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92_SB1854enr SB1854 Enrolled LRB9215370EGfg 1 AN ACT to revise the law by combining multiple enactments 2 and making technical corrections. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Nature of this Act. 6 (a) This Act may be cited as the First 2002 General 7 Revisory Act. 8 (b) This Act is not intended to make any substantive 9 change in the law. It reconciles conflicts that have arisen 10 from multiple amendments and enactments and makes technical 11 corrections and revisions in the law. 12 This Act revises and, where appropriate, renumbers 13 certain Sections that have been added or amended by more than 14 one Public Act. In certain cases in which a repealed Act or 15 Section has been replaced with a successor law, this Act 16 incorporates amendments to the repealed Act or Section into 17 the successor law. This Act also corrects errors, revises 18 cross-references, and deletes obsolete text. 19 (c) In this Act, the reference at the end of each 20 amended Section indicates the sources in the Session Laws of 21 Illinois that were used in the preparation of the text of 22 that Section. The text of the Section included in this Act 23 is intended to reconcile the different versions of the 24 Section found in the Public Acts included in the list of 25 sources, but may not include other versions of the Section to 26 be found in Public Acts not included in the list of sources. 27 The list of sources is not a part of the text of the Section. 28 (d) Public Acts 91-937 through 92-520 were considered in 29 the preparation of the combining revisories included in this 30 Act. Many of those combining revisories contain no striking 31 or underscoring because no additional changes are being made 32 in the material that is being combined. SB1854 Enrolled -2- LRB9215370EGfg 1 Section 4. The Regulatory Sunset Act is amended by 2 changing Sections 4.13 and 4.22 as follows: 3 (5 ILCS 80/4.13) (from Ch. 127, par. 1904.13) 4 Sec. 4.13. Acts repealed on December 31, 2002. The 5 following Acts are repealed on December 31, 2002: 6 The Environmental Health Practitioner Licensing Act. 7 The Naprapathic Practice Act. 8 The Wholesale Drug Distribution Licensing Act. 9 The Dietetic and Nutrition Services Practice Act. 10 The Funeral Directors and Embalmers Licensing Code. 11 The Professional Counselor and Clinical Professional 12 Counselor Licensing Act. 13 (Source: P.A. 88-45; 89-61, eff. 6-30-95; revised 8-22-01.) 14 (5 ILCS 80/4.22) 15 Sec. 4.22. ActsActrepealed on January 1, 2012. The 16 following Acts areAct isrepealed on January 1, 2012:.17 The Detection of Deception Examiners Act. 18 The Home Inspector License Act. 19 The Interior Design Title Act. 20 The Professional Boxing Act. 21 The Real Estate AppraiserAppraisersLicensing Act of 22 2002. 23 The Water Well and Pump Installation Contractor's License 24 Act. 25 (Source: P.A. 92-104, eff. 7-20-01; 92-180, eff. 7-1-02; 26 92-239, eff. 8-3-01; 92-453, eff. 8-21-01; 92-499, eff. 27 1-1-02; 92-500, eff. 12-18-01; revised 12-26-01.) 28 (5 ILCS 80/4.12 rep.) (from Ch. 127, par. 1904.12) 29 Section. 5. The Regulatory Sunset Act is amended by 30 repealing Section 4.12. SB1854 Enrolled -3- LRB9215370EGfg 1 Section 6. The Illinois Administrative Procedure Act is 2 amended by renumbering Section 90 (as added by P.A. 92-405) 3 as follows: 4 (5 ILCS 100/1-90) 5 Sec. 1-90.90.Rulemaking. 6 (a) "Rulemaking" means the process and required 7 documentation for the adoption of Illinois Administrative 8 Code text. 9 (b) Required documentation. 10 (1) At the time of original proposal, rulemaking 11 documentation must consist of a notice page and new, 12 amendatory, or repealed text. New, repealed, and 13 amendatory text must be depicted in the manner required 14 by Secretary of State rule. Amendatory rulemakings must 15 indicate text deletion by striking through all text that 16 is to be omitted and must indicate text addition by 17 underlining all new text. 18 (2) At the time of adoption, documentation must 19 also include pages indicating the text of the new rule, 20 without striking and underlining, for inclusion in the 21 official Secretary of State records, the certification 22 required under Section 5-65(a), and any additional 23 documentation required by Secretary of State rule. 24 (3) For a required rulemaking adopted under Section 25 5-15, an emergency rulemaking under Section 5-45, or a 26 peremptory rulemaking under Section 5-50, the 27 documentation requirements of paragraphs (b)(1) and (2) 28 of this Section apply at the time of adoption. 29 (c) "Background text" means existing text of the 30 Illinois Administrative Code that is part of a rulemaking but 31 is not being amended by the rulemaking. Background text in 32 rulemaking documentation shall match the current text of the 33 Illinois Administrative Code. SB1854 Enrolled -4- LRB9215370EGfg 1 (d) No material that was originally proposed in one 2 rulemaking may be combined with another proposed rulemaking 3 that was initially published without that material. However, 4 this does not preclude separate rulemakings from being 5 combined for publication at the time of adoption as 6 authorized by Secretary of State rule. 7 (Source: P.A. 92-405, eff. 8-16-01; revised 8-21-01.) 8 Section 7. The Freedom of Information Act is amended by 9 changing Sections 2 and 7 as follows: 10 (5 ILCS 140/2) (from Ch. 116, par. 202) 11 Sec. 2. Definitions. As used in this Act: 12 (a) "Public body" means any legislative, executive, 13 administrative, or advisory bodies of the State, state 14 universities and colleges, counties, townships, cities, 15 villages, incorporated towns, school districts and all other 16 municipal corporations, boards, bureaus, committees, or 17 commissions of this State, and any subsidiary bodies of any 18 of the foregoing including but not limited to committees and 19 subcommittees which are supported in whole or in part by tax 20 revenue, or which expend tax revenue. "Public body" does not 21 include a child death review team or the Illinois Child Death 22 Review Teams Executive Council established under the Child 23 Death Review Team Act. 24 (b) "Person" means any individual, corporation, 25 partnership, firm, organization or association, acting 26 individually or as a group. 27 (c) "Public records" means all records, reports, forms, 28 writings, letters, memoranda, books, papers, maps, 29 photographs, microfilms, cards, tapes, recordings, electronic 30 data processing records, recorded information and all other 31 documentary materials, regardless of physical form or 32 characteristics, having been prepared, or having been or SB1854 Enrolled -5- LRB9215370EGfg 1 being used, received, possessed or under the control of any 2 public body. "Public records" includes, but is expressly not 3 limited to: (i) administrative manuals, procedural rules, 4 and instructions to staff, unless exempted by Section 7(p) of 5 this Act; (ii) final opinions and orders made in the 6 adjudication of cases, except an educational institution's 7 adjudication of student or employee grievance or disciplinary 8 cases; (iii) substantive rules; (iv) statements and 9 interpretations of policy which have been adopted by a public 10 body; (v) final planning policies, recommendations, and 11 decisions; (vi) factual reports, inspection reports, and 12 studies whether prepared by or for the public body; (vii) all 13 information in any account, voucher, or contract dealing with 14 the receipt or expenditure of public or other funds of public 15 bodies; (viii) the names, salaries, titles, and dates of 16 employment of all employees and officers of public bodies; 17 (ix) materials containing opinions