State of Illinois
91st General Assembly
Legislation
4th Special Session

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91_SB1310enr

 
SB1310 Enrolled                                LRB9110257SMdv

 1        AN ACT in relation to taxes.

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

 4        Section 3.  The State Finance Act is amended by  changing
 5    Sections 6z-18 and 6z-20 as follows:

 6        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 7        Sec.  6z-18.   A portion of the money paid into the Local
 8    Government Tax Fund from sales of food for human  consumption
 9    which  is  to  be  consumed off the premises where it is sold
10    (other than alcoholic beverages, soft drinks and  food  which
11    has been prepared for immediate consumption) and prescription
12    and  nonprescription medicines, drugs, medical appliances and
13    insulin, urine testing materials, syringes and  needles  used
14    by  diabetics,  which  occurred  in  municipalities, shall be
15    distributed to each municipality based upon the  sales  which
16    occurred  in  that  municipality.   The  remainder  shall  be
17    distributed  to  each  county  based  upon  the  sales  which
18    occurred in the unincorporated area of that county.
19        A portion of the money paid into the Local Government Tax
20    Fund from the 6.25% general use tax rate on the selling price
21    of  tangible  personal  property  which  is purchased outside
22    Illinois at retail from a retailer and  which  is  titled  or
23    registered  by any agency of this State's government shall be
24    distributed to municipalities as provided in this  paragraph.
25    Each  municipality  shall  receive the amount attributable to
26    sales  for  which   Illinois   addresses   for   titling   or
27    registration   purposes   are   given   as   being   in  such
28    municipality.  The remainder of the money paid into the Local
29    Government Tax Fund from such sales shall be  distributed  to
30    counties.   Each county shall receive the amount attributable
31    to  sales  for  which  Illinois  addresses  for  titling   or
 
SB1310 Enrolled            -2-                 LRB9110257SMdv
 1    registration  purposes  are  given  as  being  located in the
 2    unincorporated area of such county.
 3        A portion of the money paid into the Local Government Tax
 4    Fund from the 6.25% general rate (and, beginning July 1, 2000
 5    and through December 31, 2000, the 1.25% rate on  motor  fuel
 6    and   gasohol)   on  sales  subject  to  taxation  under  the
 7    Retailers' Occupation Tax Act and the Service Occupation  Tax
 8    Act,  which  occurred in municipalities, shall be distributed
 9    to each municipality, based upon the sales which occurred  in
10    that municipality. The remainder shall be distributed to each
11    county,   based   upon   the  sales  which  occurred  in  the
12    unincorporated area of such county.
13        For the purpose of determining allocation  to  the  local
14    government unit, a retail sale by a producer of coal or other
15    mineral  mined  in  Illinois is a sale at retail at the place
16    where  the  coal  or  other  mineral  mined  in  Illinois  is
17    extracted from the earth.  This paragraph does not  apply  to
18    coal  or other mineral when it is delivered or shipped by the
19    seller to the purchaser at a point outside Illinois  so  that
20    the  sale is exempt under the United States Constitution as a
21    sale in interstate or foreign commerce.
22        Whenever the Department determines that a refund of money
23    paid into the Local Government Tax Fund should be made  to  a
24    claimant   instead   of  issuing  a  credit  memorandum,  the
25    Department shall notify  the  State  Comptroller,  who  shall
26    cause  the order to be drawn for the amount specified, and to
27    the person named, in such notification from  the  Department.
28    Such  refund  shall be paid by the State Treasurer out of the
29    Local Government Tax Fund.
30        On or before the 25th day of  each  calendar  month,  the
31    Department  shall  prepare and certify to the Comptroller the
32    disbursement of stated sums of money to named  municipalities
33    and  counties,  the  municipalities  and counties to be those
34    entitled to distribution of taxes or penalties  paid  to  the
 
SB1310 Enrolled            -3-                 LRB9110257SMdv
 1    Department  during  the  second preceding calendar month. The
 2    amount to be paid to each municipality or county shall be the
 3    amount (not including credit memoranda) collected during  the
 4    second  preceding  calendar  month by the Department and paid
 5    into the Local  Government  Tax  Fund,  plus  an  amount  the
 6    Department  determines  is  necessary  to  offset any amounts
 7    which were erroneously paid to a different taxing  body,  and
 8    not  including  an amount equal to the amount of refunds made
 9    during the second preceding calendar month by the Department,
10    and not including any amount which the Department  determines
11    is  necessary  to  offset  any amounts which are payable to a
12    different taxing  body  but  were  erroneously  paid  to  the
13    municipality or county.  Within 10 days after receipt, by the
14    Comptroller,   of   the  disbursement  certification  to  the
15    municipalities and counties,  provided for in this Section to
16    be  given  to  the  Comptroller  by   the   Department,   the
17    Comptroller  shall  cause  the  orders  to  be  drawn for the
18    respective  amounts  in  accordance   with   the   directions
19    contained in such certification.
20        When  certifying  the amount of monthly disbursement to a
21    municipality or county under  this  Section,  the  Department
22    shall increase or decrease that amount by an amount necessary
23    to  offset  any  misallocation of previous disbursements. The
24    offset amount  shall  be  the  amount  erroneously  disbursed
25    within  the  6  months  preceding the time a misallocation is
26    discovered.
27        The  provisions  directing  the  distributions  from  the
28    special fund in the  State  Treasury  provided  for  in  this
29    Section   shall  constitute  an  irrevocable  and  continuing
30    appropriation of all amounts as provided  herein.  The  State
31    Treasurer and State Comptroller are hereby authorized to make
32    distributions as provided in this Section.
33        In construing any development, redevelopment, annexation,
34    preannexation  or  other  lawful agreement in effect prior to
 
SB1310 Enrolled            -4-                 LRB9110257SMdv
 1    September 1, 1990, which describes or refers to receipts from
 2    a county or municipal retailers' occupation tax, use  tax  or
 3    service  occupation  tax  which  now  cannot be imposed, such
 4    description or reference  shall  be  deemed  to  include  the
 5    replacement  revenue  for  such  abolished taxes, distributed
 6    from the Local Government Tax Fund.
 7    (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99.)

 8        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
 9        Sec. 6z-20. Of the money received from the 6.25%  general
10    rate  (and,  beginning  July 1, 2000 and through December 31,
11    2000, the 1.25% rate on motor  fuel  and  gasohol)  on  sales
12    subject  to  taxation under the Retailers' Occupation Tax Act
13    and Service Occupation Tax Act and paid into the  County  and
14    Mass  Transit  District  Fund,  distribution  to the Regional
15    Transportation  Authority  tax  fund,  created  pursuant   to
16    Section  4.03  of  the Regional Transportation Authority Act,
17    for deposit therein shall be made based upon the retail sales
18    occurring in a county having more than 3,000,000 inhabitants.
19    The remainder shall be  distributed  to  each  county  having
20    3,000,000  or  fewer  inhabitants based upon the retail sales
21    occurring in each such county.
22        For the purpose of determining allocation  to  the  local
23    government unit, a retail sale by a producer of coal or other
24    mineral  mined  in  Illinois is a sale at retail at the place
25    where  the  coal  or  other  mineral  mined  in  Illinois  is
26    extracted from the earth.  This paragraph does not  apply  to
27    coal  or other mineral when it is delivered or shipped by the
28    seller to the purchaser at a point outside Illinois  so  that
29    the  sale is exempt under the United States Constitution as a
30    sale in interstate or foreign commerce.
31        Of the money received from the 6.25% general use tax rate
32    on tangible personal  property  which  is  purchased  outside
33    Illinois  at  retail  from  a retailer and which is titled or
 
SB1310 Enrolled            -5-                 LRB9110257SMdv
 1    registered by any agency of this State's government and  paid
 2    into  the  County  and Mass Transit District Fund, the amount
 3    for which Illinois  addresses  for  titling  or  registration
 4    purposes  are  given as being in each county having more than
 5    3,000,000 inhabitants shall be distributed into the  Regional
 6    Transportation   Authority  tax  fund,  created  pursuant  to
 7    Section 4.03 of the Regional  Transportation  Authority  Act.
 8    The  remainder  of  the  money  paid from such sales shall be
 9    distributed to each county based on sales for which  Illinois
10    addresses  for  titling or registration purposes are given as
11    being located  in  the  county.   Any  money  paid  into  the
12    Regional  Transportation  Authority  Occupation  and  Use Tax
13    Replacement Fund from the County and  Mass  Transit  District
14    Fund  prior  to  January 14, 1991, which has not been paid to
15    the Authority prior to that date, shall be transferred to the
16    Regional Transportation Authority tax fund.
17        Whenever the Department determines that a refund of money
18    paid into the County and Mass Transit District Fund should be
19    made to a claimant instead of issuing  a  credit  memorandum,
20    the  Department shall notify the State Comptroller, who shall
21    cause the order to be drawn for the amount specified, and  to
22    the  person  named, in such notification from the Department.
23    Such refund shall be paid by the State Treasurer out  of  the
24    County and Mass Transit District Fund.
25        On  or  before  the  25th day of each calendar month, the
26    Department shall prepare and certify to the  Comptroller  the
27    disbursement   of  stated  sums  of  money  to  the  Regional
28    Transportation Authority and to named counties, the  counties
29    to   be   those  entitled  to  distribution,  as  hereinabove
30    provided, of taxes or penalties paid to the Department during
31    the second preceding calendar month.  The amount to  be  paid
32    to  the  Regional  Transportation  Authority  and each county
33    having 3,000,000 or fewer inhabitants  shall  be  the  amount
34    (not  including credit memoranda) collected during the second
 
SB1310 Enrolled            -6-                 LRB9110257SMdv
 1    preceding calendar month by the Department and paid into  the
 2    County  and  Mass  Transit  District Fund, plus an amount the
 3    Department determines is  necessary  to  offset  any  amounts
 4    which  were  erroneously paid to a different taxing body, and
 5    not including an amount equal to the amount of  refunds  made
 6    during the second preceding calendar month by the Department,
 7    and  not including any amount which the Department determines
 8    is necessary to offset any amounts which were  payable  to  a
 9    different  taxing  body  but  were  erroneously  paid  to the
10    Regional Transportation Authority or county.  Within 10  days
11    after  receipt,  by  the  Comptroller,  of  the  disbursement
12    certification  to  the  Regional Transportation Authority and
13    counties, provided for in this Section to  be  given  to  the
14    Comptroller  by  the  Department, the Comptroller shall cause
15    the  orders  to  be  drawn  for  the  respective  amounts  in
16    accordance   with   the   directions   contained   in    such
17    certification.
18        When  certifying  the amount of a monthly disbursement to
19    the Regional Transportation Authority or to  a  county  under
20    this  Section, the Department shall increase or decrease that
21    amount by an amount necessary to offset any misallocation  of
22    previous  disbursements.   The  offset  amount  shall  be the
23    amount erroneously disbursed within the  6  months  preceding
24    the time a misallocation is discovered.
25        The  provisions  directing  the  distributions  from  the
26    special  fund  in  the  State  Treasury  provided for in this
27    Section and from the Regional  Transportation  Authority  tax
28    fund  created  by Section 4.03 of the Regional Transportation
29    Authority Act shall constitute an irrevocable and  continuing
30    appropriation  of  all  amounts as provided herein. The State
31    Treasurer and State Comptroller are hereby authorized to make
32    distributions as provided in this Section.
33        In construing any development, redevelopment, annexation,
34    preannexation or other lawful agreement in  effect  prior  to
 
SB1310 Enrolled            -7-                 LRB9110257SMdv
 1    September 1, 1990, which describes or refers to receipts from
 2    a  county  or municipal retailers' occupation tax, use tax or
 3    service occupation tax which  now  cannot  be  imposed,  such
 4    description  or  reference  shall  be  deemed  to include the
 5    replacement revenue for  such  abolished  taxes,  distributed
 6    from  the  County  and  Mass  Transit  District Fund or Local
 7    Government Distributive Fund, as the case may be.
 8    (Source: P.A. 90-491, eff. 1-1-98.)

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

11        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
12        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
13    this Section, the tax imposed by this Act is at the  rate  of
14    6.25%  of  either the selling price or the fair market value,
15    if any, of the tangible  personal  property.   In  all  cases
16    where  property  functionally used or consumed is the same as
17    the property that was purchased at retail, then  the  tax  is
18    imposed  on  the selling price of the property.  In all cases
19    where property functionally used or consumed is a  by-product
20    or  waste  product  that  has  been refined, manufactured, or
21    produced from property purchased at retail, then the  tax  is
22    imposed on the lower of the fair market value, if any, of the
23    specific  property  so  used  in this State or on the selling
24    price of the property purchased at retail.  For  purposes  of
25    this  Section  "fair  market  value" means the price at which
26    property would change hands between a  willing  buyer  and  a
27    willing  seller, neither being under any compulsion to buy or
28    sell and both having reasonable  knowledge  of  the  relevant
29    facts. The fair market value shall be established by Illinois
30    sales   by   the  taxpayer  of  the  same  property  as  that
31    functionally used or consumed, or if there are no such  sales
32    by  the  taxpayer,  then  comparable  sales  or  purchases of
 
SB1310 Enrolled            -8-                 LRB9110257SMdv
 1    property of like kind and character in Illinois.
 2        Beginning on July 1, 2000 and through December 31,  2000,
 3    with  respect to motor fuel, as defined in Section 1.1 of the
 4    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 5    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 6        With  respect  to  gasohol,  the  tax imposed by this Act
 7    applies to 70% of the proceeds of  sales  made  on  or  after
 8    January  1, 1990, and before July 1, 2003, and to 100% of the
 9    proceeds of sales made thereafter.
10        With respect to food for human consumption that is to  be
11    consumed  off  the  premises  where  it  is  sold (other than
12    alcoholic beverages, soft drinks,  and  food  that  has  been
13    prepared  for  immediate  consumption)  and  prescription and
14    nonprescription   medicines,   drugs,   medical   appliances,
15    modifications to a motor vehicle for the purpose of rendering
16    it usable by a disabled person, and  insulin,  urine  testing
17    materials, syringes, and needles used by diabetics, for human
18    use,  the  tax is imposed at the rate of 1%. For the purposes
19    of this Section, the term "soft drinks" means  any  complete,
20    finished,    ready-to-use,   non-alcoholic   drink,   whether
21    carbonated or not, including but not limited to  soda  water,
22    cola, fruit juice, vegetable juice, carbonated water, and all
23    other  preparations commonly known as soft drinks of whatever
24    kind or description that  are  contained  in  any  closed  or
25    sealed bottle, can, carton, or container, regardless of size.
26    "Soft  drinks"  does  not include coffee, tea, non-carbonated
27    water, infant formula, milk or milk products  as  defined  in
28    the Grade A Pasteurized Milk and Milk Products Act, or drinks
29    containing 50% or more natural fruit or vegetable juice.
30        Notwithstanding  any  other provisions of this Act, "food
31    for human consumption that is to be consumed off the premises
32    where it is sold" includes all food sold  through  a  vending
33    machine,  except  soft  drinks  and  food  products  that are
34    dispensed hot from  a  vending  machine,  regardless  of  the
 
SB1310 Enrolled            -9-                 LRB9110257SMdv
 1    location of the vending machine.
 2        If  the  property  that  is  purchased  at  retail from a
 3    retailer  is  acquired  outside  Illinois  and  used  outside
 4    Illinois before being brought to Illinois for use here and is
 5    taxable under this Act, the "selling price" on which the  tax
 6    is  computed  shall be reduced by an amount that represents a
 7    reasonable allowance for depreciation for the period of prior
 8    out-of-state use.
 9    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
10    91-51, eff. 6-30-99.)

