State of Illinois
91st General Assembly
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91_SB1453enr

 
SB1453 Enrolled                                LRB9111084SMdv

 1        AN ACT concerning taxation.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Department of Revenue Law  of  the  Civil
 5    Administrative  Code of Illinois is amended by adding Section
 6    2505-710 as follows:

 7        (20 ILCS 2505/2505-710 new)
 8        Sec. 2505-710.  Occupation  and  Use  Tax  Reporting  and
 9    Simplification  Committee  and  report.   The  Department  is
10    authorized and empowered to convene an Occupation and Use Tax
11    Reporting  and  Simplification  Committee  for the purpose of
12    reviewing   proposed   methods   for   simplifying   Illinois
13    occupation and use tax reporting requirements.  The Committee
14    shall consist of the Director or such person or persons as he
15    or she may  designate,  3  representatives  of  the  business
16    community appointed by the Director, and 3 representatives of
17    local government appointed by the Director.  The Committee so
18    assembled  shall study methods for simplifying occupation and
19    use tax reporting requirements in general and, in particular,
20    shall review  the  feasibility  of  reducing  the  number  of
21    occupation  and  use  tax  returns  required to be filed each
22    taxable year.  The Committee shall submit  a  report  of  its
23    findings  to  the  General  Assembly  on or before January 1,
24    2001.

25        Section 10.  The Use  Tax  Act  is  amended  by  changing
26    Sections 3-5, 9, 10, and 22 as follows:

27        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
28        Sec.  3-5.   Exemptions.   Use  of the following tangible
29    personal property is exempt from the tax imposed by this Act:
 
SB1453 Enrolled            -2-                 LRB9111084SMdv
 1        (1)  Personal  property  purchased  from  a  corporation,
 2    society,    association,    foundation,    institution,    or
 3    organization, other than a limited liability company, that is
 4    organized and operated as a not-for-profit service enterprise
 5    for the benefit of persons 65 years of age or  older  if  the
 6    personal property was not purchased by the enterprise for the
 7    purpose of resale by the enterprise.
 8        (2)  Personal  property  purchased  by  a  not-for-profit
 9    Illinois  county  fair  association  for  use  in conducting,
10    operating, or promoting the county fair.
11        (3)  Personal property purchased by a not-for-profit arts
12    or cultural organization that establishes, by proof  required
13    by  the Department by rule, that it has received an exemption
14    under Section 501(c)(3) of the Internal Revenue Code and that
15    is organized and operated for the presentation or support  of
16    arts or cultural programming, activities, or services.  These
17    organizations  include,  but  are  not  limited to, music and
18    dramatic arts organizations such as symphony  orchestras  and
19    theatrical  groups,  arts and cultural service organizations,
20    local arts councils, visual  arts  organizations,  and  media
21    arts organizations.
22        (4)  Personal  property purchased by a governmental body,
23    by  a  corporation,  society,  association,  foundation,   or
24    institution    organized   and   operated   exclusively   for
25    charitable, religious,  or  educational  purposes,  or  by  a
26    not-for-profit corporation, society, association, foundation,
27    institution, or organization that has no compensated officers
28    or employees and that is organized and operated primarily for
29    the recreation of persons 55 years of age or older. A limited
30    liability  company  may  qualify for the exemption under this
31    paragraph only if the limited liability company is  organized
32    and  operated  exclusively  for  educational purposes. On and
33    after July 1, 1987, however, no entity otherwise eligible for
34    this exemption shall make tax-free purchases unless it has an
 
SB1453 Enrolled            -3-                 LRB9111084SMdv
 1    active  exemption  identification  number   issued   by   the
 2    Department.
 3        (5)  A passenger car that is a replacement vehicle to the
 4    extent  that  the purchase price of the car is subject to the
 5    Replacement Vehicle Tax.
 6        (6)  Graphic  arts  machinery  and  equipment,  including
 7    repair  and  replacement  parts,  both  new  and  used,   and
 8    including  that  manufactured  on special order, certified by
 9    the  purchaser  to  be  used  primarily  for   graphic   arts
10    production,  and  including machinery and equipment purchased
11    for lease.
12        (7)  Farm chemicals.
13        (8)  Legal  tender,  currency,  medallions,  or  gold  or
14    silver  coinage  issued  by  the  State  of   Illinois,   the
15    government of the United States of America, or the government
16    of any foreign country, and bullion.
17        (9)  Personal property purchased from a teacher-sponsored
18    student   organization   affiliated  with  an  elementary  or
19    secondary school located in Illinois.
20        (10)  A motor vehicle of  the  first  division,  a  motor
21    vehicle of the second division that is a self-contained motor
22    vehicle  designed  or permanently converted to provide living
23    quarters for  recreational,  camping,  or  travel  use,  with
24    direct  walk through to the living quarters from the driver's
25    seat, or a motor vehicle of the second division  that  is  of
26    the  van configuration designed for the transportation of not
27    less than 7 nor  more  than  16  passengers,  as  defined  in
28    Section  1-146 of the Illinois Vehicle Code, that is used for
29    automobile renting, as  defined  in  the  Automobile  Renting
30    Occupation and Use Tax Act.
31        (11)  Farm  machinery  and  equipment, both new and used,
32    including that manufactured on special  order,  certified  by
33    the purchaser to be used primarily for production agriculture
34    or   State   or   federal  agricultural  programs,  including
 
SB1453 Enrolled            -4-                 LRB9111084SMdv
 1    individual replacement parts for the machinery and equipment,
 2    including machinery and equipment purchased  for  lease,  and
 3    including implements of husbandry defined in Section 1-130 of
 4    the  Illinois  Vehicle  Code, farm machinery and agricultural
 5    chemical and fertilizer spreaders, and nurse wagons  required
 6    to  be registered under Section 3-809 of the Illinois Vehicle
 7    Code, but excluding  other  motor  vehicles  required  to  be
 8    registered  under  the  Illinois  Vehicle Code. Horticultural
 9    polyhouses or hoop houses used for propagating,  growing,  or
10    overwintering  plants  shall be considered farm machinery and
11    equipment under this item (11). Agricultural chemical  tender
12    tanks  and dry boxes shall include units sold separately from
13    a motor vehicle  required  to  be  licensed  and  units  sold
14    mounted  on  a  motor  vehicle required to be licensed if the
15    selling price of the tender is separately stated.
16        Farm machinery  and  equipment  shall  include  precision
17    farming  equipment  that  is  installed  or  purchased  to be
18    installed on farm machinery and equipment including, but  not
19    limited   to,   tractors,   harvesters,  sprayers,  planters,
20    seeders, or spreaders. Precision farming equipment  includes,
21    but  is  not  limited  to,  soil  testing sensors, computers,
22    monitors, software, global positioning and  mapping  systems,
23    and other such equipment.
24        Farm  machinery  and  equipment  also includes computers,
25    sensors, software, and related equipment  used  primarily  in
26    the  computer-assisted  operation  of  production agriculture
27    facilities,  equipment,  and  activities  such  as,  but  not
28    limited to, the collection, monitoring,  and  correlation  of
29    animal  and  crop  data for the purpose of formulating animal
30    diets and agricultural chemicals.  This item (11)  is  exempt
31    from the provisions of Section 3-90.
32        (12)  Fuel  and  petroleum products sold to or used by an
33    air common carrier, certified by the carrier to be  used  for
34    consumption,  shipment,  or  storage  in  the  conduct of its
 
SB1453 Enrolled            -5-                 LRB9111084SMdv
 1    business as an air common carrier, for a flight destined  for
 2    or  returning from a location or locations outside the United
 3    States without regard  to  previous  or  subsequent  domestic
 4    stopovers.
 5        (13)  Proceeds  of  mandatory  service charges separately
 6    stated on customers' bills for the purchase  and  consumption
 7    of food and beverages purchased at retail from a retailer, to
 8    the  extent  that  the  proceeds of the service charge are in
 9    fact turned over as tips or as a substitute for tips  to  the
10    employees  who  participate  directly  in preparing, serving,
11    hosting or cleaning up the food  or  beverage  function  with
12    respect to which the service charge is imposed.
13        (14)  Oil  field  exploration,  drilling,  and production
14    equipment, including (i) rigs and parts of rigs, rotary rigs,
15    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
16    goods,  including  casing  and drill strings, (iii) pumps and
17    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
18    individual   replacement  part  for  oil  field  exploration,
19    drilling, and production equipment, and  (vi)  machinery  and
20    equipment  purchased  for lease; but excluding motor vehicles
21    required to be registered under the Illinois Vehicle Code.
22        (15)  Photoprocessing machinery and equipment,  including
23    repair  and  replacement  parts, both new and used, including
24    that  manufactured  on  special  order,  certified   by   the
25    purchaser  to  be  used  primarily  for  photoprocessing, and
26    including photoprocessing machinery and  equipment  purchased
27    for lease.
28        (16)  Coal   exploration,   mining,  offhighway  hauling,
29    processing, maintenance, and reclamation equipment, including
30    replacement parts  and  equipment,  and  including  equipment
31    purchased for lease, but excluding motor vehicles required to
32    be registered under the Illinois Vehicle Code.
33        (17)  Distillation  machinery  and  equipment,  sold as a
34    unit  or  kit,  assembled  or  installed  by  the   retailer,
 
SB1453 Enrolled            -6-                 LRB9111084SMdv
 1    certified  by  the user to be used only for the production of
 2    ethyl alcohol that will be used for consumption as motor fuel
 3    or as a component of motor fuel for the personal use  of  the
 4    user, and not subject to sale or resale.
 5        (18)  Manufacturing    and   assembling   machinery   and
 6    equipment used primarily in the process of  manufacturing  or
 7    assembling tangible personal property for wholesale or retail
 8    sale or lease, whether that sale or lease is made directly by
 9    the  manufacturer  or  by  some  other  person,  whether  the
10    materials  used  in the process are owned by the manufacturer
11    or some other person, or whether that sale or lease  is  made
12    apart  from or as an incident to the seller's engaging in the
13    service occupation of producing machines, tools, dies,  jigs,
14    patterns,  gauges,  or  other  similar items of no commercial
15    value on special order for a particular purchaser.
16        (19)  Personal  property  delivered  to  a  purchaser  or
17    purchaser's donee inside Illinois when the purchase order for
18    that personal property was  received  by  a  florist  located
19    outside  Illinois  who  has a florist located inside Illinois
20    deliver the personal property.
21        (20)  Semen used for artificial insemination of livestock
22    for direct agricultural production.
23        (21)  Horses, or interests in horses, registered with and
24    meeting the requirements of any of  the  Arabian  Horse  Club
25    Registry  of  America, Appaloosa Horse Club, American Quarter
26    Horse Association, United  States  Trotting  Association,  or
27    Jockey Club, as appropriate, used for purposes of breeding or
28    racing for prizes.
29        (22)  Computers and communications equipment utilized for
30    any  hospital  purpose  and  equipment used in the diagnosis,
31    analysis, or treatment of hospital patients  purchased  by  a
32    lessor who leases the equipment, under a lease of one year or
33    longer  executed  or  in  effect at the time the lessor would
34    otherwise be subject to the tax imposed by  this  Act,  to  a
 
SB1453 Enrolled            -7-                 LRB9111084SMdv
 1    hospital    that  has  been  issued  an  active tax exemption
 2    identification number by the Department under Section  1g  of
 3    the  Retailers'  Occupation  Tax  Act.   If  the equipment is
 4    leased in a manner that does not qualify for  this  exemption
 5    or  is  used in any other non-exempt manner, the lessor shall
 6    be liable for the tax imposed under this Act or  the  Service
 7    Use  Tax  Act,  as  the case may be, based on the fair market
 8    value of the property at  the  time  the  non-qualifying  use
 9    occurs.   No  lessor  shall  collect or attempt to collect an
10    amount (however designated) that purports to  reimburse  that
11    lessor for the tax imposed by this Act or the Service Use Tax
12    Act,  as the case may be, if the tax has not been paid by the
13    lessor.  If a lessor improperly collects any such amount from
14    the lessee, the lessee shall have a legal right  to  claim  a
15    refund  of  that  amount  from the lessor.  If, however, that
16    amount is not refunded to the  lessee  for  any  reason,  the
17    lessor is liable to pay that amount to the Department.
18        (23)  Personal  property purchased by a lessor who leases
19    the property, under a lease of  one year or  longer  executed
20    or  in  effect  at  the  time  the  lessor would otherwise be
21    subject to the tax imposed by this  Act,  to  a  governmental
22    body  that  has  been  issued  an  active sales tax exemption
23    identification number by the Department under Section  1g  of
24    the  Retailers' Occupation Tax Act. If the property is leased
25    in a manner that does not qualify for this exemption or  used
26    in  any  other  non-exempt manner, the lessor shall be liable
27    for the tax imposed under this Act or  the  Service  Use  Tax
28    Act,  as  the  case may be, based on the fair market value of
29    the property at the time the non-qualifying use  occurs.   No
30    lessor shall collect or attempt to collect an amount (however
31    designated)  that  purports  to reimburse that lessor for the
32    tax imposed by this Act or the Service Use Tax  Act,  as  the
33    case  may be, if the tax has not been paid by the lessor.  If
34    a lessor improperly collects any such amount from the lessee,
 
