuant to this Act, less the amount
24 paid out during that month as refunds to taxpayers for
25 overpayment of liability.
26 For greater simplicity of administration, manufacturers,
27 importers and wholesalers whose products are sold at retail
28 in Illinois by numerous retailers, and who wish to do so, may
29 assume the responsibility for accounting and paying to the
30 Department all tax accruing under this Act with respect to
31 such sales, if the retailers who are affected do not make
32 written objection to the Department to this arrangement.
33 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
34 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
-26- LRB9103095DJcdam07
1 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
2 Section 10. The Service Use Tax Act is amended by
3 changing Sections 3-10 and 9 as follows:
4 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
5 Sec. 3-10. Rate of tax. Unless otherwise provided in
6 this Section, the tax imposed by this Act is at the rate of
7 6.25% of the selling price of tangible personal property
8 transferred as an incident to the sale of service, but, for
9 the purpose of computing this tax, in no event shall the
10 selling price be less than the cost price of the property to
11 the serviceman.
12 With respect to motor fuel, as defined in Section 1.1 of
13 the Motor Fuel Tax Law, and gasohol, as defined in Section
14 3-40 of the Use Tax Act, the tax is imposed at the rate of
15 1.25%. If, however, the aggregate tax revenues from motor
16 fuel and gasohol under the Motor Fuel Tax Law during the
17 period from October 1, 2002 through September 30, 2003 are
18 not at least 15% more than the aggregate tax revenues from
19 motor fuel and gasohol under that Law during the period from
20 October 1, 1999 through September 30, 2000, then beginning
21 January 1, 2004 the tax is imposed on motor fuel and gasohol
22 at the 6.25% general rate.
23 With respect to gasohol, as defined in the Use Tax Act,
24 the tax imposed by this Act applies to 70% of the selling
25 price of property transferred as an incident to the sale of
26 service on or after January 1, 1990, and before July 1, 2003,
27 and to 100% of the selling price thereafter.
28 At the election of any registered serviceman made for
29 each fiscal year, sales of service in which the aggregate
30 annual cost price of tangible personal property transferred
31 as an incident to the sales of service is less than 35%, or
32 75% in the case of servicemen transferring prescription drugs
-27- LRB9103095DJcdam07
1 or servicemen engaged in graphic arts production, of the
2 aggregate annual total gross receipts from all sales of
3 service, the tax imposed by this Act shall be based on the
4 serviceman's cost price of the tangible personal property
5 transferred as an incident to the sale of those services.
6 The tax shall be imposed at the rate of 1% on food
7 prepared for immediate consumption and transferred incident
8 to a sale of service subject to this Act or the Service
9 Occupation Tax Act by an entity licensed under the Hospital
10 Licensing Act, the Nursing Home Care Act, or the Child Care
11 Act of 1969. The tax shall also be imposed at the rate of 1%
12 on food for human consumption that is to be consumed off the
13 premises where it is sold (other than alcoholic beverages,
14 soft drinks, and food that has been prepared for immediate
15 consumption and is not otherwise included in this paragraph)
16 and prescription and nonprescription medicines, drugs,
17 medical appliances, modifications to a motor vehicle for the
18 purpose of rendering it usable by a disabled person, and
19 insulin, urine testing materials, syringes, and needles used
20 by diabetics, for human use. For the purposes of this
21 Section, the term "soft drinks" means any complete, finished,
22 ready-to-use, non-alcoholic drink, whether carbonated or not,
23 including but not limited to soda water, cola, fruit juice,
24 vegetable juice, carbonated water, and all other preparations
25 commonly known as soft drinks of whatever kind or description
26 that are contained in any closed or sealed bottle, can,
27 carton, or container, regardless of size. "Soft drinks" does
28 not include coffee, tea, non-carbonated water, infant
29 formula, milk or milk products as defined in the Grade A
30 Pasteurized Milk and Milk Products Act, or drinks containing
31 50% or more natural fruit or vegetable juice.
32 Notwithstanding any other provisions of this Act, "food
33 for human consumption that is to be consumed off the premises
34 where it is sold" includes all food sold through a vending
-28- LRB9103095DJcdam07
1 machine, except soft drinks and food products that are
2 dispensed hot from a vending machine, regardless of the
3 location of the vending machine.
4 If the property that is acquired from a serviceman is
5 acquired outside Illinois and used outside Illinois before
6 being brought to Illinois for use here and is taxable under
7 this Act, the "selling price" on which the tax is computed
8 shall be reduced by an amount that represents a reasonable
9 allowance for depreciation for the period of prior
10 out-of-state use.
11 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
12 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
13 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
14 Sec. 9. Each serviceman required or authorized to
15 collect the tax herein imposed shall pay to the Department
16 the amount of such tax (except as otherwise provided) at the
17 time when he is required to file his return for the period
18 during which such tax was collected, less a discount of 2.1%
19 prior to January 1, 1990 and 1.75% on and after January 1,
20 1990, or $5 per calendar year, whichever is greater, which is
21 allowed to reimburse the serviceman for expenses incurred in
22 collecting the tax, keeping records, preparing and filing
23 returns, remitting the tax and supplying data to the
24 Department on request. A serviceman need not remit that part
25 of any tax collected by him to the extent that he is required
26 to pay and does pay the tax imposed by the Service Occupation
27 Tax Act with respect to his sale of service involving the
28 incidental transfer by him of the same property.
29 Except as provided hereinafter in this Section, on or
30 before the twentieth day of each calendar month, such
31 serviceman shall file a return for the preceding calendar
32 month in accordance with reasonable Rules and Regulations to
33 be promulgated by the Department. Such return shall be filed
-29- LRB9103095DJcdam07
1 on a form prescribed by the Department and shall contain such
2 information as the Department may reasonably require.
3 The Department may require returns to be filed on a
4 quarterly basis. If so required, a return for each calendar
5 quarter shall be filed on or before the twentieth day of the
6 calendar month following the end of such calendar quarter.
7 The taxpayer shall also file a return with the Department for
8 each of the first two months of each calendar quarter, on or
9 before the twentieth day of the following calendar month,
10 stating:
11 1. The name of the seller;
12 2. The address of the principal place of business
13 from which he engages in business as a serviceman in this
14 State;
15 3. The total amount of taxable receipts received by
16 him during the preceding calendar month, including
17 receipts from charge and time sales, but less all
18 deductions allowed by law;
19 4. The amount of credit provided in Section 2d of
20 this Act;
21 5. The amount of tax due;
22 5-5. The signature of the taxpayer; and
23 6. Such other reasonable information as the
24 Department may require.
25 If a taxpayer fails to sign a return within 30 days after
26 the proper notice and demand for signature by the Department,
27 the return shall be considered valid and any amount shown to
28 be due on the return shall be deemed assessed.