11        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
12        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
13    aircraft, and trailers that are  required  to  be  registered
14    with  an  agency  of  this  State,  each retailer required or
15    authorized to collect the tax imposed by this Act  shall  pay
16    to the Department the amount of such tax (except as otherwise
17    provided)  at the time when he is required to file his return
18    for the period during which such tax was  collected,  less  a
19    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
20    after January 1, 1990, or $5 per calendar year, whichever  is
21    greater,  which  is  allowed  to  reimburse  the retailer for
22    expenses incurred in collecting  the  tax,  keeping  records,
23    preparing and filing returns, remitting the tax and supplying
24    data  to the Department on request.  In the case of retailers
25    who report and pay the tax on a  transaction  by  transaction
26    basis,  as  provided  in this Section, such discount shall be
27    taken with each such tax  remittance  instead  of  when  such
28    retailer  files  his  periodic  return.   A retailer need not
29    remit that part of any tax collected by  him  to  the  extent
30    that  he  is required to remit and does remit the tax imposed
31    by the Retailers' Occupation Tax Act,  with  respect  to  the
32    sale of the same property.
33        Where  such  tangible  personal  property is sold under a
 
SB1310 Enrolled            -10-                LRB9110257SMdv
 1    conditional sales contract, or under any other form  of  sale
 2    wherein  the payment of the principal sum, or a part thereof,
 3    is extended beyond the close of  the  period  for  which  the
 4    return  is filed, the retailer, in collecting the tax (except
 5    as to motor vehicles, watercraft, aircraft, and trailers that
 6    are required to be registered with an agency of this  State),
 7    may  collect  for  each  tax  return  period,  only  the  tax
 8    applicable  to  that  part  of  the  selling  price  actually
 9    received during such tax return period.
10        Except  as  provided  in  this  Section, on or before the
11    twentieth day of each calendar  month,  such  retailer  shall
12    file  a return for the preceding calendar month.  Such return
13    shall be filed on forms  prescribed  by  the  Department  and
14    shall   furnish   such  information  as  the  Department  may
15    reasonably require.
16        The Department may require  returns  to  be  filed  on  a
17    quarterly  basis.  If so required, a return for each calendar
18    quarter shall be filed on or before the twentieth day of  the
19    calendar  month  following  the end of such calendar quarter.
20    The taxpayer shall also file a return with the Department for
21    each of the first two months of each calendar quarter, on  or
22    before  the  twentieth  day  of the following calendar month,
23    stating:
24             1.  The name of the seller;
25             2.  The address of the principal place  of  business
26        from which he engages in the business of selling tangible
27        personal property at retail in this State;
28             3.  The total amount of taxable receipts received by
29        him  during  the  preceding  calendar month from sales of
30        tangible personal property by him during  such  preceding
31        calendar  month,  including receipts from charge and time
32        sales, but less all deductions allowed by law;
33             4.  The amount of credit provided in Section  2d  of
34        this Act;
 
SB1310 Enrolled            -11-                LRB9110257SMdv
 1             5.  The amount of tax due;
 2             5-5.  The signature of the taxpayer; and
 3             6.  Such   other   reasonable   information  as  the
 4        Department may require.
 5        If a taxpayer fails to sign a return within 30 days after
 6    the proper notice and demand for signature by the Department,
 7    the return shall be considered valid and any amount shown  to
 8    be due on the return shall be deemed assessed.
 9        Beginning  October 1, 1993, a taxpayer who has an average
10    monthly tax liability of $150,000  or  more  shall  make  all
11    payments  required  by  rules of the Department by electronic
12    funds transfer. Beginning October 1, 1994, a taxpayer who has
13    an average monthly tax liability of $100,000  or  more  shall
14    make  all  payments  required  by  rules of the Department by
15    electronic funds  transfer.  Beginning  October  1,  1995,  a
16    taxpayer  who has an average monthly tax liability of $50,000
17    or more shall make all payments  required  by  rules  of  the
18    Department by electronic funds transfer. Beginning October 1,
19    2000,  a taxpayer who has an annual tax liability of $200,000
20    or more shall make all payments  required  by  rules  of  the
21    Department  by  electronic  funds transfer.  The term "annual
22    tax liability" shall be the sum of the taxpayer's liabilities
23    under  this  Act,  and  under  all  other  State  and   local
24    occupation  and  use tax laws administered by the Department,
25    for  the  immediately  preceding  calendar  year.  The   term
26    "average   monthly  tax  liability"  means  the  sum  of  the
27    taxpayer's liabilities under this Act, and  under  all  other
28    State  and  local occupation and use tax laws administered by
29    the Department, for the immediately preceding  calendar  year
30    divided by 12.
31        Before  August  1  of  each  year  beginning in 1993, the
32    Department  shall  notify  all  taxpayers  required  to  make
33    payments by electronic funds transfer. All taxpayers required
34    to make payments by  electronic  funds  transfer  shall  make
 
SB1310 Enrolled            -12-                LRB9110257SMdv
 1    those payments for a minimum of one year beginning on October
 2    1.
 3        Any  taxpayer not required to make payments by electronic
 4    funds transfer may make payments by electronic funds transfer
 5    with the permission of the Department.
 6        All taxpayers required  to  make  payment  by  electronic
 7    funds  transfer  and  any taxpayers authorized to voluntarily
 8    make payments by electronic funds transfer shall  make  those
 9    payments in the manner authorized by the Department.
10        The Department shall adopt such rules as are necessary to
11    effectuate  a  program  of  electronic funds transfer and the
12    requirements of this Section.
13        Before October 1, 2000, if the taxpayer's average monthly
14    tax  liability  to  the  Department  under  this   Act,   the
15    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
16    Act, the Service Use Tax Act was $10,000 or more  during  the
17    preceding  4  complete  calendar  quarters,  he  shall file a
18    return with the Department each month by the 20th day of  the
19    month   next  following  the  month  during  which  such  tax
20    liability  is  incurred  and  shall  make  payments  to   the
21    Department  on  or before the 7th, 15th, 22nd and last day of
22    the month during which such liability  is  incurred.  On  and
23    after  October 1, 2000, if the taxpayer's average monthly tax
24    liability to the Department under this  Act,  the  Retailers'
25    Occupation  Tax  Act, the Service Occupation Tax Act, and the
26    Service Use Tax Act was $20,000 or more during the  preceding
27    4 complete calendar quarters, he shall file a return with the
28    Department  each  month  by  the  20th  day of the month next
29    following the  month  during  which  such  tax  liability  is
30    incurred  and  shall  make  payment  to  the Department on or
31    before the 7th, 15th, 22nd and  last  day  of  or  the  month
32    during  which such liability is incurred. If the month during
33    which such tax liability is incurred began prior  to  January
34    1,  1985,  each payment shall be in an amount equal to 1/4 of
 
SB1310 Enrolled            -13-                LRB9110257SMdv
 1    the taxpayer's actual liability for the month  or  an  amount
 2    set  by  the  Department  not  to  exceed  1/4 of the average
 3    monthly liability of the taxpayer to the Department  for  the
 4    preceding  4  complete calendar quarters (excluding the month
 5    of highest liability and the month  of  lowest  liability  in
 6    such  4  quarter period).  If the month during which such tax
 7    liability is incurred begins on or after January 1, 1985, and
 8    prior to January 1, 1987, 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 year.  If the month during
12    which such tax liability  is  incurred  begins  on  or  after
13    January  1,  1987, and prior to January 1, 1988, each payment
14    shall be in an amount equal to 22.5% of the taxpayer's actual
15    liability for the month or 26.25% of the taxpayer's liability
16    for the same calendar month of the preceding  year.   If  the
17    month  during  which such tax liability is incurred begins on
18    or after January 1, 1988, and prior to January  1,  1989,  or
19    begins  on or after January 1, 1996, each payment shall be in
20    an amount equal to 22.5% of the taxpayer's  actual  liability
21    for the month or 25% of the taxpayer's liability for the same
22    calendar  month  of  the preceding year.  If the month during
23    which such tax liability  is  incurred  begins  on  or  after
24    January  1,  1989, and prior to January 1, 1996, each payment
25    shall be in an amount equal to 22.5% of the taxpayer's actual
26    liability for the month or 25% of  the  taxpayer's  liability
27    for  the same calendar month of the preceding year or 100% of
28    the taxpayer's  actual  liability  for  the  quarter  monthly
29    reporting   period.   The  amount  of  such  quarter  monthly
30    payments shall be credited against the final tax liability of
31    the taxpayer's return for  that  month.   Before  October  1,
32    2000,  once  applicable,  the  requirement  of  the making of
33    quarter monthly payments to  the  Department  shall  continue
34    until  such  taxpayer's  average  monthly  liability  to  the
 
SB1310 Enrolled            -14-                LRB9110257SMdv
 1    Department  during the preceding 4 complete calendar quarters
 2    (excluding the month of highest liability and  the  month  of
 3    lowest   liability)  is  less  than  $9,000,  or  until  such
 4    taxpayer's average monthly liability  to  the  Department  as
 5    computed  for  each  calendar  quarter  of  the  4  preceding
 6    complete  calendar  quarter  period  is  less  than  $10,000.
 7    However,  if  a  taxpayer  can  show  the  Department  that a
 8    substantial change in the taxpayer's  business  has  occurred
 9    which  causes  the  taxpayer  to  anticipate that his average
10    monthly tax liability for the reasonably  foreseeable  future
11    will fall below the $10,000 threshold stated above, then such
12    taxpayer  may  petition  the  Department  for  change in such
13    taxpayer's reporting status. On and after  October  1,  2000,
14    once  applicable,  the  requirement  of the making of quarter
15    monthly payments to the Department shall continue until  such
16    taxpayer's average monthly liability to the Department during
17    the  preceding  4  complete  calendar quarters (excluding the
18    month of highest liability and the month of lowest liability)
19    is less than $19,000 or until such taxpayer's average monthly
20    liability to the Department as  computed  for  each  calendar
21    quarter  of  the 4 preceding complete calendar quarter period
22    is less than $20,000.  However, if a taxpayer  can  show  the
23    Department  that  a  substantial  change  in  the  taxpayer's
24    business has occurred which causes the taxpayer to anticipate
25    that  his  average  monthly  tax liability for the reasonably
26    foreseeable future will  fall  below  the  $20,000  threshold
27    stated  above, then such taxpayer may petition the Department
28    for a change  in  such  taxpayer's  reporting  status.    The
29    Department  shall  change  such  taxpayer's  reporting status
30    unless it finds that such change is seasonal  in  nature  and
31    not  likely  to  be  long  term.  If any such quarter monthly
32    payment is not paid at the time or in the amount required  by
33    this Section, then the taxpayer shall be liable for penalties
34    and interest on the difference between the minimum amount due
 
SB1310 Enrolled            -15-                LRB9110257SMdv
 1    and  the  amount of such quarter monthly payment actually and
 2    timely paid, except insofar as the  taxpayer  has  previously
 3    made  payments  for that month to the Department in excess of
 4    the minimum payments  previously  due  as  provided  in  this
 5    Section.    The  Department  shall  make reasonable rules and
 6    regulations to govern the quarter monthly payment amount  and
 7    quarter monthly payment dates for taxpayers who file on other
 8    than a calendar monthly basis.
 9        If  any such payment provided for in this Section exceeds
10    the taxpayer's liabilities under  this  Act,  the  Retailers'
11    Occupation  Tax  Act,  the Service Occupation Tax Act and the
12    Service Use Tax Act, as shown by an original monthly  return,
13    the   Department   shall  issue  to  the  taxpayer  a  credit
14    memorandum no later than 30 days after the date  of  payment,
15    which  memorandum  may  be  submitted  by the taxpayer to the
16    Department in payment of tax  liability  subsequently  to  be
17    remitted  by the taxpayer to the Department or be assigned by
18    the taxpayer to  a  similar  taxpayer  under  this  Act,  the
19    Retailers' Occupation Tax Act, the Service Occupation Tax Act
20    or  the  Service  Use  Tax Act, in accordance with reasonable
21    rules and regulations to be  prescribed  by  the  Department,
22    except  that  if  such excess payment is shown on an original
23    monthly return and is made after December 31, 1986, no credit
24    memorandum shall be issued, unless requested by the taxpayer.
25    If no such request is made,  the  taxpayer  may  credit  such
26    excess  payment  against  tax  liability  subsequently  to be
27    remitted by the taxpayer to the Department  under  this  Act,
28    the Retailers' Occupation Tax Act, the Service Occupation Tax
29    Act or the Service Use Tax Act, in accordance with reasonable
30    rules  and  regulations prescribed by the Department.  If the
31    Department subsequently determines that all or  any  part  of
32    the  credit  taken  was not actually due to the taxpayer, the
33    taxpayer's 2.1% or 1.75% vendor's discount shall  be  reduced
34    by  2.1%  or 1.75% of the difference between the credit taken
 
SB1310 Enrolled            -16-                LRB9110257SMdv
 1    and that actually due, and the taxpayer shall be  liable  for
 2    penalties and interest on such difference.
 3        If  the  retailer is otherwise required to file a monthly
 4    return and if the retailer's average monthly tax liability to
 5    the Department does  not  exceed  $200,  the  Department  may
 6    authorize  his returns to be filed on a quarter annual basis,
 7    with the return for January, February, and March of  a  given
 8    year  being due by April 20 of such year; with the return for
 9    April, May and June of a given year being due by July  20  of
10    such  year; with the return for July, August and September of
11    a given year being due by October 20 of such year,  and  with
12    the return for October, November and December of a given year
13    being due by January 20 of the following year.
14        If  the  retailer is otherwise required to file a monthly
15    or quarterly return and if the retailer's average monthly tax
16    liability  to  the  Department  does  not  exceed  $50,   the
17    Department may authorize his returns to be filed on an annual
18    basis,  with the return for a given year being due by January
19    20 of the following year.
20        Such quarter annual and annual returns, as  to  form  and
21    substance,  shall  be  subject  to  the  same requirements as
22    monthly returns.
23        Notwithstanding  any  other   provision   in   this   Act
24    concerning  the  time  within  which  a retailer may file his
25    return, in the case of any retailer who ceases to engage in a
26    kind of business  which  makes  him  responsible  for  filing
27    returns  under  this  Act,  such  retailer shall file a final
28    return under this Act with the Department not more  than  one
29    month after discontinuing such business.
30        In  addition, with respect to motor vehicles, watercraft,
31    aircraft, and trailers that are  required  to  be  registered
32    with  an  agency  of  this State, every retailer selling this
33    kind of tangible  personal  property  shall  file,  with  the
34    Department,  upon a form to be prescribed and supplied by the
 
SB1310 Enrolled            -17-                LRB9110257SMdv
 1    Department, a separate return for each such item of  tangible
 2    personal  property  which  the  retailer  sells,  except that
 3    where, in the  same  transaction,  a  retailer  of  aircraft,
 4    watercraft,  motor  vehicles  or trailers transfers more than
 5    one aircraft, watercraft, motor vehicle or trailer to another
 6    aircraft, watercraft, motor vehicle or trailer  retailer  for
 7    the  purpose of resale, that seller for resale may report the
 8    transfer of all the aircraft, watercraft, motor  vehicles  or
 9    trailers  involved  in  that transaction to the Department on
10    the same uniform invoice-transaction reporting  return  form.
11    For  purposes  of this Section, "watercraft" means a Class 2,
12    Class 3, or Class 4 watercraft as defined in Section  3-2  of
13    the  Boat Registration and Safety Act, a personal watercraft,
14    or any boat equipped with an inboard motor.
15        The transaction reporting return in  the  case  of  motor
16    vehicles  or trailers that are required to be registered with
17    an agency of this State, shall be the same  document  as  the
18    Uniform  Invoice referred to in Section 5-402 of the Illinois
19    Vehicle Code and must  show  the  name  and  address  of  the
20    seller;  the name and address of the purchaser; the amount of
21    the  selling  price  including  the  amount  allowed  by  the
22    retailer for traded-in property, if any; the  amount  allowed
23    by the retailer for the traded-in tangible personal property,
24    if  any,  to the extent to which Section 2 of this Act allows
25    an exemption for the value of traded-in property; the balance
26    payable after deducting  such  trade-in  allowance  from  the
27    total  selling price; the amount of tax due from the retailer
28    with respect to such transaction; the amount of tax collected
29    from the purchaser by the retailer on  such  transaction  (or
30    satisfactory  evidence  that  such  tax  is  not  due in that
31    particular instance, if that is claimed to be the fact);  the
32    place  and  date  of the sale; a sufficient identification of
33    the property sold; such other information as is  required  in
34    Section  5-402  of  the Illinois Vehicle Code, and such other
 
SB1310 Enrolled            -18-                LRB9110257SMdv
 1    information as the Department may reasonably require.
 2        The  transaction  reporting  return  in   the   case   of
 3    watercraft and aircraft must show the name and address of the
 4    seller;  the name and address of the purchaser; the amount of
 5    the  selling  price  including  the  amount  allowed  by  the
 6    retailer for traded-in property, if any; the  amount  allowed
 7    by the retailer for the traded-in tangible personal property,
 8    if  any,  to the extent to which Section 2 of this Act allows
 9    an exemption for the value of traded-in property; the balance
10    payable after deducting  such  trade-in  allowance  from  the
11    total  selling price; the amount of tax due from the retailer
12    with respect to such transaction; the amount of tax collected
13    from the purchaser by the retailer on  such  transaction  (or
14    satisfactory  evidence  that  such  tax  is  not  due in that
15    particular instance, if that is claimed to be the fact);  the
16    place  and  date  of the sale, a sufficient identification of
17    the  property  sold,  and  such  other  information  as   the
18    Department may reasonably require.
19        Such  transaction  reporting  return  shall  be filed not
20    later than 20 days after the date of  delivery  of  the  item
21    that  is  being sold, but may be filed by the retailer at any
22    time  sooner  than  that  if  he  chooses  to  do  so.    The
23    transaction  reporting  return and tax remittance or proof of
24    exemption from the tax that is imposed by  this  Act  may  be
25    transmitted to the Department by way of the State agency with
26    which,  or  State  officer  with  whom, the tangible personal
27    property  must  be  titled  or  registered  (if  titling   or
28    registration  is  required) if the Department and such agency
29    or State officer determine that this procedure will  expedite
30    the processing of applications for title or registration.
31        With each such transaction reporting return, the retailer
32    shall  remit  the  proper  amount of tax due (or shall submit
33    satisfactory evidence that the sale is not taxable if that is
34    the case), to the Department or  its  agents,  whereupon  the
 