SB1453 Enrolled            -8-                 LRB9111084SMdv
 1    the lessee shall have a legal right to claim a refund of that
 2    amount from the lessor.  If,  however,  that  amount  is  not
 3    refunded  to  the lessee for any reason, the lessor is liable
 4    to pay that amount to the Department.
 5        (24)  Beginning with taxable years  ending  on  or  after
 6    December  31, 1995 and ending with taxable years ending on or
 7    before December 31, 2004, personal property that  is  donated
 8    for  disaster  relief  to  be  used  in  a State or federally
 9    declared disaster area in Illinois or bordering Illinois by a
10    manufacturer or retailer that is registered in this State  to
11    a   corporation,   society,   association,   foundation,   or
12    institution  that  has  been  issued  a  sales  tax exemption
13    identification number by the Department that assists  victims
14    of the disaster who reside within the declared disaster area.
15        (25)  Beginning  with  taxable  years  ending on or after
16    December 31, 1995 and ending with taxable years ending on  or
17    before  December  31, 2004, personal property that is used in
18    the performance of  infrastructure  repairs  in  this  State,
19    including  but  not  limited  to municipal roads and streets,
20    access roads, bridges,  sidewalks,  waste  disposal  systems,
21    water  and  sewer  line  extensions,  water  distribution and
22    purification facilities, storm water drainage  and  retention
23    facilities, and sewage treatment facilities, resulting from a
24    State or federally declared disaster in Illinois or bordering
25    Illinois  when  such  repairs  are  initiated  on  facilities
26    located  in  the declared disaster area within 6 months after
27    the disaster.
28        (26)  Beginning  July  1,  1999,  game  or   game   birds
29    purchased  at  a "game breeding and hunting preserve area" or
30    an "exotic game hunting area" as those terms are used in  the
31    Wildlife  Code  or  at  a  hunting enclosure approved through
32    rules adopted by the Department of Natural  Resources.   This
33    paragraph is exempt from the provisions of Section 3-90.
34        (27)  (26)  A  motor  vehicle, as that term is defined in
 
SB1453 Enrolled            -9-                 LRB9111084SMdv
 1    Section 1-146 of the Illinois Vehicle Code, that  is  donated
 2    to   a   corporation,  limited  liability  company,  society,
 3    association, foundation, or institution that is determined by
 4    the Department to be organized and operated  exclusively  for
 5    educational  purposes.    For  purposes of this exemption, "a
 6    corporation, limited liability company, society, association,
 7    foundation, or institution organized and operated exclusively
 8    for educational  purposes"  means  all  tax-supported  public
 9    schools, private schools that offer systematic instruction in
10    useful  branches  of  learning  by  methods  common to public
11    schools  and  that  compare  favorably  in  their  scope  and
12    intensity with the course of study presented in tax-supported
13    schools, and vocational or technical  schools  or  institutes
14    organized  and  operated  exclusively  to provide a course of
15    study of not less than  6  weeks  duration  and  designed  to
16    prepare  individuals to follow a trade or to pursue a manual,
17    technical, mechanical, industrial,  business,  or  commercial
18    occupation.
19        (28) (27)  Beginning January 1, 2000,  personal property,
20    including  food, purchased through fundraising events for the
21    benefit of  a  public  or  private  elementary  or  secondary
22    school,  a  group  of  those  schools,  or one or more school
23    districts if the events are sponsored by an entity recognized
24    by the school district that consists primarily of  volunteers
25    and  includes  parents  and  teachers of the school children.
26    This paragraph does not apply to fundraising events  (i)  for
27    the benefit of private home instruction or (ii) for which the
28    fundraising  entity  purchases  the personal property sold at
29    the events from another individual or entity  that  sold  the
30    property  for the purpose of resale by the fundraising entity
31    and that profits from the sale  to  the  fundraising  entity.
32    This paragraph is exempt from the provisions of Section 3-90.
33        (29)   (26)  Beginning  January  1,  2000,  new  or  used
34    automatic vending machines that prepare and  serve  hot  food
 
SB1453 Enrolled            -10-                LRB9111084SMdv
 1    and  beverages,  including coffee, soup, and other items, and
 2    replacement parts for these  machines.    This  paragraph  is
 3    exempt from the provisions of Section 3-90.
 4        (30)  Food  for  human consumption that is to be consumed
 5    off the premises where  it  is  sold  (other  than  alcoholic
 6    beverages,  soft  drinks, and food that has been prepared for
 7    immediate consumption) and prescription  and  nonprescription
 8    medicines,  drugs,  medical  appliances,  and  insulin, urine
 9    testing materials, syringes, and needles used  by  diabetics,
10    for  human  use, when purchased for use by a person receiving
11    medical assistance under Article 5 of the Illinois Public Aid
12    Code who resides in a licensed long-term  care  facility,  as
13    defined in the Nursing Home Care Act.
14    (Source:  P.A.  90-14,  eff.  7-1-97;  90-552, eff. 12-12-97;
15    90-605, eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200,  eff.
16    7-20-99;  91-439,  eff. 8-6-99; 91-637, eff. 8-20-99; 91-644,
17    eff. 8-20-99; revised 9-29-99.)

18        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
19        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
20    aircraft,  and  trailers  that  are required to be registered
21    with an agency of  this  State,  each  retailer  required  or
22    authorized  to  collect the tax imposed by this Act shall pay
23    to the Department the amount of such tax (except as otherwise
24    provided) at the time when he is required to file his  return
25    for  the  period  during which such tax was collected, less a
26    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
27    after  January 1, 1990, or $5 per calendar year, whichever is
28    greater, which is  allowed  to  reimburse  the  retailer  for
29    expenses  incurred  in  collecting  the tax, keeping records,
30    preparing and filing returns, remitting the tax and supplying
31    data to the Department on request.  In the case of  retailers
32    who  report  and  pay the tax on a transaction by transaction
33    basis, as provided in this Section, such  discount  shall  be
 
SB1453 Enrolled            -11-                LRB9111084SMdv
 1    taken  with  each  such  tax  remittance instead of when such
 2    retailer files his periodic  return.   A  retailer  need  not
 3    remit  that  part  of  any tax collected by him to the extent
 4    that he is required to remit and does remit the  tax  imposed
 5    by  the  Retailers'  Occupation  Tax Act, with respect to the
 6    sale of the same property.
 7        Where such tangible personal property  is  sold  under  a
 8    conditional  sales  contract, or under any other form of sale
 9    wherein the payment of the principal sum, or a part  thereof,
10    is  extended  beyond  the  close  of the period for which the
11    return is filed, the retailer, in collecting the tax  (except
12    as to motor vehicles, watercraft, aircraft, and trailers that
13    are  required to be registered with an agency of this State),
14    may  collect  for  each  tax  return  period,  only  the  tax
15    applicable  to  that  part  of  the  selling  price  actually
16    received during such tax return period.
17        Except as provided in this  Section,  on  or  before  the
18    twentieth  day  of  each  calendar month, such retailer shall
19    file a return for the preceding calendar month.  Such  return
20    shall  be  filed  on  forms  prescribed by the Department and
21    shall  furnish  such  information  as  the   Department   may
22    reasonably require.
23        The  Department  may  require  returns  to  be filed on a
24    quarterly basis.  If so required, a return for each  calendar
25    quarter  shall be filed on or before the twentieth day of the
26    calendar month following the end of  such  calendar  quarter.
27    The taxpayer shall also file a return with the Department for
28    each  of the first two months of each calendar quarter, on or
29    before the twentieth day of  the  following  calendar  month,
30    stating:
31             1.  The name of the seller;
32             2.  The  address  of the principal place of business
33        from which he engages in the business of selling tangible
34        personal property at retail in this State;
 
SB1453 Enrolled            -12-                LRB9111084SMdv
 1             3.  The total amount of taxable receipts received by
 2        him during the preceding calendar  month  from  sales  of
 3        tangible  personal  property by him during such preceding
 4        calendar month, including receipts from charge  and  time
 5        sales, but less all 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        Beginning October 1, 1993, a taxpayer who has an  average
17    monthly  tax  liability  of  $150,000  or more shall make all
18    payments required by rules of the  Department  by  electronic
19    funds transfer. Beginning October 1, 1994, a taxpayer who has
20    an  average  monthly  tax liability of $100,000 or more shall
21    make all payments required by  rules  of  the  Department  by
22    electronic  funds  transfer.  Beginning  October  1,  1995, a
23    taxpayer who has an average monthly tax liability of  $50,000
24    or  more  shall  make  all  payments required by rules of the
25    Department by electronic funds transfer. Beginning October 1,
26    2000, a taxpayer who has an annual tax liability of  $200,000
27    or  more  shall  make  all  payments required by rules of the
28    Department by electronic funds transfer.   The  term  "annual
29    tax liability" shall be the sum of the taxpayer's liabilities
30    under   this  Act,  and  under  all  other  State  and  local
31    occupation and use tax laws administered by  the  Department,
32    for   the  immediately  preceding  calendar  year.  The  term
33    "average  monthly  tax  liability"  means  the  sum  of   the
34    taxpayer's  liabilities  under  this Act, and under all other
 
SB1453 Enrolled            -13-                LRB9111084SMdv
 1    State and local occupation and use tax laws  administered  by
 2    the  Department,  for the immediately preceding calendar year
 3    divided by 12.
 4        Before August 1 of  each  year  beginning  in  1993,  the
 5    Department  shall  notify  all  taxpayers  required  to  make
 6    payments by electronic funds transfer. All taxpayers required
 7    to  make  payments  by  electronic  funds transfer shall make
 8    those payments for a minimum of one year beginning on October
 9    1.
10        Any taxpayer not required to make payments by  electronic
11    funds transfer may make payments by electronic funds transfer
12    with the permission of the Department.
13        All  taxpayers  required  to  make  payment by electronic
14    funds transfer and any taxpayers  authorized  to  voluntarily
15    make  payments  by electronic funds transfer shall make those
16    payments in the manner authorized by the Department.
17        The Department shall adopt such rules as are necessary to
18    effectuate a program of electronic  funds  transfer  and  the
19    requirements of this Section.
20        Before October 1, 2000, if the taxpayer's average monthly
21    tax   liability   to  the  Department  under  this  Act,  the
22    Retailers' Occupation Tax Act,  the  Service  Occupation  Tax
23    Act,  the  Service Use Tax Act was $10,000 or more during the
24    preceding 4 complete  calendar  quarters,  he  shall  file  a
25    return  with the Department each month by the 20th day of the
26    month  next  following  the  month  during  which  such   tax
27    liability   is  incurred  and  shall  make  payments  to  the
28    Department on or before the 7th, 15th, 22nd and last  day  of
29    the  month  during  which  such liability is incurred. On and
30    after October 1, 2000, if the taxpayer's average monthly  tax
31    liability  to  the  Department under this Act, the Retailers'
32    Occupation Tax Act, the Service Occupation Tax Act,  and  the
33    Service  Use Tax Act was $20,000 or more during the preceding
34    4 complete calendar quarters, he shall file a return with the
 
SB1453 Enrolled            -14-                LRB9111084SMdv
 1    Department each month by the  20th  day  of  the  month  next
 2    following  the  month  during  which  such  tax  liability is
 3    incurred and shall make  payment  to  the  Department  on  or
 4    before  the  7th,  15th,  22nd  and  last day of or the month
 5    during which such liability is incurred. If the month  during
 6    which  such  tax liability is incurred began prior to January
 7    1, 1985, each payment shall be in an amount equal to  1/4  of
 8    the  taxpayer's  actual  liability for the month or an amount
 9    set by the Department  not  to  exceed  1/4  of  the  average
10    monthly  liability  of the taxpayer to the Department for the
11    preceding 4 complete calendar quarters (excluding  the  month
12    of  highest  liability  and  the month of lowest liability in
13    such 4 quarter period).  If the month during which  such  tax
14    liability is incurred begins on or after January 1, 1985, and
15    prior  to January 1, 1987, each payment shall be in an amount
16    equal to 22.5% of the taxpayer's  actual  liability  for  the
17    month  or  27.5%  of  the  taxpayer's  liability for the same
18    calendar month of the preceding year.  If  the  month  during
19    which  such  tax  liability  is  incurred  begins on or after
20    January 1, 1987, and prior to January 1, 1988,  each  payment
21    shall be in an amount equal to 22.5% of the taxpayer's actual
22    liability for the month or 26.25% of the taxpayer's liability
23    for  the  same  calendar month of the preceding year.  If the
24    month during which such tax liability is incurred  begins  on
25    or  after  January  1, 1988, and prior to January 1, 1989, or
26    begins on or after January 1, 1996, each payment shall be  in
27    an  amount  equal to 22.5% of the taxpayer's actual liability
28    for the month or 25% of the taxpayer's liability for the same
29    calendar month of the preceding year.  If  the  month  during
30    which  such  tax  liability  is  incurred  begins on or after
31    January 1, 1989, and prior to January 1, 1996,  each  payment
32    shall be in an amount equal to 22.5% of the taxpayer's actual
33    liability  for  the  month or 25% of the taxpayer's liability
34    for the same calendar month of the preceding year or 100%  of
 