29 Beginning October 1, 1993, a taxpayer who has an average
30 monthly tax liability of $150,000 or more shall make all
31 payments required by rules of the Department by electronic
32 funds transfer. Beginning October 1, 1994, a taxpayer who
33 has an average monthly tax liability of $100,000 or more
34 shall make all payments required by rules of the Department
-30- LRB9103095DJcdam07
1 by electronic funds transfer. Beginning October 1, 1995, a
2 taxpayer who has an average monthly tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. Beginning October 1,
5 2000, a taxpayer who has an annual tax liability of $200,000
6 or more shall make all payments required by rules of the
7 Department by electronic funds transfer. The term "annual
8 tax liability" shall be the sum of the taxpayer's liabilities
9 under this Act, and under all other State and local
10 occupation and use tax laws administered by the Department,
11 for the immediately preceding calendar year. The term
12 "average monthly tax liability" means the sum of the
13 taxpayer's liabilities under this Act, and under all other
14 State and local occupation and use tax laws administered by
15 the Department, for the immediately preceding calendar year
16 divided by 12.
17 Before August 1 of each year beginning in 1993, the
18 Department shall notify all taxpayers required to make
19 payments by electronic funds transfer. All taxpayers required
20 to make payments by electronic funds transfer shall make
21 those payments for a minimum of one year beginning on October
22 1.
23 Any taxpayer not required to make payments by electronic
24 funds transfer may make payments by electronic funds transfer
25 with the permission of the Department.
26 All taxpayers required to make payment by electronic
27 funds transfer and any taxpayers authorized to voluntarily
28 make payments by electronic funds transfer shall make those
29 payments in the manner authorized by the Department.
30 The Department shall adopt such rules as are necessary to
31 effectuate a program of electronic funds transfer and the
32 requirements of this Section.
33 If the serviceman is otherwise required to file a monthly
34 return and if the serviceman's average monthly tax liability
-31- LRB9103095DJcdam07
1 to the Department does not exceed $200, the Department may
2 authorize his returns to be filed on a quarter annual basis,
3 with the return for January, February and March of a given
4 year being due by April 20 of such year; with the return for
5 April, May and June of a given year being due by July 20 of
6 such year; with the return for July, August and September of
7 a given year being due by October 20 of such year, and with
8 the return for October, November and December of a given year
9 being due by January 20 of the following year.
10 If the serviceman is otherwise required to file a monthly
11 or quarterly return and if the serviceman's average monthly
12 tax liability to the Department does not exceed $50, the
13 Department may authorize his returns to be filed on an annual
14 basis, with the return for a given year being due by January
15 20 of the following year.
16 Such quarter annual and annual returns, as to form and
17 substance, shall be subject to the same requirements as
18 monthly returns.
19 Notwithstanding any other provision in this Act
20 concerning the time within which a serviceman may file his
21 return, in the case of any serviceman who ceases to engage in
22 a kind of business which makes him responsible for filing
23 returns under this Act, such serviceman shall file a final
24 return under this Act with the Department not more than 1
25 month after discontinuing such business.
26 Where a serviceman collects the tax with respect to the
27 selling price of property which he sells and the purchaser
28 thereafter returns such property and the serviceman refunds
29 the selling price thereof to the purchaser, such serviceman
30 shall also refund, to the purchaser, the tax so collected
31 from the purchaser. When filing his return for the period in
32 which he refunds such tax to the purchaser, the serviceman
33 may deduct the amount of the tax so refunded by him to the
34 purchaser from any other Service Use Tax, Service Occupation
-32- LRB9103095DJcdam07
1 Tax, retailers' occupation tax or use tax which such
2 serviceman may be required to pay or remit to the Department,
3 as shown by such return, provided that the amount of the tax
4 to be deducted shall previously have been remitted to the
5 Department by such serviceman. If the serviceman shall not
6 previously have remitted the amount of such tax to the
7 Department, he shall be entitled to no deduction hereunder
8 upon refunding such tax to the purchaser.
9 Any serviceman filing a return hereunder shall also
10 include the total tax upon the selling price of tangible
11 personal property purchased for use by him as an incident to
12 a sale of service, and such serviceman shall remit the amount
13 of such tax to the Department when filing such return.
14 If experience indicates such action to be practicable,
15 the Department may prescribe and furnish a combination or
16 joint return which will enable servicemen, who are required
17 to file returns hereunder and also under the Service
18 Occupation Tax Act, to furnish all the return information
19 required by both Acts on the one form.
20 Where the serviceman has more than one business
21 registered with the Department under separate registration
22 hereunder, such serviceman shall not file each return that is
23 due as a single return covering all such registered
24 businesses, but shall file separate returns for each such
25 registered business.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the State and Local Tax Reform Fund, a special
28 fund in the State Treasury, the net revenue realized for the
29 preceding month from the 1% tax on sales of food for human
30 consumption which is to be consumed off the premises where it
31 is sold (other than alcoholic beverages, soft drinks and food
32 which has been prepared for immediate consumption) and
33 prescription and nonprescription medicines, drugs, medical
34 appliances and insulin, urine testing materials, syringes and
-33- LRB9103095DJcdam07
1 needles used by diabetics.
2 Beginning November 1, 2000, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the County and Mass Transit District Fund 20% of the net
5 revenue realized for the preceding month from the 1.25% rate
6 on the selling price of motor fuel and gasohol.
7 Beginning January 1, 1990, each month the Department
8 shall pay into the State and Local Sales Tax Reform Fund 20%
9 of the net revenue realized for the preceding month from the
10 6.25% general rate on transfers of tangible personal
11 property, other than tangible personal property which is
12 purchased outside Illinois at retail from a retailer and
13 which is titled or registered by an agency of this State's
14 government.
15 Beginning November 1, 2000, and so long as the rate
16 remains at 1.25%, each month the Department shall pay into
17 the Local Government Tax Fund 80% of the net revenue realized
18 for the preceding month from the 1.25% rate on the selling
19 price of motor fuel and gasohol.