SB1310 Enrolled            -19-                LRB9110257SMdv
 1    Department  shall  issue,  in  the  purchaser's  name,  a tax
 2    receipt (or a certificate of exemption if the  Department  is
 3    satisfied  that the particular sale is tax exempt) which such
 4    purchaser may submit to  the  agency  with  which,  or  State
 5    officer  with  whom,  he  must title or register the tangible
 6    personal  property  that   is   involved   (if   titling   or
 7    registration  is  required)  in  support  of such purchaser's
 8    application for an Illinois certificate or other evidence  of
 9    title or registration to such tangible personal property.
10        No  retailer's failure or refusal to remit tax under this
11    Act precludes a user, who has paid  the  proper  tax  to  the
12    retailer,  from  obtaining  his certificate of title or other
13    evidence of title or registration (if titling or registration
14    is required) upon satisfying the Department  that  such  user
15    has paid the proper tax (if tax is due) to the retailer.  The
16    Department  shall  adopt  appropriate  rules to carry out the
17    mandate of this paragraph.
18        If the user who would otherwise pay tax to  the  retailer
19    wants  the transaction reporting return filed and the payment
20    of tax or proof of exemption made to  the  Department  before
21    the  retailer  is willing to take these actions and such user
22    has not paid the tax to the retailer, such user  may  certify
23    to  the fact of such delay by the retailer, and may (upon the
24    Department   being   satisfied   of   the   truth   of   such
25    certification)  transmit  the  information  required  by  the
26    transaction reporting return and the remittance  for  tax  or
27    proof  of exemption directly to the Department and obtain his
28    tax receipt or exemption determination, in  which  event  the
29    transaction  reporting  return  and  tax remittance (if a tax
30    payment was required) shall be credited by the Department  to
31    the  proper  retailer's  account  with  the  Department,  but
32    without  the  2.1%  or  1.75%  discount  provided for in this
33    Section being allowed.  When the user pays the  tax  directly
34    to  the  Department,  he shall pay the tax in the same amount
 
SB1310 Enrolled            -20-                LRB9110257SMdv
 1    and in the same form in which it would be remitted if the tax
 2    had been remitted to the Department by the retailer.
 3        Where a retailer collects the tax  with  respect  to  the
 4    selling  price  of  tangible personal property which he sells
 5    and the purchaser thereafter returns such  tangible  personal
 6    property  and  the retailer refunds the selling price thereof
 7    to the purchaser, such retailer shall  also  refund,  to  the
 8    purchaser,  the  tax  so  collected  from the purchaser. When
 9    filing his return for the period in which he refunds such tax
10    to the purchaser, the retailer may deduct the amount  of  the
11    tax  so  refunded  by him to the purchaser from any other use
12    tax which such retailer may be required to pay  or  remit  to
13    the Department, as shown by such return, if the amount of the
14    tax  to be deducted was previously remitted to the Department
15    by  such  retailer.   If  the  retailer  has  not  previously
16    remitted the amount of such tax  to  the  Department,  he  is
17    entitled  to  no deduction under this Act upon refunding such
18    tax to the purchaser.
19        Any retailer filing a return  under  this  Section  shall
20    also  include  (for  the  purpose  of paying tax thereon) the
21    total tax covered by such return upon the  selling  price  of
22    tangible  personal property purchased by him at retail from a
23    retailer, but as to which the tax imposed by this Act was not
24    collected from the retailer  filing  such  return,  and  such
25    retailer shall remit the amount of such tax to the Department
26    when filing such return.
27        If  experience  indicates  such action to be practicable,
28    the Department may prescribe and  furnish  a  combination  or
29    joint return which will enable retailers, who are required to
30    file   returns   hereunder  and  also  under  the  Retailers'
31    Occupation Tax Act, to furnish  all  the  return  information
32    required by both Acts on the one form.
33        Where  the retailer has more than one business registered
34    with the Department under separate  registration  under  this
 
SB1310 Enrolled            -21-                LRB9110257SMdv
 1    Act,  such retailer may not file each return that is due as a
 2    single return covering all such  registered  businesses,  but
 3    shall   file   separate  returns  for  each  such  registered
 4    business.
 5        Beginning January 1,  1990,  each  month  the  Department
 6    shall  pay  into the State and Local Sales Tax Reform Fund, a
 7    special fund in the State Treasury which is  hereby  created,
 8    the  net revenue realized for the preceding month from the 1%
 9    tax on sales of food for human consumption  which  is  to  be
10    consumed  off  the  premises  where  it  is  sold (other than
11    alcoholic beverages, soft drinks  and  food  which  has  been
12    prepared  for  immediate  consumption)  and  prescription and
13    nonprescription  medicines,  drugs,  medical  appliances  and
14    insulin, urine testing materials, syringes and  needles  used
15    by diabetics.
16        Beginning  January  1,  1990,  each  month the Department
17    shall pay into the County and Mass Transit District  Fund  4%
18    of  the net revenue realized for the preceding month from the
19    6.25% general rate on the selling price of tangible  personal
20    property which is purchased outside Illinois at retail from a
21    retailer  and  which  is titled or registered by an agency of
22    this State's government.
23        Beginning January 1,  1990,  each  month  the  Department
24    shall  pay  into the State and Local Sales Tax Reform Fund, a
25    special fund in the State Treasury, 20% of  the  net  revenue
26    realized  for the preceding month from the 6.25% general rate
27    on the selling price of  tangible  personal  property,  other
28    than  tangible  personal  property which is purchased outside
29    Illinois at retail from a retailer and  which  is  titled  or
30    registered by an agency of this State's government.
31        Beginning August 1, 2000, each month the Department shall
32    pay  into  the  State and Local Sales Tax Reform Fund 100% of
33    the net revenue realized for the  preceding  month  from  the
34    1.25% rate on the selling price of motor fuel and gasohol.
 
SB1310 Enrolled            -22-                LRB9110257SMdv
 1        Beginning  January  1,  1990,  each  month the Department
 2    shall pay into the Local Government Tax Fund 16% of  the  net
 3    revenue  realized  for  the  preceding  month  from the 6.25%
 4    general rate  on  the  selling  price  of  tangible  personal
 5    property which is purchased outside Illinois at retail from a
 6    retailer  and  which  is titled or registered by an agency of
 7    this State's government.
 8        Of the remainder of the moneys received by the Department
 9    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
10    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
11    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
12    into  the  Build Illinois Fund; provided, however, that if in
13    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
14    as the case may be, of the moneys received by the  Department
15    and required to be paid into the Build Illinois Fund pursuant
16    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
17    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
18    Section 9 of the Service Occupation Tax Act, such Acts  being
19    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
20    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
21    called  the  "Tax Act Amount", and (2) the amount transferred
22    to the Build Illinois Fund from the State and Local Sales Tax
23    Reform Fund shall be less than the  Annual  Specified  Amount
24    (as  defined  in  Section  3 of the Retailers' Occupation Tax
25    Act), an amount equal to the difference shall be  immediately
26    paid  into the Build Illinois Fund from other moneys received
27    by the Department pursuant  to  the  Tax  Acts;  and  further
28    provided,  that  if on the last business day of any month the
29    sum of (1) the Tax Act Amount required to be  deposited  into
30    the  Build  Illinois  Bond Account in the Build Illinois Fund
31    during such month and (2) the amount transferred during  such
32    month  to  the  Build  Illinois Fund from the State and Local
33    Sales Tax Reform Fund shall have been less than 1/12  of  the
34    Annual  Specified  Amount,  an amount equal to the difference
 
SB1310 Enrolled            -23-                LRB9110257SMdv
 1    shall be immediately paid into the Build Illinois  Fund  from
 2    other  moneys  received by the Department pursuant to the Tax
 3    Acts; and, further provided,  that  in  no  event  shall  the
 4    payments  required  under  the  preceding  proviso  result in
 5    aggregate payments into the Build Illinois Fund  pursuant  to
 6    this  clause (b) for any fiscal year in excess of the greater
 7    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 8    for such fiscal year; and, further provided, that the amounts
 9    payable into the Build Illinois Fund under  this  clause  (b)
10    shall be payable only until such time as the aggregate amount
11    on  deposit  under each trust indenture securing Bonds issued
12    and outstanding pursuant to the Build Illinois  Bond  Act  is
13    sufficient, taking into account any future investment income,
14    to  fully provide, in accordance with such indenture, for the
15    defeasance of or the payment of the principal of, premium, if
16    any, and interest on the Bonds secured by such indenture  and
17    on  any  Bonds  expected to be issued thereafter and all fees
18    and costs payable with respect thereto, all as  certified  by
19    the  Director  of  the  Bureau of the Budget.  If on the last
20    business day of any month  in  which  Bonds  are  outstanding
21    pursuant to the Build Illinois Bond Act, the aggregate of the
22    moneys  deposited  in  the Build Illinois Bond Account in the
23    Build Illinois Fund in such month  shall  be  less  than  the
24    amount  required  to  be  transferred  in such month from the
25    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
26    Retirement  and  Interest  Fund pursuant to Section 13 of the
27    Build Illinois Bond Act, an amount equal to  such  deficiency
28    shall  be  immediately paid from other moneys received by the
29    Department pursuant to the Tax Acts  to  the  Build  Illinois
30    Fund;  provided,  however, that any amounts paid to the Build
31    Illinois Fund in any fiscal year pursuant  to  this  sentence
32    shall be deemed to constitute payments pursuant to clause (b)
33    of  the  preceding  sentence  and  shall  reduce  the  amount
34    otherwise payable for such fiscal year pursuant to clause (b)
 
SB1310 Enrolled            -24-                LRB9110257SMdv
 1    of  the  preceding  sentence.   The  moneys  received  by the
 2    Department pursuant to this Act and required to be  deposited
 3    into the Build Illinois Fund are subject to the pledge, claim
 4    and charge set forth in Section 12 of the Build Illinois Bond
 5    Act.
 6        Subject  to  payment  of  amounts into the Build Illinois
 7    Fund as  provided  in  the  preceding  paragraph  or  in  any
 8    amendment  thereto hereafter enacted, the following specified
 9    monthly  installment  of  the   amount   requested   in   the
10    certificate  of  the  Chairman  of  the Metropolitan Pier and
11    Exposition Authority provided  under  Section  8.25f  of  the
12    State  Finance  Act, but not in excess of the sums designated
13    as "Total Deposit", shall be deposited in the aggregate  from
14    collections  under Section 9 of the Use Tax Act, Section 9 of
15    the Service Use Tax Act, Section 9 of the Service  Occupation
16    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
17    into the  McCormick  Place  Expansion  Project  Fund  in  the
18    specified fiscal years.
19             Fiscal Year                   Total Deposit
20                 1993                            $0
21                 1994                        53,000,000
22                 1995                        58,000,000
23                 1996                        61,000,000
24                 1997                        64,000,000
25                 1998                        68,000,000
26                 1999                        71,000,000
27                 2000                        75,000,000
28                 2001                        80,000,000
29                 2002                        84,000,000
30                 2003                        89,000,000
31                 2004                        93,000,000
32                 2005                        97,000,000
33                 2006                       102,000,000
34                 2007                       108,000,000
 
SB1310 Enrolled            -25-                LRB9110257SMdv
 1                 2008                       115,000,000
 2                 2009                       120,000,000
 3                 2010                       126,000,000
 4                 2011                       132,000,000
 5                 2012                       138,000,000
 6                 2013 and                   145,000,000
 7        each fiscal year
 8        thereafter that bonds
 9        are outstanding under
10        Section 13.2 of the
11        Metropolitan Pier and
12        Exposition Authority
13        Act, but not after fiscal year 2029.
14        Beginning  July 20, 1993 and in each month of each fiscal
15    year thereafter, one-eighth of the amount  requested  in  the
16    certificate  of  the  Chairman  of  the Metropolitan Pier and
17    Exposition Authority for that fiscal year,  less  the  amount
18    deposited  into the McCormick Place Expansion Project Fund by
19    the State Treasurer in the respective month under  subsection
20    (g)  of  Section  13  of the Metropolitan Pier and Exposition
21    Authority Act, plus cumulative deficiencies in  the  deposits
22    required  under  this  Section for previous months and years,
23    shall be deposited into the McCormick Place Expansion Project
24    Fund, until the full amount requested for  the  fiscal  year,
25    but  not  in  excess  of the amount specified above as "Total
26    Deposit", has been deposited.
27        Subject to payment of amounts  into  the  Build  Illinois
28    Fund  and the McCormick Place Expansion Project Fund pursuant
29    to the preceding  paragraphs  or  in  any  amendment  thereto
30    hereafter  enacted,  each month the Department shall pay into
31    the Local Government Distributive Fund .4% of the net revenue
32    realized for the preceding month from the 5% general rate, or
33    .4% of 80% of the net  revenue  realized  for  the  preceding
34    month from the 6.25% general rate, as the case may be, on the
 
SB1310 Enrolled            -26-                LRB9110257SMdv
 1    selling  price  of  tangible  personal  property which amount
 2    shall, subject to appropriation, be distributed  as  provided
 3    in Section 2 of the State Revenue Sharing Act. No payments or
 4    distributions pursuant to this paragraph shall be made if the
 5    tax  imposed  by  this  Act  on  photoprocessing  products is
 6    declared unconstitutional, or if the proceeds from  such  tax
 7    are unavailable for distribution because of litigation.
 8        Subject  to  payment  of  amounts into the Build Illinois
 9    Fund, the McCormick Place Expansion  Project  Fund,  and  the
10    Local  Government Distributive Fund pursuant to the preceding
11    paragraphs or in any amendments  thereto  hereafter  enacted,
12    beginning  July  1, 1993, the Department shall each month pay
13    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
14    revenue  realized  for  the  preceding  month  from the 6.25%
15    general rate  on  the  selling  price  of  tangible  personal
16    property.
17        Of the remainder of the moneys received by the Department
18    pursuant  to  this  Act,  75%  thereof shall be paid into the
19    State Treasury and 25% shall be reserved in a special account
20    and used only for the transfer to the Common School  Fund  as
21    part of the monthly transfer from the General Revenue Fund in
22    accordance with Section 8a of the State Finance Act.
23        As  soon  as  possible after the first day of each month,
24    upon  certification  of  the  Department  of   Revenue,   the
25    Comptroller  shall  order transferred and the Treasurer shall
26    transfer from the General Revenue Fund to the Motor Fuel  Tax
27    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
28    realized under this  Act  for  the  second  preceding  month.
29    Beginning  April 1, 2000, this transfer is no longer required
30    and shall not be made.
31        Net revenue realized for a month  shall  be  the  revenue
32    collected  by the State pursuant to this Act, less the amount
33    paid out during  that  month  as  refunds  to  taxpayers  for
34    overpayment of liability.
 