SB1453 Enrolled            -15-                LRB9111084SMdv
 1    the  taxpayer's  actual  liability  for  the  quarter monthly
 2    reporting  period.   The  amount  of  such  quarter   monthly
 3    payments shall be credited against the final tax liability of
 4    the  taxpayer's  return  for  that  month.  Before October 1,
 5    2000, once applicable,  the  requirement  of  the  making  of
 6    quarter  monthly  payments  to  the Department shall continue
 7    until  such  taxpayer's  average  monthly  liability  to  the
 8    Department during the preceding 4 complete calendar  quarters
 9    (excluding  the  month  of highest liability and the month of
10    lowest  liability)  is  less  than  $9,000,  or  until   such
11    taxpayer's  average  monthly  liability  to the Department as
12    computed  for  each  calendar  quarter  of  the  4  preceding
13    complete  calendar  quarter  period  is  less  than  $10,000.
14    However, if  a  taxpayer  can  show  the  Department  that  a
15    substantial  change  in  the taxpayer's business has occurred
16    which causes the taxpayer  to  anticipate  that  his  average
17    monthly  tax  liability for the reasonably foreseeable future
18    will fall below the $10,000 threshold stated above, then such
19    taxpayer may petition  the  Department  for  change  in  such
20    taxpayer's  reporting  status.  On and after October 1, 2000,
21    once applicable, the requirement of  the  making  of  quarter
22    monthly  payments to the Department shall continue until such
23    taxpayer's average monthly liability to the Department during
24    the preceding 4 complete  calendar  quarters  (excluding  the
25    month of highest liability and the month of lowest liability)
26    is less than $19,000 or until such taxpayer's average monthly
27    liability  to  the  Department  as computed for each calendar
28    quarter of the 4 preceding complete calendar  quarter  period
29    is  less  than  $20,000.  However, if a taxpayer can show the
30    Department  that  a  substantial  change  in  the  taxpayer's
31    business has occurred which causes the taxpayer to anticipate
32    that his average monthly tax  liability  for  the  reasonably
33    foreseeable  future  will  fall  below  the $20,000 threshold
34    stated above, then such taxpayer may petition the  Department
 
SB1453 Enrolled            -16-                LRB9111084SMdv
 1    for  a  change  in  such  taxpayer's  reporting  status.  The
 2    Department shall  change  such  taxpayer's  reporting  status
 3    unless  it  finds  that such change is seasonal in nature and
 4    not likely to be long  term.  If  any  such  quarter  monthly
 5    payment  is not paid at the time or in the amount required by
 6    this Section, then the taxpayer shall be liable for penalties
 7    and interest on the difference between the minimum amount due
 8    and the amount of such quarter monthly payment  actually  and
 9    timely  paid,  except  insofar as the taxpayer has previously
10    made payments for that month to the Department in  excess  of
11    the  minimum  payments  previously  due  as  provided in this
12    Section.  The Department  shall  make  reasonable  rules  and
13    regulations  to govern the quarter monthly payment amount and
14    quarter monthly payment dates for taxpayers who file on other
15    than a calendar monthly basis.
16        If any such payment provided for in this Section  exceeds
17    the  taxpayer's  liabilities  under  this Act, the Retailers'
18    Occupation Tax Act, the Service Occupation Tax  Act  and  the
19    Service  Use Tax Act, as shown by an original monthly return,
20    the  Department  shall  issue  to  the  taxpayer   a   credit
21    memorandum  no  later than 30 days after the date of payment,
22    which memorandum may be submitted  by  the  taxpayer  to  the
23    Department  in  payment  of  tax liability subsequently to be
24    remitted by the taxpayer to the Department or be assigned  by
25    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
26    Retailers' Occupation Tax Act, the Service Occupation Tax Act
27    or the Service Use Tax Act,  in  accordance  with  reasonable
28    rules  and  regulations  to  be prescribed by the Department,
29    except that if such excess payment is shown  on  an  original
30    monthly return and is made after December 31, 1986, no credit
31    memorandum shall be issued, unless requested by the taxpayer.
32    If  no  such  request  is  made, the taxpayer may credit such
33    excess payment  against  tax  liability  subsequently  to  be
34    remitted  by  the  taxpayer to the Department under this Act,
 
SB1453 Enrolled            -17-                LRB9111084SMdv
 1    the Retailers' Occupation Tax Act, the Service Occupation Tax
 2    Act or the Service Use Tax Act, in accordance with reasonable
 3    rules and regulations prescribed by the Department.   If  the
 4    Department  subsequently  determines  that all or any part of
 5    the credit taken was not actually due to  the  taxpayer,  the
 6    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
 7    by 2.1% or 1.75% of the difference between the  credit  taken
 8    and  that  actually due, and the taxpayer shall be liable for
 9    penalties and interest on such difference.
10        If the retailer is otherwise required to file  a  monthly
11    return and if the retailer's average monthly tax liability to
12    the  Department  does  not  exceed  $200,  the Department may
13    authorize his returns to be filed on a quarter annual  basis,
14    with  the  return for January, February, and March of a given
15    year being due by April 20 of such year; with the return  for
16    April,  May  and June of a given year being due by July 20 of
17    such year; with the return for July, August and September  of
18    a  given  year being due by October 20 of such year, and with
19    the return for October, November and December of a given year
20    being due by January 20 of the following year.
21        If the retailer is otherwise required to file  a  monthly
22    or quarterly return and if the retailer's average monthly tax
23    liability   to  the  Department  does  not  exceed  $50,  the
24    Department may authorize his returns to be filed on an annual
25    basis, with the return for a given year being due by  January
26    20 of the following year.
27        Such  quarter  annual  and annual returns, as to form and
28    substance, shall be  subject  to  the  same  requirements  as
29    monthly returns.
30        Notwithstanding   any   other   provision   in  this  Act
31    concerning the time within which  a  retailer  may  file  his
32    return, in the case of any retailer who ceases to engage in a
33    kind  of  business  which  makes  him  responsible for filing
34    returns under this Act, such  retailer  shall  file  a  final
 
SB1453 Enrolled            -18-                LRB9111084SMdv
 1    return  under  this Act with the Department not more than one
 2    month after discontinuing such business.
 3        In addition, with respect to motor vehicles,  watercraft,
 4    aircraft,  and  trailers  that  are required to be registered
 5    with an agency of this State,  every  retailer  selling  this
 6    kind  of  tangible  personal  property  shall  file, with the
 7    Department, upon a form to be prescribed and supplied by  the
 8    Department,  a separate return for each such item of tangible
 9    personal property which the retailer sells,  except  that  if
10    where,  in  the same transaction, (i) a retailer of aircraft,
11    watercraft, motor vehicles or trailers  transfers  more  than
12    one aircraft, watercraft, motor vehicle or trailer to another
13    aircraft,  watercraft,  motor vehicle or trailer retailer for
14    the purpose  of  resale  or  (ii)  a  retailer  of  aircraft,
15    watercraft,  motor  vehicles, or trailers transfers more than
16    one aircraft, watercraft, motor  vehicle,  or  trailer  to  a
17    purchaser  for  use as a qualifying rolling stock as provided
18    in Section 3-55 of this Act, then that seller for resale  may
19    report  the  transfer  of all the aircraft, watercraft, motor
20    vehicles or trailers involved  in  that  transaction  to  the
21    Department  on the same uniform invoice-transaction reporting
22    return form.  For  purposes  of  this  Section,  "watercraft"
23    means a Class 2, Class 3, or Class 4 watercraft as defined in
24    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
25    personal watercraft, or any boat  equipped  with  an  inboard
26    motor.
27        The  transaction  reporting  return  in the case of motor
28    vehicles or trailers that are required to be registered  with
29    an  agency  of  this State, shall be the same document as the
30    Uniform Invoice referred to in Section 5-402 of the  Illinois
31    Vehicle  Code  and  must  show  the  name  and address of the
32    seller; the name and address of the purchaser; the amount  of
33    the  selling  price  including  the  amount  allowed  by  the
34    retailer  for  traded-in property, if any; the amount allowed
 
SB1453 Enrolled            -19-                LRB9111084SMdv
 1    by the retailer for the traded-in tangible personal property,
 2    if any, to the extent to which Section 2 of this  Act  allows
 3    an exemption for the value of traded-in property; the balance
 4    payable  after  deducting  such  trade-in  allowance from the
 5    total selling price; the amount of tax due from the  retailer
 6    with respect to such transaction; the amount of tax collected
 7    from  the  purchaser  by the retailer on such transaction (or
 8    satisfactory evidence that  such  tax  is  not  due  in  that
 9    particular  instance, if that is claimed to be the fact); the
10    place and date of the sale; a  sufficient  identification  of
11    the  property  sold; such other information as is required in
12    Section 5-402 of the Illinois Vehicle Code,  and  such  other
13    information as the Department may reasonably require.
14        The   transaction   reporting   return  in  the  case  of
15    watercraft and aircraft must show the name and address of the
16    seller; the name and address of the purchaser; the amount  of
17    the  selling  price  including  the  amount  allowed  by  the
18    retailer  for  traded-in property, if any; the amount allowed
19    by the retailer for the traded-in tangible personal property,
20    if any, to the extent to which Section 2 of this  Act  allows
21    an exemption for the value of traded-in property; the balance
22    payable  after  deducting  such  trade-in  allowance from the
23    total selling price; the amount of tax due from the  retailer
24    with respect to such transaction; the amount of tax collected
25    from  the  purchaser  by the retailer on such transaction (or
26    satisfactory evidence that  such  tax  is  not  due  in  that
27    particular  instance, if that is claimed to be the fact); the
28    place and date of the sale, a  sufficient  identification  of
29    the   property  sold,  and  such  other  information  as  the
30    Department may reasonably require.
31        Such transaction reporting  return  shall  be  filed  not
32    later  than  20  days  after the date of delivery of the item
33    that is being sold, but may be filed by the retailer  at  any
34    time   sooner  than  that  if  he  chooses  to  do  so.   The
 
SB1453 Enrolled            -20-                LRB9111084SMdv
 1    transaction reporting return and tax remittance or  proof  of
 2    exemption  from  the  tax  that is imposed by this Act may be
 3    transmitted to the Department by way of the State agency with
 4    which, or State officer  with  whom,  the  tangible  personal
 5    property   must  be  titled  or  registered  (if  titling  or
 6    registration is required) if the Department and  such  agency
 7    or  State officer determine that this procedure will expedite
 8    the processing of applications for title or registration.
 9        With each such transaction reporting return, the retailer
10    shall remit the proper amount of tax  due  (or  shall  submit
11    satisfactory evidence that the sale is not taxable if that is
12    the  case),  to  the  Department or its agents, whereupon the
13    Department shall  issue,  in  the  purchaser's  name,  a  tax
14    receipt  (or  a certificate of exemption if the Department is
15    satisfied that the particular sale is tax exempt) which  such
16    purchaser  may  submit  to  the  agency  with which, or State
17    officer with whom, he must title  or  register  the  tangible
18    personal   property   that   is   involved   (if  titling  or
19    registration is required)  in  support  of  such  purchaser's
20    application  for an Illinois certificate or other evidence of
21    title or registration to such tangible personal property.
22        No retailer's failure or refusal to remit tax under  this
23    Act  precludes  a  user,  who  has paid the proper tax to the
24    retailer, from obtaining his certificate of  title  or  other
25    evidence of title or registration (if titling or registration
26    is  required)  upon  satisfying the Department that such user
27    has paid the proper tax (if tax is due) to the retailer.  The
28    Department shall adopt appropriate rules  to  carry  out  the
29    mandate of this paragraph.
30        If  the  user who would otherwise pay tax to the retailer
31    wants the transaction reporting return filed and the  payment
32    of  tax  or  proof of exemption made to the Department before
33    the retailer is willing to take these actions and  such  user
34    has  not  paid the tax to the retailer, such user may certify
 
SB1453 Enrolled            -21-                LRB9111084SMdv
 1    to the fact of such delay by the retailer, and may (upon  the
 2    Department   being   satisfied   of   the   truth   of   such
 3    certification)  transmit  the  information  required  by  the
 4    transaction  reporting  return  and the remittance for tax or
 5    proof of exemption directly to the Department and obtain  his
 6    tax  receipt  or  exemption determination, in which event the
 7    transaction reporting return and tax  remittance  (if  a  tax
 8    payment  was required) shall be credited by the Department to
 9    the  proper  retailer's  account  with  the  Department,  but
10    without the 2.1% or  1.75%  discount  provided  for  in  this
11    Section  being  allowed.  When the user pays the tax directly
12    to the Department, he shall pay the tax in  the  same  amount
13    and in the same form in which it would be remitted if the tax
14    had been remitted to the Department by the retailer.
15        Where  a  retailer  collects  the tax with respect to the
16    selling price of tangible personal property  which  he  sells
17    and  the  purchaser thereafter returns such tangible personal
18    property and the retailer refunds the selling  price  thereof
19    to  the  purchaser,  such  retailer shall also refund, to the
20    purchaser, the tax so  collected  from  the  purchaser.  When
21    filing his return for the period in which he refunds such tax
22    to  the  purchaser, the retailer may deduct the amount of the
23    tax so refunded by him to the purchaser from  any  other  use
24    tax  which  such  retailer may be required to pay or remit to
25    the Department, as shown by such return, if the amount of the
26    tax to be deducted was previously remitted to the  Department
27    by  such  retailer.   If  the  retailer  has  not  previously
28    remitted  the  amount  of  such  tax to the Department, he is
29    entitled to no deduction under this Act upon  refunding  such
30    tax to the purchaser.
31        Any  retailer  filing  a  return under this Section shall
32    also include (for the purpose  of  paying  tax  thereon)  the
33    total  tax  covered  by such return upon the selling price of
34    tangible personal property purchased by him at retail from  a
 
SB1453 Enrolled            -22-                LRB9111084SMdv
 1    retailer, but as to which the tax imposed by this Act was not
 2    collected  from  the  retailer  filing  such return, and such
 3    retailer shall remit the amount of such tax to the Department
 4    when filing such return.
 5        If experience indicates such action  to  be  practicable,
 6    the  Department  may  prescribe  and furnish a combination or
 7    joint return which will enable retailers, who are required to
 8    file  returns  hereunder  and  also  under   the   Retailers'
 9    Occupation  Tax  Act,  to  furnish all the return information
10    required by both Acts on the one form.
11        Where the retailer has more than one business  registered
12    with  the  Department  under separate registration under this
13    Act, such retailer may not file each return that is due as  a
14    single  return  covering  all such registered businesses, but
15    shall  file  separate  returns  for  each   such   registered
16    business.
17        Beginning  January  1,  1990,  each  month the Department
18    shall pay into the State and Local Sales Tax Reform  Fund,  a
19    special  fund  in the State Treasury which is hereby created,
20    the net revenue realized for the preceding month from the  1%
21    tax  on  sales  of  food for human consumption which is to be
22    consumed off the  premises  where  it  is  sold  (other  than
23    alcoholic  beverages,  soft  drinks  and  food which has been
24    prepared for  immediate  consumption)  and  prescription  and
25    nonprescription  medicines,  drugs,  medical  appliances  and
26    insulin,  urine  testing materials, syringes and needles used
27    by diabetics.
28        Beginning January 1,  1990,  each  month  the  Department
29    shall  pay  into the County and Mass Transit District Fund 4%
30    of the net revenue realized for the preceding month from  the
31    6.25%  general rate on the selling price of tangible personal
32    property which is purchased outside Illinois at retail from a
33    retailer and which is titled or registered by  an  agency  of
34    this State's government.
 