20 Of the remainder of the moneys received by the Department
21 pursuant to this Act, (a) 1.75% thereof shall be paid into
22 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
23 and on and after July 1, 1989, 3.8% thereof shall be paid
24 into the Build Illinois Fund; provided, however, that if in
25 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
26 as the case may be, of the moneys received by the Department
27 and required to be paid into the Build Illinois Fund pursuant
28 to Section 3 of the Retailers' Occupation Tax Act, Section 9
29 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
30 Section 9 of the Service Occupation Tax Act, such Acts being
31 hereinafter called the "Tax Acts" and such aggregate of 2.2%
32 or 3.8%, as the case may be, of moneys being hereinafter
33 called the "Tax Act Amount", and (2) the amount transferred
34 to the Build Illinois Fund from the State and Local Sales Tax
-34- LRB9103095DJcdam07
1 Reform Fund shall be less than the Annual Specified Amount
2 (as defined in Section 3 of the Retailers' Occupation Tax
3 Act), an amount equal to the difference shall be immediately
4 paid into the Build Illinois Fund from other moneys received
5 by the Department pursuant to the Tax Acts; and further
6 provided, that if on the last business day of any month the
7 sum of (1) the Tax Act Amount required to be deposited into
8 the Build Illinois Bond Account in the Build Illinois Fund
9 during such month and (2) the amount transferred during such
10 month to the Build Illinois Fund from the State and Local
11 Sales Tax Reform Fund shall have been less than 1/12 of the
12 Annual Specified Amount, an amount equal to the difference
13 shall be immediately paid into the Build Illinois Fund from
14 other moneys received by the Department pursuant to the Tax
15 Acts; and, further provided, that in no event shall the
16 payments required under the preceding proviso result in
17 aggregate payments into the Build Illinois Fund pursuant to
18 this clause (b) for any fiscal year in excess of the greater
19 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
20 for such fiscal year; and, further provided, that the amounts
21 payable into the Build Illinois Fund under this clause (b)
22 shall be payable only until such time as the aggregate amount
23 on deposit under each trust indenture securing Bonds issued
24 and outstanding pursuant to the Build Illinois Bond Act is
25 sufficient, taking into account any future investment income,
26 to fully provide, in accordance with such indenture, for the
27 defeasance of or the payment of the principal of, premium, if
28 any, and interest on the Bonds secured by such indenture and
29 on any Bonds expected to be issued thereafter and all fees
30 and costs payable with respect thereto, all as certified by
31 the Director of the Bureau of the Budget. If on the last
32 business day of any month in which Bonds are outstanding
33 pursuant to the Build Illinois Bond Act, the aggregate of the
34 moneys deposited in the Build Illinois Bond Account in the
-35- LRB9103095DJcdam07
1 Build Illinois Fund in such month shall be less than the
2 amount required to be transferred in such month from the
3 Build Illinois Bond Account to the Build Illinois Bond
4 Retirement and Interest Fund pursuant to Section 13 of the
5 Build Illinois Bond Act, an amount equal to such deficiency
6 shall be immediately paid from other moneys received by the
7 Department pursuant to the Tax Acts to the Build Illinois
8 Fund; provided, however, that any amounts paid to the Build
9 Illinois Fund in any fiscal year pursuant to this sentence
10 shall be deemed to constitute payments pursuant to clause (b)
11 of the preceding sentence and shall reduce the amount
12 otherwise payable for such fiscal year pursuant to clause (b)
13 of the preceding sentence. The moneys received by the
14 Department pursuant to this Act and required to be deposited
15 into the Build Illinois Fund are subject to the pledge, claim
16 and charge set forth in Section 12 of the Build Illinois Bond
17 Act.
18 Subject to payment of amounts into the Build Illinois
19 Fund as provided in the preceding paragraph or in any
20 amendment thereto hereafter enacted, the following specified
21 monthly installment of the amount requested in the
22 certificate of the Chairman of the Metropolitan Pier and
23 Exposition Authority provided under Section 8.25f of the
24 State Finance Act, but not in excess of the sums designated
25 as "Total Deposit", shall be deposited in the aggregate from
26 collections under Section 9 of the Use Tax Act, Section 9 of
27 the Service Use Tax Act, Section 9 of the Service Occupation
28 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
29 into the McCormick Place Expansion Project Fund in the
30 specified fiscal years.
31 Fiscal Year Total Deposit
32 1993 $0
33 1994 53,000,000
34 1995 58,000,000
-36- LRB9103095DJcdam07
1 1996 61,000,000
2 1997 64,000,000
3 1998 68,000,000
4 1999 71,000,000
5 2000 75,000,000
6 2001 80,000,000
7 2002 84,000,000
8 2003 89,000,000
9 2004 93,000,000
10 2005 97,000,000
11 2006 102,000,000
12 2007 108,000,000
13 2008 115,000,000
14 2009 120,000,000
15 2010 126,000,000
16 2011 132,000,000
17 2012 138,000,000
18 2013 and 145,000,000
19 each fiscal year
20 thereafter that bonds
21 are outstanding under
22 Section 13.2 of the
23 Metropolitan Pier and
24 Exposition Authority Act,
25 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,
-37- LRB9103095DJcdam07
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 photo processing
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 Fund, and the
23 Local Government Distributive Fund pursuant to the preceding
24 paragraphs or in any amendments thereto hereafter enacted,
25 beginning July 1, 1993, the Department shall each month pay
26 into the Illinois Tax Increment Fund 0.27% of 80% of the net
27 revenue realized for the preceding month from the 6.25%
28 general rate on the selling price of tangible personal
29 property.
30 All remaining moneys received by the Department pursuant
31 to this Act shall be paid into the General Revenue Fund of
32 the State Treasury.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month.
5 Beginning April 1, 2000, this transfer is no longer required
6 and shall not be made.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
12 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
13 revised 9-27-99.)
14 Section 15. The Service Occupation Tax Act is amended by
15 changing Sections 3-10 and 9 as follows:
16 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
17 Sec. 3-10. Rate of tax. Unless otherwise provided in
18 this Section, the tax imposed by this Act is at the rate of
19 6.25% of the "selling price", as defined in Section 2 of the
20 Service Use Tax Act, of the tangible personal property. For
21 the purpose of computing this tax, in no event shall the
22 "selling price" be less than the cost price to the serviceman
23 of the tangible personal property transferred. The selling
24 price of each item of tangible personal property transferred
25 as an incident of a sale of service may be shown as a
26 distinct and separate item on the serviceman's billing to the
27 service customer. If the selling price is not so shown, the
28 selling price of the tangible personal property is deemed to
29 be 50% of the serviceman's entire billing to the service
30 customer. When, however, a serviceman contracts to design,
31 develop, and produce special order machinery or equipment,
32 the tax imposed by this Act shall be based on the
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1 serviceman's cost price of the tangible personal property
2 transferred incident to the completion of the contract.