concerning the rights of 18 the state, the public, a subdivision of state or a local 19 government, or of any private persons; (x) the name of every 20 official and the final records of voting in all proceedings 21 of public bodies; (xi) applications for any contract, permit, 22 grant, or agreement except as exempted from disclosure by 23 subsection (g) of Section 7 of this Act; (xii) each report, 24 document, study, or publication prepared by independent 25 consultants or other independent contractors for the public 26 body; (xiii) all other information required by law to be made 27 available for public inspection or copying; (xiv) information 28 relating to any grant or contract made by or between a public 29 body and another public body or private organization; (xv) 30 waiver documents filed with the State Superintendent of 31 Education or the president of the University of Illinois 32 under Section 30-12.5 of the School Code, concerning nominees 33 for General Assembly scholarships under Sections 30-9, 30-10, 34 and 30-11 of the School Code; (xvi) complaints, results of SB1854 Enrolled -6- LRB9215370EGfg 1 complaints, and Department of Children and Family Services 2 staff findings of licensing violations at day care 3 facilities, provided that personal and identifying 4 information is not released; and (xvii) records, reports, 5 forms, writings, letters, memoranda, books, papers, and other 6 documentary information, regardless of physical form or 7 characteristics, having been prepared, or having been or 8 being used, received, possessed, or under the control of the 9 Illinois Sports Facilities Authority dealing with the receipt 10 or expenditure of public funds or other funds of the 11 Authority in connection with the reconstruction, renovation, 12 remodeling, extension, or improvement of all or substantially 13 all of an existing "facility" as that term is defined in the 14 Illinois Sports Facilities Authority Act. 15 (d) "Copying" means the reproduction of any public 16 record by means of any photographic, electronic, mechanical 17 or other process, device or means. 18 (e) "Head of the public body" means the president, 19 mayor, chairman, presiding officer, director, superintendent, 20 manager, supervisor or individual otherwise holding primary 21 executive and administrative authority for the public body, 22 or such person's duly authorized designee. 23 (f) "News media" means a newspaper or other periodical 24 issued at regular intervals whether in print or electronic 25 format, a news service whether in print or electronic format, 26 a radio station, a television station, a television network, 27 a community antenna television service, or a person or 28 corporation engaged in making news reels or other motion 29 picture news for public showing. 30 (Source: P.A. 91-935, eff. 6-1-01; 92-335, eff. 8-10-01; 31 92-468, eff. 8-22-01; revised 10-10-01.) 32 (5 ILCS 140/7) (from Ch. 116, par. 207) 33 Sec. 7. Exemptions. SB1854 Enrolled -7- LRB9215370EGfg 1 (1) The following shall be exempt from inspection and 2 copying: 3 (a) Information specifically prohibited from 4 disclosure by federal or State law or rules and 5 regulations adopted under federal or State law. 6 (b) Information that, if disclosed, would 7 constitute a clearly unwarranted invasion of personal 8 privacy, unless the disclosure is consented to in writing 9 by the individual subjects of the information. The 10 disclosure of information that bears on the public duties 11 of public employees and officials shall not be considered 12 an invasion of personal privacy. Information exempted 13 under this subsection (b) shall include but is not 14 limited to: 15 (i) files and personal information maintained 16 with respect to clients, patients, residents, 17 students or other individuals receiving social, 18 medical, educational, vocational, financial, 19 supervisory or custodial care or services directly 20 or indirectly from federal agencies or public 21 bodies; 22 (ii) personnel files and personal information 23 maintained with respect to employees, appointees or 24 elected officials of any public body or applicants 25 for those positions; 26 (iii) files and personal information 27 maintained with respect to any applicant, registrant 28 or licensee by any public body cooperating with or 29 engaged in professional or occupational 30 registration, licensure or discipline; 31 (iv) information required of any taxpayer in 32 connection with the assessment or collection of any 33 tax unless disclosure is otherwise required by State 34 statute; and SB1854 Enrolled -8- LRB9215370EGfg 1 (v) information revealing the identity of 2 persons who file complaints with or provide 3 information to administrative, investigative, law 4 enforcement or penal agencies; provided, however, 5 that identification of witnesses to traffic 6 accidents, traffic accident reports, and rescue 7 reports may be provided by agencies of local 8 government, except in a case for which a criminal 9 investigation is ongoing, without constituting a 10 clearly unwarranted per se invasion of personal 11 privacy under this subsection. 12 (c) Records compiled by any public body for 13 administrative enforcement proceedings and any law 14 enforcement or correctional agency for law enforcement 15 purposes or for internal matters of a public body, but 16 only to the extent that disclosure would: 17 (i) interfere with pending or actually and 18 reasonably contemplated law enforcement proceedings 19 conducted by any law enforcement or correctional 20 agency; 21 (ii) interfere with pending administrative 22 enforcement proceedings conducted by any public 23 body; 24 (iii) deprive a person of a fair trial or an 25 impartial hearing; 26 (iv) unavoidably disclose the identity of a 27 confidential source or confidential information 28 furnished only by the confidential source; 29 (v) disclose unique or specialized 30 investigative techniques other than those generally 31 used and known or disclose internal documents of 32 correctional agencies related to detection, 33 observation or investigation of incidents of crime 34 or misconduct; SB1854 Enrolled -9- LRB9215370EGfg 1 (vi) constitute an invasion of personal 2 privacy under subsection (b) of this Section; 3 (vii) endanger the life or physical safety of 4 law enforcement personnel or any other person; or 5 (viii) obstruct an ongoing criminal 6 investigation. 7 (d) Criminal history record information maintained 8 by State or local criminal justice agencies, except the 9 following which shall be open for public inspection and 10 copying: 11 (i) chronologically maintained arrest 12 information, such as traditional arrest logs or 13 blotters; 14 (ii) the name of a person in the custody of a 15 law enforcement agency and the charges for which 16 that person is being held; 17 (iii) court records that are public; 18 (iv) records that are otherwise available 19 under State or local law; or 20 (v) records in which the requesting party is 21 the individual identified, except as provided under 22 part (vii) of paragraph (c) of subsection (1) of 23 this Section. 24 "Criminal history record information" means data 25 identifiable to an individual and consisting of 26 descriptions or notations of arrests, detentions, 27 indictments, informations, pre-trial proceedings, trials, 28 or other formal events in the criminal justice system or 29 descriptions or notations of criminal charges (including 30 criminal violations of local municipal ordinances) and 31 the nature of any disposition arising therefrom, 32 including sentencing, court or correctional supervision, 33 rehabilitation and release. The term does not apply to 34 statistical records and reports in which individuals are SB1854 Enrolled -10- LRB9215370EGfg 1 not identified and from which their identities are not 2 ascertainable, or to information that is for criminal 3 investigative or intelligence purposes. 