SB1453 Enrolled            -23-                LRB9111084SMdv
 1        Beginning  January  1,  1990,  each  month the Department
 2    shall pay into the State and Local Sales Tax Reform  Fund,  a
 3    special  fund  in  the State Treasury, 20% of the net revenue
 4    realized for the preceding month from the 6.25% general  rate
 5    on  the  selling  price  of tangible personal property, other
 6    than tangible personal property which  is  purchased  outside
 7    Illinois  at  retail  from  a retailer and which is titled or
 8    registered by an agency of this State's government.
 9        Beginning January 1,  1990,  each  month  the  Department
10    shall  pay  into the Local Government Tax Fund 16% of the net
11    revenue realized for  the  preceding  month  from  the  6.25%
12    general  rate  on  the  selling  price  of  tangible personal
13    property which is purchased outside Illinois at retail from a
14    retailer and which is titled or registered by  an  agency  of
15    this State's government.
16        Of the remainder of the moneys received by the Department
17    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
18    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
19    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
20    into the Build Illinois Fund; provided, however, that  if  in
21    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
22    as  the case may be, of the moneys received by the Department
23    and required to be paid into the Build Illinois Fund pursuant
24    to Section 3 of the Retailers' Occupation Tax Act, Section  9
25    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
26    Section  9 of the Service Occupation Tax Act, such Acts being
27    hereinafter called the "Tax Acts" and such aggregate of  2.2%
28    or  3.8%,  as  the  case  may be, of moneys being hereinafter
29    called the "Tax Act Amount", and (2) the  amount  transferred
30    to the Build Illinois Fund from the State and Local Sales Tax
31    Reform  Fund  shall  be less than the Annual Specified Amount
32    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
33    Act),  an amount equal to the difference shall be immediately
34    paid into the Build Illinois Fund from other moneys  received
 
SB1453 Enrolled            -24-                LRB9111084SMdv
 1    by  the  Department  pursuant  to  the  Tax Acts; and further
 2    provided, that if on the last business day of any  month  the
 3    sum  of  (1) the Tax Act Amount required to be deposited into
 4    the Build Illinois Bond Account in the  Build  Illinois  Fund
 5    during  such month and (2) the amount transferred during such
 6    month to the Build Illinois Fund from  the  State  and  Local
 7    Sales  Tax  Reform Fund shall have been less than 1/12 of the
 8    Annual Specified Amount, an amount equal  to  the  difference
 9    shall  be  immediately paid into the Build Illinois Fund from
10    other moneys received by the Department pursuant to  the  Tax
11    Acts;  and,  further  provided,  that  in  no event shall the
12    payments required  under  the  preceding  proviso  result  in
13    aggregate  payments  into the Build Illinois Fund pursuant to
14    this clause (b) for any fiscal year in excess of the  greater
15    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
16    for such fiscal year; and, further provided, that the amounts
17    payable  into  the  Build Illinois Fund under this clause (b)
18    shall be payable only until such time as the aggregate amount
19    on deposit under each trust indenture securing  Bonds  issued
20    and  outstanding  pursuant  to the Build Illinois Bond Act is
21    sufficient, taking into account any future investment income,
22    to fully provide, in accordance with such indenture, for  the
23    defeasance of or the payment of the principal of, premium, if
24    any,  and interest on the Bonds secured by such indenture and
25    on any Bonds expected to be issued thereafter  and  all  fees
26    and  costs  payable with respect thereto, all as certified by
27    the Director of the Bureau of the Budget.   If  on  the  last
28    business  day  of  any  month  in which Bonds are outstanding
29    pursuant to the Build Illinois Bond Act, the aggregate of the
30    moneys deposited in the Build Illinois Bond  Account  in  the
31    Build  Illinois  Fund  in  such  month shall be less than the
32    amount required to be transferred  in  such  month  from  the
33    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
34    Retirement and Interest Fund pursuant to Section  13  of  the
 
SB1453 Enrolled            -25-                LRB9111084SMdv
 1    Build  Illinois  Bond Act, an amount equal to such deficiency
 2    shall be immediately paid from other moneys received  by  the
 3    Department  pursuant  to  the  Tax Acts to the Build Illinois
 4    Fund; provided, however, that any amounts paid to  the  Build
 5    Illinois  Fund  in  any fiscal year pursuant to this sentence
 6    shall be deemed to constitute payments pursuant to clause (b)
 7    of  the  preceding  sentence  and  shall  reduce  the  amount
 8    otherwise payable for such fiscal year pursuant to clause (b)
 9    of the  preceding  sentence.   The  moneys  received  by  the
10    Department  pursuant to this Act and required to be deposited
11    into the Build Illinois Fund are subject to the pledge, claim
12    and charge set forth in Section 12 of the Build Illinois Bond
13    Act.
14        Subject to payment of amounts  into  the  Build  Illinois
15    Fund  as  provided  in  the  preceding  paragraph  or  in any
16    amendment thereto hereafter enacted, the following  specified
17    monthly   installment   of   the   amount  requested  in  the
18    certificate of the Chairman  of  the  Metropolitan  Pier  and
19    Exposition  Authority  provided  under  Section  8.25f of the
20    State Finance Act, but not in excess of the  sums  designated
21    as  "Total Deposit", shall be deposited in the aggregate from
22    collections under Section 9 of the Use Tax Act, Section 9  of
23    the  Service Use Tax Act, Section 9 of the Service Occupation
24    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
25    into  the  McCormick  Place  Expansion  Project  Fund  in the
26    specified fiscal years.
27             Fiscal Year                   Total Deposit
28                 1993                            $0
29                 1994                        53,000,000
30                 1995                        58,000,000
31                 1996                        61,000,000
32                 1997                        64,000,000
33                 1998                        68,000,000
34                 1999                        71,000,000
 
SB1453 Enrolled            -26-                LRB9111084SMdv
 1                 2000                        75,000,000
 2                 2001                        80,000,000
 3                 2002                        84,000,000
 4                 2003                        89,000,000
 5                 2004                        93,000,000
 6                 2005                        97,000,000
 7                 2006                       102,000,000
 8                 2007                       108,000,000
 9                 2008                       115,000,000
10                 2009                       120,000,000
11                 2010                       126,000,000
12                 2011                       132,000,000
13                 2012                       138,000,000
14                 2013 and                   145,000,000
15        each fiscal year
16        thereafter that bonds
17        are outstanding under
18        Section 13.2 of the
19        Metropolitan Pier and
20        Exposition Authority
21        Act, but not after fiscal year 2029.
22        Beginning July 20, 1993 and in each month of each  fiscal
23    year  thereafter,  one-eighth  of the amount requested in the
24    certificate of the Chairman  of  the  Metropolitan  Pier  and
25    Exposition  Authority  for  that fiscal year, less the amount
26    deposited into the McCormick Place Expansion Project Fund  by
27    the  State Treasurer in the respective month under subsection
28    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
29    Authority  Act,  plus cumulative deficiencies in the deposits
30    required under this Section for previous  months  and  years,
31    shall be deposited into the McCormick Place Expansion Project
32    Fund,  until  the  full amount requested for the fiscal year,
33    but not in excess of the amount  specified  above  as  "Total
34    Deposit", has been deposited.
 
SB1453 Enrolled            -27-                LRB9111084SMdv
 1        Subject  to  payment  of  amounts into the Build Illinois
 2    Fund and the McCormick Place Expansion Project Fund  pursuant
 3    to  the  preceding  paragraphs  or  in  any amendment thereto
 4    hereafter enacted, each month the Department shall  pay  into
 5    the Local Government Distributive Fund .4% of the net revenue
 6    realized for the preceding month from the 5% general rate, or
 7    .4%  of  80%  of  the  net revenue realized for the preceding
 8    month from the 6.25% general rate, as the case may be, on the
 9    selling price of  tangible  personal  property  which  amount
10    shall,  subject  to appropriation, be distributed as provided
11    in Section 2 of the State Revenue Sharing Act. No payments or
12    distributions pursuant to this paragraph shall be made if the
13    tax imposed  by  this  Act  on  photoprocessing  products  is
14    declared  unconstitutional,  or if the proceeds from such tax
15    are unavailable for distribution because of litigation.
16        Subject to payment of amounts  into  the  Build  Illinois
17    Fund,  the  McCormick  Place  Expansion Project Fund, and the
18    Local Government Distributive Fund pursuant to the  preceding
19    paragraphs  or  in  any amendments thereto hereafter enacted,
20    beginning July 1, 1993, the Department shall each  month  pay
21    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
22    revenue realized for  the  preceding  month  from  the  6.25%
23    general  rate  on  the  selling  price  of  tangible personal
24    property.
25        Of the remainder of the moneys received by the Department
26    pursuant to this Act, 75% thereof  shall  be  paid  into  the
27    State Treasury and 25% shall be reserved in a special account
28    and  used  only for the transfer to the Common School Fund as
29    part of the monthly transfer from the General Revenue Fund in
30    accordance with Section 8a of the State Finance Act.
31        As soon as possible after the first day  of  each  month,
32    upon   certification   of  the  Department  of  Revenue,  the
33    Comptroller shall order transferred and the  Treasurer  shall
34    transfer  from the General Revenue Fund to the Motor Fuel Tax
 
SB1453 Enrolled            -28-                LRB9111084SMdv
 1    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 2    realized  under  this  Act  for  the  second preceding month.
 3    Beginning April 1, 2000, this transfer is no longer  required
 4    and shall not be made.
 5        Net  revenue  realized  for  a month shall be the revenue
 6    collected by the State pursuant to this Act, less the  amount
 7    paid  out  during  that  month  as  refunds  to taxpayers for
 8    overpayment of liability.
 9        For greater simplicity of administration,  manufacturers,
10    importers  and  wholesalers whose products are sold at retail
11    in Illinois by numerous retailers, and who wish to do so, may
12    assume the responsibility for accounting and  paying  to  the
13    Department  all  tax  accruing under this Act with respect to
14    such sales, if the retailers who are  affected  do  not  make
15    written objection to the Department to this arrangement.
16    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
17    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
18    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

19        (35 ILCS 105/10) (from Ch. 120, par. 439.10)
20        Sec. 10. Except  as  to  motor  vehicles,  and  aircraft,
21    watercraft,  and trailers, when tangible personal property is
22    purchased from  a  retailer  for  use  in  this  State  by  a
23    purchaser  who did not pay the tax imposed by this Act to the
24    retailer, and who does not file returns with  the  Department
25    as a retailer under Section 9 of this Act, such purchaser (by
26    the  last  day  of  the month following the calendar month in
27    which such purchaser makes any payment upon the selling price
28    of such property) shall, except as provided in this  Section,
29    file  a  return with the Department and pay the tax upon that
30    portion of the selling price so paid by the purchaser  during
31    the   preceding   calendar   month.  When  tangible  personal
32    property, including but not limited  to  motor  vehicles  and
33    aircraft,  is  purchased  by  a lessor, under a lease for one
 
SB1453 Enrolled            -29-                LRB9111084SMdv
 1    year or longer, executed or in effect at the time of purchase
 2    to an interstate carrier for hire, who did not  pay  the  tax
 3    imposed by this Act to the retailer, such lessor (by the last
 4    day  of  the month following the calendar month in which such
 5    property reverts to the use of  such  lessor)  shall  file  a
 6    return  with  the  Department  and  pay the tax upon the fair
 7    market value of such property on the date of such  reversion.
 8    However,  in determining the fair market value at the time of
 9    reversion, the fair market value of such property  shall  not
10    exceed  the  original purchase price of the property that was
11    paid by the lessor at the time of purchase. Such return shall
12    be filed on a form prescribed by  the  Department  and  shall
13    contain  such  information  as  the Department may reasonably
14    require.  Such return and payment from the purchaser shall be
15    submitted to the Department sooner than the last day  of  the
16    month  after  the  month in which the purchase is made to the
17    extent that that may be necessary  in  order  to  secure  the
18    title  to  a motor vehicle or the certificate of registration
19    for an aircraft. However, except as  to  motor  vehicles  and
20    aircraft,  if  the  purchaser's annual use tax liability does
21    not exceed $600, the purchaser may  file  the  return  on  an
22    annual  basis  on  or before April 15th of the year following
23    the year use tax liability was incurred.
24        In addition with respect to motor vehicles, and aircraft,
25    watercraft,  and  trailers,  a  purchaser  of  such  tangible
26    personal property for use in this State, who  purchases  such
27    tangible  personal  property  from  an out-of-state retailer,
28    shall file with the Department, upon a form to be  prescribed
29    and  supplied  by the Department, a return for each such item
30    of tangible personal property purchased, except that  if,  in
31    the  same  transaction,  (i)  a  purchaser of motor vehicles,
32    aircraft, watercraft, or trailers who is a retailer of  motor
33    vehicles,  aircraft,  watercraft,  or trailers purchases more
34    than one motor vehicle, aircraft, watercraft, or trailer  for
 