SB1310 Enrolled            -27-                LRB9110257SMdv
 1        For  greater simplicity of administration, manufacturers,
 2    importers and wholesalers whose products are sold  at  retail
 3    in Illinois by numerous retailers, and who wish to do so, may
 4    assume  the  responsibility  for accounting and paying to the
 5    Department all tax accruing under this Act  with  respect  to
 6    such  sales,  if  the  retailers who are affected do not make
 7    written objection to the Department to this arrangement.
 8    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
 9    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
10    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

11        Section  10.   The  Service  Use  Tax  Act  is amended by
12    changing Sections 3-10 and 9 as follows:

13        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
14        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
15    this  Section,  the tax imposed by this Act is at the rate of
16    6.25% of the selling  price  of  tangible  personal  property
17    transferred  as  an incident to the sale of service, but, for
18    the purpose of computing this tax,  in  no  event  shall  the
19    selling  price be less than the cost price of the property to
20    the serviceman.
21        Beginning on July 1, 2000 and through December 31,  2000,
22    with  respect to motor fuel, as defined in Section 1.1 of the
23    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
24    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
25        With  respect  to gasohol, as defined in the Use Tax Act,
26    the tax imposed by this Act applies to  70%  of  the  selling
27    price  of  property transferred as an incident to the sale of
28    service on or after January 1, 1990, and before July 1, 2003,
29    and to 100% of the selling price thereafter.
30        At the election of any  registered  serviceman  made  for
31    each  fiscal  year,  sales  of service in which the aggregate
32    annual cost price of tangible personal  property  transferred
 
SB1310 Enrolled            -28-                LRB9110257SMdv
 1    as  an  incident to the sales of service is less than 35%, or
 2    75% in the case of servicemen transferring prescription drugs
 3    or servicemen engaged in  graphic  arts  production,  of  the
 4    aggregate  annual  total  gross  receipts  from  all sales of
 5    service, the tax imposed by this Act shall be  based  on  the
 6    serviceman's  cost  price  of  the tangible personal property
 7    transferred as an incident to the sale of those services.
 8        The tax shall be imposed  at  the  rate  of  1%  on  food
 9    prepared  for  immediate consumption and transferred incident
10    to a sale of service subject  to  this  Act  or  the  Service
11    Occupation  Tax  Act by an entity licensed under the Hospital
12    Licensing Act, the Nursing Home Care Act, or the  Child  Care
13    Act of 1969.  The tax shall also be imposed at the rate of 1%
14    on  food for human consumption that is to be consumed off the
15    premises where it is sold (other  than  alcoholic  beverages,
16    soft  drinks,  and  food that has been prepared for immediate
17    consumption and is not otherwise included in this  paragraph)
18    and   prescription   and  nonprescription  medicines,  drugs,
19    medical appliances, modifications to a motor vehicle for  the
20    purpose  of  rendering  it  usable  by a disabled person, and
21    insulin, urine testing materials, syringes, and needles  used
22    by  diabetics,  for  human  use.  For  the  purposes  of this
23    Section, the term "soft drinks" means any complete, finished,
24    ready-to-use, non-alcoholic drink, whether carbonated or not,
25    including but not limited to soda water, cola,  fruit  juice,
26    vegetable juice, carbonated water, and all other preparations
27    commonly known as soft drinks of whatever kind or description
28    that  are  contained  in  any  closed  or sealed bottle, can,
29    carton, or container, regardless of size.  "Soft drinks" does
30    not  include  coffee,  tea,  non-carbonated   water,   infant
31    formula,  milk  or  milk  products  as defined in the Grade A
32    Pasteurized Milk and Milk Products Act, or drinks  containing
33    50% or more natural fruit or vegetable juice.
34        Notwithstanding  any  other provisions of this Act, "food
 
SB1310 Enrolled            -29-                LRB9110257SMdv
 1    for human consumption that is to be consumed off the premises
 2    where it is sold" includes all food sold  through  a  vending
 3    machine,  except  soft  drinks  and  food  products  that are
 4    dispensed hot from  a  vending  machine,  regardless  of  the
 5    location of the vending machine.
 6        If  the  property  that  is acquired from a serviceman is
 7    acquired outside Illinois and used  outside  Illinois  before
 8    being  brought  to Illinois for use here and is taxable under
 9    this Act, the "selling price" on which the  tax  is  computed
10    shall  be  reduced  by an amount that represents a reasonable
11    allowance  for  depreciation  for   the   period   of   prior
12    out-of-state use.
13    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
14    91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

15        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
16        Sec.  9.  Each  serviceman  required  or  authorized   to
17    collect  the  tax  herein imposed shall pay to the Department
18    the amount of such tax (except as otherwise provided) at  the
19    time  when  he  is required to file his return for the period
20    during which such tax was collected, less a discount of  2.1%
21    prior  to  January  1, 1990 and 1.75% on and after January 1,
22    1990, or $5 per calendar year, whichever is greater, which is
23    allowed to reimburse the serviceman for expenses incurred  in
24    collecting  the  tax,  keeping  records, preparing and filing
25    returns,  remitting  the  tax  and  supplying  data  to   the
26    Department  on request. A serviceman need not remit that part
27    of any tax collected by him to the extent that he is required
28    to pay and does pay the tax imposed by the Service Occupation
29    Tax Act with respect to his sale  of  service  involving  the
30    incidental transfer by him of the same property.
31        Except  as  provided  hereinafter  in this Section, on or
32    before  the  twentieth  day  of  each  calendar  month,  such
33    serviceman shall file a return  for  the  preceding  calendar
 
SB1310 Enrolled            -30-                LRB9110257SMdv
 1    month  in accordance with reasonable Rules and Regulations to
 2    be promulgated by the Department. Such return shall be  filed
 3    on a form prescribed by the Department and shall contain such
 4    information as the Department may reasonably require.
 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 business as a serviceman in this
16        State;
17             3.  The total amount of taxable receipts received by
18        him  during  the  preceding  calendar  month,   including
19        receipts  from  charge  and  time  sales,  but  less  all
20        deductions allowed by law;
21             4.  The  amount  of credit provided in Section 2d of
22        this Act;
23             5.  The amount of tax due;
24             5-5.  The signature of the taxpayer; and
25             6.  Such  other  reasonable   information   as   the
26        Department may require.
27        If a taxpayer fails to sign a return within 30 days after
28    the proper notice and demand for signature by the Department,
29    the  return shall be considered valid and any amount shown to
30    be due on the return shall be deemed assessed.
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
 
SB1310 Enrolled            -31-                LRB9110257SMdv
 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 1,
 7    2000,  a taxpayer who has an annual tax liability of $200,000
 8    or more shall make all payments  required  by  rules  of  the
 9    Department  by  electronic  funds transfer.  The term "annual
10    tax liability" shall be the sum of the taxpayer's liabilities
11    under  this  Act,  and  under  all  other  State  and   local
12    occupation  and  use tax laws administered by the Department,
13    for the  immediately  preceding  calendar  year.    The  term
14    "average   monthly  tax  liability"  means  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 required
22    to make payments by  electronic  funds  transfer  shall  make
23    those payments for a minimum of one year beginning on October
24    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.
 
SB1310 Enrolled            -32-                LRB9110257SMdv
 1        If the serviceman is otherwise required to file a monthly
 2    return and if the serviceman's average monthly tax  liability
 3    to  the  Department  does not exceed $200, the Department may
 4    authorize his returns to be filed on a quarter annual  basis,
 5    with  the  return  for January, February and March of a given
 6    year being due by April 20 of such year; with the return  for
 7    April,  May  and June of a given year being due by July 20 of
 8    such year; with the return for July, August and September  of
 9    a  given  year being due by October 20 of such year, and with
10    the return for October, November and December of a given year
11    being due by January 20 of the following year.
12        If the serviceman is otherwise required to file a monthly
13    or quarterly return and if the serviceman's  average  monthly
14    tax  liability  to  the  Department  does not exceed $50, the
15    Department may authorize his returns to be filed on an annual
16    basis, with the return for a given year being due by  January
17    20 of the following year.
18        Such  quarter  annual  and annual returns, as to form and
19    substance, shall be  subject  to  the  same  requirements  as
20    monthly returns.
21        Notwithstanding   any   other   provision   in  this  Act
22    concerning the time within which a serviceman  may  file  his
23    return, in the case of any serviceman who ceases to engage in
24    a  kind  of  business  which makes him responsible for filing
25    returns under this Act, such serviceman shall  file  a  final
26    return  under  this  Act  with the Department not more than 1
27    month after discontinuing such business.
28        Where a serviceman collects the tax with respect  to  the
29    selling  price  of  property which he sells and the purchaser
30    thereafter returns such property and the  serviceman  refunds
31    the  selling  price thereof to the purchaser, such serviceman
32    shall also refund, to the purchaser,  the  tax  so  collected
33    from  the purchaser. When filing his return for the period in
34    which he refunds such tax to the  purchaser,  the  serviceman
 
SB1310 Enrolled            -33-                LRB9110257SMdv
 1    may  deduct  the  amount of the tax so refunded by him to the
 2    purchaser from any other Service Use Tax, Service  Occupation
 3    Tax,   retailers'  occupation  tax  or  use  tax  which  such
 4    serviceman may be required to pay or remit to the Department,
 5    as shown by such return, provided that the amount of the  tax
 6    to  be  deducted  shall  previously have been remitted to the
 7    Department by such serviceman. If the  serviceman  shall  not
 8    previously  have  remitted  the  amount  of  such  tax to the
 9    Department, he shall be entitled to  no  deduction  hereunder
10    upon refunding such tax to the purchaser.
11        Any  serviceman  filing  a  return  hereunder  shall also
12    include the total tax upon  the  selling  price  of  tangible
13    personal  property purchased for use by him as an incident to
14    a sale of service, and such serviceman shall remit the amount
15    of such tax to the Department when filing such return.
16        If experience indicates such action  to  be  practicable,
17    the  Department  may  prescribe  and furnish a combination or
18    joint return which will enable servicemen, who  are  required
19    to   file  returns  hereunder  and  also  under  the  Service
20    Occupation Tax Act, to furnish  all  the  return  information
21    required by both Acts on the one form.
22        Where   the   serviceman   has  more  than  one  business
23    registered with the Department  under  separate  registration
24    hereunder, such serviceman shall not file each return that is
25    due   as   a  single  return  covering  all  such  registered
26    businesses, but shall file separate  returns  for  each  such
27    registered business.
28        Beginning  January  1,  1990,  each  month the Department
29    shall pay into the State and Local Tax Reform Fund, a special
30    fund in the State Treasury, the net revenue realized for  the
31    preceding  month  from  the 1% tax on sales of food for human
32    consumption which is to be consumed off the premises where it
33    is sold (other than alcoholic beverages, soft drinks and food
34    which  has  been  prepared  for  immediate  consumption)  and
 
SB1310 Enrolled            -34-                LRB9110257SMdv
 1    prescription and nonprescription  medicines,  drugs,  medical
 2    appliances and insulin, urine testing materials, syringes and
 3    needles used by diabetics.
 4        Beginning  January  1,  1990,  each  month the Department
 5    shall pay into the State and Local Sales Tax Reform Fund  20%
 6    of  the net revenue realized for the preceding month from the
 7    6.25%  general  rate  on  transfers  of   tangible   personal
 8    property,  other  than  tangible  personal  property which is
 9    purchased outside Illinois at  retail  from  a  retailer  and
10    which  is  titled  or registered by an agency of this State's
11    government.
12        Beginning August 1, 2000, each month the Department shall
13    pay into the State and Local Sales Tax Reform  Fund  100%  of
14    the  net  revenue  realized  for the preceding month from the
15    1.25% rate on the selling price of motor fuel and gasohol.
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
 
SB1310 Enrolled            -35-                LRB9110257SMdv
 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
 
SB1310 Enrolled            -36-                LRB9110257SMdv
 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
 
SB1310 Enrolled            -37-                LRB9110257SMdv
 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 Act,
21        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.
 
SB1310 Enrolled            -38-                LRB9110257SMdv
 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  0.4%  of  the  net
 6    revenue  realized for the preceding month from the 5% general
 7    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
 8    preceding  month from the 6.25% general rate, as the case may
 9    be, on the selling price of tangible personal property  which
10    amount  shall,  subject  to  appropriation, be distributed as
11    provided in Section 2 of the State Revenue  Sharing  Act.  No
12    payments or distributions pursuant to this paragraph shall be
13    made  if  the  tax  imposed  by  this Act on photo processing
14    products is declared unconstitutional,  or  if  the  proceeds
15    from  such  tax  are  unavailable for distribution because of
16    litigation.
17        Subject to payment of amounts  into  the  Build  Illinois
18    Fund,  the  McCormick  Place  Expansion Project Fund, and the
19    Local Government Distributive Fund pursuant to the  preceding
20    paragraphs  or  in  any amendments thereto hereafter enacted,
21    beginning July 1, 1993, the Department shall each  month  pay
22    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
23    revenue realized for  the  preceding  month  from  the  6.25%
24    general  rate  on  the  selling  price  of  tangible personal
25    property.
26        All remaining moneys received by the Department  pursuant
27    to  this  Act  shall be paid into the General Revenue Fund of
28    the State Treasury.
29        As soon as possible after the first day  of  each  month,
30    upon   certification   of  the  Department  of  Revenue,  the
31    Comptroller shall order transferred and the  Treasurer  shall
32    transfer  from the General Revenue Fund to the Motor Fuel Tax
33    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
34    realized  under  this  Act  for  the  second preceding month.
 
SB1310 Enrolled            -39-                LRB9110257SMdv
 1    Beginning April 1, 2000, this transfer is no longer  required
 2    and shall not be made.
 3        Net  revenue  realized  for  a month shall be the revenue
 4    collected by the State pursuant to this Act, less the  amount
 5    paid  out  during  that  month  as  refunds  to taxpayers for
 6    overpayment of liability.
 7    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
 8    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
 9    revised 9-27-99.)

10        Section 15.  The Service Occupation Tax Act is amended by
11    changing Sections 3-10 and 9 as follows:

12        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
13        Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
14    this Section, the tax imposed by this Act is at the  rate  of
15    6.25%  of the "selling price", as defined in Section 2 of the
16    Service Use Tax Act, of the tangible personal property.   For
17    the  purpose  of  computing  this  tax, in no event shall the
18    "selling price" be less than the cost price to the serviceman
19    of the tangible personal property transferred.   The  selling
20    price  of each item of tangible personal property transferred
21    as an incident of a  sale  of  service  may  be  shown  as  a
22    distinct and separate item on the serviceman's billing to the
23    service  customer.  If the selling price is not so shown, the
24    selling price of the tangible personal property is deemed  to
25    be  50%  of  the  serviceman's  entire billing to the service
26    customer.  When, however, a serviceman contracts  to  design,
27    develop,  and  produce  special order machinery or equipment,
28    the  tax  imposed  by  this  Act  shall  be  based   on   the
29    serviceman's  cost  price  of  the tangible personal property
30    transferred incident to the completion of the contract.
31        Beginning on July 1, 2000 and through December 31,  2000,
32    with  respect to motor fuel, as defined in Section 1.1 of the
 
SB1310 Enrolled            -40-                LRB9110257SMdv
 1    Motor Fuel Tax Law, and gasohol, as defined in  Section  3-40
 2    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
 3        With  respect  to gasohol, as defined in the Use Tax Act,
 4    the tax imposed by this Act shall apply to 70%  of  the  cost
 5    price  of  property transferred as an incident to the sale of
 6    service on or after January 1, 1990, and before July 1, 2003,
 7    and to 100% of the cost price thereafter.
 8        At the election of any  registered  serviceman  made  for
 9    each  fiscal  year,  sales  of service in which the aggregate
10    annual cost price of tangible personal  property  transferred
11    as  an  incident to the sales of service is less than 35%, or
12    75% in the case of servicemen transferring prescription drugs
13    or servicemen engaged in  graphic  arts  production,  of  the
14    aggregate  annual  total  gross  receipts  from  all sales of
15    service, the tax imposed by this Act shall be  based  on  the
16    serviceman's  cost  price  of  the tangible personal property
17    transferred incident to the sale of those services.
18        The tax shall be imposed  at  the  rate  of  1%  on  food
19    prepared  for  immediate consumption and transferred incident
20    to a sale of service subject  to  this  Act  or  the  Service
21    Occupation  Tax  Act by an entity licensed under the Hospital
22    Licensing Act, the Nursing Home Care Act, or the  Child  Care
23    Act of 1969.  The tax shall also be imposed at the rate of 1%
24    on  food for human consumption that is to be consumed off the
25    premises where it is sold (other  than  alcoholic  beverages,
26    soft  drinks,  and  food that has been prepared for immediate
27    consumption and is not otherwise included in this  paragraph)
28    and   prescription   and  nonprescription  medicines,  drugs,
29    medical appliances, modifications to a motor vehicle for  the
30    purpose  of  rendering  it  usable  by a disabled person, and
31    insulin, urine testing materials, syringes, and needles  used
32    by  diabetics,  for  human  use.   For  the  purposes of this
33    Section, the term "soft drinks" means any complete, finished,
34    ready-to-use, non-alcoholic drink, whether carbonated or not,
 
SB1310 Enrolled            -41-                LRB9110257SMdv
 1    including but not limited to soda water, cola,  fruit  juice,
 2    vegetable juice, carbonated water, and all other preparations
 3    commonly known as soft drinks of whatever kind or description
 4    that  are  contained  in any closed or sealed can, carton, or
 5    container,  regardless  of  size.   "Soft  drinks"  does  not
 6    include coffee, tea, non-carbonated  water,  infant  formula,
 7    milk  or  milk products as defined in the Grade A Pasteurized
 8    Milk and Milk Products Act, or drinks containing 50% or  more
 9    natural fruit or vegetable juice.
10        Notwithstanding  any  other provisions of this Act, "food
11    for human consumption that is to be consumed off the premises
12    where it is sold" includes all food sold  through  a  vending
13    machine,  except  soft  drinks  and  food  products  that are
14    dispensed hot from  a  vending  machine,  regardless  of  the
15    location of the vending machine.
16    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
17    91-51, 6-30-99; 91-541, eff. 8-13-99.)