4 (e) Records that relate to or affect the security 5 of correctional institutions and detention facilities. 6 (f) Preliminary drafts, notes, recommendations, 7 memoranda and other records in which opinions are 8 expressed, or policies or actions are formulated, except 9 that a specific record or relevant portion of a record 10 shall not be exempt when the record is publicly cited and 11 identified by the head of the public body. The exemption 12 provided in this paragraph (f) extends to all those 13 records of officers and agencies of the General Assembly 14 that pertain to the preparation of legislative documents. 15 (g) Trade secrets and commercial or financial 16 information obtained from a person or business where the 17 trade secrets or information are proprietary, privileged 18 or confidential, or where disclosure of the trade secrets 19 or information may cause competitive harm, including all 20 information determined to be confidential under Section 21 4002 of the Technology Advancement and Development Act. 22 Nothing contained in this paragraph (g) shall be 23 construed to prevent a person or business from consenting 24 to disclosure. 25 (h) Proposals and bids for any contract, grant, or 26 agreement, including information which if it were 27 disclosed would frustrate procurement or give an 28 advantage to any person proposing to enter into a 29 contractor agreement with the body, until an award or 30 final selection is made. Information prepared by or for 31 the body in preparation of a bid solicitation shall be 32 exempt until an award or final selection is made. 33 (i) Valuable formulae, computer graphic systems, 34 designs, drawings and research data obtained or produced SB1854 Enrolled -11- LRB9215370EGfg 1 by any public body when disclosure could reasonably be 2 expected to produce private gain or public loss. 3 (j) Test questions, scoring keys and other 4 examination data used to administer an academic 5 examination or determined the qualifications of an 6 applicant for a license or employment. 7 (k) Architects' plans and engineers' technical 8 submissions for projects not constructed or developed in 9 whole or in part with public funds and for projects 10 constructed or developed with public funds, to the extent 11 that disclosure would compromise security. 12 (l) Library circulation and order records 13 identifying library users with specific materials. 14 (m) Minutes of meetings of public bodies closed to 15 the public as provided in the Open Meetings Act until the 16 public body makes the minutes available to the public 17 under Section 2.06 of the Open Meetings Act. 18 (n) Communications between a public body and an 19 attorney or auditor representing the public body that 20 would not be subject to discovery in litigation, and 21 materials prepared or compiled by or for a public body in 22 anticipation of a criminal, civil or administrative 23 proceeding upon the request of an attorney advising the 24 public body, and materials prepared or compiled with 25 respect to internal audits of public bodies. 26 (o) Information received by a primary or secondary 27 school, college or university under its procedures for 28 the evaluation of faculty members by their academic 29 peers. 30 (p) Administrative or technical information 31 associated with automated data processing operations, 32 including but not limited to software, operating 33 protocols, computer program abstracts, file layouts, 34 source listings, object modules, load modules, user SB1854 Enrolled -12- LRB9215370EGfg 1 guides, documentation pertaining to all logical and 2 physical design of computerized systems, employee 3 manuals, and any other information that, if disclosed, 4 would jeopardize the security of the system or its data 5 or the security of materials exempt under this Section. 6 (q) Documents or materials relating to collective 7 negotiating matters between public bodies and their 8 employees or representatives, except that any final 9 contract or agreement shall be subject to inspection and 10 copying. 11 (r) Drafts, notes, recommendations and memoranda 12 pertaining to the financing and marketing transactions of 13 the public body. The records of ownership, registration, 14 transfer, and exchange of municipal debt obligations, and 15 of persons to whom payment with respect to these 16 obligations is made. 17 (s) The records, documents and information relating 18 to real estate purchase negotiations until those 19 negotiations have been completed or otherwise terminated. 20 With regard to a parcel involved in a pending or actually 21 and reasonably contemplated eminent domain proceeding 22 under Article VII of the Code of Civil Procedure, 23 records, documents and information relating to that 24 parcel shall be exempt except as may be allowed under 25 discovery rules adopted by the Illinois Supreme Court. 26 The records, documents and information relating to a real 27 estate sale shall be exempt until a sale is consummated. 28 (t) Any and all proprietary information and records 29 related to the operation of an intergovernmental risk 30 management association or self-insurance pool or jointly 31 self-administered health and accident cooperative or 32 pool. 33 (u) Information concerning a university's 34 adjudication of student or employee grievance or SB1854 Enrolled -13- LRB9215370EGfg 1 disciplinary cases, to the extent that disclosure would 2 reveal the identity of the student or employee and 3 information concerning any public body's adjudication of 4 student or employee grievances or disciplinary cases, 5 except for the final outcome of the cases. 6 (v) Course materials or research materials used by 7 faculty members. 8 (w) Information related solely to the internal 9 personnel rules and practices of a public body. 10 (x) Information contained in or related to 11 examination, operating, or condition reports prepared by, 12 on behalf of, or for the use of a public body responsible 13 for the regulation or supervision of financial 14 institutions or insurance companies, unless disclosure is 15 otherwise required by State law. 16 (y) Information the disclosure of which is 17 restricted under Section 5-108 of the Public Utilities 18 Act. 19 (z) Manuals or instruction to staff that relate to 20 establishment or collection of liability for any State 21 tax or that relate to investigations by a public body to 22 determine violation of any criminal law. 23 (aa) Applications, related documents, and medical 24 records received by the Experimental Organ 25 Transplantation Procedures Board and any and all 26 documents or other records prepared by the Experimental 27 Organ Transplantation Procedures Board or its staff 28 relating to applications it has received. 29 (bb) Insurance or self insurance (including any 30 intergovernmental risk management association or self 31 insurance pool) claims, loss or risk management 32 information, records, data, advice or communications. 