SB1453 Enrolled            -30-                LRB9111084SMdv
 1    the  purpose of resale or (ii) a purchaser of motor vehicles,
 2    aircraft, watercraft, or trailers  purchases  more  than  one
 3    motor  vehicle,  aircraft,  watercraft, or trailer for use as
 4    qualifying rolling stock as provided in Section 3-55 of  this
 5    Act,  then the purchaser may report the purchase of all motor
 6    vehicles, aircraft, watercraft, or trailers involved in  that
 7    transaction  to  the Department on a single return prescribed
 8    by the Department.  Such return in the case of motor vehicles
 9    and aircraft must show the name and address  of  the  seller,
10    the  name,  address  of  purchaser, the amount of the selling
11    price including the amount allowed by the retailer for traded
12    in property, if any; the amount allowed by the  retailer  for
13    the  traded-in  tangible  personal  property,  if any, to the
14    extent to which Section 2 of this Act allows an exemption for
15    the value of traded-in property; the  balance  payable  after
16    deducting  such  trade-in  allowance  from  the total selling
17    price; the amount of tax due from the purchaser with  respect
18    to  such  transaction;  the  amount of tax collected from the
19    purchaser  by  the   retailer   on   such   transaction   (or
20    satisfactory  evidence  that  such  tax  is  not  due in that
21    particular instance if that is claimed to be the  fact);  the
22    place  and  date  of the sale, a sufficient identification of
23    the  property  sold,  and  such  other  information  as   the
24    Department may reasonably require.
25        Such  return  shall be filed not later than 30 days after
26    such motor vehicle or aircraft is brought into this State for
27    use.
28        For purposes of this Section, "watercraft" means a  Class
29    2,  Class  3, or Class 4 watercraft as defined in Section 3-2
30    of  the  Boat  Registration  and  Safety  Act,   a   personal
31    watercraft, or any boat equipped with an inboard motor.
32        The  return and tax remittance or proof of exemption from
33    the tax that is imposed by this Act may be transmitted to the
34    Department by way of the State agency with  which,  or  State
 
SB1453 Enrolled            -31-                LRB9111084SMdv
 1    officer  with  whom,  the  tangible personal property must be
 2    titled or registered (if titling or registration is required)
 3    if the Department and such agency or State officer  determine
 4    that   this   procedure   will  expedite  the  processing  of
 5    applications for title or registration.
 6        With each such return,  the  purchaser  shall  remit  the
 7    proper  amount  of  tax  due  (or  shall  submit satisfactory
 8    evidence that the sale is not taxable if that is  the  case),
 9    to  the  Department  or  its agents, whereupon the Department
10    shall issue, in the purchaser's name, a  tax  receipt  (or  a
11    certificate  of exemption if the Department is satisfied that
12    the particular sale is tax exempt) which such  purchaser  may
13    submit  to the agency with which, or State officer with whom,
14    he must title or register the tangible personal property that
15    is involved (if  titling  or  registration  is  required)  in
16    support  of  such  purchaser's  application  for  an Illinois
17    certificate or other evidence of  title  or  registration  to
18    such tangible personal property.
19        When  a purchaser pays a tax imposed by this Act directly
20    to the Department, the Department (upon request therefor from
21    such purchaser) shall issue an appropriate  receipt  to  such
22    purchaser   showing   that  he  has  paid  such  tax  to  the
23    Department.  Such receipt shall be sufficient to relieve  the
24    purchaser  from  further  liability for the tax to which such
25    receipt may refer.
26        A user who is liable to  pay  use  tax  directly  to  the
27    Department   only   occasionally  and  not  on  a  frequently
28    recurring basis, and who is not required to file returns with
29    the Department as a retailer under Section 9 of this Act,  or
30    under the "Retailers' Occupation Tax Act", or as a registrant
31    with the Department under the "Service Occupation Tax Act" or
32    the  "Service  Use  Tax  Act",  need  not  register  with the
33    Department.  However,  if  such  a  user  has  a   frequently
34    recurring  direct use tax liability to pay to the Department,
 
SB1453 Enrolled            -32-                LRB9111084SMdv
 1    such user shall be required to register with  the  Department
 2    on  forms  prescribed  by  the  Department  and to obtain and
 3    display a certificate of registration  from  the  Department.
 4    In that event, all of the provisions of Section 9 of this Act
 5    concerning the filing of regular monthly, quarterly or annual
 6    tax  returns  and  all of the provisions of Section 2a of the
 7    "Retailers' Occupation Tax Act" concerning  the  requirements
 8    for  registrants  to  post  bond  or  other security with the
 9    Department, as the provisions of such sections now  exist  or
10    may  hereafter  be  amended, shall apply to such users to the
11    same extent as if such provisions were included herein.
12    (Source: P.A. 91-541, eff. 8-13-99.)

13        (35 ILCS 105/22) (from Ch. 120, par. 439.22)
14        Sec. 22. If it is determined that the  Department  should
15    issue  a  credit or refund under this Act, the Department may
16    first apply the amount thereof against any amount of  tax  or
17    penalty  or  interest due hereunder, or under the "Retailers'
18    Occupation Tax Act", the "Service Occupation  Tax  Act",  the
19    "Service  Use  Tax  Act",  any  local  occupation  or use tax
20    administered by  the  Department  the  "Municipal  Retailers'
21    Occupation  Tax  Act",  the  "Municipal  Use  Tax  Act",  the
22    "Municipal   Service   Occupation   Tax   Act",  the  "County
23    Retailers' Occupation Tax  Act",  the  "County  Supplementary
24    Retailers'   Occupation   Tax   Act",   the  "County  Service
25    Occupation  Tax  Act",  the  "County  Supplementary   Service
26    Occupation  Tax  Act",  the "County Use Tax Act", the "County
27    Supplementary  Use  Tax  Act",  Section  4  of   the   "Water
28    Commission  Act  of  1985",  subsections  (b), (c) and (d) of
29    Section 5.01 of the "Local Mass  Transit  District  Act",  or
30    subsections (e), (f) and (g) of Section 4.03 of the "Regional
31    Transportation  Authority  Act",  from the person entitled to
32    such credit or refund. For this purpose, if  proceedings  are
33    pending  to  determine  whether  or not any tax or penalty or
 
SB1453 Enrolled            -33-                LRB9111084SMdv
 1    interest is due under  this  Act  or  under  the  "Retailers'
 2    Occupation  Tax  Act",  the "Service Occupation Tax Act", the
 3    "Service Use Tax  Act",  any  local  occupation  or  use  tax
 4    administered  by  the  Department  the  "Municipal Retailers'
 5    Occupation  Tax  Act",  the  "Municipal  Use  Tax  Act",  the
 6    "Municipal  Service  Occupation   Tax   Act",   the   "County
 7    Retailers'  Occupation  Tax  Act",  the "County Supplementary
 8    Retailers'  Occupation  Tax   Act",   the   "County   Service
 9    Occupation   Tax  Act",  the  "County  Supplementary  Service
10    Occupation Tax Act", the "County Use Tax  Act",  the  "County
11    Supplementary   Use   Tax  Act",  Section  4  of  the  "Water
12    Commission Act of 1985", subsections  (b),  (c)  and  (d)  of
13    Section  5.01  of  the  "Local Mass Transit District Act", or
14    subsections (e), (f) and (g) of Section 4.03 of the "Regional
15    Transportation  Authority  Act",  from   such   person,   the
16    Department  may  withhold  issuance  of  the credit or refund
17    pending the final disposition of  such  proceedings  and  may
18    apply  such  credit  or refund against any amount found to be
19    due to the Department as a result of  such  proceedings.  The
20    balance,  if  any, of the credit or refund shall be issued to
21    the person entitled thereto.
22        Any credit memorandum issued hereunder may be used by the
23    authorized holder thereof  to  pay  any  tax  or  penalty  or
24    interest  due  or  to  become due under this Act or under the
25    "Retailers' Occupation Tax Act", the "Service Occupation  Tax
26    Act",  the "Service Use Tax Act", any local occupation or use
27    tax administered by the Department the "Municipal  Retailers'
28    Occupation  Tax  Act",  the  "Municipal  Use  Tax  Act",  the
29    "Municipal   Service   Occupation   Tax   Act",  the  "County
30    Retailers' Occupation Tax  Act",  the  "County  Supplementary
31    Retailers'   Occupation   Tax   Act",   the  "County  Service
32    Occupation  Tax  Act",  the  "County  Supplementary   Service
33    Occupation  Tax  Act",  the "County Use Tax Act", the "County
34    Supplementary  Use  Tax  Act",  Section  4  of   the   "Water
 
SB1453 Enrolled            -34-                LRB9111084SMdv
 1    Commission  Act  of  1985",  subsections  (b), (c) and (d) of
 2    Section 5.01 of the "Local Mass  Transit  District  Act",  or
 3    subsections (e), (f) and (g) of Section 4.03 of the "Regional
 4    Transportation  Authority  Act", from such holder. Subject to
 5    reasonable rules  of  the  Department,  a  credit  memorandum
 6    issued hereunder may be assigned by the holder thereof to any
 7    other  person  for  use  in paying tax or penalty or interest
 8    which may be due or become due under this Act  or  under  the
 9    "Retailers'  Occupation Tax Act", the "Service Occupation Tax
10    Act" or the "Service Use Tax Act", from the assignee.
11        In any case in which there has been an  erroneous  refund
12    of  tax payable under this Act, a notice of tax liability may
13    be issued at any time within 3 years from the making of  that
14    refund,  or  within 5 years from the making of that refund if
15    it appears that any part of the refund was induced  by  fraud
16    or  the  misrepresentation  of a material fact. The amount of
17    any proposed assessment set forth  in  the  notice  shall  be
18    limited to the amount of the erroneous refund.
19    (Source: P.A. 87-876.)

20        Section  15.   The  Service  Use  Tax  Act  is amended by
21    changing Section 20 as follows:

22        (35 ILCS 110/20) (from Ch. 120, par. 439.50)
23        Sec. 20. If it is determined that the  Department  should
24    issue  a credit or refund hereunder, the Department may first
25    apply the amount thereof against any amount of tax or penalty
26    or interest due hereunder, or under  the  Service  Occupation
27    Tax  Act, the Retailers' Occupation Tax Act, the Use Tax Act,
28    any  local  occupation  or  use  tax  administered   by   the
29    Department  the  Municipal Retailers' Occupation Tax Act, the
30    Municipal Use Tax Act, the Municipal Service  Occupation  Tax
31    Act,  the  County  Retailers'  Occupation Tax Act, the County
32    Supplementary  Retailers'  Occupation  Tax  Act,  the  County
 
SB1453 Enrolled            -35-                LRB9111084SMdv
 1    Service Occupation Tax Act, the County Supplementary  Service
 2    Occupation  Tax  Act,  the  County  Use  Tax  Act, the County
 3    Supplementary Use Tax Act, Section 4 of the Water  Commission
 4    Act  of 1985, subsections (b), (c) and (d) of Section 5.01 of
 5    the Local Mass Transit District Act, or subsections (e),  (f)
 6    and  (g)  of  Section  4.03  of  the  Regional Transportation
 7    Authority Act, from the person entitled  to  such  credit  or
 8    refund.  For  this  purpose,  if  proceedings  are pending to
 9    determine whether or not any tax or penalty  or  interest  is
10    due  hereunder,  or under the Service Occupation Tax Act, the
11    Retailers' Occupation Tax Act, the Use  Tax  Act,  any  local
12    occupation  or  use  tax  administered  by the Department the
13    Municipal Retailers' Occupation Tax Act,  the  Municipal  Use
14    Tax Act, the Municipal Service Occupation Tax Act, the County
15    Retailers'  Occupation  Tax  Act,  the  County  Supplementary
16    Retailers'  Occupation Tax Act, the County Service Occupation
17    Tax Act, the County Supplementary Service Occupation Tax Act,
18    the County Use Tax Act, the County Supplementary Use Tax Act,
19    Section 4 of the Water Commission Act  of  1985,  subsections
20    (b),  (c)  and  (d) of Section 5.01 of the Local Mass Transit
21    District Act, or subsections (e), (f) and (g) of Section 4.03
22    of the  Regional  Transportation  Authority  Act,  from  such
23    person, the Department may withhold issuance of the credit or
24    refund  pending the final disposition of such proceedings and
25    may apply such credit or refund against any amount  found  to
26    be due to the Department as a result of such proceedings. The
27    balance,  if  any, of the credit or refund shall be issued to
28    the person entitled thereto.
29        Any credit memorandum issued hereunder may be used by the
30    authorized holder thereof  to  pay  any  tax  or  penalty  or
31    interest  due  or  to  become due under this Act, the Service
32    Occupation Tax Act, the Retailers' Occupation  Tax  Act,  the
33    Use  Tax Act, any local occupation or use tax administered by
34    the Department the Municipal Retailers' Occupation  Tax  Act,
 