3 With respect to motor fuel, as defined in Section 1.1 of
4 the Motor Fuel Tax Law, and gasohol, as defined in Section
5 3-40 of the Use Tax Act, the tax is imposed at the rate of
6 1.25%. If, however, the aggregate tax revenues from motor
7 fuel and gasohol under the Motor Fuel Tax Law during the
8 period from October 1, 2002 through September 30, 2003 are
9 not at least 15% more than the aggregate tax revenues from
10 motor fuel and gasohol under that Law during the period from
11 October 1, 1999 through September 30, 2000, then beginning
12 January 1, 2004 the tax is imposed on motor fuel and gasohol
13 at the 6.25% general rate.
14 With respect to gasohol, as defined in the Use Tax Act,
15 the tax imposed by this Act shall apply to 70% of the cost
16 price of property transferred as an incident to the sale of
17 service on or after January 1, 1990, and before July 1, 2003,
18 and to 100% of the cost price thereafter.
19 At the election of any registered serviceman made for
20 each fiscal year, sales of service in which the aggregate
21 annual cost price of tangible personal property transferred
22 as an incident to the sales of service is less than 35%, or
23 75% in the case of servicemen transferring prescription drugs
24 or servicemen engaged in graphic arts production, of the
25 aggregate annual total gross receipts from all sales of
26 service, the tax imposed by this Act shall be based on the
27 serviceman's cost price of the tangible personal property
28 transferred incident to the sale of those services.
29 The tax shall be imposed at the rate of 1% on food
30 prepared for immediate consumption and transferred incident
31 to a sale of service subject to this Act or the Service
32 Occupation Tax Act by an entity licensed under the Hospital
33 Licensing Act, the Nursing Home Care Act, or the Child Care
34 Act of 1969. The tax shall also be imposed at the rate of 1%
-40- LRB9103095DJcdam07
1 on food for human consumption that is to be consumed off the
2 premises where it is sold (other than alcoholic beverages,
3 soft drinks, and food that has been prepared for immediate
4 consumption and is not otherwise included in this paragraph)
5 and prescription and nonprescription medicines, drugs,
6 medical appliances, modifications to a motor vehicle for the
7 purpose of rendering it usable by a disabled person, and
8 insulin, urine testing materials, syringes, and needles used
9 by diabetics, for human use. For the purposes of this
10 Section, the term "soft drinks" means any complete, finished,
11 ready-to-use, non-alcoholic drink, whether carbonated or not,
12 including but not limited to soda water, cola, fruit juice,
13 vegetable juice, carbonated water, and all other preparations
14 commonly known as soft drinks of whatever kind or description
15 that are contained in any closed or sealed can, carton, or
16 container, regardless of size. "Soft drinks" does not
17 include coffee, tea, non-carbonated water, infant formula,
18 milk or milk products as defined in the Grade A Pasteurized
19 Milk and Milk Products Act, or drinks containing 50% or more
20 natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Act, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
28 91-51, 6-30-99; 91-541, eff. 8-13-99.)
29 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
30 Sec. 9. Each serviceman required or authorized to
31 collect the tax herein imposed shall pay to the Department
32 the amount of such tax at the time when he is required to
33 file his return for the period during which such tax was
-41- LRB9103095DJcdam07
1 collectible, less a discount of 2.1% prior to January 1,
2 1990, and 1.75% on and after January 1, 1990, or $5 per
3 calendar year, whichever is greater, which is allowed to
4 reimburse the serviceman for expenses incurred in collecting
5 the tax, keeping records, preparing and filing returns,
6 remitting the tax and supplying data to the Department on
7 request.
8 Where such tangible personal property is sold under a
9 conditional sales contract, or under any other form of sale
10 wherein the payment of the principal sum, or a part thereof,
11 is extended beyond the close of the period for which the
12 return is filed, the serviceman, in collecting the tax may
13 collect, for each tax return period, only the tax applicable
14 to the part of the selling price actually received during
15 such tax return period.
16 Except as provided hereinafter in this Section, on or
17 before the twentieth day of each calendar month, such
18 serviceman shall file a return for the preceding calendar
19 month in accordance with reasonable rules and regulations to
20 be promulgated by the Department of Revenue. Such return
21 shall be filed on a form prescribed by the Department and
22 shall contain such information as the Department may
23 reasonably require.
24 The Department may require returns to be filed on a
25 quarterly basis. If so required, a return for each calendar
26 quarter shall be filed on or before the twentieth day of the
27 calendar month following the end of such calendar quarter.
28 The taxpayer shall also file a return with the Department for
29 each of the first two months of each calendar quarter, on or
30 before the twentieth day of the following calendar month,
31 stating:
32 1. The name of the seller;
33 2. The address of the principal place of business
34 from which he engages in business as a serviceman in this
-42- LRB9103095DJcdam07
1 State;
2 3. The total amount of taxable receipts received by
3 him during the preceding calendar month, including
4 receipts from charge and time sales, but less all
5 deductions allowed by law;
6 4. The amount of credit provided in Section 2d of
7 this Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the
11 Department may require.
12 If a taxpayer fails to sign a return within 30 days after
13 the proper notice and demand for signature by the Department,
14 the return shall be considered valid and any amount shown to
15 be due on the return shall be deemed assessed.
16 A serviceman may accept a Manufacturer's Purchase Credit
17 certification from a purchaser in satisfaction of Service Use
18 Tax as provided in Section 3-70 of the Service Use Tax Act if
19 the purchaser provides the appropriate documentation as
20 required by Section 3-70 of the Service Use Tax Act. A
21 Manufacturer's Purchase Credit certification, accepted by a
22 serviceman as provided in Section 3-70 of the Service Use Tax
23 Act, may be used by that serviceman to satisfy Service
24 Occupation Tax liability in the amount claimed in the
25 certification, not to exceed 6.25% of the receipts subject to
26 tax from a qualifying purchase.