33 (cc) Information and records held by the Department 34 of Public Health and its authorized representatives SB1854 Enrolled -14- LRB9215370EGfg 1 relating to known or suspected cases of sexually 2 transmissible disease or any information the disclosure 3 of which is restricted under the Illinois Sexually 4 Transmissible Disease Control Act. 5 (dd) Information the disclosure of which is 6 exempted under Section 30 of the Radon Industry Licensing 7 Act. 8 (ee) Firm performance evaluations under Section 55 9 of the Architectural, Engineering, and Land Surveying 10 Qualifications Based Selection Act. 11 (ff) Security portions of system safety program 12 plans, investigation reports, surveys, schedules, lists, 13 data, or information compiled, collected, or prepared by 14 or for the Regional Transportation Authority under 15 Section 2.11 of the Regional Transportation Authority Act 16 or the St. Clair County Transit District under the 17 Bi-State Transit Safety Act. 18 (gg) Information the disclosure of which is 19 restricted and exempted under Section 50 of the Illinois 20 Prepaid Tuition Act. 21 (hh) Information the disclosure of which is 22 exempted under Section 80 of the State Gift Ban Act. 23 (ii) Beginning July 1, 1999, information that would 24 disclose or might lead to the disclosure of secret or 25 confidential information, codes, algorithms, programs, or 26 private keys intended to be used to create electronic or 27 digital signatures under the Electronic Commerce Security 28 Act. 29 (jj) Information contained in a local emergency 30 energy plan submitted to a municipality in accordance 31 with a local emergency energy plan ordinance that is 32 adopted under Section 11-21.5-5 of the Illinois Municipal 33 Code. 34 (kk) Information and data concerning the SB1854 Enrolled -15- LRB9215370EGfg 1 distribution of surcharge moneys collected and remitted 2 by wireless carriers under the Wireless Emergency 3 Telephone Safety Act. 4 (2) This Section does not authorize withholding of 5 information or limit the availability of records to the 6 public, except as stated in this Section or otherwise 7 provided in this Act. 8 (Source: P.A. 91-137, eff. 7-16-99; 91-357, eff. 7-29-99; 9 91-660, eff. 12-22-99; 92-16, eff. 6-28-01; 92-241, eff. 10 8-3-01; 92-281, eff. 8-7-01; revised 10-2-01.) 11 Section 8. The State Employees Group Insurance Act of 12 1971 is amended by changing Section 3 as follows: 13 (5 ILCS 375/3) (from Ch. 127, par. 523) 14 Sec. 3. Definitions. Unless the context otherwise 15 requires, the following words and phrases as used in this Act 16 shall have the following meanings. The Department may define 17 these and other words and phrases separately for the purpose 18 of implementing specific programs providing benefits under 19 this Act. 20 (a) "Administrative service organization" means any 21 person, firm or corporation experienced in the handling of 22 claims which is fully qualified, financially sound and 23 capable of meeting the service requirements of a contract of 24 administration executed with the Department. 25 (b) "Annuitant" means (1) an employee who retires, or 26 has retired, on or after January 1, 1966 on an immediate 27 annuity under the provisions of Articles 2, 14, 15 (including 28 an employee who has retired under the optional retirement 29 program established under Section 15-158.2), paragraphs (2), 30 (3), or (5) of Section 16-106, or Article 18 of the Illinois 31 Pension Code; (2) any person who was receiving group 32 insurance coverage under this Act as of March 31, 1978 by SB1854 Enrolled -16- LRB9215370EGfg 1 reason of his status as an annuitant, even though the annuity 2 in relation to which such coverage was provided is a 3 proportional annuity based on less than the minimum period of 4 service required for a retirement annuity in the system 5 involved; (3) any person not otherwise covered by this Act 6 who has retired as a participating member under Article 2 of 7 the Illinois Pension Code but is ineligible for the 8 retirement annuity under Section 2-119 of the Illinois 9 Pension Code; (4) the spouse of any person who is receiving a 10 retirement annuity under Article 18 of the Illinois Pension 11 Code and who is covered under a group health insurance 12 program sponsored by a governmental employer other than the 13 State of Illinois and who has irrevocably elected to waive 14 his or her coverage under this Act and to have his or her 15 spouse considered as the "annuitant" under this Act and not 16 as a "dependent"; or (5) an employee who retires, or has 17 retired, from a qualified position, as determined according 18 to rules promulgated by the Director, under a qualified local 19 government or a qualified rehabilitation facility or a 20 qualified domestic violence shelter or service. (For 21 definition of "retired employee", see (p) post). 22 (b-5) "New SERS annuitant" means a person who, on or 23 after January 1, 1998, becomes an annuitant, as defined in 24 subsection (b), by virtue of beginning to receive a 25 retirement annuity under Article 14 of the Illinois Pension 26 Code, and is eligible to participate in the basic program of 27 group health benefits provided for annuitants under this Act. 28 (b-6) "New SURS annuitant" means a person who (1) on or 29 after January 1, 1998, becomes an annuitant, as defined in 30 subsection (b), by virtue of beginning to receive a 31 retirement annuity under Article 15 of the Illinois Pension 32 Code, (2) has not made the election authorized under Section 33 15-135.1 of the Illinois Pension Code, and (3) is eligible to 34 participate in the basic program of group health benefits SB1854 Enrolled -17- LRB9215370EGfg 1 provided for annuitants under this Act. 2 (b-7) "New TRS State annuitant" means a person who, on 3 or after July 1, 1998, becomes an annuitant, as defined in 4 subsection (b), by virtue of beginning to receive a 5 retirement annuity under Article 16 of the Illinois Pension 6 Code based on service as a teacher as defined in paragraph 7 (2), (3), or (5) of Section 16-106 of that Code, and is 8 eligible to participate in the basic program of group health 9 benefits provided for annuitants under this Act. 10 (c) "Carrier" means (1) an insurance company, a 11 corporation organized under the Limited Health Service 12 Organization Act or the Voluntary Health Services Plan Act, a 13 partnership, or other nongovernmental organization, which is 14 authorized to do group life or group health insurance 15 business in Illinois, or (2) the State of Illinois as a 16 self-insurer. 17 (d) "Compensation" means salary or wages payable on a 18 regular payroll by the State Treasurer on a warrant of the 19 State Comptroller out of any State, trust or federal fund, or 20 by the Governor of the State through a disbursing officer of 21 the State out of a trust or out of federal funds, or by any 22 Department out of State, trust, federal or other funds held 23 by the State Treasurer or the Department, to any person for 24 personal services currently performed, and ordinary or 25 accidental disability benefits under Articles 2, 14, 15 26 (including ordinary or accidental disability benefits under 27 the optional retirement program established under Section 28 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 29 Article 18 of the Illinois Pension Code, for disability 30 incurred after January 1, 1966, or benefits payable under the 31 Workers' Compensation or Occupational Diseases Act or 32 benefits payable under a sick pay plan established in 33 accordance with Section 36 of the State Finance Act. 34 "Compensation" also means salary or wages paid to an employee SB1854 Enrolled -18- LRB9215370EGfg 1 of any qualified local government or qualified rehabilitation 2 facility or a qualified domestic violence shelter or service. 3 (e) "Commission" means the State Employees Group 4 Insurance Advisory Commission authorized by this Act. 5 Commencing July 1, 1984, "Commission" as used in this Act 6 means the Illinois Economic and Fiscal Commission as 7 established by the Legislative Commission Reorganization Act 8 of 1984. 