SB1453 Enrolled            -36-                LRB9111084SMdv
 1    the  Municipal  Use Tax Act, the Municipal Service Occupation
 2    Tax Act, the County Retailers' Occupation Tax Act, the County
 3    Supplementary  Retailers'  Occupation  Tax  Act,  the  County
 4    Service Occupation Tax Act, the County Supplementary  Service
 5    Occupation  Tax  Act,  the  County  Use  Tax  Act, the County
 6    Supplementary Use Tax Act, Section 4 of the Water  Commission
 7    Act  of 1985, subsections (b), (c) and (d) of Section 5.01 of
 8    the Local Mass Transit District Act, or subsections (e),  (f)
 9    and  (g)  of  Section  4.03  of  the  Regional Transportation
10    Authority Act, from such holder. Subject to reasonable  rules
11    of  the  Department, a credit memorandum issued hereunder may
12    be assigned by the holder thereof to any other person for use
13    in paying tax or penalty or interest  which  may  be  due  or
14    become  due  under  this Act, the Service Occupation Tax Act,
15    the Retailers' Occupation Tax Act, the Use Tax Act, any local
16    occupation or use tax  administered  by  the  Department  the
17    Municipal  Retailers'  Occupation  Tax Act, the Municipal Use
18    Tax Act, the Municipal Service Occupation Tax Act, the County
19    Retailers'  Occupation  Tax  Act,  the  County  Supplementary
20    Retailers' Occupation Tax Act, the County Service  Occupation
21    Tax Act, the County Supplementary Service Occupation Tax Act,
22    the County Use Tax Act, the County Supplementary Use Tax Act,
23    Section  4  of  the Water Commission Act of 1985, subsections
24    (b), (c) and (d) of Section 5.01 of the  Local  Mass  Transit
25    District Act, or subsections (e), (f) and (g) of Section 4.03
26    of  the  Regional  Transportation  Authority  Act,  from  the
27    assignee.
28        In  any  case which there has been an erroneous refund of
29    tax payable under this Act, a notice of tax liability may  be
30    issued  at  any  time  within 3 years from the making of that
31    refund, or within 5 years from the making of that  refund  if
32    it  appears  that any part of the refund was induced by fraud
33    or the misrepresentation of a material fact.  The  amount  of
34    any  proposed  assessment  set  forth  in the notice shall be
 
SB1453 Enrolled            -37-                LRB9111084SMdv
 1    limited to the amount of the erroneous refund.
 2    (Source: P.A. 87-876.)

 3        Section 20.  The Service Occupation Tax Act is amended by
 4    changing Section 20 as follows:

 5        (35 ILCS 115/20) (from Ch. 120, par. 439.120)
 6        Sec. 20. If it is determined that the  Department  should
 7    issue  a credit or refund hereunder, the Department may first
 8    apply the amount thereof against any amount of tax or penalty
 9    or interest due hereunder, or under the Service Use Tax  Act,
10    the Retailers' Occupation Tax Act, the Use Tax Act, any local
11    occupation  or  use  tax  administered  by the Department the
12    Municipal Retailers' Occupation Tax Act,  the  Municipal  Use
13    Tax Act, the Municipal Service Occupation Tax Act, the County
14    Retailers'  Occupation  Tax  Act,  the  County  Supplementary
15    Retailers'  Occupation Tax Act, the County Service Occupation
16    Tax Act, the County Supplementary Service Occupation Tax Act,
17    the County Use Tax Act, the County Supplementary Use Tax Act,
18    Section 4 of the Water Commission Act  of  1985,  subsections
19    (b),  (c)  and  (d) of Section 5.01 of the Local Mass Transit
20    District Act, or subsections (e), (f) and (g) of Section 4.03
21    of the Regional Transportation Authority Act, from the person
22    entitled to such credit  or  refund.  For  this  purpose,  if
23    proceedings  are  pending to determine whether or not any tax
24    or penalty or interest is due hereunder, or under the Service
25    Use Tax Act, the Retailers' Occupation Tax Act, the  Use  Tax
26    Act,  any  local  occupation  or  use tax administered by the
27    Department the Municipal Retailers' Occupation Tax  Act,  the
28    Municipal  Use  Tax Act, the Municipal Service Occupation Tax
29    Act, the County Retailers' Occupation  Tax  Act,  the  County
30    Supplementary  Retailers'  Occupation  Tax  Act,  the  County
31    Service  Occupation Tax Act, the County Supplementary Service
32    Occupation Tax Act,  the  County  Use  Tax  Act,  the  County
 
SB1453 Enrolled            -38-                LRB9111084SMdv
 1    Supplementary  Use Tax Act, Section 4 of the Water Commission
 2    Act of 1985, subsections (b), (c) and (d) of Section 5.01  of
 3    the  Local Mass Transit District Act, or subsections (e), (f)
 4    and (g)  of  Section  4.03  of  the  Regional  Transportation
 5    Authority  Act, from such person, the Department may withhold
 6    issuance  of  the  credit  or  refund   pending   the   final
 7    disposition  of such proceedings and may apply such credit or
 8    refund against any amount found to be due to  the  Department
 9    as  a result of such proceedings. The balance, if any, of the
10    credit or refund shall  be  issued  to  the  person  entitled
11    thereto.
12        Any credit memorandum issued hereunder may be used by the
13    authorized  holder  thereof  to  pay  any  tax  or penalty or
14    interest due or to become due under this Act,  or  under  the
15    Service  Use  Tax Act, the Retailers' Occupation Tax Act, the
16    Use Tax Act, any local occupation or use tax administered  by
17    the  Department  the Municipal Retailers' Occupation Tax Act,
18    the Municipal Use Tax Act, the Municipal  Service  Occupation
19    Tax Act, the County Retailers' Occupation Tax Act, the County
20    Supplementary  Retailers'  Occupation  Tax  Act,  the  County
21    Service  Occupation Tax Act, the County Supplementary Service
22    Occupation Tax Act,  the  County  Use  Tax  Act,  the  County
23    Supplementary  Use Tax Act, Section 4 of the Water Commission
24    Act of 1985, subsections (b), (c) and (d) of Section 5.01  of
25    the  Local Mass Transit District Act, or subsections (e), (f)
26    and (g)  of  Section  4.03  of  the  Regional  Transportation
27    Authority  Act, from such holder. Subject to reasonable rules
28    of the Department, a credit memorandum issued  hereunder  may
29    be assigned by the holder thereof to any other person for use
30    in  paying  tax  or  penalty  or interest which may be due or
31    become due under this Act,  the  Service  Use  Tax  Act,  the
32    Retailers'  Occupation  Tax  Act,  the Use Tax Act, any local
33    occupation or use tax  administered  by  the  Department  the
34    Municipal  Retailers'  Occupation  Tax Act, the Municipal Use
 
SB1453 Enrolled            -39-                LRB9111084SMdv
 1    Tax Act, the Municipal Service Occupation Tax Act, the County
 2    Retailers'  Occupation  Tax  Act,  the  County  Supplementary
 3    Retailers' Occupation Tax Act, the County Service  Occupation
 4    Tax Act, the County Supplementary Service Occupation Tax Act,
 5    the County Use Tax Act, the County Supplementary Use Tax Act,
 6    Section  4  of  the Water Commission Act of 1985, subsections
 7    (b), (c) and (d) of Section 5.01 of the  Local  Mass  Transit
 8    District Act, or subsections (e), (f) and (g) of Section 4.03
 9    of  the  Regional  Transportation  Authority  Act,  from  the
10    assignee.
11        In  any  case in which there has been an erroneous refund
12    of tax payable under this Act, a notice of tax liability  may
13    be  issued at any time within 3 years from the making of that
14    refund, or within 5 years from the making of that  refund  if
15    it  appears  that any part of the refund was induced by fraud
16    or the misrepresentation of a material fact.  The  amount  of
17    any  proposed  assessment  set  forth  in the notice shall be
18    limited to the amount of the erroneous refund.
19    (Source: P.A. 87-876.)

20        Section 25.  The Retailers' Occupation Tax Act is amended
21    by changing Sections 3 and 6 as follows:

22        (35 ILCS 120/3) (from Ch. 120, par. 442)
23        Sec. 3.  Except as provided in this Section, on or before
24    the twentieth  day  of  each  calendar  month,  every  person
25    engaged in the business of selling tangible personal property
26    at  retail  in this State during the preceding calendar month
27    shall file a return with the Department, stating:
28             1.  The name of the seller;
29             2.  His residence address and  the  address  of  his
30        principal  place  of  business  and  the  address  of the
31        principal place of  business  (if  that  is  a  different
32        address) from which he engages in the business of selling
 
SB1453 Enrolled            -40-                LRB9111084SMdv
 1        tangible personal property at retail in this State;
 2             3.  Total  amount of receipts received by him during
 3        the preceding calendar month or quarter, as the case  may
 4        be,  from  sales  of tangible personal property, and from
 5        services furnished, by him during such preceding calendar
 6        month or quarter;
 7             4.  Total  amount  received  by   him   during   the
 8        preceding  calendar  month  or quarter on charge and time
 9        sales of tangible personal property,  and  from  services
10        furnished, by him prior to the month or quarter for which
11        the return is filed;
12             5.  Deductions allowed by law;
13             6.  Gross receipts which were received by him during
14        the  preceding  calendar  month  or  quarter and upon the
15        basis of which the tax is imposed;
16             7.  The amount of credit provided in Section  2d  of
17        this Act;
18             8.  The amount of tax due;
19             9.  The signature of the taxpayer; and
20             10.  Such   other   reasonable  information  as  the
21        Department may require.
22        If a taxpayer fails to sign a return within 30 days after
23    the proper notice and demand for signature by the Department,
24    the return shall be considered valid and any amount shown  to
25    be due on the return shall be deemed assessed.
26        Each  return  shall  be  accompanied  by the statement of
27    prepaid tax issued pursuant to Section 2e for which credit is
28    claimed.
29        A retailer may accept a  Manufacturer's  Purchase  Credit
30    certification  from a purchaser in satisfaction of Use Tax as
31    provided in Section 3-85 of the Use Tax Act if the  purchaser
32    provides the appropriate documentation as required by Section
33    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
34    certification, accepted by a retailer as provided in  Section
 
SB1453 Enrolled            -41-                LRB9111084SMdv
 1    3-85  of  the  Use  Tax  Act, may be used by that retailer to
 2    satisfy Retailers' Occupation Tax  liability  in  the  amount
 3    claimed  in  the  certification,  not  to exceed 6.25% of the
 4    receipts subject to tax from a qualifying purchase.
 5        The Department may require  returns  to  be  filed  on  a
 6    quarterly  basis.  If so required, a return for each calendar
 7    quarter shall be filed on or before the twentieth day of  the
 8    calendar  month  following  the end of such calendar quarter.
 9    The taxpayer shall also file a return with the Department for
10    each of the first two months of each calendar quarter, on  or
11    before  the  twentieth  day  of the following calendar month,
12    stating:
13             1.  The name of the seller;
14             2.  The address of the principal place  of  business
15        from which he engages in the business of selling tangible
16        personal property at retail in this State;
17             3.  The total amount of taxable receipts received by
18        him  during  the  preceding  calendar month from sales of
19        tangible personal property by him during  such  preceding
20        calendar  month,  including receipts from charge and time
21        sales, but less all deductions allowed by law;
22             4.  The amount of credit provided in Section  2d  of
23        this Act;
24             5.  The amount of tax due; and
25             6.  Such   other   reasonable   information  as  the
26        Department may require.
27        If a total amount of less than $1 is payable,  refundable
28    or creditable, such amount shall be disregarded if it is less
29    than  50 cents and shall be increased to $1 if it is 50 cents
30    or more.
31        Beginning October 1, 1993, a taxpayer who has an  average
32    monthly  tax  liability  of  $150,000  or more shall make all
33    payments required by rules of the  Department  by  electronic
34    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 
SB1453 Enrolled            -42-                LRB9111084SMdv
 1    has an average monthly tax  liability  of  $100,000  or  more
 2    shall  make  all payments required by rules of the Department
 3    by electronic funds transfer.  Beginning October 1,  1995,  a
 4    taxpayer  who has an average monthly tax liability of $50,000
 5    or more shall make all payments  required  by  rules  of  the
 6    Department  by  electronic funds transfer.  Beginning October
 7    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
 8    $200,000 or more shall make all payments required by rules of
 9    the  Department  by  electronic  funds  transfer.   The  term
10    "annual  tax  liability"  shall  be the sum of the taxpayer's
11    liabilities under this Act, and under  all  other  State  and
12    local  occupation  and  use  tax  laws  administered  by  the
13    Department,  for the immediately preceding calendar year. The
14    term "average monthly tax liability" shall be the sum of  the
15    taxpayer's  liabilities  under  this Act, and under all other
16    State and local occupation and use tax laws  administered  by
17    the  Department,  for the immediately preceding calendar year
18    divided by 12.
19        Before August 1 of  each  year  beginning  in  1993,  the
20    Department  shall  notify  all  taxpayers  required  to  make
21    payments   by   electronic  funds  transfer.   All  taxpayers
22    required to make payments by electronic funds transfer  shall
23    make  those  payments  for a minimum of one year beginning on
24    October 1.
25        Any taxpayer not required to make payments by  electronic
26    funds transfer may make payments by electronic funds transfer
27    with the permission of the Department.
28        All  taxpayers  required  to  make  payment by electronic
29    funds transfer and any taxpayers  authorized  to  voluntarily
30    make  payments  by electronic funds transfer shall make those
31    payments in the manner authorized by the Department.
32        The Department shall adopt such rules as are necessary to
33    effectuate a program of electronic  funds  transfer  and  the
34    requirements of this Section.
 