27 If the serviceman's average monthly tax liability to the
28 Department does not exceed $200, the Department may authorize
29 his returns to be filed on a quarter annual basis, with the
30 return for January, February and March of a given year being
31 due by April 20 of such year; with the return for April, May
32 and June of a given year being due by July 20 of such year;
33 with the return for July, August and September of a given
34 year being due by October 20 of such year, and with the
-43- LRB9103095DJcdam07
1 return for October, November and December of a given year
2 being due by January 20 of the following year.
3 If the serviceman's average monthly tax liability to the
4 Department does not exceed $50, the Department may authorize
5 his returns to be filed on an annual basis, with the return
6 for a given year being due by January 20 of the following
7 year.
8 Such quarter annual and annual returns, as to form and
9 substance, shall be subject to the same requirements as
10 monthly returns.
11 Notwithstanding any other provision in this Act
12 concerning the time within which a serviceman may file his
13 return, in the case of any serviceman who ceases to engage in
14 a kind of business which makes him responsible for filing
15 returns under this Act, such serviceman shall file a final
16 return under this Act with the Department not more than 1
17 month after discontinuing such business.
18 Beginning October 1, 1993, a taxpayer who has an average
19 monthly tax liability of $150,000 or more shall make all
20 payments required by rules of the Department by electronic
21 funds transfer. Beginning October 1, 1994, a taxpayer who
22 has an average monthly tax liability of $100,000 or more
23 shall make all payments required by rules of the Department
24 by electronic funds transfer. Beginning October 1, 1995, a
25 taxpayer who has an average monthly tax liability of $50,000
26 or more shall make all payments required by rules of the
27 Department by electronic funds transfer. Beginning October
28 1, 2000, a taxpayer who has an annual tax liability of
29 $200,000 or more shall make all payments required by rules of
30 the Department by electronic funds transfer. The term
31 "annual tax liability" shall be the sum of the taxpayer's
32 liabilities under this Act, and under all other State and
33 local occupation and use tax laws administered by the
34 Department, for the immediately preceding calendar year. The
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1 term "average monthly tax liability" means the sum of the
2 taxpayer's liabilities under this Act, and under all other
3 State and local occupation and use tax laws administered by
4 the Department, for the immediately preceding calendar year
5 divided by 12.
6 Before August 1 of each year beginning in 1993, the
7 Department shall notify all taxpayers required to make
8 payments by electronic funds transfer. All taxpayers
9 required to make payments by electronic funds transfer shall
10 make those payments for a minimum of one year beginning on
11 October 1.
12 Any taxpayer not required to make payments by electronic
13 funds transfer may make payments by electronic funds transfer
14 with the permission of the Department.
15 All taxpayers required to make payment by electronic
16 funds transfer and any taxpayers authorized to voluntarily
17 make payments by electronic funds transfer shall make those
18 payments in the manner authorized by the Department.
19 The Department shall adopt such rules as are necessary to
20 effectuate a program of electronic funds transfer and the
21 requirements of this Section.
22 Where a serviceman collects the tax with respect to the
23 selling price of tangible personal property which he sells
24 and the purchaser thereafter returns such tangible personal
25 property and the serviceman refunds the selling price thereof
26 to the purchaser, such serviceman shall also refund, to the
27 purchaser, the tax so collected from the purchaser. When
28 filing his return for the period in which he refunds such tax
29 to the purchaser, the serviceman may deduct the amount of the
30 tax so refunded by him to the purchaser from any other
31 Service Occupation Tax, Service Use Tax, Retailers'
32 Occupation Tax or Use Tax which such serviceman may be
33 required to pay or remit to the Department, as shown by such
34 return, provided that the amount of the tax to be deducted
-45- LRB9103095DJcdam07
1 shall previously have been remitted to the Department by such
2 serviceman. If the serviceman shall not previously have
3 remitted the amount of such tax to the Department, he shall
4 be entitled to no deduction hereunder upon refunding such tax
5 to the purchaser.
6 If experience indicates such action to be practicable,
7 the Department may prescribe and furnish a combination or
8 joint return which will enable servicemen, who are required
9 to file returns hereunder and also under the Retailers'
10 Occupation Tax Act, the Use Tax Act or the Service Use Tax
11 Act, to furnish all the return information required by all
12 said Acts on the one form.
13 Where the serviceman has more than one business
14 registered with the Department under separate registrations
15 hereunder, such serviceman shall file separate returns for
16 each registered business.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the Local Government Tax Fund the revenue
19 realized for the preceding month from the 1% tax on sales of
20 food for human consumption which is to be consumed off the
21 premises where it is sold (other than alcoholic beverages,
22 soft drinks and food which has been prepared for immediate
23 consumption) and prescription and nonprescription medicines,
24 drugs, medical appliances and insulin, urine testing
25 materials, syringes and needles used by diabetics.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the County and Mass Transit District Fund 4%
28 of the revenue realized for the preceding month from the
29 6.25% general rate.
30 Beginning November 1, 2000, and so long as the rate
31 remains at 1.25%, each month the Department shall pay into
32 the County and Mass Transit District Fund 20% of the net
33 revenue realized for the preceding month from the 1.25% rate
34 on the selling price of motor fuel and gasohol.
-46- LRB9103095DJcdam07
1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the
3 revenue realized for the preceding month from the 6.25%
4 general rate on transfers of tangible personal property.
5 Beginning November 1, 2000, and so long as the rate
6 remains at 1.25%, each month the Department shall pay into
7 the Local Government Tax Fund 80% of the net revenue realized
8 for the preceding month from the 1.25% rate on the selling
9 price of motor fuel and gasohol.
