Senate Sponsors: RADOGNO-PARKER-KLEMM-MYERS,J. House Sponsors: BEAUBIEN-CURRIE Short description: SALES TX-QUARTER ANNUAL FILING Synopsis of Bill as introduced: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning January 1, 2001, if a taxpayer's average monthly tax liability to the Department of Revenue under these Acts exceeds $50, the taxpayer is eligible to file returns on a quarter annual basis, except for retailers who sell only motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State. Provides that the Department shall provide, by reasonable rules, for a phase-in period not to exceed one year for the conversion to quarter annual filing of returns and the methodology for determining a taxpayer's quarter annual filing periods. Provides that this amendatory Act does not change the thresholds or requirements provided in this Section for the payment of tax due by electronic funds transfer. Makes other changes. Effective immediately. FISCAL NOTE (Department of Revenue) The bill is believed to have a potentially considerable impact on State funds. Because the Department will be unable to deter- mine portions of sales tax to be allocated to local governments as well as monies received from local taxes, State and local tax dollars will be held until return information is received. If the Department estimates allocations prior to receiving the return information, reconciliation of the estimated allocations will be required on a quarterly basis. Reconciling under-allo- cations is a cost to local governments, and over-allocations is a significant cost to the State. The Department has regula- tions requiring that local government will not be impacted by more than 5% of their average monthly allocation when recover- ing over-allocated funds, leaving the Department, and ultimate- ly the State, in the position of advancing (sometimes consid- erable) amounts to these jurisdictions. Under-allocations and over-allocations are anomalies of the current system and can be expensed without notice. Under SB 1453, recovery of over- allocations will become the norm. SENATE AMENDMENT NO. 1 Deletes reference to: 35 ILCS 110/9 35 ILCS 115/9 35 ILCS 120/2a 35 ILCS 120/3 Deletes everything. Amends the Use Tax Act. Makes a technical change in a Section concerning returns and other matters related to paying the tax. HOUSE AMENDMENT NO. 1. Deletes reference to: 35 ILCS 105/9 Adds reference to: 20 ILCS 2505/2505-710 new 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5 35 ILCS 105/9 from Ch. 120, par. 439.9 35 ILCS 105/10 from Ch. 120, par. 439.10 35 ILCS 105/22 from Ch. 120, par. 439.22 35 ILCS 110/20 from Ch. 120, par. 439.50 35 ILCS 115/20 from Ch. 120, par. 439.120 35 ILCS 120/3 from Ch. 120, par. 442 35 ILCS 120/6 from Ch. 120, par. 445 35 ILCS 130/4 from Ch. 120, par. 453.4 35 ILCS 130/6 from Ch. 120, par. 453.6 35 ILCS 135/4 from Ch. 120, par. 453.34 35 ILCS 135/6 from Ch. 120, par. 453.36 220 ILCS 5/8-403.1 from Ch. 111 2/3, par. 8-403.1 Deletes everything. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue is authorized and empowered to convene an Occupation and Use Tax Reporting and Simplification Committee for the purpose of reviewing proposed methods for simplifying Illinois occupation and use tax reporting requirements and that the Committee shall submit a report of its findings to the General Assembly on or before January 1, 2001. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to replace references to specific local occupation and use taxes with a reference to "any local occupation or use tax administered by the Department". Makes other changes. Further amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that a retailer of aircraft, watercraft, motor vehicles, or trailers who transfers more than one of these items to a purchaser for use as qualifying rolling stock may report the transfer of all of the items involved in that transaction to the Department of Revenue on the same reporting form. Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Adds a provision allowing distributors 20 days to protest a Department of Revenue decision regarding a distributor's license and adds provisions regarding hearings. Amends the Public Utilities Act. Provides that the Department of Revenue (now, the State Treasurer) shall prescribe the forms to be filed by and collect payments from qualified solid waste energy facilities based on the kilowatt hours of electricity sold by them. Effective January 1, 2001, except that the changes to the Department of Revenue Law of the Civil Administrative Code of Illinois are effective immediately. Last action on Bill: PUBLIC ACT.............................. 91-0901 Last action date: 00-07-06 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status