SB1453 Enrolled            -43-                LRB9111084SMdv
 1        Any  amount  which is required to be shown or reported on
 2    any return or other document under this Act  shall,  if  such
 3    amount  is  not  a  whole-dollar  amount, be increased to the
 4    nearest whole-dollar amount in any case where the  fractional
 5    part  of  a  dollar is 50 cents or more, and decreased to the
 6    nearest whole-dollar amount where the fractional  part  of  a
 7    dollar is less than 50 cents.
 8        If  the  retailer is otherwise required to file a monthly
 9    return and if the retailer's average monthly tax liability to
10    the Department does  not  exceed  $200,  the  Department  may
11    authorize  his returns to be filed on a quarter annual basis,
12    with the return for January, February and March  of  a  given
13    year  being due by April 20 of such year; with the return for
14    April, May and June of a given year being due by July  20  of
15    such  year; with the return for July, August and September of
16    a given year being due by October 20 of such year,  and  with
17    the return for October, November and December of a given year
18    being due by January 20 of the following year.
19        If  the  retailer is otherwise required to file a monthly
20    or quarterly return and if the retailer's average monthly tax
21    liability with  the  Department  does  not  exceed  $50,  the
22    Department may authorize his returns to be filed on an annual
23    basis,  with the return for a given year being due by January
24    20 of the following year.
25        Such quarter annual and annual returns, as  to  form  and
26    substance,  shall  be  subject  to  the  same requirements as
27    monthly returns.
28        Notwithstanding  any  other   provision   in   this   Act
29    concerning  the  time  within  which  a retailer may file his
30    return, in the case of any retailer who ceases to engage in a
31    kind of business  which  makes  him  responsible  for  filing
32    returns  under  this  Act,  such  retailer shall file a final
33    return under this Act with the Department not more  than  one
34    month after discontinuing such business.
 
SB1453 Enrolled            -44-                LRB9111084SMdv
 1        Where   the  same  person  has  more  than  one  business
 2    registered with the Department under  separate  registrations
 3    under  this Act, such person may not file each return that is
 4    due  as  a  single  return  covering  all   such   registered
 5    businesses,  but  shall  file  separate returns for each such
 6    registered business.
 7        In addition, with respect to motor vehicles,  watercraft,
 8    aircraft,  and  trailers  that  are required to be registered
 9    with an agency of this State,  every  retailer  selling  this
10    kind  of  tangible  personal  property  shall  file, with the
11    Department, upon a form to be prescribed and supplied by  the
12    Department,  a separate return for each such item of tangible
13    personal property which the retailer sells,  except  that  if
14    where,  in  the same transaction, (i) a retailer of aircraft,
15    watercraft, motor vehicles or trailers  transfers  more  than
16    one aircraft, watercraft, motor vehicle or trailer to another
17    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
18    retailer  for  the  purpose  of  resale or (ii) a retailer of
19    aircraft, watercraft, motor vehicles, or  trailers  transfers
20    more than one aircraft, watercraft, motor vehicle, or trailer
21    to  a  purchaser  for  use  as  a qualifying rolling stock as
22    provided in Section 2-5 of this Act,  then  that  seller  for
23    resale  may  report the transfer of all aircraft, watercraft,
24    motor vehicles or trailers involved in  that  transaction  to
25    the   Department  on  the  same  uniform  invoice-transaction
26    reporting  return  form.   For  purposes  of  this   Section,
27    "watercraft"  means a Class 2, Class 3, or Class 4 watercraft
28    as defined in Section 3-2 of the Boat Registration and Safety
29    Act, a personal watercraft, or  any  boat  equipped  with  an
30    inboard motor.
31        Any  retailer  who sells only motor vehicles, watercraft,
32    aircraft, or trailers that are required to be registered with
33    an agency of this State, so that  all  retailers'  occupation
34    tax liability is required to be reported, and is reported, on
 
SB1453 Enrolled            -45-                LRB9111084SMdv
 1    such  transaction  reporting returns and who is not otherwise
 2    required to file monthly or quarterly returns, need not  file
 3    monthly or quarterly returns.  However, those retailers shall
 4    be required to file returns on an annual basis.
 5        The  transaction  reporting  return, in the case of motor
 6    vehicles or trailers that are required to be registered  with
 7    an  agency  of  this State, shall be the same document as the
 8    Uniform Invoice referred to in Section 5-402 of The  Illinois
 9    Vehicle  Code  and  must  show  the  name  and address of the
10    seller; the name and address of the purchaser; the amount  of
11    the  selling  price  including  the  amount  allowed  by  the
12    retailer  for  traded-in property, if any; the amount allowed
13    by the retailer for the traded-in tangible personal property,
14    if any, to the extent to which Section 1 of this  Act  allows
15    an exemption for the value of traded-in property; the balance
16    payable  after  deducting  such  trade-in  allowance from the
17    total selling price; the amount of tax due from the  retailer
18    with respect to such transaction; the amount of tax collected
19    from  the  purchaser  by the retailer on such transaction (or
20    satisfactory evidence that  such  tax  is  not  due  in  that
21    particular  instance, if that is claimed to be the fact); the
22    place and date of the sale; a  sufficient  identification  of
23    the  property  sold; such other information as is required in
24    Section 5-402 of The Illinois Vehicle Code,  and  such  other
25    information as the Department may reasonably require.
26        The   transaction   reporting   return  in  the  case  of
27    watercraft or aircraft must show the name and address of  the
28    seller;  the name and address of the purchaser; the amount of
29    the  selling  price  including  the  amount  allowed  by  the
30    retailer for traded-in property, if any; the  amount  allowed
31    by the retailer for the traded-in tangible personal property,
32    if  any,  to the extent to which Section 1 of this Act allows
33    an exemption for the value of traded-in property; the balance
34    payable after deducting  such  trade-in  allowance  from  the
 
SB1453 Enrolled            -46-                LRB9111084SMdv
 1    total  selling price; the amount of tax due from the retailer
 2    with respect to such transaction; the amount of tax collected
 3    from the purchaser by the retailer on  such  transaction  (or
 4    satisfactory  evidence  that  such  tax  is  not  due in that
 5    particular instance, if that is claimed to be the fact);  the
 6    place  and  date  of the sale, a sufficient identification of
 7    the  property  sold,  and  such  other  information  as   the
 8    Department may reasonably require.
 9        Such  transaction  reporting  return  shall  be filed not
10    later than 20 days after the day of delivery of the item that
11    is being sold, but may be filed by the retailer at  any  time
12    sooner  than  that  if  he chooses to do so.  The transaction
13    reporting return and tax remittance  or  proof  of  exemption
14    from   the  Illinois  use  tax  may  be  transmitted  to  the
15    Department by way of the State agency with  which,  or  State
16    officer  with  whom  the  tangible  personal property must be
17    titled or registered (if titling or registration is required)
18    if the Department and such agency or State officer  determine
19    that   this   procedure   will  expedite  the  processing  of
20    applications for title or registration.
21        With each such transaction reporting return, the retailer
22    shall remit the proper amount of tax  due  (or  shall  submit
23    satisfactory evidence that the sale is not taxable if that is
24    the  case),  to  the  Department or its agents, whereupon the
25    Department shall issue, in the purchaser's name,  a  use  tax
26    receipt  (or  a certificate of exemption if the Department is
27    satisfied that the particular sale is tax exempt) which  such
28    purchaser  may  submit  to  the  agency  with which, or State
29    officer with whom, he must title  or  register  the  tangible
30    personal   property   that   is   involved   (if  titling  or
31    registration is required)  in  support  of  such  purchaser's
32    application  for an Illinois certificate or other evidence of
33    title or registration to such tangible personal property.
34        No retailer's failure or refusal to remit tax under  this
 
SB1453 Enrolled            -47-                LRB9111084SMdv
 1    Act  precludes  a  user,  who  has paid the proper tax to the
 2    retailer, from obtaining his certificate of  title  or  other
 3    evidence of title or registration (if titling or registration
 4    is  required)  upon  satisfying the Department that such user
 5    has paid the proper tax (if tax is due) to the retailer.  The
 6    Department shall adopt appropriate rules  to  carry  out  the
 7    mandate of this paragraph.
 8        If  the  user who would otherwise pay tax to the retailer
 9    wants the transaction reporting return filed and the  payment
10    of  the  tax  or  proof  of  exemption made to the Department
11    before the retailer is willing to take these actions and such
12    user has not paid the tax to  the  retailer,  such  user  may
13    certify  to  the  fact  of such delay by the retailer and may
14    (upon the Department being satisfied of  the  truth  of  such
15    certification)  transmit  the  information  required  by  the
16    transaction  reporting  return  and the remittance for tax or
17    proof of exemption directly to the Department and obtain  his
18    tax  receipt  or  exemption determination, in which event the
19    transaction reporting return and tax  remittance  (if  a  tax
20    payment  was required) shall be credited by the Department to
21    the  proper  retailer's  account  with  the  Department,  but
22    without the 2.1% or  1.75%  discount  provided  for  in  this
23    Section  being  allowed.  When the user pays the tax directly
24    to the Department, he shall pay the tax in  the  same  amount
25    and in the same form in which it would be remitted if the tax
26    had been remitted to the Department by the retailer.
27        Refunds  made  by  the seller during the preceding return
28    period  to  purchasers,  on  account  of  tangible   personal
29    property  returned  to  the  seller,  shall  be  allowed as a
30    deduction under subdivision 5 of  his  monthly  or  quarterly
31    return,   as  the  case  may  be,  in  case  the  seller  had
32    theretofore included the  receipts  from  the  sale  of  such
33    tangible  personal  property in a return filed by him and had
34    paid the tax  imposed  by  this  Act  with  respect  to  such
 
SB1453 Enrolled            -48-                LRB9111084SMdv
 1    receipts.
 2        Where  the  seller  is a corporation, the return filed on
 3    behalf of such corporation shall be signed by the  president,
 4    vice-president,  secretary  or  treasurer  or by the properly
 5    accredited agent of such corporation.
 6        Where the seller is  a  limited  liability  company,  the
 7    return filed on behalf of the limited liability company shall
 8    be  signed by a manager, member, or properly accredited agent
 9    of the limited liability company.
10        Except as provided in this Section, the  retailer  filing
11    the  return  under  this Section shall, at the time of filing
12    such return, pay to the Department the amount of tax  imposed
13    by  this Act less a discount of 2.1% prior to January 1, 1990
14    and 1.75% on and after January 1, 1990, or  $5  per  calendar
15    year, whichever is greater, which is allowed to reimburse the
16    retailer  for  the  expenses  incurred  in  keeping  records,
17    preparing and filing returns, remitting the tax and supplying
18    data  to  the  Department  on  request.   Any prepayment made
19    pursuant to Section 2d of this Act shall be included  in  the
20    amount  on which such 2.1% or 1.75% discount is computed.  In
21    the case of retailers  who  report  and  pay  the  tax  on  a
22    transaction   by  transaction  basis,  as  provided  in  this
23    Section, such discount shall be  taken  with  each  such  tax
24    remittance  instead  of when such retailer files his periodic
25    return.
26        Before October 1, 2000, if the taxpayer's average monthly
27    tax liability to the Department under this Act, the  Use  Tax
28    Act,  the Service Occupation Tax Act, and the Service Use Tax
29    Act, excluding any liability for  prepaid  sales  tax  to  be
30    remitted  in  accordance  with  Section  2d  of this Act, was
31    $10,000 or more during  the  preceding  4  complete  calendar
32    quarters,  he  shall  file  a return with the Department each
33    month by the 20th day of the month next following  the  month
34    during  which  such  tax liability is incurred and shall make
 
SB1453 Enrolled            -49-                LRB9111084SMdv
 1    payments to the Department on or before the 7th,  15th,  22nd
 2    and  last  day  of  the  month during which such liability is
 3    incurred. On and after October 1,  2000,  if  the  taxpayer's
 4    average  monthly  tax  liability to the Department under this
 5    Act, the Use Tax Act, the Service Occupation Tax Act, and the
 6    Service Use Tax Act,  excluding  any  liability  for  prepaid
 7    sales  tax  to  be  remitted in accordance with Section 2d of
 8    this Act, was $20,000 or more during the preceding 4 complete
 9    calendar quarters, he shall file a return with the Department
10    each month by the 20th day of the month  next  following  the
11    month  during  which such tax liability is incurred and shall
12    make payment to the Department on or before  the  7th,  15th,
13    22nd and last day of the month during which such liability is
14    incurred.    If  the month during which such tax liability is
15    incurred began prior to January 1, 1985, each  payment  shall
16    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
17    liability for the month or an amount set  by  the  Department
18    not  to  exceed  1/4  of the average monthly liability of the
19    taxpayer to the  Department  for  the  preceding  4  complete
20    calendar  quarters  (excluding the month of highest liability
21    and the month of lowest liability in such 4 quarter  period).
22    If  the  month  during  which  such tax liability is incurred
23    begins on or after January 1, 1985 and prior  to  January  1,
24    1987,  each  payment  shall be in an amount equal to 22.5% of
25    the taxpayer's actual liability for the month or 27.5% of the
26    taxpayer's liability for  the  same  calendar  month  of  the
27    preceding year.  If the month during which such tax liability
28    is  incurred  begins on or after January 1, 1987 and prior to
29    January 1, 1988, each payment shall be in an amount equal  to
30    22.5%  of  the  taxpayer's  actual liability for the month or
31    26.25% of the taxpayer's  liability  for  the  same  calendar
32    month  of the preceding year.  If the month during which such
33    tax liability is incurred begins on or after January 1, 1988,
34    and prior to January 1, 1989, or begins on or  after  January
 