18        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
19        Sec.  9.   Each  serviceman  required  or  authorized  to
20    collect the tax herein imposed shall pay  to  the  Department
21    the  amount  of  such  tax at the time when he is required to
22    file his return for the period  during  which  such  tax  was
23    collectible,  less  a  discount  of  2.1% prior to January 1,
24    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
25    calendar  year,  whichever  is  greater,  which is allowed to
26    reimburse the serviceman for expenses incurred in  collecting
27    the  tax,  keeping  records,  preparing  and  filing returns,
28    remitting the tax and supplying data  to  the  Department  on
29    request.
30        Where  such  tangible  personal  property is sold under a
31    conditional sales contract, or under any other form  of  sale
32    wherein  the payment of the principal sum, or a part thereof,
33    is extended beyond the close of  the  period  for  which  the
 
SB1310 Enrolled            -42-                LRB9110257SMdv
 1    return  is  filed,  the serviceman, in collecting the tax may
 2    collect, for each tax return period, only the tax  applicable
 3    to  the  part  of  the selling price actually received during
 4    such tax return period.
 5        Except as provided hereinafter in  this  Section,  on  or
 6    before  the  twentieth  day  of  each  calendar  month,  such
 7    serviceman  shall  file  a  return for the preceding calendar
 8    month in accordance with reasonable rules and regulations  to
 9    be  promulgated  by  the  Department of Revenue.  Such return
10    shall be filed on a form prescribed  by  the  Department  and
11    shall   contain   such  information  as  the  Department  may
12    reasonably require.
13        The Department may require  returns  to  be  filed  on  a
14    quarterly  basis.  If so required, a return for each calendar
15    quarter shall be filed on or before the twentieth day of  the
16    calendar  month  following  the end of such calendar quarter.
17    The taxpayer shall also file a return with the Department for
18    each of the first two months of each calendar quarter, on  or
19    before  the  twentieth  day  of the following calendar month,
20    stating:
21             1.  The name of the seller;
22             2.  The address of the principal place  of  business
23        from which he engages in business as a serviceman in this
24        State;
25             3.  The total amount of taxable receipts received by
26        him   during  the  preceding  calendar  month,  including
27        receipts  from  charge  and  time  sales,  but  less  all
28        deductions allowed by law;
29             4.  The amount of credit provided in Section  2d  of
30        this Act;
31             5.  The amount of tax due;
32             5-5.  The signature of the taxpayer; and
33             6.  Such   other   reasonable   information  as  the
34        Department may require.
 
SB1310 Enrolled            -43-                LRB9110257SMdv
 1        If a taxpayer fails to sign a return within 30 days after
 2    the proper notice and demand for signature by the Department,
 3    the return shall be considered valid and any amount shown  to
 4    be due on the return shall be deemed assessed.
 5        A  serviceman may accept a Manufacturer's Purchase Credit
 6    certification from a purchaser in satisfaction of Service Use
 7    Tax as provided in Section 3-70 of the Service Use Tax Act if
 8    the  purchaser  provides  the  appropriate  documentation  as
 9    required by Section 3-70 of the  Service  Use  Tax  Act.    A
10    Manufacturer's  Purchase  Credit certification, accepted by a
11    serviceman as provided in Section 3-70 of the Service Use Tax
12    Act, may be  used  by  that  serviceman  to  satisfy  Service
13    Occupation  Tax  liability  in  the  amount  claimed  in  the
14    certification, not to exceed 6.25% of the receipts subject to
15    tax from a qualifying purchase.
16        If  the serviceman's average monthly tax liability to the
17    Department does not exceed $200, the Department may authorize
18    his returns to be filed on a quarter annual basis,  with  the
19    return  for January, February and March of a given year being
20    due by April 20 of such year; with the return for April,  May
21    and  June  of a given year being due by July 20 of such year;
22    with the return for July, August and  September  of  a  given
23    year  being  due  by  October  20  of such year, and with the
24    return for October, November and December  of  a  given  year
25    being due by January 20 of the following year.
26        If  the serviceman's average monthly tax liability to the
27    Department does not exceed $50, the Department may  authorize
28    his  returns  to be filed on an annual basis, with the return
29    for a given year being due by January  20  of  the  following
30    year.
31        Such  quarter  annual  and annual returns, as to form and
32    substance, shall be  subject  to  the  same  requirements  as
33    monthly returns.
34        Notwithstanding   any   other   provision   in  this  Act
 
SB1310 Enrolled            -44-                LRB9110257SMdv
 1    concerning the time within which a serviceman  may  file  his
 2    return, in the case of any serviceman who ceases to engage in
 3    a  kind  of  business  which makes him responsible for filing
 4    returns under this Act, such serviceman shall  file  a  final
 5    return  under  this  Act  with the Department not more than 1
 6    month after discontinuing such business.
 7        Beginning October 1, 1993, a taxpayer who has an  average
 8    monthly  tax  liability  of  $150,000  or more shall make all
 9    payments required by rules of the  Department  by  electronic
10    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
11    has an average monthly tax  liability  of  $100,000  or  more
12    shall  make  all payments required by rules of the Department
13    by electronic funds transfer.  Beginning October 1,  1995,  a
14    taxpayer  who has an average monthly tax liability of $50,000
15    or more shall make all payments  required  by  rules  of  the
16    Department  by  electronic funds transfer.  Beginning October
17    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
18    $200,000 or more shall make all payments required by rules of
19    the  Department  by  electronic  funds  transfer.   The  term
20    "annual  tax  liability"  shall  be the sum of the taxpayer's
21    liabilities under this Act, and under  all  other  State  and
22    local  occupation  and  use  tax  laws  administered  by  the
23    Department,  for the immediately preceding calendar year. The
24    term "average monthly tax liability" means  the  sum  of  the
25    taxpayer's  liabilities  under  this Act, and under all other
26    State and local occupation and use tax laws  administered  by
27    the  Department,  for the immediately preceding calendar year
28    divided by 12.
29        Before August 1 of  each  year  beginning  in  1993,  the
30    Department  shall  notify  all  taxpayers  required  to  make
31    payments   by  electronic  funds  transfer.    All  taxpayers
32    required to make payments by electronic funds transfer  shall
33    make  those  payments  for a minimum of one year beginning on
34    October 1.
 
SB1310 Enrolled            -45-                LRB9110257SMdv
 1        Any taxpayer not required to make payments by  electronic
 2    funds transfer may make payments by electronic funds transfer
 3    with the permission of the Department.
 4        All  taxpayers  required  to  make  payment by electronic
 5    funds transfer and any taxpayers  authorized  to  voluntarily
 6    make  payments  by electronic funds transfer shall make those
 7    payments in the manner authorized by the Department.
 8        The Department shall adopt such rules as are necessary to
 9    effectuate a program of electronic  funds  transfer  and  the
10    requirements of this Section.
11        Where  a  serviceman collects the tax with respect to the
12    selling price of tangible personal property  which  he  sells
13    and  the  purchaser thereafter returns such tangible personal
14    property and the serviceman refunds the selling price thereof
15    to the purchaser, such serviceman shall also refund,  to  the
16    purchaser,  the  tax  so  collected from the purchaser.  When
17    filing his return for the period in which he refunds such tax
18    to the purchaser, the serviceman may deduct the amount of the
19    tax so refunded by  him  to  the  purchaser  from  any  other
20    Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
21    Occupation Tax or  Use  Tax  which  such  serviceman  may  be
22    required  to pay or remit to the Department, as shown by such
23    return, provided that the amount of the tax  to  be  deducted
24    shall previously have been remitted to the Department by such
25    serviceman.   If  the  serviceman  shall  not previously have
26    remitted the amount of such tax to the Department,  he  shall
27    be entitled to no deduction hereunder upon refunding such tax
28    to the purchaser.
29        If  experience  indicates  such action to be practicable,
30    the Department may prescribe and  furnish  a  combination  or
31    joint  return  which will enable servicemen, who are required
32    to file returns  hereunder  and  also  under  the  Retailers'
33    Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
34    Act, to furnish all the return information  required  by  all
 
SB1310 Enrolled            -46-                LRB9110257SMdv
 1    said Acts on the one form.
 2        Where   the   serviceman   has  more  than  one  business
 3    registered with the Department under  separate  registrations
 4    hereunder,  such  serviceman  shall file separate returns for
 5    each registered business.
 6        Beginning January 1,  1990,  each  month  the  Department
 7    shall  pay  into  the  Local  Government Tax Fund the revenue
 8    realized for the preceding month from the 1% tax on sales  of
 9    food  for  human  consumption which is to be consumed off the
10    premises where it is sold (other  than  alcoholic  beverages,
11    soft  drinks  and  food which has been prepared for immediate
12    consumption) and prescription and nonprescription  medicines,
13    drugs,   medical   appliances   and  insulin,  urine  testing
14    materials, syringes and needles used by diabetics.
15        Beginning January 1,  1990,  each  month  the  Department
16    shall  pay  into the County and Mass Transit District Fund 4%
17    of the revenue realized for  the  preceding  month  from  the
18    6.25% general rate.
19        Beginning August 1, 2000, each month the Department shall
20    pay into the County and Mass Transit District Fund 20% of the
21    net  revenue  realized for the preceding month from the 1.25%
22    rate on the selling price of motor fuel and gasohol.
23        Beginning January 1,  1990,  each  month  the  Department
24    shall  pay  into  the  Local  Government  Tax Fund 16% of the
25    revenue realized for  the  preceding  month  from  the  6.25%
26    general rate on transfers of tangible personal property.
27        Beginning August 1, 2000, each month the Department shall
28    pay into the Local Government Tax Fund 80% of the net revenue
29    realized  for  the preceding month from the 1.25% rate on the
30    selling price of motor fuel and gasohol.
31        Of the remainder of the moneys received by the Department
32    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
33    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
34    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
 
SB1310 Enrolled            -47-                LRB9110257SMdv
 1    into  the  Build Illinois Fund; provided, however, that if in
 2    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 3    as the case may be, of the moneys received by the  Department
 4    and required to be paid into the Build Illinois Fund pursuant
 5    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 6    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 7    Section 9 of the Service Occupation Tax Act, such Acts  being
 8    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 9    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
10    called  the  "Tax Act Amount", and (2) the amount transferred
11    to the Build Illinois Fund from the State and Local Sales Tax
12    Reform Fund shall be less than the  Annual  Specified  Amount
13    (as  defined  in  Section  3 of the Retailers' Occupation Tax
14    Act), an amount equal to the difference shall be  immediately
15    paid  into the Build Illinois Fund from other moneys received
16    by the Department pursuant  to  the  Tax  Acts;  and  further
17    provided,  that  if on the last business day of any month the
18    sum of (1) the Tax Act Amount required to be  deposited  into
19    the  Build Illinois Account in the Build Illinois Fund during
20    such month and (2) the amount transferred during  such  month
21    to the Build Illinois Fund from the State and Local Sales Tax
22    Reform  Fund  shall  have  been  less than 1/12 of the Annual
23    Specified Amount, an amount equal to the difference shall  be
24    immediately  paid  into  the  Build  Illinois Fund from other
25    moneys received by the Department pursuant to the  Tax  Acts;
26    and,  further  provided,  that in no event shall the payments
27    required under the  preceding  proviso  result  in  aggregate
28    payments into the Build Illinois Fund pursuant to this clause
29    (b)  for  any fiscal year in excess of the greater of (i) the
30    Tax Act Amount or (ii) the Annual Specified Amount  for  such
31    fiscal  year; and, further provided, that the amounts payable
32    into the Build Illinois Fund under this clause (b)  shall  be
33    payable  only  until  such  time  as  the aggregate amount on
34    deposit under each trust indenture securing Bonds issued  and
 
SB1310 Enrolled            -48-                LRB9110257SMdv
 1    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
 2    sufficient, taking into account any future investment income,
 3    to fully provide, in accordance with such indenture, for  the
 4    defeasance of or the payment of the principal of, premium, if
 5    any,  and interest on the Bonds secured by such indenture and
 6    on any Bonds expected to be issued thereafter  and  all  fees
 7    and  costs  payable with respect thereto, all as certified by
 8    the Director of the Bureau of the Budget.   If  on  the  last
 9    business  day  of  any  month  in which Bonds are outstanding
10    pursuant to the Build Illinois Bond Act, the aggregate of the
11    moneys deposited in the Build Illinois Bond  Account  in  the
12    Build  Illinois  Fund  in  such  month shall be less than the
13    amount required to be transferred  in  such  month  from  the
14    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
15    Retirement and Interest Fund pursuant to Section  13  of  the
16    Build  Illinois  Bond Act, an amount equal to such deficiency
17    shall be immediately paid from other moneys received  by  the
18    Department  pursuant  to  the  Tax Acts to the Build Illinois
19    Fund; provided, however, that any amounts paid to  the  Build
20    Illinois  Fund  in  any fiscal year pursuant to this sentence
21    shall be deemed to constitute payments pursuant to clause (b)
22    of  the  preceding  sentence  and  shall  reduce  the  amount
23    otherwise payable for such fiscal year pursuant to clause (b)
24    of the  preceding  sentence.   The  moneys  received  by  the
25    Department  pursuant to this Act and required to be deposited
26    into the Build Illinois Fund are subject to the pledge, claim
27    and charge set forth in Section 12 of the Build Illinois Bond
28    Act.
29        Subject to payment of amounts  into  the  Build  Illinois
30    Fund  as  provided  in  the  preceding  paragraph  or  in any
31    amendment thereto hereafter enacted, the following  specified
32    monthly   installment   of   the   amount  requested  in  the
33    certificate of the Chairman  of  the  Metropolitan  Pier  and
34    Exposition  Authority  provided  under  Section  8.25f of the
 
SB1310 Enrolled            -49-                LRB9110257SMdv
 1    State Finance Act, but not in excess of the  sums  designated
 2    as  "Total Deposit", shall be deposited in the aggregate from
 3    collections under Section 9 of the Use Tax Act, Section 9  of
 4    the  Service Use Tax Act, Section 9 of the Service Occupation
 5    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 6    into  the  McCormick  Place  Expansion  Project  Fund  in the
 7    specified fiscal years.
 8             Fiscal Year                   Total Deposit
 9                 1993                            $0
10                 1994                        53,000,000
11                 1995                        58,000,000
12                 1996                        61,000,000
13                 1997                        64,000,000
14                 1998                        68,000,000
15                 1999                        71,000,000
16                 2000                        75,000,000
17                 2001                        80,000,000
18                 2002                        84,000,000
19                 2003                        89,000,000
20                 2004                        93,000,000
21                 2005                        97,000,000
22                 2006                       102,000,000
23                 2007                       108,000,000
24                 2008                       115,000,000
25                 2009                       120,000,000
26                 2010                       126,000,000
27                 2011                       132,000,000
28                 2012                       138,000,000
29                 2013 and                   145,000,000
30        each fiscal year
31        thereafter that bonds
32        are outstanding under
33        Section 13.2 of the
34        Metropolitan Pier and
 
SB1310 Enrolled            -50-                LRB9110257SMdv
 1        Exposition Authority
 2        Act, but not after fiscal year 2029.
 3        Beginning July 20, 1993 and in each month of each  fiscal
 4    year  thereafter,  one-eighth  of the amount requested in the
 5    certificate of the Chairman  of  the  Metropolitan  Pier  and
 6    Exposition  Authority  for  that fiscal year, less the amount
 7    deposited into the McCormick Place Expansion Project Fund  by
 8    the  State Treasurer in the respective month under subsection
 9    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
10    Authority  Act,  plus cumulative deficiencies in the deposits
11    required under this Section for previous  months  and  years,
12    shall be deposited into the McCormick Place Expansion Project
13    Fund,  until  the  full amount requested for the fiscal year,
14    but not in excess of the amount  specified  above  as  "Total
15    Deposit", has been deposited.
16        Subject  to  payment  of  amounts into the Build Illinois
17    Fund and the McCormick Place Expansion Project Fund  pursuant
18    to  the  preceding  paragraphs  or  in  any amendment thereto
19    hereafter enacted, each month the Department shall  pay  into
20    the  Local  Government  Distributive  Fund  0.4%  of  the net
21    revenue realized for the preceding month from the 5%  general
22    rate  or  0.4%  of  80%  of  the net revenue realized for the
23    preceding month from the 6.25% general rate, as the case  may
24    be,  on the selling price of tangible personal property which
25    amount shall, subject to  appropriation,  be  distributed  as
26    provided  in  Section 2 of the State Revenue Sharing Act.  No
27    payments or distributions pursuant to this paragraph shall be
28    made if the  tax  imposed  by  this  Act  on  photoprocessing
29    products  is  declared  unconstitutional,  or if the proceeds
30    from such tax are unavailable  for  distribution  because  of
31    litigation.
32        Subject  to  payment  of  amounts into the Build Illinois
33    Fund, the McCormick Place Expansion  Project  Fund,  and  the
34    Local  Government Distributive Fund pursuant to the preceding
 