9 (f) "Contributory", when referred to as contributory 10 coverage, shall mean optional coverages or benefits elected 11 by the member toward the cost of which such member makes 12 contribution, or which are funded in whole or in part through 13 the acceptance of a reduction in earnings or the foregoing of 14 an increase in earnings by an employee, as distinguished from 15 noncontributory coverage or benefits which are paid entirely 16 by the State of Illinois without reduction of the member's 17 salary. 18 (g) "Department" means any department, institution, 19 board, commission, officer, court or any agency of the State 20 government receiving appropriations and having power to 21 certify payrolls to the Comptroller authorizing payments of 22 salary and wages against such appropriations as are made by 23 the General Assembly from any State fund, or against trust 24 funds held by the State Treasurer and includes boards of 25 trustees of the retirement systems created by Articles 2, 14, 26 15, 16 and 18 of the Illinois Pension Code. "Department" 27 also includes the Illinois Comprehensive Health Insurance 28 Board, the Board of Examiners established under the Illinois 29 Public Accounting Act, and the Illinois Rural Bond Bank. 30 (h) "Dependent", when the term is used in the context of 31 the health and life plan, means a member's spouse and any 32 unmarried child (1) from birth to age 19 including an adopted 33 child, a child who lives with the member from the time of the 34 filing of a petition for adoption until entry of an order of SB1854 Enrolled -19- LRB9215370EGfg 1 adoption, a stepchild or recognized child who lives with the 2 member in a parent-child relationship, or a child who lives 3 with the member if such member is a court appointed guardian 4 of the child, or (2) age 19 to 23 enrolled as a full-time 5 student in any accredited school, financially dependent upon 6 the member, and eligible to be claimed as a dependent for 7 income tax purposes, or (3) age 19 or over who is mentally or 8 physically handicapped. For the health plan only, the term 9 "dependent" also includes any person enrolled prior to the 10 effective date of this Section who is dependent upon the 11 member to the extent that the member may claim such person as 12 a dependent for income tax deduction purposes; no other such 13 person may be enrolled. For the health plan only, the term 14 "dependent" also includes any person who has received after 15 June 30, 2000 an organ transplant and who is financially 16 dependent upon the member and eligible to be claimed as a 17 dependent for income tax purposes. 18 (i) "Director" means the Director of the Illinois 19 Department of Central Management Services. 20 (j) "Eligibility period" means the period of time a 21 member has to elect enrollment in programs or to select 22 benefits without regard to age, sex or health. 23 (k) "Employee" means and includes each officer or 24 employee in the service of a department who (1) receives his 25 compensation for service rendered to the department on a 26 warrant issued pursuant to a payroll certified by a 27 department or on a warrant or check issued and drawn by a 28 department upon a trust, federal or other fund or on a 29 warrant issued pursuant to a payroll certified by an elected 30 or duly appointed officer of the State or who receives 31 payment of the performance of personal services on a warrant 32 issued pursuant to a payroll certified by a Department and 33 drawn by the Comptroller upon the State Treasurer against 34 appropriations made by the General Assembly from any fund or SB1854 Enrolled -20- LRB9215370EGfg 1 against trust funds held by the State Treasurer, and (2) is 2 employed full-time or part-time in a position normally 3 requiring actual performance of duty during not less than 1/2 4 of a normal work period, as established by the Director in 5 cooperation with each department, except that persons elected 6 by popular vote will be considered employees during the 7 entire term for which they are elected regardless of hours 8 devoted to the service of the State, and (3) except that 9 "employee" does not include any person who is not eligible by 10 reason of such person's employment to participate in one of 11 the State retirement systems under Articles 2, 14, 15 (either 12 the regular Article 15 system or the optional retirement 13 program established under Section 15-158.2) or 18, or under 14 paragraph (2), (3), or (5) of Section 16-106, of the Illinois 15 Pension Code, but such term does include persons who are 16 employed during the 6 month qualifying period under Article 17 14 of the Illinois Pension Code. Such term also includes any 18 person who (1) after January 1, 1966, is receiving ordinary 19 or accidental disability benefits under Articles 2, 14, 15 20 (including ordinary or accidental disability benefits under 21 the optional retirement program established under Section 22 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or 23 Article 18 of the Illinois Pension Code, for disability 24 incurred after January 1, 1966, (2) receives total permanent 25 or total temporary disability under the Workers' Compensation 26 Act or Occupational Disease Act as a result of injuries 27 sustained or illness contracted in the course of employment 28 with the State of Illinois, or (3) is not otherwise covered 29 under this Act and has retired as a participating member 30 under Article 2 of the Illinois Pension Code but is 31 ineligible for the retirement annuity under Section 2-119 of 32 the Illinois Pension Code. However, a person who satisfies 33 the criteria of the foregoing definition of "employee" except 34 that such person is made ineligible to participate in the SB1854 Enrolled -21- LRB9215370EGfg 1 State Universities Retirement System by clause (4) of 2 subsection (a) of Section 15-107 of the Illinois Pension Code 3 is also an "employee" for the purposes of this Act. 4 "Employee" also includes any person receiving or eligible for 5 benefits under a sick pay plan established in accordance with 6 Section 36 of the State Finance Act. "Employee" also includes 7 each officer or employee in the service of a qualified local 8 government, including persons appointed as trustees of 9 sanitary districts regardless of hours devoted to the service 10 of the sanitary district, and each employee in the service of 11 a qualified rehabilitation facility and each full-time 12 employee in the service of a qualified domestic violence 13 shelter or service, as determined according to rules 14 promulgated by the Director. 15 (l) "Member" means an employee, annuitant, retired 16 employee or survivor. 17 (m) "Optional coverages or benefits" means those 18 coverages or benefits available to the member on his or her 19 voluntary election, and at his or her own expense. 20 (n) "Program" means the group life insurance, health 21 benefits and other employee benefits designed and contracted 22 for by the Director under this Act. 23 (o) "Health plan" means a health benefits program 24 offered by the State of Illinois for persons eligible for the 25 plan. 26 (p) "Retired employee" means any person who would be an 27 annuitant as that term is defined herein but for the fact 28 that such person retired prior to January 1, 1966. Such term 29 also includes any person formerly employed by the University 30 of Illinois in the Cooperative Extension Service who would be 31 an annuitant but for the fact that such person was made 32 ineligible to participate in the State Universities 33 Retirement System by clause (4) of subsection (a) of Section 34 15-107 of the Illinois Pension Code. SB1854 Enrolled -22- LRB9215370EGfg 1 (q) "Survivor" means a person receiving an annuity as a 2 survivor of an employee or of an annuitant. "Survivor" also 3 includes: (1) the surviving dependent of a person who 4 satisfies the definition of "employee" except that such 5 person is made ineligible to participate in the State 6 Universities Retirement System by clause (4) of subsection 7 (a) of Section 15-107 of the Illinois Pension Code; and (2) 8 the surviving dependent of any person formerly employed by 9 the University of Illinois in the Cooperative Extension 10 Service who would be an annuitant except for the fact that 11 such person was made ineligible to participate in the State 12 Universities Retirement System by clause (4) of subsection 13 (a) of Section 15-107 of the Illinois Pension Code. 14 (q-5) "New SERS survivor" means a survivor, as defined 15 in subsection (q), whose annuity is paid under Article 14 of 16 the Illinois Pension Code and is based on the death of (i) an 17 employee whose death occurs on or after January 1, 1998, or 18 (ii) a new SERS annuitant as defined in subsection (b-5). 