10 Of the remainder of the moneys received by the Department
11 pursuant to this Act, (a) 1.75% thereof shall be paid into
12 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
13 and on and after July 1, 1989, 3.8% thereof shall be paid
14 into the Build Illinois Fund; provided, however, that if in
15 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
16 as the case may be, of the moneys received by the Department
17 and required to be paid into the Build Illinois Fund pursuant
18 to Section 3 of the Retailers' Occupation Tax Act, Section 9
19 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
20 Section 9 of the Service Occupation Tax Act, such Acts being
21 hereinafter called the "Tax Acts" and such aggregate of 2.2%
22 or 3.8%, as the case may be, of moneys being hereinafter
23 called the "Tax Act Amount", and (2) the amount transferred
24 to the Build Illinois Fund from the State and Local Sales Tax
25 Reform Fund shall be less than the Annual Specified Amount
26 (as defined in Section 3 of the Retailers' Occupation Tax
27 Act), an amount equal to the difference shall be immediately
28 paid into the Build Illinois Fund from other moneys received
29 by the Department pursuant to the Tax Acts; and further
30 provided, that if on the last business day of any month the
31 sum of (1) the Tax Act Amount required to be deposited into
32 the Build Illinois Account in the Build Illinois Fund during
33 such month and (2) the amount transferred during such month
34 to the Build Illinois Fund from the State and Local Sales Tax
-47- LRB9103095DJcdam07
1 Reform Fund shall have been less than 1/12 of the Annual
2 Specified Amount, an amount equal to the difference shall be
3 immediately paid into the Build Illinois Fund from other
4 moneys received by the Department pursuant to the Tax Acts;
5 and, further provided, that in no event shall the payments
6 required under the preceding proviso result in aggregate
7 payments into the Build Illinois Fund pursuant to this clause
8 (b) for any fiscal year in excess of the greater of (i) the
9 Tax Act Amount or (ii) the Annual Specified Amount for such
10 fiscal year; and, further provided, that the amounts payable
11 into the Build Illinois Fund under this clause (b) shall be
12 payable only until such time as the aggregate amount on
13 deposit under each trust indenture securing Bonds issued and
14 outstanding pursuant to the Build Illinois Bond Act is
15 sufficient, taking into account any future investment income,
16 to fully provide, in accordance with such indenture, for the
17 defeasance of or the payment of the principal of, premium, if
18 any, and interest on the Bonds secured by such indenture and
19 on any Bonds expected to be issued thereafter and all fees
20 and costs payable with respect thereto, all as certified by
21 the Director of the Bureau of the Budget. If on the last
22 business day of any month in which Bonds are outstanding
23 pursuant to the Build Illinois Bond Act, the aggregate of the
24 moneys deposited in the Build Illinois Bond Account in the
25 Build Illinois Fund in such month shall be less than the
26 amount required to be transferred in such month from the
27 Build Illinois Bond Account to the Build Illinois Bond
28 Retirement and Interest Fund pursuant to Section 13 of the
29 Build Illinois Bond Act, an amount equal to such deficiency
30 shall be immediately paid from other moneys received by the
31 Department pursuant to the Tax Acts to the Build Illinois
32 Fund; provided, however, that any amounts paid to the Build
33 Illinois Fund in any fiscal year pursuant to this sentence
34 shall be deemed to constitute payments pursuant to clause (b)
-48- LRB9103095DJcdam07
1 of the preceding sentence and shall reduce the amount
2 otherwise payable for such fiscal year pursuant to clause (b)
3 of the preceding sentence. The moneys received by the
4 Department pursuant to this Act and required to be deposited
5 into the Build Illinois Fund are subject to the pledge, claim
6 and charge set forth in Section 12 of the Build Illinois Bond
7 Act.
8 Subject to payment of amounts into the Build Illinois
9 Fund as provided in the preceding paragraph or in any
10 amendment thereto hereafter enacted, the following specified
11 monthly installment of the amount requested in the
12 certificate of the Chairman of the Metropolitan Pier and
13 Exposition Authority provided under Section 8.25f of the
14 State Finance Act, but not in excess of the sums designated
15 as "Total Deposit", shall be deposited in the aggregate from
16 collections under Section 9 of the Use Tax Act, Section 9 of
17 the Service Use Tax Act, Section 9 of the Service Occupation
18 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
19 into the McCormick Place Expansion Project Fund in the
20 specified fiscal years.
21 Fiscal Year Total Deposit
22 1993 $0
23 1994 53,000,000
24 1995 58,000,000
25 1996 61,000,000
26 1997 64,000,000
27 1998 68,000,000
28 1999 71,000,000
29 2000 75,000,000
30 2001 80,000,000
31 2002 84,000,000
32 2003 89,000,000
33 2004 93,000,000
34 2005 97,000,000
-49- LRB9103095DJcdam07
1 2006 102,000,000
2 2007 108,000,000
3 2008 115,000,000
4 2009 120,000,000
5 2010 126,000,000
6 2011 132,000,000
7 2012 138,000,000
8 2013 and 145,000,000
9 each fiscal year
10 thereafter that bonds
11 are outstanding under
12 Section 13.2 of the
13 Metropolitan Pier and
14 Exposition Authority
15 Act, but not after fiscal year 2029.
16 Beginning July 20, 1993 and in each month of each fiscal
17 year thereafter, one-eighth of the amount requested in the
18 certificate of the Chairman of the Metropolitan Pier and
19 Exposition Authority for that fiscal year, less the amount
20 deposited into the McCormick Place Expansion Project Fund by
21 the State Treasurer in the respective month under subsection
22 (g) of Section 13 of the Metropolitan Pier and Exposition
23 Authority Act, plus cumulative deficiencies in the deposits
24 required under this Section for previous months and years,
25 shall be deposited into the McCormick Place Expansion Project
26 Fund, until the full amount requested for the fiscal year,
27 but not in excess of the amount specified above as "Total
28 Deposit", has been deposited.
29 Subject to payment of amounts into the Build Illinois
30 Fund and the McCormick Place Expansion Project Fund pursuant
31 to the preceding paragraphs or in any amendment thereto
32 hereafter enacted, each month the Department shall pay into
33 the Local Government Distributive Fund 0.4% of the net
34 revenue realized for the preceding month from the 5% general
-50- LRB9103095DJcdam07
1 rate or 0.4% of 80% of the net revenue realized for the
2 preceding month from the 6.25% general rate, as the case may
3 be, on the selling price of tangible personal property which
4 amount shall, subject to appropriation, be distributed as
5 provided in Section 2 of the State Revenue Sharing Act. No
6 payments or distributions pursuant to this paragraph shall be
7 made if the tax imposed by this Act on photoprocessing
8 products is declared unconstitutional, or if the proceeds
9 from such tax are unavailable for distribution because of
10 litigation.
11 Subject to payment of amounts into the Build Illinois
12 Fund, the McCormick Place Expansion Project Fund, and the
13 Local Government Distributive Fund pursuant to the preceding
14 paragraphs or in any amendments thereto hereafter enacted,
15 beginning July 1, 1993, the Department shall each month pay
16 into the Illinois Tax Increment Fund 0.27% of 80% of the net
17 revenue realized for the preceding month from the 6.25%
18 general rate on the selling price of tangible personal
19 property.