SB1310 Enrolled            -51-                LRB9110257SMdv
 1    paragraphs or in any amendments  thereto  hereafter  enacted,
 2    beginning  July  1, 1993, the Department shall each month pay
 3    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 4    revenue  realized  for  the  preceding  month  from the 6.25%
 5    general rate  on  the  selling  price  of  tangible  personal
 6    property.
 7        Remaining  moneys  received by the Department pursuant to
 8    this Act shall be paid into the General Revenue Fund  of  the
 9    State Treasury.
10        The  Department  may,  upon  separate written notice to a
11    taxpayer, require the taxpayer to prepare and file  with  the
12    Department  on a form prescribed by the Department within not
13    less than 60 days after  receipt  of  the  notice  an  annual
14    information  return for the tax year specified in the notice.
15    Such  annual  return  to  the  Department  shall  include   a
16    statement  of  gross receipts as shown by the taxpayer's last
17    Federal income tax return.  If  the  total  receipts  of  the
18    business  as reported in the Federal income tax return do not
19    agree with the gross receipts reported to the  Department  of
20    Revenue for the same period, the taxpayer shall attach to his
21    annual  return  a  schedule showing a reconciliation of the 2
22    amounts and the reasons for the difference.   The  taxpayer's
23    annual  return to the Department shall also disclose the cost
24    of goods sold by the taxpayer during the year covered by such
25    return, opening and closing inventories  of  such  goods  for
26    such  year, cost of goods used from stock or taken from stock
27    and given away by the taxpayer during  such  year,  pay  roll
28    information  of  the taxpayer's business during such year and
29    any additional reasonable information  which  the  Department
30    deems  would  be  helpful  in determining the accuracy of the
31    monthly, quarterly or annual returns filed by  such  taxpayer
32    as hereinbefore provided for in this Section.
33        If the annual information return required by this Section
34    is  not  filed  when  and  as required, the taxpayer shall be
 
SB1310 Enrolled            -52-                LRB9110257SMdv
 1    liable as follows:
 2             (i)  Until January 1, 1994, the  taxpayer  shall  be
 3        liable  for  a  penalty equal to 1/6 of 1% of the tax due
 4        from such taxpayer under this Act during the period to be
 5        covered by the annual return for each month  or  fraction
 6        of  a  month  until such return is filed as required, the
 7        penalty to be assessed and collected in the  same  manner
 8        as any other penalty provided for in this Act.
 9             (ii)  On  and  after  January  1, 1994, the taxpayer
10        shall be liable for a penalty as described in Section 3-4
11        of the Uniform Penalty and Interest Act.
12        The chief executive officer, proprietor, owner or highest
13    ranking manager shall sign the annual return to  certify  the
14    accuracy  of  the  information contained therein.  Any person
15    who willfully signs the annual  return  containing  false  or
16    inaccurate   information  shall  be  guilty  of  perjury  and
17    punished accordingly.  The annual return form  prescribed  by
18    the  Department  shall  include  a  warning  that  the person
19    signing the return may be liable for perjury.
20        The foregoing portion  of  this  Section  concerning  the
21    filing  of  an annual information return shall not apply to a
22    serviceman who is not required to file an income  tax  return
23    with the United States Government.
24        As  soon  as  possible after the first day of each month,
25    upon  certification  of  the  Department  of   Revenue,   the
26    Comptroller  shall  order transferred and the Treasurer shall
27    transfer from the General Revenue Fund to the Motor Fuel  Tax
28    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
29    realized under this  Act  for  the  second  preceding  month.
30    Beginning  April 1, 2000, this transfer is no longer required
31    and shall not be made.
32        Net revenue realized for a month  shall  be  the  revenue
33    collected  by the State pursuant to this Act, less the amount
34    paid out during  that  month  as  refunds  to  taxpayers  for
 
SB1310 Enrolled            -53-                LRB9110257SMdv
 1    overpayment of liability.
 2        For  greater  simplicity  of  administration, it shall be
 3    permissible  for  manufacturers,  importers  and  wholesalers
 4    whose products are sold by numerous servicemen  in  Illinois,
 5    and  who  wish  to  do  so,  to assume the responsibility for
 6    accounting and paying to  the  Department  all  tax  accruing
 7    under  this Act with respect to such sales, if the servicemen
 8    who are  affected  do  not  make  written  objection  to  the
 9    Department to this arrangement.
10    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
11    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
12    revised 9-28-99.)

13        Section 20.  The Retailers' Occupation Tax Act is amended
14    by changing Sections 2-10, 2d, and 3 as follows:

15        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
16        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
17    this  Section,  the tax imposed by this Act is at the rate of
18    6.25% of gross  receipts  from  sales  of  tangible  personal
19    property made in the course of business.
20        Beginning  on July 1, 2000 and through December 31, 2000,
21    with respect to motor fuel, as defined in Section 1.1 of  the
22    Motor  Fuel  Tax Law, and gasohol, as defined in Section 3-40
23    of the Use Tax Act, the tax is imposed at the rate of 1.25%.
24        Within  14  days  after  the  effective  date   of   this
25    amendatory Act of the 91st General Assembly, each retailer of
26    motor fuel and gasohol shall cause the following notice to be
27    posted   in  a  prominently  visible  place  on  each  retail
28    dispensing device that is used  to  dispense  motor  fuel  or
29    gasohol  in  the State of Illinois:  "As of July 1, 2000, the
30    State of Illinois has eliminated the State's share  of  sales
31    tax  on motor fuel and gasohol through December 31, 2000. The
32    price on this pump should  reflect  the  elimination  of  the
 
SB1310 Enrolled            -54-                LRB9110257SMdv
 1    tax."   The  notice  shall be printed in bold print on a sign
 2    that is no smaller than 4 inches by 8 inches.  The sign shall
 3    be clearly visible to customers.  Any retailer who  fails  to
 4    post or maintain a required sign through December 31, 2000 is
 5    guilty  of  a  petty offense for which the fine shall be $500
 6    per day per each retail premises where a violation occurs.
 7        With respect to gasohol, as defined in the Use  Tax  Act,
 8    the tax imposed by this Act applies to 70% of the proceeds of
 9    sales  made  on  or after January 1, 1990, and before July 1,
10    2003, and to 100% of the proceeds of sales made thereafter.
11        With respect to food for human consumption that is to  be
12    consumed  off  the  premises  where  it  is  sold (other than
13    alcoholic beverages, soft drinks,  and  food  that  has  been
14    prepared  for  immediate  consumption)  and  prescription and
15    nonprescription   medicines,   drugs,   medical   appliances,
16    modifications to a motor vehicle for the purpose of rendering
17    it usable by a disabled person, and  insulin,  urine  testing
18    materials, syringes, and needles used by diabetics, for human
19    use,  the  tax is imposed at the rate of 1%. For the purposes
20    of this Section, the term "soft drinks" means  any  complete,
21    finished,    ready-to-use,   non-alcoholic   drink,   whether
22    carbonated or not, including but not limited to  soda  water,
23    cola, fruit juice, vegetable juice, carbonated water, and all
24    other  preparations commonly known as soft drinks of whatever
25    kind or description that  are  contained  in  any  closed  or
26    sealed bottle, can, carton, or container, regardless of size.
27    "Soft  drinks"  does  not include coffee, tea, non-carbonated
28    water, infant formula, milk or milk products  as  defined  in
29    the Grade A Pasteurized Milk and Milk Products Act, or drinks
30    containing 50% or more natural fruit or vegetable juice.
31        Notwithstanding  any  other provisions of this Act, "food
32    for human consumption that is to be consumed off the premises
33    where it is sold" includes all food sold  through  a  vending
34    machine,  except  soft  drinks  and  food  products  that are
 
SB1310 Enrolled            -55-                LRB9110257SMdv
 1    dispensed hot from  a  vending  machine,  regardless  of  the
 2    location of the vending machine.
 3    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
 4    91-51, eff. 6-30-99.)

 5        (35 ILCS 120/2d) (from Ch. 120, par. 441d)
 6        Sec. 2d.  Tax prepayment  by  motor  fuel  retailer.  Any
 7    person  engaged  in  the  business  of  selling motor fuel at
 8    retail, as defined in the Motor Fuel Tax Law, and who is  not
 9    a  licensed  distributor or supplier, as defined in the Motor
10    Fuel Tax  Law,  shall  prepay  to  his  or  her  distributor,
11    supplier,  or  other  reseller of motor fuel a portion of the
12    tax imposed by this Act  if  the  distributor,  supplier,  or
13    other  reseller  of motor fuel is registered under Section 2a
14    or Section  2c  of  this  Act.   The  prepayment  requirement
15    provided for in this Section does not apply to liquid propane
16    gas.
17        Beginning  on July 1, 2000 and through December 31, 2000,
18    the  Retailers'  Occupation  Tax  paid  to  the  distributor,
19    supplier, or other reseller shall be an amount equal to $0.01
20    $0.04 per gallon of the motor fuel, except gasohol as defined
21    in Section 2-10 of this Act which shall be an amount equal to
22    $0.01 $0.03  per  gallon,  purchased  from  the  distributor,
23    supplier, or other reseller.
24        Before July 1, 2000 and then beginning on January 1, 2001
25    and  thereafter,  the  Retailers'  Occupation Tax paid to the
26    distributor, supplier, or other reseller shall be  an  amount
27    equal  to  $0.04 per gallon of the motor fuel, except gasohol
28    as defined in Section 2-10 of this  Act  which  shall  be  an
29    amount   equal  to  $0.03  per  gallon,  purchased  from  the
30    distributor, supplier, or other reseller.
31        Any person engaged in the business of selling motor  fuel
32    at retail shall be entitled to a credit against tax due under
33    this  Act  in  an  amount  equal  to  the  tax  paid  to  the
 
SB1310 Enrolled            -56-                LRB9110257SMdv
 1    distributor, supplier, or other reseller.
 2        Every distributor, supplier, or other reseller registered
 3    as  provided  in  Section  2a or Section 2c of this Act shall
 4    remit the prepaid tax on all motor fuel that is due from  any
 5    person  engaged  in  the  business of selling at retail motor
 6    fuel with the returns filed under Section 2f or Section 3  of
 7    this  Act,  but  the  vendors  discount provided in Section 3
 8    shall not  apply  to  the  amount  of  prepaid  tax  that  is
 9    remitted.  Any  distributor or supplier who fails to properly
10    collect and remit the tax shall be liable for the  tax.   For
11    purposes  of this Section, the prepaid tax is due on invoiced
12    gallons sold during a month by the 20th day of the  following
13    month.
14    (Source: P.A. 86-1475; 87-14.)

15        (35 ILCS 120/3) (from Ch. 120, par. 442)
16        Sec. 3.  Except as provided in this Section, on or before
17    the  twentieth  day  of  each  calendar  month,  every person
18    engaged in the business of selling tangible personal property
19    at retail in this State during the preceding  calendar  month
20    shall file a return with the Department, stating:
21             1.  The name of the seller;
22             2.  His  residence  address  and  the address of his
23        principal place  of  business  and  the  address  of  the
24        principal  place  of  business  (if  that  is a different
25        address) from which he engages in the business of selling
26        tangible personal property at retail in this State;
27             3.  Total amount of receipts received by him  during
28        the  preceding calendar month or quarter, as the case may
29        be, from sales of tangible personal  property,  and  from
30        services furnished, by him during such preceding calendar
31        month or quarter;
32             4.  Total   amount   received   by  him  during  the
33        preceding calendar month or quarter on  charge  and  time
 
SB1310 Enrolled            -57-                LRB9110257SMdv
 1        sales  of  tangible  personal property, and from services
 2        furnished, by him prior to the month or quarter for which
 3        the return is filed;
 4             5.  Deductions allowed by law;
 5             6.  Gross receipts which were received by him during
 6        the preceding calendar month  or  quarter  and  upon  the
 7        basis of which the tax is imposed;
 8             7.  The  amount  of credit provided in Section 2d of
 9        this Act;
10             8.  The amount of tax due;
11             9.  The signature of the taxpayer; and
12             10.  Such  other  reasonable  information   as   the
13        Department may require.
14        If a taxpayer fails to sign a return within 30 days after
15    the proper notice and demand for signature by the Department,
16    the  return shall be considered valid and any amount shown to
17    be due on the return shall be deemed assessed.
18        Each return shall be  accompanied  by  the  statement  of
19    prepaid tax issued pursuant to Section 2e for which credit is
20    claimed.
21        A  retailer  may  accept a Manufacturer's Purchase Credit
22    certification from a purchaser in satisfaction of Use Tax  as
23    provided  in Section 3-85 of the Use Tax Act if the purchaser
24    provides the appropriate documentation as required by Section
25    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
26    certification,  accepted by a retailer as provided in Section
27    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
28    satisfy  Retailers'  Occupation  Tax  liability in the amount
29    claimed in the certification, not  to  exceed  6.25%  of  the
30    receipts subject to tax from a qualifying purchase.
31        The  Department  may  require  returns  to  be filed on a
32    quarterly basis.  If so required, a return for each  calendar
33    quarter  shall be filed on or before the twentieth day of the
34    calendar month following the end of  such  calendar  quarter.
 
SB1310 Enrolled            -58-                LRB9110257SMdv
 1    The taxpayer shall also file a return with the Department for
 2    each  of the first two months of each calendar quarter, on or
 3    before the twentieth day of  the  following  calendar  month,
 4    stating:
 5             1.  The name of the seller;
 6             2.  The  address  of the principal place of business
 7        from which he engages in the business of selling tangible
 8        personal property at retail in this State;
 9             3.  The total amount of taxable receipts received by
10        him during the preceding calendar  month  from  sales  of
11        tangible  personal  property by him during such preceding
12        calendar month, including receipts from charge  and  time
13        sales, but less all deductions allowed by law;
14             4.  The  amount  of credit provided in Section 2d of
15        this Act;
16             5.  The amount of tax due; and
17             6.  Such  other  reasonable   information   as   the
18        Department may require.
19        If  a total amount of less than $1 is payable, refundable
20    or creditable, such amount shall be disregarded if it is less
21    than 50 cents and shall be increased to $1 if it is 50  cents
22    or more.
23        Beginning  October 1, 1993, a taxpayer who has an average
24    monthly tax liability of $150,000  or  more  shall  make  all
25    payments  required  by  rules of the Department by electronic
26    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
27    has  an  average  monthly  tax  liability of $100,000 or more
28    shall make all payments required by rules of  the  Department
29    by  electronic  funds transfer.  Beginning October 1, 1995, a
30    taxpayer who has an average monthly tax liability of  $50,000
31    or  more  shall  make  all  payments required by rules of the
32    Department by electronic funds transfer.   Beginning  October
33    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
34    $200,000 or more shall make all payments required by rules of
 
SB1310 Enrolled            -59-                LRB9110257SMdv
 1    the  Department  by  electronic  funds  transfer.   The  term
 2    "annual tax liability" shall be the  sum  of  the  taxpayer's
 3    liabilities  under  this  Act,  and under all other State and
 4    local  occupation  and  use  tax  laws  administered  by  the
 5    Department, for the immediately preceding calendar year.  The
 6    term  "average monthly tax liability" shall be the sum of the
 7    taxpayer's liabilities under this Act, and  under  all  other
 8    State  and  local occupation and use tax laws administered by
 9    the Department, for the immediately preceding  calendar  year
10    divided by 12.
11        Before  August  1  of  each  year  beginning in 1993, the
12    Department  shall  notify  all  taxpayers  required  to  make
13    payments  by  electronic  funds  transfer.    All   taxpayers
14    required  to make payments by electronic funds transfer shall
15    make those payments for a minimum of one  year  beginning  on
16    October 1.
17        Any  taxpayer not required to make payments by electronic
18    funds transfer may make payments by electronic funds transfer
19    with the permission of the Department.
20        All taxpayers required  to  make  payment  by  electronic
21    funds  transfer  and  any taxpayers authorized to voluntarily
22    make payments by electronic funds transfer shall  make  those
23    payments in the manner authorized by the Department.
24        The Department shall adopt such rules as are necessary to
25    effectuate  a  program  of  electronic funds transfer and the
26    requirements of this Section.
27        Any amount which is required to be shown or  reported  on
28    any  return  or  other document under this Act shall, if such
29    amount is not a whole-dollar  amount,  be  increased  to  the
30    nearest  whole-dollar amount in any case where the fractional
31    part of a dollar is 50 cents or more, and  decreased  to  the
32    nearest  whole-dollar  amount  where the fractional part of a
33    dollar is less than 50 cents.
34        If the retailer is otherwise required to file  a  monthly
 