19 (q-6) "New SURS survivor" means a survivor, as defined 20 in subsection (q), whose annuity is paid under Article 15 of 21 the Illinois Pension Code and is based on the death of (i) an 22 employee whose death occurs on or after January 1, 1998, or 23 (ii) a new SURS annuitant as defined in subsection (b-6). 24 (q-7) "New TRS State survivor" means a survivor, as 25 defined in subsection (q), whose annuity is paid under 26 Article 16 of the Illinois Pension Code and is based on the 27 death of (i) an employee who is a teacher as defined in 28 paragraph (2), (3), or (5) of Section 16-106 of that Code and 29 whose death occurs on or after July 1, 1998, or (ii) a new 30 TRS State annuitant as defined in subsection (b-7). 31 (r) "Medical services" means the services provided 32 within the scope of their licenses by practitioners in all 33 categories licensed under the Medical Practice Act of 1987. 34 (s) "Unit of local government" means any county, SB1854 Enrolled -23- LRB9215370EGfg 1 municipality, township, school district (including a 2 combination of school districts under the Intergovernmental 3 Cooperation Act), special district or other unit, designated 4 as a unit of local government by law, which exercises limited 5 governmental powers or powers in respect to limited 6 governmental subjects, any not-for-profit association with a 7 membership that primarily includes townships and township 8 officials, that has duties that include provision of research 9 service, dissemination of information, and other acts for the 10 purpose of improving township government, and that is funded 11 wholly or partly in accordance with Section 85-15 of the 12 Township Code; any not-for-profit corporation or association, 13 with a membership consisting primarily of municipalities, 14 that operates its own utility system, and provides research, 15 training, dissemination of information, or other acts to 16 promote cooperation between and among municipalities that 17 provide utility services and for the advancement of the goals 18 and purposes of its membership; the Southern Illinois 19 Collegiate Common Market, which is a consortium of higher 20 education institutions in Southern Illinois; and the Illinois 21 Association of Park Districts. "Qualified local government" 22 means a unit of local government approved by the Director and 23 participating in a program created under subsection (i) of 24 Section 10 of this Act. 25 (t) "Qualified rehabilitation facility" means any 26 not-for-profit organization that is accredited by the 27 Commission on Accreditation of Rehabilitation Facilities or 28 certified by the Department of Human Services (as successor 29 to the Department of Mental Health and Developmental 30 Disabilities) to provide services to persons with 31 disabilities and which receives funds from the State of 32 Illinois for providing those services, approved by the 33 Director and participating in a program created under 34 subsection (j) of Section 10 of this Act. SB1854 Enrolled -24- LRB9215370EGfg 1 (u) "Qualified domestic violence shelter or service" 2 means any Illinois domestic violence shelter or service and 3 its administrative offices funded by the Department of Human 4 Services (as successor to the Illinois Department of Public 5 Aid), approved by the Director and participating in a program 6 created under subsection (k) of Section 10. 7 (v) "TRS benefit recipient" means a person who: 8 (1) is not a "member" as defined in this Section; 9 and 10 (2) is receiving a monthly benefit or retirement 11 annuity under Article 16 of the Illinois Pension Code; 12 and 13 (3) either (i) has at least 8 years of creditable 14 service under Article 16 of the Illinois Pension Code, or 15 (ii) was enrolled in the health insurance program offered 16 under that Article on January 1, 1996, or (iii) is the 17 survivor of a benefit recipient who had at least 8 years 18 of creditable service under Article 16 of the Illinois 19 Pension Code or was enrolled in the health insurance 20 program offered under that Article on the effective date 21 of this amendatory Act of 1995, or (iv) is a recipient or 22 survivor of a recipient of a disability benefit under 23 Article 16 of the Illinois Pension Code. 24 (w) "TRS dependent beneficiary" means a person who: 25 (1) is not a "member" or "dependent" as defined in 26 this Section; and 27 (2) is a TRS benefit recipient's: (A) spouse, (B) 28 dependent parent who is receiving at least half of his or 29 her support from the TRS benefit recipient, or (C) 30 unmarried natural or adopted child who is (i) under age 31 19, or (ii) enrolled as a full-time student in an 32 accredited school, financially dependent upon the TRS 33 benefit recipient, eligible to be claimed as a dependent 34 for income tax purposes, and either is under age 24 or SB1854 Enrolled -25- LRB9215370EGfg 1 was, on January 1, 1996, participating as a dependent 2 beneficiary in the health insurance program offered under 3 Article 16 of the Illinois Pension Code, or (iii) age 19 4 or over who is mentally or physically handicapped. 5 (x) "Military leave with pay and benefits" refers to 6 individuals in basic training for reserves, special/advanced 7 training, annual training, emergency call up, or activation 8 by the President of the United States with approved pay and 9 benefits. 10 (y) "Military leave without pay and benefits" refers to 11 individuals who enlist for active duty in a regular component 12 of the U.S. Armed Forces or other duty not specified or 13 authorized under military leave with pay and benefits. 14 (z) "Community college benefit recipient" means a person 15 who: 16 (1) is not a "member" as defined in this Section; 17 and 18 (2) is receiving a monthly survivor's annuity or 19 retirement annuity under Article 15 of the Illinois 20 Pension Code; and 21 (3) either (i) was a full-time employee of a 22 community college district or an association of community 23 college boards created under the Public Community College 24 Act (other than an employee whose last employer under 25 Article 15 of the Illinois Pension Code was a community 26 college district subject to Article VII of the Public 27 Community College Act) and was eligible to participate in 28 a group health benefit plan as an employee during the 29 time of employment with a community college district 30 (other than a community college district subject to 31 Article VII of the Public Community College Act) or an 32 association of community college boards, or (ii) is the 33 survivor of a person described in item (i). 