20 Remaining moneys received by the Department pursuant to
21 this Act shall be paid into the General Revenue Fund of the
22 State Treasury.
23 The Department may, upon separate written notice to a
24 taxpayer, require the taxpayer to prepare and file with the
25 Department on a form prescribed by the Department within not
26 less than 60 days after receipt of the notice an annual
27 information return for the tax year specified in the notice.
28 Such annual return to the Department shall include a
29 statement of gross receipts as shown by the taxpayer's last
30 Federal income tax return. If the total receipts of the
31 business as reported in the Federal income tax return do not
32 agree with the gross receipts reported to the Department of
33 Revenue for the same period, the taxpayer shall attach to his
34 annual return a schedule showing a reconciliation of the 2
-51- LRB9103095DJcdam07
1 amounts and the reasons for the difference. The taxpayer's
2 annual return to the Department shall also disclose the cost
3 of goods sold by the taxpayer during the year covered by such
4 return, opening and closing inventories of such goods for
5 such year, cost of goods used from stock or taken from stock
6 and given away by the taxpayer during such year, pay roll
7 information of the taxpayer's business during such year and
8 any additional reasonable information which the Department
9 deems would be helpful in determining the accuracy of the
10 monthly, quarterly or annual returns filed by such taxpayer
11 as hereinbefore provided for in this Section.
12 If the annual information return required by this Section
13 is not filed when and as required, the taxpayer shall be
14 liable as follows:
15 (i) Until January 1, 1994, the taxpayer shall be
16 liable for a penalty equal to 1/6 of 1% of the tax due
17 from such taxpayer under this Act during the period to be
18 covered by the annual return for each month or fraction
19 of a month until such return is filed as required, the
20 penalty to be assessed and collected in the same manner
21 as any other penalty provided for in this Act.
22 (ii) On and after January 1, 1994, the taxpayer
23 shall be liable for a penalty as described in Section 3-4
24 of the Uniform Penalty and Interest Act.
25 The chief executive officer, proprietor, owner or highest
26 ranking manager shall sign the annual return to certify the
27 accuracy of the information contained therein. Any person
28 who willfully signs the annual return containing false or
29 inaccurate information shall be guilty of perjury and
30 punished accordingly. The annual return form prescribed by
31 the Department shall include a warning that the person
32 signing the return may be liable for perjury.
33 The foregoing portion of this Section concerning the
34 filing of an annual information return shall not apply to a
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1 serviceman who is not required to file an income tax return
2 with the United States Government.
3 As soon as possible after the first day of each month,
4 upon certification of the Department of Revenue, the
5 Comptroller shall order transferred and the Treasurer shall
6 transfer from the General Revenue Fund to the Motor Fuel Tax
7 Fund an amount equal to 1.7% of 80% of the net revenue
8 realized under this Act for the second preceding month.
9 Beginning April 1, 2000, this transfer is no longer required
10 and shall not be made.
11 Net revenue realized for a month shall be the revenue
12 collected by the State pursuant to this Act, less the amount
13 paid out during that month as refunds to taxpayers for
14 overpayment of liability.
15 For greater simplicity of administration, it shall be
16 permissible for manufacturers, importers and wholesalers
17 whose products are sold by numerous servicemen in Illinois,
18 and who wish to do so, to assume the responsibility for
19 accounting and paying to the Department all tax accruing
20 under this Act with respect to such sales, if the servicemen
21 who are affected do not make written objection to the
22 Department to this arrangement.
23 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
24 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
25 revised 9-28-99.)
26 Section 20. The Retailers' Occupation Tax Act is amended
27 by changing Sections 2-10, 2d, and 3 as follows:
28 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
29 Sec. 2-10. Rate of tax. Unless otherwise provided in
30 this Section, the tax imposed by this Act is at the rate of
31 6.25% of gross receipts from sales of tangible personal
32 property made in the course of business.
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1 With respect to motor fuel, as defined in Section 1.1 of
2 the Motor Fuel Tax Law, and gasohol, as defined in Section
3 3-40 of the Use Tax Act, the tax is imposed at the rate of
4 1.25%. If, however, the aggregate tax revenues from motor
5 fuel and gasohol under the Motor Fuel Tax Law during the
6 period from October 1, 2002 through September 30, 2003 are
7 not at least 15% more than the aggregate tax revenues from
8 motor fuel and gasohol under that Law during the period from
9 October 1, 1999 through September 30, 2000, then beginning
10 January 1, 2004 the tax is imposed on motor fuel and gasohol
11 at the 6.25% general rate.
12 With respect to gasohol, as defined in the Use Tax Act,
13 the tax imposed by this Act applies to 70% of the proceeds of
14 sales made on or after January 1, 1990, and before July 1,
15 2003, and to 100% of the proceeds of sales made thereafter.
16 With respect to food for human consumption that is to be
17 consumed off the premises where it is sold (other than
18 alcoholic beverages, soft drinks, and food that has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances,
21 modifications to a motor vehicle for the purpose of rendering
22 it usable by a disabled person, and insulin, urine testing
23 materials, syringes, and needles used by diabetics, for human
24 use, the tax is imposed at the rate of 1%. For the purposes
25 of this Section, the term "soft drinks" means any complete,
26 finished, ready-to-use, non-alcoholic drink, whether
27 carbonated or not, including but not limited to soda water,
28 cola, fruit juice, vegetable juice, carbonated water, and all
29 other preparations commonly known as soft drinks of whatever
30 kind or description that are contained in any closed or
31 sealed bottle, can, carton, or container, regardless of size.
32 "Soft drinks" does not include coffee, tea, non-carbonated
33 water, infant formula, milk or milk products as defined in
34 the Grade A Pasteurized Milk and Milk Products Act, or drinks
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1 containing 50% or more natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act, "food
3 for human consumption that is to be consumed off the premises
4 where it is sold" includes all food sold through a vending
5 machine, except soft drinks and food products that are
6 dispensed hot from a vending machine, regardless of the
7 location of the vending machine.
8 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
9 91-51, eff. 6-30-99.)
10 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
11 Sec. 2d. Tax prepayment by motor fuel retailer. Any
12 person engaged in the business of selling motor fuel at
13 retail, as defined in the Motor Fuel Tax Law, and who is not
14 a licensed distributor or supplier, as defined in the Motor
15 Fuel Tax Law, shall prepay to his or her distributor,
16 supplier, or other reseller of motor fuel a portion of the
17 tax imposed by this Act if the distributor, supplier, or
18 other reseller of motor fuel is registered under Section 2a
19 or Section 2c of this Act. The prepayment requirement
20 provided for in this Section does not apply to liquid propane
21 gas.