SB1310 Enrolled            -60-                LRB9110257SMdv
 1    return and if the retailer's average monthly tax liability to
 2    the  Department  does  not  exceed  $200,  the Department may
 3    authorize his returns to be filed on a quarter annual  basis,
 4    with  the  return  for January, February and March of a given
 5    year being due by April 20 of such year; with the return  for
 6    April,  May  and June of a given year being due by July 20 of
 7    such year; with the return for July, August and September  of
 8    a  given  year being due by October 20 of such year, and with
 9    the return for October, November and December of a given year
10    being due by January 20 of the following year.
11        If the retailer is otherwise required to file  a  monthly
12    or quarterly return and if the retailer's average monthly tax
13    liability  with  the  Department  does  not  exceed  $50, the
14    Department may authorize his returns to be filed on an annual
15    basis, with the return for a given year being due by  January
16    20 of the following year.
17        Such  quarter  annual  and annual returns, as to form and
18    substance, shall be  subject  to  the  same  requirements  as
19    monthly returns.
20        Notwithstanding   any   other   provision   in  this  Act
21    concerning the time within which  a  retailer  may  file  his
22    return, in the case of any retailer who ceases to engage in a
23    kind  of  business  which  makes  him  responsible for filing
24    returns under this Act, such  retailer  shall  file  a  final
25    return  under  this Act with the Department not more than one
26    month after discontinuing such business.
27        Where  the  same  person  has  more  than  one   business
28    registered  with  the Department under separate registrations
29    under this Act, such person may not file each return that  is
30    due   as   a  single  return  covering  all  such  registered
31    businesses, but shall file separate  returns  for  each  such
32    registered business.
33        In  addition, with respect to motor vehicles, watercraft,
34    aircraft, and trailers that are  required  to  be  registered
 
SB1310 Enrolled            -61-                LRB9110257SMdv
 1    with  an  agency  of  this State, every retailer selling this
 2    kind of tangible  personal  property  shall  file,  with  the
 3    Department,  upon a form to be prescribed and supplied by the
 4    Department, a separate return for each such item of  tangible
 5    personal  property  which  the  retailer  sells,  except that
 6    where, in the  same  transaction,  a  retailer  of  aircraft,
 7    watercraft,  motor  vehicles  or trailers transfers more than
 8    one aircraft, watercraft, motor vehicle or trailer to another
 9    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
10    retailer for the purpose of resale, that  seller  for  resale
11    may  report  the  transfer of all aircraft, watercraft, motor
12    vehicles or trailers involved  in  that  transaction  to  the
13    Department  on the same uniform invoice-transaction reporting
14    return form.  For  purposes  of  this  Section,  "watercraft"
15    means a Class 2, Class 3, or Class 4 watercraft as defined in
16    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
17    personal watercraft, or any boat  equipped  with  an  inboard
18    motor.
19        Any  retailer  who sells only motor vehicles, watercraft,
20    aircraft, or trailers that are required to be registered with
21    an agency of this State, so that  all  retailers'  occupation
22    tax liability is required to be reported, and is reported, on
23    such  transaction  reporting returns and who is not otherwise
24    required to file monthly or quarterly returns, need not  file
25    monthly or quarterly returns.  However, those retailers shall
26    be required to file returns on an annual basis.
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
 
SB1310 Enrolled            -62-                LRB9110257SMdv
 1    by the retailer for the traded-in tangible personal property,
 2    if any, to the extent to which Section 1 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 or 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 1 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 day of delivery of the item that
33    is being sold, but may be filed by the retailer at  any  time
34    sooner  than  that  if  he chooses to do so.  The transaction
 
SB1310 Enrolled            -63-                LRB9110257SMdv
 1    reporting return and tax remittance  or  proof  of  exemption
 2    from   the  Illinois  use  tax  may  be  transmitted  to  the
 3    Department by way of the State agency with  which,  or  State
 4    officer  with  whom  the  tangible  personal property must be
 5    titled or registered (if titling or registration is required)
 6    if the Department and such agency or State officer  determine
 7    that   this   procedure   will  expedite  the  processing  of
 8    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  use  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  the  tax  or  proof  of  exemption made to the Department
33    before the retailer is willing to take these actions and such
34    user has not paid the tax to  the  retailer,  such  user  may
 
SB1310 Enrolled            -64-                LRB9110257SMdv
 1    certify  to  the  fact  of such delay by the retailer and may
 2    (upon the 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        Refunds  made  by  the seller during the preceding return
16    period  to  purchasers,  on  account  of  tangible   personal
17    property  returned  to  the  seller,  shall  be  allowed as a
18    deduction under subdivision 5 of  his  monthly  or  quarterly
19    return,   as  the  case  may  be,  in  case  the  seller  had
20    theretofore included the  receipts  from  the  sale  of  such
21    tangible  personal  property in a return filed by him and had
22    paid the tax  imposed  by  this  Act  with  respect  to  such
23    receipts.
24        Where  the  seller  is a corporation, the return filed on
25    behalf of such corporation shall be signed by the  president,
26    vice-president,  secretary  or  treasurer  or by the properly
27    accredited agent of such corporation.
28        Where the seller is  a  limited  liability  company,  the
29    return filed on behalf of the limited liability company shall
30    be  signed by a manager, member, or properly accredited agent
31    of the limited liability company.
32        Except as provided in this Section, the  retailer  filing
33    the  return  under  this Section shall, at the time of filing
34    such return, pay to the Department the amount of tax  imposed
 
SB1310 Enrolled            -65-                LRB9110257SMdv
 1    by  this Act less a discount of 2.1% prior to January 1, 1990
 2    and 1.75% on and after January 1, 1990, or  $5  per  calendar
 3    year, whichever is greater, which is allowed to reimburse the
 4    retailer  for  the  expenses  incurred  in  keeping  records,
 5    preparing and filing returns, remitting the tax and supplying
 6    data  to  the  Department  on  request.   Any prepayment made
 7    pursuant to Section 2d of this Act shall be included  in  the
 8    amount  on which such 2.1% or 1.75% discount is computed.  In
 9    the case of retailers  who  report  and  pay  the  tax  on  a
10    transaction   by  transaction  basis,  as  provided  in  this
11    Section, such discount shall be  taken  with  each  such  tax
12    remittance  instead  of when such retailer files his periodic
13    return.
14        Before October 1, 2000, if the taxpayer's average monthly
15    tax liability to the Department under this Act, the  Use  Tax
16    Act,  the Service Occupation Tax Act, and the Service Use Tax
17    Act, excluding any liability for  prepaid  sales  tax  to  be
18    remitted  in  accordance  with  Section  2d  of this Act, was
19    $10,000 or more during  the  preceding  4  complete  calendar
20    quarters,  he  shall  file  a return with the Department each
21    month by the 20th day of the month next following  the  month
22    during  which  such  tax liability is incurred and shall make
23    payments to the Department on or before the 7th,  15th,  22nd
24    and  last  day  of  the  month during which such liability is
25    incurred. On and after October 1,  2000,  if  the  taxpayer's
26    average  monthly  tax  liability to the Department under this
27    Act, the Use Tax Act, the Service Occupation Tax Act, and the
28    Service Use Tax Act,  excluding  any  liability  for  prepaid
29    sales  tax  to  be  remitted in accordance with Section 2d of
30    this Act, was $20,000 or more during the preceding 4 complete
31    calendar quarters, he shall file a return with the Department
32    each month by the 20th day of the month  next  following  the
33    month  during  which such tax liability is incurred and shall
34    make payment to the Department on or before  the  7th,  15th,
 
SB1310 Enrolled            -66-                LRB9110257SMdv
 1    22nd and last day of the month during which such liability is
 2    incurred.    If  the month during which such tax liability is
 3    incurred began prior to January 1, 1985, each  payment  shall
 4    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
 5    liability for the month or an amount set  by  the  Department
 6    not  to  exceed  1/4  of the average monthly liability of the
 7    taxpayer to the  Department  for  the  preceding  4  complete
 8    calendar  quarters  (excluding the month of highest liability
 9    and the month of lowest liability in such 4 quarter  period).
10    If  the  month  during  which  such tax liability is incurred
11    begins on or after January 1, 1985 and prior  to  January  1,
12    1987,  each  payment  shall be in an amount equal to 22.5% of
13    the taxpayer's actual liability for the month or 27.5% of the
14    taxpayer's liability for  the  same  calendar  month  of  the
15    preceding year.  If the month during which such tax liability
16    is  incurred  begins on or after January 1, 1987 and prior to
17    January 1, 1988, each payment shall be in an amount equal  to
18    22.5%  of  the  taxpayer's  actual liability for the month or
19    26.25% of the taxpayer's  liability  for  the  same  calendar
20    month  of the preceding year.  If the month during which such
21    tax liability is incurred begins on or after January 1, 1988,
22    and prior to January 1, 1989, or begins on or  after  January
23    1, 1996, each payment shall be in an amount equal to 22.5% of
24    the  taxpayer's  actual liability for the month or 25% of the
25    taxpayer's liability for  the  same  calendar  month  of  the
26    preceding  year. If the month during which such tax liability
27    is incurred begins on or after January 1, 1989, and prior  to
28    January  1, 1996, each payment shall be in an amount equal to
29    22.5% of the taxpayer's actual liability for the month or 25%
30    of the taxpayer's liability for the same  calendar  month  of
31    the preceding year or 100% of the taxpayer's actual liability
32    for the quarter monthly reporting period.  The amount of such
33    quarter  monthly payments shall be credited against the final
34    tax liability  of  the  taxpayer's  return  for  that  month.
 
SB1310 Enrolled            -67-                LRB9110257SMdv
 1    Before  October  1, 2000, once applicable, the requirement of
 2    the making of quarter monthly payments to the  Department  by
 3    taxpayers  having an average monthly tax liability of $10,000
 4    or more as determined in  the  manner  provided  above  shall
 5    continue  until  such taxpayer's average monthly liability to
 6    the Department  during  the  preceding  4  complete  calendar
 7    quarters  (excluding  the  month of highest liability and the
 8    month of lowest liability) is less than $9,000, or until such
 9    taxpayer's average monthly liability  to  the  Department  as
10    computed  for  each  calendar  quarter  of  the  4  preceding
11    complete  calendar  quarter  period  is  less  than  $10,000.
12    However,  if  a  taxpayer  can  show  the  Department  that a
13    substantial change in the taxpayer's  business  has  occurred
14    which  causes  the  taxpayer  to  anticipate that his average
15    monthly tax liability for the reasonably  foreseeable  future
16    will fall below the $10,000 threshold stated above, then such
17    taxpayer  may  petition  the  Department for a change in such
18    taxpayer's reporting status.  On and after October  1,  2000,
19    once  applicable,  the  requirement  of the making of quarter
20    monthly payments to the Department  by  taxpayers  having  an
21    average   monthly   tax  liability  of  $20,000  or  more  as
22    determined in the manner provided above shall continue  until
23    such  taxpayer's  average monthly liability to the Department
24    during the preceding 4 complete calendar quarters  (excluding
25    the  month  of  highest  liability  and  the  month of lowest
26    liability) is less than  $19,000  or  until  such  taxpayer's
27    average  monthly  liability to the Department as computed for
28    each calendar quarter of the 4  preceding  complete  calendar
29    quarter  period is less than $20,000.  However, if a taxpayer
30    can show the Department that  a  substantial  change  in  the
31    taxpayer's business has occurred which causes the taxpayer to
32    anticipate  that  his  average  monthly tax liability for the
33    reasonably foreseeable future will  fall  below  the  $20,000
34    threshold  stated  above, then such taxpayer may petition the
 
SB1310 Enrolled            -68-                LRB9110257SMdv
 1    Department for a change in such taxpayer's reporting  status.
 2    The  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    as  a  payment and the amount of such quarter monthly payment
 9    actually and timely paid, except insofar as the taxpayer  has
10    previously  made payments for that month to the Department in
11    excess of the minimum payments previously due as provided  in
12    this  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        Without  regard to whether a taxpayer is required to make
17    quarter monthly payments as specified above, any taxpayer who
18    is required by Section 2d of this Act to  collect  and  remit
19    prepaid  taxes  and has collected prepaid taxes which average
20    in excess  of  $25,000  per  month  during  the  preceding  2
21    complete  calendar  quarters,  shall  file  a return with the
22    Department as required by Section 2f and shall make  payments
23    to  the  Department on or before the 7th, 15th, 22nd and last
24    day of the month during which such liability is incurred.  If
25    the month during which such tax liability is  incurred  began
26    prior  to  the effective date of this amendatory Act of 1985,
27    each payment shall be in an amount not less than 22.5% of the
28    taxpayer's actual liability under Section 2d.  If  the  month
29    during  which  such  tax  liability  is incurred begins on or
30    after January 1, 1986, each payment shall  be  in  an  amount
31    equal  to  22.5%  of  the taxpayer's actual liability for the
32    month or 27.5% of  the  taxpayer's  liability  for  the  same
33    calendar  month of the preceding calendar year.  If the month
34    during which such tax liability  is  incurred  begins  on  or
 
SB1310 Enrolled            -69-                LRB9110257SMdv
 1    after  January  1,  1987,  each payment shall be in an amount
 2    equal to 22.5% of the taxpayer's  actual  liability  for  the
 3    month  or  26.25%  of  the  taxpayer's liability for the same
 4    calendar month of the preceding year.   The  amount  of  such
 5    quarter  monthly payments shall be credited against the final
 6    tax liability of the taxpayer's return for that  month  filed
 7    under  this  Section or Section 2f, as the case may be.  Once
 8    applicable, the requirement of the making of quarter  monthly
 9    payments  to  the Department pursuant to this paragraph shall
10    continue until such taxpayer's average  monthly  prepaid  tax
11    collections during the preceding 2 complete calendar quarters
12    is  $25,000  or less.  If any such quarter monthly payment is
13    not paid at the time or in the amount required, the  taxpayer
14    shall   be   liable   for  penalties  and  interest  on  such
15    difference, except insofar as  the  taxpayer  has  previously
16    made  payments  for  that  month  in  excess  of  the minimum
17    payments previously due.
18        If any payment provided for in this Section  exceeds  the
19    taxpayer's  liabilities  under this Act, the Use Tax Act, the
20    Service Occupation Tax Act and the Service Use  Tax  Act,  as
21    shown on an original monthly return, the Department shall, if
22    requested  by  the  taxpayer,  issue to the taxpayer a credit
23    memorandum no later than 30 days after the date  of  payment.
24    The  credit  evidenced  by  such  credit  memorandum  may  be
25    assigned  by  the  taxpayer  to a similar taxpayer under this
26    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
27    Service  Use Tax Act, in accordance with reasonable rules and
28    regulations to be prescribed by the Department.  If  no  such
29    request  is made, the taxpayer may credit such excess payment
30    against tax liability subsequently  to  be  remitted  to  the
31    Department  under  this  Act,  the  Use  Tax Act, the Service
32    Occupation Tax Act or the Service Use Tax Act, in  accordance
33    with  reasonable  rules  and  regulations  prescribed  by the
34    Department.  If the Department subsequently  determined  that
 
SB1310 Enrolled            -70-                LRB9110257SMdv
 1    all  or  any part of the credit taken was not actually due to
 2    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
 3    shall be reduced by 2.1% or 1.75% of the  difference  between
 4    the  credit  taken  and  that actually due, and that taxpayer
 5    shall  be  liable  for  penalties  and   interest   on   such
 6    difference.
 7        If a retailer of motor fuel is entitled to a credit under
 8    Section 2d of this Act which exceeds the taxpayer's liability
 9    to  the  Department  under  this  Act for the month which the
10    taxpayer is filing a return, the Department shall  issue  the
11    taxpayer a credit memorandum for the excess.
12        Beginning  January  1,  1990,  each  month the Department
13    shall pay into the Local Government Tax Fund, a special  fund
14    in  the  State  treasury  which  is  hereby  created, the net
15    revenue realized for the preceding month from the 1%  tax  on
16    sales  of  food for human consumption which is to be consumed
17    off the premises where  it  is  sold  (other  than  alcoholic
18    beverages,  soft  drinks and food which has been prepared for
19    immediate consumption) and prescription  and  nonprescription
20    medicines,  drugs,  medical  appliances  and  insulin,  urine
21    testing materials, syringes and needles used by diabetics.
22        Beginning  January  1,  1990,  each  month the Department
23    shall pay into the County and Mass Transit District  Fund,  a
24    special  fund  in the State treasury which is hereby created,
25    4% of the net revenue realized for the preceding  month  from
26    the 6.25% general rate.
27        Beginning August 1, 2000, each month the Department shall
28    pay into the County and Mass Transit District Fund 20% of the
29    net  revenue  realized for the preceding month from the 1.25%
30    rate on the selling price of motor fuel and gasohol.
31        Beginning January 1,  1990,  each  month  the  Department
32    shall  pay  into the Local Government Tax Fund 16% of the net
33    revenue realized for  the  preceding  month  from  the  6.25%
34    general  rate  on  the  selling  price  of  tangible personal
 