34 (aa) "Community college dependent beneficiary" means a SB1854 Enrolled -26- LRB9215370EGfg 1 person who: 2 (1) is not a "member" or "dependent" as defined in 3 this Section; and 4 (2) is a community college benefit recipient's: (A) 5 spouse, (B) dependent parent who is receiving at least 6 half of his or her support from the community college 7 benefit recipient, or (C) unmarried natural or adopted 8 child who is (i) under age 19, or (ii) enrolled as a 9 full-time student in an accredited school, financially 10 dependent upon the community college benefit recipient, 11 eligible to be claimed as a dependent for income tax 12 purposes and under age 23, or (iii) age 19 or over and 13 mentally or physically handicapped. 14 (Source: P.A. 91-390, eff. 7-30-99; 91-395, eff. 7-30-99; 15 91-617, eff. 8-19-99; 92-16, eff. 6-28-01; 92-186, eff. 16 1-1-02; 92-204, eff. 8-1-01; revised 9-19-01.) 17 Section 9. The Civil Administrative Code of Illinois is 18 amended by changing Section 1-5 as follows: 19 (20 ILCS 5/1-5) 20 Sec. 1-5. Articles. The Civil Administrative Code of 21 Illinois consists of the following Articles: 22 Article 1. General Provisions (20 ILCS 5/1-1 and 23 following). 24 Article 5. Departments of State Government Law (20 ILCS 25 5/5-1 and following). 26 Article 50. State Budget Law (15 ILCS 20/). 27 Article 110. Department on Aging Law (20 ILCS 110/). 28 Article 205. Department of Agriculture Law (20 ILCS 29 205/). 30 Article 250. State Fair Grounds Title Law (5 ILCS 620/). 31 Article 310. Department of Human Services (Alcoholism and 32 Substance Abuse) Law (20 ILCS 310/). SB1854 Enrolled -27- LRB9215370EGfg 1 Article 405. Department of Central Management Services 2 Law (20 ILCS 405/). 3 Article 510. Department of Children and Family Services 4 Powers Law (20 ILCS 510/). 5 Article 605. Department of Commerce and Community Affairs 6 Law (20 ILCS 605/). 7 Article 805. Department of Natural Resources 8 (Conservation) Law (20 ILCS 805/). 9 Article 1005. Department of Employment Security Law (20 10 ILCS 1005/). 11 Article 1405. Department of Insurance Law (20 ILCS 12 1405/). 13 Article 1505. Department of Labor Law (20 ILCS 1505/). 14 Article 1710. Department of Human Services (Mental Health 15 and Developmental Disabilities) Law (20 ILCS 1710/). 16 Article 1905. Department of Natural Resources (Mines and 17 Minerals) Law (20 ILCS 1905/). 18 Article 2005. Department of Nuclear Safety Law (20 ILCS 19 2005/). 20 Article 2105. Department of Professional Regulation Law 21 (20 ILCS 2105/). 22 Article 2205. Department of Public Aid Law (20 ILCS 23 2205/). 24 Article 2310. Department of Public Health Powers and 25 Duties Law (20 ILCS 2310/). 26 Article 2505. Department of Revenue Law (20 ILCS 2505/). 27 Article 2510. Certified Audit Program Law (20 ILCS 28 2510/). 29 Article 2605. Department of State Police Law (20 ILCS 30 2605/). 31 Article 2705. Department of Transportation Law (20 ILCS 32 2705/). 33 Article 3000. University of Illinois Exercise of 34 Functions and Duties Law (110 ILCS 355/). SB1854 Enrolled -28- LRB9215370EGfg 1 (Source: P.A. 91-239, eff. 1-1-00; 92-16, eff. 6-28-01; 2 revised 10-10-01.) 3 Section 10. The Illinois Act on the Aging is amended by 4 changing Section 4.01 as follows: 5 (20 ILCS 105/4.01) (from Ch. 23, par. 6104.01) 6 Sec. 4.01. Additional powers and duties of the 7 Department. In addition to powers and duties otherwise 8 provided by law, the Department shall have the following 9 powers and duties: 10 (1) To evaluate all programs, services, and facilities 11 for the aged and for minority senior citizens within the 12 State and determine the extent to which present public or 13 private programs, services and facilities meet the needs of 14 the aged. 15 (2) To coordinate and evaluate all programs, services, 16 and facilities for the Aging and for minority senior citizens 17 presently furnished by State agencies and make appropriate 18 recommendations regarding such services, programs and 19 facilities to the Governor and/or the General Assembly. 20 (3) To function as the sole State agency to develop a 21 comprehensive plan to meet the needs of the State's senior 22 citizens and the State's minority senior citizens. 23 (4) To receive and disburse State and federal funds made 24 available directly to the Department including those funds 25 made available under the Older Americans Act and the Senior 26 Community Service Employment Program for providing services 27 for senior citizens and minority senior citizens or for 28 purposes related thereto, and shall develop and administer 29 any State Plan for the Aging required by federal law. 30 (5) To solicit, accept, hold, and administer in behalf 31 of the State any grants or legacies of money, securities, or 32 property to the State of Illinois for services to senior SB1854 Enrolled -29- LRB9215370EGfg 1 citizens and minority senior citizens or purposes related 2 thereto. 3 (6) To provide consultation and assistance to 4 communities, area agencies on aging, and groups developing 5 local services for senior citizens and minority senior 6 citizens. 7 (7) To promote community education regarding the 8 problems of senior citizens and minority senior citizens 9 through institutes, publications, radio, television and the 10 local press. 11 (8) To cooperate with agencies of the federal government 12 in studies and conferences designed to examine the needs of 13 senior citizens and minority senior citizens and to prepare 14 programs and facilities to meet those needs. 15 (9) To establish and maintain information and referral 16 sources throughout the State when not provided by other 17 agencies. 18 (10) To provide the staff support as may reasonably be 19 required by the Council and the Coordinating Committee of 20 State Agencies Serving Older Persons. 21 (11) To make and enforce rules and regulations necessary 22 and proper to the performance of its duties. 23 (12) To establish and fund programs or projects or 24 experimental facilities that are specially designed as 25 alternatives to institutional care. 26 (13) To develop a training program to train the 27 counselors presently employed by the Department's aging 28 network to provide Medicare beneficiaries with counseling and 29 advocacy in Medicare, private health insurance, and related 30 health care coverage plans. The Department shall report to 31 the General Assembly on the implementation of the training 32 program on or before December 1, 1986. 33 (14) To make a grant to an institution of higher 34 learning to study the feasibility of establishing and SB1854 Enrolled -30- LRB9215370EGfg 1 implementing an affirmative action employment plan for the 2 recruitment, hiring, training and retraining of persons 60 or 3 more years old for jobs for which their employment would not 4 be precluded by law. 5 (15) To present one award annually in each of the 6 categories of community service, education, the performance 7 and graphic arts, and the labor force to outstanding Illinois 8 senior citizens and minority senior citizens in recognition 9 of their individual contributions to either community 10 service, education, the performance and graphic arts, or the 11 labor force. The awards shall be presented to four senior 12 citizens and minority senior citizens selected from a list of 13 44 nominees compiled annually by the Department. Nominations 14 shall be solicited from senior citizens' service providers, 15 area agencies on aging, senior citizens' centers, and senior 16 citizens' organizations. The Department shall consult with 17 the Coordinating Committee of State Agencies Serving Older 18 Persons to determine which of the nominees shall be the 19 recipient in each category of community service. The 20 Department shall establish a central location within the 21 State to be designated as the Senior Illinoisans Hall of Fame 22 for the public display of all the annual awards, or replicas 23 thereof. 