22 The Retailers' Occupation Tax paid to the distributor,
23 supplier, or other reseller shall be an amount equal to 0.8
24 cents $0.04 per gallon of the motor fuel, except gasohol as
25 defined in Section 2-10 of this Act which shall be an amount
26 equal to 0.6 cents $0.03 per gallon, purchased from the
27 distributor, supplier, or other reseller. If, as a result of
28 the provisions of this amendatory Act of the 91st General
29 Assembly, the rate of tax imposed on the sale of motor fuel
30 and gasohol by the Retailers' Occupation Tax Act returns to
31 6.25%, then the Retailers' Occupation Tax paid to the
32 distributor, supplier, or other reseller shall be an amount
33 equal to $0.04 per gallon of the motor fuel, except gasohol
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1 as defined in Section 2-10 of this Act which shall be an
2 amount equal to $0.03 per gallon, purchased from the
3 distributor, supplier, or other reseller.
4 Any person engaged in the business of selling motor fuel
5 at retail shall be entitled to a credit against tax due under
6 this Act in an amount equal to the tax paid to the
7 distributor, supplier, or other reseller.
8 Every distributor, supplier, or other reseller registered
9 as provided in Section 2a or Section 2c of this Act shall
10 remit the prepaid tax on all motor fuel that is due from any
11 person engaged in the business of selling at retail motor
12 fuel with the returns filed under Section 2f or Section 3 of
13 this Act, but the vendors discount provided in Section 3
14 shall not apply to the amount of prepaid tax that is
15 remitted. Any distributor or supplier who fails to properly
16 collect and remit the tax shall be liable for the tax. For
17 purposes of this Section, the prepaid tax is due on invoiced
18 gallons sold during a month by the 20th day of the following
19 month.
20 (Source: P.A. 86-1475; 87-14.)
21 (35 ILCS 120/3) (from Ch. 120, par. 442)
22 Sec. 3. Except as provided in this Section, on or before
23 the twentieth day of each calendar month, every person
24 engaged in the business of selling tangible personal property
25 at retail in this State during the preceding calendar month
26 shall file a return with the Department, stating:
27 1. The name of the seller;
28 2. His residence address and the address of his
29 principal place of business and the address of the
30 principal place of business (if that is a different
31 address) from which he engages in the business of selling
32 tangible personal property at retail in this State;
33 3. Total amount of receipts received by him during
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1 the preceding calendar month or quarter, as the case may
2 be, from sales of tangible personal property, and from
3 services furnished, by him during such preceding calendar
4 month or quarter;
5 4. Total amount received by him during the
6 preceding calendar month or quarter on charge and time
7 sales of tangible personal property, and from services
8 furnished, by him prior to the month or quarter for which
9 the return is filed;
10 5. Deductions allowed by law;
11 6. Gross receipts which were received by him during
12 the preceding calendar month or quarter and upon the
13 basis of which the tax is imposed;
14 7. The amount of credit provided in Section 2d of
15 this Act;
16 8. The amount of tax due;
17 9. The signature of the taxpayer; and
18 10. Such other reasonable information as the
19 Department may require.
20 If a taxpayer fails to sign a return within 30 days after
21 the proper notice and demand for signature by the Department,
22 the return shall be considered valid and any amount shown to
23 be due on the return shall be deemed assessed.
24 Each return shall be accompanied by the statement of
25 prepaid tax issued pursuant to Section 2e for which credit is
26 claimed.
27 A retailer may accept a Manufacturer's Purchase Credit
28 certification from a purchaser in satisfaction of Use Tax as
29 provided in Section 3-85 of the Use Tax Act if the purchaser
30 provides the appropriate documentation as required by Section
31 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
32 certification, accepted by a retailer as provided in Section
33 3-85 of the Use Tax Act, may be used by that retailer to
34 satisfy Retailers' Occupation Tax liability in the amount
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1 claimed in the certification, not to exceed 6.25% of the
2 receipts subject to tax from a qualifying purchase.
3 The Department may require returns to be filed on a
4 quarterly basis. If so required, a return for each calendar
5 quarter shall be filed on or before the twentieth day of the
6 calendar month following the end of such calendar quarter.
7 The taxpayer shall also file a return with the Department for
8 each of the first two months of each calendar quarter, on or
9 before the twentieth day of the following calendar month,
10 stating:
11 1. The name of the seller;
12 2. The address of the principal place of business
13 from which he engages in the business of selling tangible
14 personal property at retail in this State;
15 3. The total amount of taxable receipts received by
16 him during the preceding calendar month from sales of
17 tangible personal property by him during such preceding
18 calendar month, including receipts from charge and time
19 sales, but less all deductions allowed by law;
20 4. The amount of credit provided in Section 2d of
21 this Act;
22 5. The amount of tax due; and
23 6. Such other reasonable information as the
24 Department may require.
25 If a total amount of less than $1 is payable, refundable
26 or creditable, such amount shall be disregarded if it is less
27 than 50 cents and shall be increased to $1 if it is 50 cents
28 or more.
29 Beginning October 1, 1993, a taxpayer who has an average
30 monthly tax liability of $150,000 or more shall make all
31 payments required by rules of the Department by electronic
32 funds transfer. Beginning October 1, 1994, a taxpayer who
33 has an average monthly tax liability of $100,000 or more
34 shall make all payments required by rules of the Department
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1 by electronic funds transfer. Beginning October 1, 1995, a
2 taxpayer who has an average monthly tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. Beginning October
5 1, 2000, a taxpayer who has an annual tax liability of
6 $200,000 or more shall make all payments required by rules of
7 the Department by electronic funds transfer. The term
8 "annual tax liability" shall be the sum of the taxpayer's
9 liabilities under this Act, and under all other State and
10 local occupation and use tax laws administered by the
11 Department, for the immediately preceding calendar year. The
12 term "average monthly tax liability" shall be the sum of the
13 taxpayer's liabilities under this Act, and under all other
14 State and local occupation and use tax laws administered by
15 the Department, for the immediately preceding calendar year
16 divided by 12.
17 Before August 1 of each year beginning in 1993, the
18 Department shall notify all taxpayers required to make
19 paym