SB1453 Enrolled            -50-                LRB9111084SMdv
 1    1, 1996, each payment shall be in an amount equal to 22.5% of
 2    the  taxpayer's  actual liability for the month or 25% of the
 3    taxpayer's liability for  the  same  calendar  month  of  the
 4    preceding  year. If the month during which such tax liability
 5    is incurred begins on or after January 1, 1989, and prior  to
 6    January  1, 1996, each payment shall be in an amount equal to
 7    22.5% of the taxpayer's actual liability for the month or 25%
 8    of the taxpayer's liability for the same  calendar  month  of
 9    the preceding year or 100% of the taxpayer's actual liability
10    for the quarter monthly reporting period.  The amount of such
11    quarter  monthly payments shall be credited against the final
12    tax liability  of  the  taxpayer's  return  for  that  month.
13    Before  October  1, 2000, once applicable, the requirement of
14    the making of quarter monthly payments to the  Department  by
15    taxpayers  having an average monthly tax liability of $10,000
16    or more as determined in  the  manner  provided  above  shall
17    continue  until  such taxpayer's average monthly liability to
18    the Department  during  the  preceding  4  complete  calendar
19    quarters  (excluding  the  month of highest liability and the
20    month of lowest liability) is less than $9,000, or until such
21    taxpayer's average monthly liability  to  the  Department  as
22    computed  for  each  calendar  quarter  of  the  4  preceding
23    complete  calendar  quarter  period  is  less  than  $10,000.
24    However,  if  a  taxpayer  can  show  the  Department  that a
25    substantial change in the taxpayer's  business  has  occurred
26    which  causes  the  taxpayer  to  anticipate that his average
27    monthly tax liability for the reasonably  foreseeable  future
28    will fall below the $10,000 threshold stated above, then such
29    taxpayer  may  petition  the  Department for a change in such
30    taxpayer's reporting status.  On and after October  1,  2000,
31    once  applicable,  the  requirement  of the making of quarter
32    monthly payments to the Department  by  taxpayers  having  an
33    average   monthly   tax  liability  of  $20,000  or  more  as
34    determined in the manner provided above shall continue  until
 
SB1453 Enrolled            -51-                LRB9111084SMdv
 1    such  taxpayer's  average monthly liability to the Department
 2    during the preceding 4 complete calendar quarters  (excluding
 3    the  month  of  highest  liability  and  the  month of lowest
 4    liability) is less than  $19,000  or  until  such  taxpayer's
 5    average  monthly  liability to the Department as computed for
 6    each calendar quarter of the 4  preceding  complete  calendar
 7    quarter  period is less than $20,000.  However, if a taxpayer
 8    can show the Department that  a  substantial  change  in  the
 9    taxpayer's business has occurred which causes the taxpayer to
10    anticipate  that  his  average  monthly tax liability for the
11    reasonably foreseeable future will  fall  below  the  $20,000
12    threshold  stated  above, then such taxpayer may petition the
13    Department for a change in such taxpayer's reporting  status.
14    The  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    as  a  payment and the amount of such quarter monthly payment
21    actually and timely paid, except insofar as the taxpayer  has
22    previously  made payments for that month to the Department in
23    excess of the minimum payments previously due as provided  in
24    this  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        Without  regard to whether a taxpayer is required to make
29    quarter monthly payments as specified above, any taxpayer who
30    is required by Section 2d of this Act to  collect  and  remit
31    prepaid  taxes  and has collected prepaid taxes which average
32    in excess  of  $25,000  per  month  during  the  preceding  2
33    complete  calendar  quarters,  shall  file  a return with the
34    Department as required by Section 2f and shall make  payments
 
SB1453 Enrolled            -52-                LRB9111084SMdv
 1    to  the  Department on or before the 7th, 15th, 22nd and last
 2    day of the month during which such liability is incurred.  If
 3    the month during which such tax liability is  incurred  began
 4    prior  to  the effective date of this amendatory Act of 1985,
 5    each payment shall be in an amount not less than 22.5% of the
 6    taxpayer's actual liability under Section 2d.  If  the  month
 7    during  which  such  tax  liability  is incurred begins on or
 8    after January 1, 1986, each payment shall  be  in  an  amount
 9    equal  to  22.5%  of  the taxpayer's actual liability for the
10    month or 27.5% of  the  taxpayer's  liability  for  the  same
11    calendar  month of the preceding calendar year.  If the month
12    during which such tax liability  is  incurred  begins  on  or
13    after  January  1,  1987,  each payment shall be in an amount
14    equal to 22.5% of the taxpayer's  actual  liability  for  the
15    month  or  26.25%  of  the  taxpayer's liability for the same
16    calendar month of the preceding year.   The  amount  of  such
17    quarter  monthly payments shall be credited against the final
18    tax liability of the taxpayer's return for that  month  filed
19    under  this  Section or Section 2f, as the case may be.  Once
20    applicable, the requirement of the making of quarter  monthly
21    payments  to  the Department pursuant to this paragraph shall
22    continue until such taxpayer's average  monthly  prepaid  tax
23    collections during the preceding 2 complete calendar quarters
24    is  $25,000  or less.  If any such quarter monthly payment is
25    not paid at the time or in the amount required, the  taxpayer
26    shall   be   liable   for  penalties  and  interest  on  such
27    difference, except insofar as  the  taxpayer  has  previously
28    made  payments  for  that  month  in  excess  of  the minimum
29    payments previously due.
30        If any payment provided for in this Section  exceeds  the
31    taxpayer's  liabilities  under this Act, the Use Tax Act, the
32    Service Occupation Tax Act and the Service Use  Tax  Act,  as
33    shown on an original monthly return, the Department shall, if
34    requested  by  the  taxpayer,  issue to the taxpayer a credit
 
SB1453 Enrolled            -53-                LRB9111084SMdv
 1    memorandum no later than 30 days after the date  of  payment.
 2    The  credit  evidenced  by  such  credit  memorandum  may  be
 3    assigned  by  the  taxpayer  to a similar taxpayer under this
 4    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
 5    Service  Use Tax Act, in accordance with reasonable rules and
 6    regulations to be prescribed by the Department.  If  no  such
 7    request  is made, the taxpayer may credit such excess payment
 8    against tax liability subsequently  to  be  remitted  to  the
 9    Department  under  this  Act,  the  Use  Tax Act, the Service
10    Occupation Tax Act or the Service Use Tax Act, in  accordance
11    with  reasonable  rules  and  regulations  prescribed  by the
12    Department.  If the Department subsequently  determined  that
13    all  or  any part of the credit taken was not actually due to
14    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
15    shall be reduced by 2.1% or 1.75% of the  difference  between
16    the  credit  taken  and  that actually due, and that taxpayer
17    shall  be  liable  for  penalties  and   interest   on   such
18    difference.
19        If a retailer of motor fuel is entitled to a credit under
20    Section 2d of this Act which exceeds the taxpayer's liability
21    to  the  Department  under  this  Act for the month which the
22    taxpayer is filing a return, the Department shall  issue  the
23    taxpayer a credit memorandum for the excess.
24        Beginning  January  1,  1990,  each  month the Department
25    shall pay into the Local Government Tax Fund, a special  fund
26    in  the  State  treasury  which  is  hereby  created, the net
27    revenue realized for the preceding month from the 1%  tax  on
28    sales  of  food for human consumption which is to be consumed
29    off the premises where  it  is  sold  (other  than  alcoholic
30    beverages,  soft  drinks and food which has been prepared for
31    immediate consumption) and prescription  and  nonprescription
32    medicines,  drugs,  medical  appliances  and  insulin,  urine
33    testing materials, syringes and needles used by diabetics.
34        Beginning  January  1,  1990,  each  month the Department
 
SB1453 Enrolled            -54-                LRB9111084SMdv
 1    shall pay into the County and Mass Transit District  Fund,  a
 2    special  fund  in the State treasury which is hereby created,
 3    4% of the net revenue realized for the preceding  month  from
 4    the 6.25% general rate.
 5        Beginning  January  1,  1990,  each  month the Department
 6    shall pay into the Local Government Tax Fund 16% of  the  net
 7    revenue  realized  for  the  preceding  month  from the 6.25%
 8    general rate  on  the  selling  price  of  tangible  personal
 9    property.
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 this Act, Section 9 of the Use Tax Act, Section 9  of  the
19    Service  Use Tax Act, and Section 9 of the Service Occupation
20    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
21    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
22    moneys being hereinafter called the "Tax Act Amount", and (2)
23    the amount transferred to the Build Illinois  Fund  from  the
24    State  and Local Sales Tax Reform Fund shall be less than the
25    Annual Specified Amount (as hereinafter defined),  an  amount
26    equal  to  the  difference shall be immediately paid into the
27    Build  Illinois  Fund  from  other  moneys  received  by  the
28    Department pursuant to the Tax Acts;  the  "Annual  Specified
29    Amount"  means  the  amounts specified below for fiscal years
30    1986 through 1993:
31             Fiscal Year              Annual Specified Amount
32                 1986                       $54,800,000
33                 1987                       $76,650,000
34                 1988                       $80,480,000
 
SB1453 Enrolled            -55-                LRB9111084SMdv
 1                 1989                       $88,510,000
 2                 1990                       $115,330,000
 3                 1991                       $145,470,000
 4                 1992                       $182,730,000
 5                 1993                      $206,520,000;
 6    and means the Certified Annual Debt Service  Requirement  (as
 7    defined  in Section 13 of the Build Illinois Bond Act) or the
 8    Tax Act Amount, whichever is greater, for  fiscal  year  1994
 9    and  each  fiscal year thereafter; and further provided, that
10    if on the last business day of any month the sum of  (1)  the
11    Tax  Act  Amount  required  to  be  deposited  into the Build
12    Illinois Bond Account in the Build Illinois Fund during  such
13    month  and  (2)  the amount transferred to the Build Illinois
14    Fund from the State and Local Sales  Tax  Reform  Fund  shall
15    have  been  less than 1/12 of the Annual Specified Amount, an
16    amount equal to the difference shall be immediately paid into
17    the Build Illinois Fund from other  moneys  received  by  the
18    Department  pursuant  to the Tax Acts; and, further provided,
19    that in no  event  shall  the  payments  required  under  the
20    preceding proviso result in aggregate payments into the Build
21    Illinois Fund pursuant to this clause (b) for any fiscal year
22    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
23    the Annual  Specified  Amount  for  such  fiscal  year.   The
24    amounts payable into the Build Illinois Fund under clause (b)
25    of the first sentence in this paragraph shall be payable only
26    until such time as the aggregate amount on deposit under each
27    trust   indenture   securing  Bonds  issued  and  outstanding
28    pursuant to the Build Illinois Bond Act is sufficient, taking
29    into account any future investment income, to fully  provide,
30    in  accordance  with such indenture, for the defeasance of or
31    the payment  of  the  principal  of,  premium,  if  any,  and
32    interest  on  the  Bonds secured by such indenture and on any
33    Bonds expected to be issued thereafter and all fees and costs
34    payable  with  respect  thereto,  all  as  certified  by  the
 
SB1453 Enrolled            -56-                LRB9111084SMdv
 1    Director of the  Bureau  of  the  Budget.   If  on  the  last
 2    business  day  of  any  month  in which Bonds are outstanding
 3    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
 4    moneys  deposited  in  the Build Illinois Bond Account in the
 5    Build Illinois Fund in such month  shall  be  less  than  the
 6    amount  required  to  be  transferred  in such month from the
 7    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 8    Retirement  and  Interest  Fund pursuant to Section 13 of the
 9    Build Illinois Bond Act, an amount equal to  such  deficiency
10    shall  be  immediately paid from other moneys received by the
11    Department pursuant to the Tax Acts  to  the  Build  Illinois
12    Fund;  provided,  however, that any amounts paid to the Build
13    Illinois Fund in any fiscal year pursuant  to  this  sentence
14    shall be deemed to constitute payments pursuant to clause (b)
15    of  the first sentence of this paragraph and shall reduce the
16    amount otherwise payable for such  fiscal  year  pursuant  to
17    that  clause  (b).   The  moneys  received  by the Department
18    pursuant to this Act and required to be  deposited  into  the
19    Build  Illinois  Fund  are  subject  to the pledge, claim and
20    charge set forth in Section 12 of  the  Build  Illinois  Bond
21    Act.
22        Subject  to  payment  of  amounts into the Build Illinois
23    Fund as  provided  in  the  preceding  paragraph  or  in  any
24    amendment  thereto hereafter enacted, the following specified
25    monthly  installment  of  the   amount   requested   in   the
26    certificate  of  the  Chairman  of  the Metropolitan Pier and
27    Exposition Authority provided  under  Section  8.25f  of  the
28