SB1310 Enrolled            -71-                LRB9110257SMdv
 1    property.
 2        Beginning August 1, 2000, each month the Department shall
 3    pay into the Local Government Tax Fund 80% of the net revenue
 4    realized for the preceding month from the 1.25% rate  on  the
 5    selling price of motor fuel and gasohol.
 6        Of the remainder of the moneys received by the Department
 7    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
 8    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 9    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
10    into the Build Illinois Fund; provided, however, that  if  in
11    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12    as  the case may be, of the moneys received by the Department
13    and required to be paid into the Build Illinois Fund pursuant
14    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
15    Service  Use Tax Act, and Section 9 of the Service Occupation
16    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
17    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
18    moneys being hereinafter called the "Tax Act Amount", and (2)
19    the amount transferred to the Build Illinois  Fund  from  the
20    State  and Local Sales Tax Reform Fund shall be less than the
21    Annual Specified Amount (as hereinafter defined),  an  amount
22    equal  to  the  difference shall be immediately paid into the
23    Build  Illinois  Fund  from  other  moneys  received  by  the
24    Department pursuant to the Tax Acts;  the  "Annual  Specified
25    Amount"  means  the  amounts specified below for fiscal years
26    1986 through 1993:
27             Fiscal Year              Annual Specified Amount
28                 1986                       $54,800,000
29                 1987                       $76,650,000
30                 1988                       $80,480,000
31                 1989                       $88,510,000
32                 1990                       $115,330,000
33                 1991                       $145,470,000
34                 1992                       $182,730,000
 
SB1310 Enrolled            -72-                LRB9110257SMdv
 1                 1993                      $206,520,000;
 2    and means the Certified Annual Debt Service  Requirement  (as
 3    defined  in Section 13 of the Build Illinois Bond Act) or the
 4    Tax Act Amount, whichever is greater, for  fiscal  year  1994
 5    and  each  fiscal year thereafter; and further provided, that
 6    if on the last business day of any month the sum of  (1)  the
 7    Tax  Act  Amount  required  to  be  deposited  into the Build
 8    Illinois Bond Account in the Build Illinois Fund during  such
 9    month  and  (2)  the amount transferred to the Build Illinois
10    Fund from the State and Local Sales  Tax  Reform  Fund  shall
11    have  been  less than 1/12 of the Annual Specified Amount, an
12    amount equal to the difference shall be immediately paid into
13    the Build Illinois Fund from other  moneys  received  by  the
14    Department  pursuant  to the Tax Acts; and, further provided,
15    that in no  event  shall  the  payments  required  under  the
16    preceding proviso result in aggregate payments into the Build
17    Illinois Fund pursuant to this clause (b) for any fiscal year
18    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
19    the Annual  Specified  Amount  for  such  fiscal  year.   The
20    amounts payable into the Build Illinois Fund under clause (b)
21    of the first sentence in this paragraph shall be payable only
22    until such time as the aggregate amount on deposit under each
23    trust   indenture   securing  Bonds  issued  and  outstanding
24    pursuant to the Build Illinois Bond Act is sufficient, taking
25    into account any future investment income, to fully  provide,
26    in  accordance  with such indenture, for the defeasance of or
27    the payment  of  the  principal  of,  premium,  if  any,  and
28    interest  on  the  Bonds secured by such indenture and on any
29    Bonds expected to be issued thereafter and all fees and costs
30    payable  with  respect  thereto,  all  as  certified  by  the
31    Director of the  Bureau  of  the  Budget.   If  on  the  last
32    business  day  of  any  month  in which Bonds are outstanding
33    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
34    moneys  deposited  in  the Build Illinois Bond Account in the
 
SB1310 Enrolled            -73-                LRB9110257SMdv
 1    Build Illinois Fund in such month  shall  be  less  than  the
 2    amount  required  to  be  transferred  in such month from the
 3    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 4    Retirement  and  Interest  Fund pursuant to Section 13 of the
 5    Build Illinois Bond Act, an amount equal to  such  deficiency
 6    shall  be  immediately paid from other moneys received by the
 7    Department pursuant to the Tax Acts  to  the  Build  Illinois
 8    Fund;  provided,  however, that any amounts paid to the Build
 9    Illinois Fund in any fiscal year pursuant  to  this  sentence
10    shall be deemed to constitute payments pursuant to clause (b)
11    of  the first sentence of this paragraph and shall reduce the
12    amount otherwise payable for such  fiscal  year  pursuant  to
13    that  clause  (b).   The  moneys  received  by the Department
14    pursuant to this Act and required to be  deposited  into  the
15    Build  Illinois  Fund  are  subject  to the pledge, claim and
16    charge set forth in Section 12 of  the  Build  Illinois  Bond
17    Act.
18        Subject  to  payment  of  amounts into the Build Illinois
19    Fund as  provided  in  the  preceding  paragraph  or  in  any
20    amendment  thereto hereafter enacted, the following specified
21    monthly  installment  of  the   amount   requested   in   the
22    certificate  of  the  Chairman  of  the Metropolitan Pier and
23    Exposition Authority provided  under  Section  8.25f  of  the
24    State  Finance  Act,  but not in excess of sums designated as
25    "Total Deposit", shall be deposited  in  the  aggregate  from
26    collections  under Section 9 of the Use Tax Act, Section 9 of
27    the Service Use Tax Act, Section 9 of the Service  Occupation
28    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
29    into the  McCormick  Place  Expansion  Project  Fund  in  the
30    specified fiscal years.
31             Fiscal Year                   Total Deposit
32                 1993                            $0
33                 1994                        53,000,000
34                 1995                        58,000,000
 
SB1310 Enrolled            -74-                LRB9110257SMdv
 1                 1996                        61,000,000
 2                 1997                        64,000,000
 3                 1998                        68,000,000
 4                 1999                        71,000,000
 5                 2000                        75,000,000
 6                 2001                        80,000,000
 7                 2002                        84,000,000
 8                 2003                        89,000,000
 9                 2004                        93,000,000
10                 2005                        97,000,000
11                 2006                       102,000,000
12                 2007                       108,000,000
13                 2008                       115,000,000
14                 2009                       120,000,000
15                 2010                       126,000,000
16                 2011                       132,000,000
17                 2012                       138,000,000
18                 2013 and                   145,000,000
19        each fiscal year
20        thereafter that bonds
21        are outstanding under
22        Section 13.2 of the
23        Metropolitan Pier and
24        Exposition Authority
25        Act, but not after fiscal year 2029.
26        Beginning  July 20, 1993 and in each month of each fiscal
27    year thereafter, one-eighth of the amount  requested  in  the
28    certificate  of  the  Chairman  of  the Metropolitan Pier and
29    Exposition Authority for that fiscal year,  less  the  amount
30    deposited  into the McCormick Place Expansion Project Fund by
31    the State Treasurer in the respective month under  subsection
32    (g)  of  Section  13  of the Metropolitan Pier and Exposition
33    Authority Act, plus cumulative deficiencies in  the  deposits
34    required  under  this  Section for previous months and years,
 
SB1310 Enrolled            -75-                LRB9110257SMdv
 1    shall be deposited into the McCormick Place Expansion Project
 2    Fund, until the full amount requested for  the  fiscal  year,
 3    but  not  in  excess  of the amount specified above as "Total
 4    Deposit", has been deposited.
 5        Subject to payment of amounts  into  the  Build  Illinois
 6    Fund  and the McCormick Place Expansion Project Fund pursuant
 7    to the preceding  paragraphs  or  in  any  amendment  thereto
 8    hereafter  enacted,  each month the Department shall pay into
 9    the Local  Government  Distributive  Fund  0.4%  of  the  net
10    revenue  realized for the preceding month from the 5% general
11    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
12    preceding  month from the 6.25% general rate, as the case may
13    be, on the selling price of tangible personal property  which
14    amount  shall,  subject  to  appropriation, be distributed as
15    provided in Section 2 of the State Revenue Sharing  Act.   No
16    payments or distributions pursuant to this paragraph shall be
17    made  if  the  tax  imposed  by  this  Act on photoprocessing
18    products is declared unconstitutional,  or  if  the  proceeds
19    from  such  tax  are  unavailable for distribution because of
20    litigation.
21        Subject to payment of amounts  into  the  Build  Illinois
22    Fund,  the McCormick Place Expansion Project to the preceding
23    paragraphs or in any amendments  thereto  hereafter  enacted,
24    beginning  July  1, 1993, the Department shall each month pay
25    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
26    revenue  realized  for  the  preceding  month  from the 6.25%
27    general rate  on  the  selling  price  of  tangible  personal
28    property.
29        Of the remainder of the moneys received by the Department
30    pursuant  to  this  Act,  75%  thereof shall be paid into the
31    State Treasury and 25% shall be reserved in a special account
32    and used only for the transfer to the Common School  Fund  as
33    part of the monthly transfer from the General Revenue Fund in
34    accordance with Section 8a of the State Finance Act.
 
SB1310 Enrolled            -76-                LRB9110257SMdv
 1        The  Department  may,  upon  separate written notice to a
 2    taxpayer, require the taxpayer to prepare and file  with  the
 3    Department  on a form prescribed by the Department within not
 4    less than 60 days after  receipt  of  the  notice  an  annual
 5    information  return for the tax year specified in the notice.
 6    Such  annual  return  to  the  Department  shall  include   a
 7    statement  of  gross receipts as shown by the retailer's last
 8    Federal income tax return.  If  the  total  receipts  of  the
 9    business  as reported in the Federal income tax return do not
10    agree with the gross receipts reported to the  Department  of
11    Revenue for the same period, the retailer shall attach to his
12    annual  return  a  schedule showing a reconciliation of the 2
13    amounts and the reasons for the difference.   The  retailer's
14    annual  return to the Department shall also disclose the cost
15    of goods sold by the retailer during the year covered by such
16    return, opening and closing inventories  of  such  goods  for
17    such year, costs of goods used from stock or taken from stock
18    and  given  away  by  the  retailer during such year, payroll
19    information of the retailer's business during such  year  and
20    any  additional  reasonable  information which the Department
21    deems would be helpful in determining  the  accuracy  of  the
22    monthly,  quarterly  or annual returns filed by such retailer
23    as provided for in this Section.
24        If the annual information return required by this Section
25    is not filed when and as  required,  the  taxpayer  shall  be
26    liable as follows:
27             (i)  Until  January  1,  1994, the taxpayer shall be
28        liable for a penalty equal to 1/6 of 1% of  the  tax  due
29        from such taxpayer under this Act during the period to be
30        covered  by  the annual return for each month or fraction
31        of a month until such return is filed  as  required,  the
32        penalty  to  be assessed and collected in the same manner
33        as any other penalty provided for in this Act.
34             (ii)  On and after January  1,  1994,  the  taxpayer
 
SB1310 Enrolled            -77-                LRB9110257SMdv
 1        shall be liable for a penalty as described in Section 3-4
 2        of the Uniform Penalty and Interest Act.
 3        The chief executive officer, proprietor, owner or highest
 4    ranking  manager  shall sign the annual return to certify the
 5    accuracy of the information contained therein.    Any  person
 6    who  willfully  signs  the  annual return containing false or
 7    inaccurate  information  shall  be  guilty  of  perjury   and
 8    punished  accordingly.   The annual return form prescribed by
 9    the Department  shall  include  a  warning  that  the  person
10    signing the return may be liable for perjury.
11        The  provisions  of this Section concerning the filing of
12    an annual information return do not apply to a  retailer  who
13    is  not required to file an income tax return with the United
14    States Government.
15        As soon as possible after the first day  of  each  month,
16    upon   certification   of  the  Department  of  Revenue,  the
17    Comptroller shall order transferred and the  Treasurer  shall
18    transfer  from the General Revenue Fund to the Motor Fuel Tax
19    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
20    realized  under  this  Act  for  the  second preceding month.
21    Beginning April 1, 2000, this transfer is no longer  required
22    and shall not be made.
23        Net  revenue  realized  for  a month shall be the revenue
24    collected by the State pursuant to this Act, less the  amount
25    paid  out  during  that  month  as  refunds  to taxpayers for
26    overpayment of liability.
27        For greater simplicity of administration,  manufacturers,
28    importers  and  wholesalers whose products are sold at retail
29    in Illinois by numerous retailers, and who wish to do so, may
30    assume the responsibility for accounting and  paying  to  the
31    Department  all  tax  accruing under this Act with respect to
32    such sales, if the retailers who are  affected  do  not  make
33    written objection to the Department to this arrangement.
34        Any  person  who  promotes,  organizes,  provides  retail
 
SB1310 Enrolled            -78-                LRB9110257SMdv
 1    selling  space  for concessionaires or other types of sellers
 2    at the Illinois State Fair, DuQuoin State Fair, county fairs,
 3    local fairs, art shows, flea markets and similar  exhibitions
 4    or  events,  including  any  transient merchant as defined by
 5    Section 2 of the Transient Merchant Act of 1987, is  required
 6    to  file  a  report with the Department providing the name of
 7    the merchant's business, the name of the  person  or  persons
 8    engaged  in  merchant's  business,  the permanent address and
 9    Illinois Retailers Occupation Tax Registration Number of  the
10    merchant,  the  dates  and  location  of  the event and other
11    reasonable information that the Department may require.   The
12    report must be filed not later than the 20th day of the month
13    next  following  the month during which the event with retail
14    sales was held.  Any  person  who  fails  to  file  a  report
15    required  by  this  Section commits a business offense and is
16    subject to a fine not to exceed $250.
17        Any person engaged in the business  of  selling  tangible
18    personal property at retail as a concessionaire or other type
19    of  seller  at  the  Illinois  State  Fair, county fairs, art
20    shows, flea markets and similar exhibitions or events, or any
21    transient merchants, as defined by Section 2 of the Transient
22    Merchant Act of 1987, may be required to make a daily  report
23    of  the  amount of such sales to the Department and to make a
24    daily payment of the full amount of tax due.  The  Department
25    shall  impose  this requirement when it finds that there is a
26    significant risk of loss of revenue to the State at  such  an
27    exhibition  or  event.   Such  a  finding  shall  be based on
28    evidence that a  substantial  number  of  concessionaires  or
29    other  sellers  who  are  not  residents  of Illinois will be
30    engaging  in  the  business  of  selling  tangible   personal
31    property  at  retail  at  the  exhibition  or event, or other
32    evidence of a significant risk of  loss  of  revenue  to  the
33    State.  The Department shall notify concessionaires and other
34    sellers  affected  by the imposition of this requirement.  In
 
SB1310 Enrolled            -79-                LRB9110257SMdv
 1    the  absence  of  notification   by   the   Department,   the
 2    concessionaires and other sellers shall file their returns as
 3    otherwise required in this Section.
 4    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
 5    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
 6    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

 7        Section 22.   The  Motor  Fuel  Tax  Law  is  amended  by
 8    changing Section 13a as follows:

 9        (35 ILCS 505/13a) (from Ch. 120, par. 429a)
10        Sec.  13a.   (1)  A tax is hereby imposed upon the use of
11    motor fuel upon highways of this State  by  commercial  motor
12    vehicles.  The  tax  shall be comprised of 2 parts.  Part (a)
13    shall be at the rate established by Section 2 of this Act, as
14    heretofore or hereafter amended.  Part (b) shall  be  at  the
15    rate  established by subsection (2) of this Section as now or
16    hereafter amended.
17        (2)  A rate shall be established by the Department as  of
18    January 1  of each year using the average "selling price", as
19    defined  in  the Retailers' Occupation Tax Act, per gallon of
20    motor fuel sold in this State during the previous  12  months
21    and  multiplying  it  by  6  1/4%  to determine the cents per
22    gallon rate. For the period beginning on  July  1,  2000  and
23    through  December  31, 2000, the Department shall establish a
24    rate using the average "selling price",  as  defined  in  the
25    Retailers'  Occupation Tax Act, per gallon of motor fuel sold
26    in this State during calendar year 1999 and multiplying it by
27    1.25% to determine the cents per gallon rate.
28    (Source: P.A. 88-480.)
 
SB1310 Enrolled            -80-                LRB9110257SMdv
 1        Section 99.  Effective date.  This Act  takes  effect  on
 2    July 1, 2000.

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