24 (16) To establish multipurpose senior centers through 25 area agencies on aging and to fund those new and existing 26 multipurpose senior centers through area agencies on aging, 27 the establishment and funding to begin in such areas of the 28 State as the Department shall designate by rule and as 29 specifically appropriated funds become available. 30 (17) To develop the content and format of the 31 acknowledgment regarding non-recourse reverse mortgage loans 32 under Section 6.1 of the Illinois Banking Act; to provide 33 independent consumer information on reverse mortgages and 34 alternatives; and to refer consumers to independent SB1854 Enrolled -31- LRB9215370EGfg 1 counseling services with expertise in reverse mortgages. 2 (18) To develop a pamphlet in English and Spanish which 3 may be used by physicians licensed to practice medicine in 4 all of its branches pursuant to the Medical Practice Act of 5 1987, pharmacists licensed pursuant to the Pharmacy Practice 6 Act of 1987, and Illinois residents 65 years of age or older 7 for the purpose of assisting physicians, pharmacists, and 8 patients in monitoring prescriptions provided by various 9 physicians and to aid persons 65 years of age or older in 10 complying with directions for proper use of pharmaceutical 11 prescriptions. The pamphlet may provide space for recording 12 information including but not limited to the following: 13 (a) name and telephone number of the patient; 14 (b) name and telephone number of the prescribing 15 physician; 16 (c) date of prescription; 17 (d) name of drug prescribed; 18 (e) directions for patient compliance; and 19 (f) name and telephone number of dispensing 20 pharmacy. 21 In developing the pamphlet, the Department shall consult 22 with the Illinois State Medical Society, the Center for 23 Minority Health Services, the Illinois Pharmacists 24 Association and senior citizens organizations. The 25 Department shall distribute the pamphlets to physicians, 26 pharmacists and persons 65 years of age or older or various 27 senior citizen organizations throughout the State. 28 (19) To conduct a study by April 1, 1994 of the 29 feasibility of implementing the Senior Companion Program 30 throughout the State for the fiscal year beginning July 1, 31 1994. 32 (20) With respect to contracts in effect on July 1, 33 1994, the Department shall increase the grant amounts so that 34 the reimbursement rates paid through the community care SB1854 Enrolled -32- LRB9215370EGfg 1 program for chore housekeeping services and homemakers are at 2 the same rate, which shall be the higher of the 2 rates 3 currently paid. With respect to all contracts entered into, 4 renewed, or extended on or after July 1, 1994, the 5 reimbursement rates paid through the community care program 6 for chore housekeeping services and homemakers shall be the 7 same. 8 (21) From funds appropriated to the Department from the 9 Meals on Wheels Fund, a special fund in the State treasury 10 that is hereby created, and in accordance with State and 11 federal guidelines and the intrastate funding formula, to 12 make grants to area agencies on aging, designated by the 13 Department, for the sole purpose of delivering meals to 14 homebound persons 60 years of age and older. 15 (22) To distribute, through its area agencies on aging, 16 information alerting seniors on safety issues regarding 17 emergency weather conditions, including extreme heat and 18 cold, flooding, tornadoes, electrical storms, and other 19 severe storm weather. The information shall include all 20 necessary instructions for safety and all emergency telephone 21 numbers of organizations that will provide additional 22 information and assistance. 23 (23) To develop guidelines for the organization and 24 implementation of Volunteer Services Credit Programs to be 25 administered by Area Agencies on Aging or community based 26 senior service organizations. The Department shall hold 27 public hearings on the proposed guidelines for public 28 comment, suggestion, and determination of public interest. 29 The guidelines shall be based on the findings of other states 30 and of community organizations in Illinois that are currently 31 operating volunteer services credit programs or demonstration 32 volunteer services credit programs. The Department shall 33 offer guidelines for all aspects of the programs including, 34 but not limited to, the following: SB1854 Enrolled -33- LRB9215370EGfg 1 (a) types of services to be offered by volunteers; 2 (b) types of services to be received upon the 3 redemption of service credits; 4 (c) issues of liability for the volunteers and the 5 administering organizations; 6 (d) methods of tracking service credits earned and 7 service credits redeemed; 8 (e) issues of time limits for redemption of service 9 credits; 10 (f) methods of recruitment of volunteers; 11 (g) utilization of community volunteers, community 12 service groups, and other resources for delivering 13 services to be received by service credit program 14 clients; 15 (h) accountability and assurance that services will 16 be available to individuals who have earned service 17 credits; and 18 (i) volunteer screening and qualifications. 19 The Department shall submit a written copy of the guidelines 20 to the General Assembly by July 1, 1998. 21 (Source: P.A. 89-249, eff. 8-4-95; 89-580, eff. 1-1-97; 22 90-251, eff. 1-1-98; revised 12-07-01.) 23 Section 11. The Children and Family Services Act is 24 amended by changing Section 7 and setting forth and 25 renumbering multiple versions of Section 5d as follows: 26 (20 ILCS 505/5d) 27 Sec. 5d. The Direct Child Welfare Service Employee 28 License Board. 29 (a) For purposes of this Section: 30 (1) "Board" means the Direct Child Welfare Service 31 Employee License Board. 32 (2) "Director" means the Director of Children and SB1854 Enrolled -34- LRB9215370EGfg 1 Family Services. 2 (b) The Direct Child Welfare Service Employee License 3 Board is created within the Department of Children and Family 4 Services and shall consist of 9 members appointed by the 5 Director. The Director shall annually designate a 6 chairperson and vice-chairperson of the Board. The 7 membership of the Board must be composed as follows: (i) 5 8 licensed professionals from the field of human services with 9 a human services degree or equivalent course work as required 10 by rule of the Department and who are in good standing within 11 their profession, at least 2 of which must be employed in the 12 private not-for-profit sector and at least one of which in 13 the public sector; (ii) 2 faculty members of an accredited 14 university who have child welfare experience and are in good 15 standing within their profession and (iii) 2 members of the 16 general public who are not licensed under this Act or a 17 similar rule and will represent consumer interests. 18 In making the first appointments, the Director shall 19 appoint 3 members to serve for a term of one year, 3 members 20 to serve for a term of 2 years, and 3 members to serve for a 21 term of 3 years, or until their successors are appointed and 22 qualified. Their successors shall be appointed to serve 23 3-year terms, or until their successors are appointed and 24 qualified. Appointments to fill unexpired vacancies shall be 25 made in the same manner as original appointments. No member 26 may be reappointed if a reappointment would cause that member 27 to serve on the Board for longer than 6 consecutive years. 28 Board membership must have reasonable representation from 29 different geographic areas of Illinois, and all members must 30 be residents of this State. 31 The Director may terminate the appointment of any member 32 for good cause, including but not limited to (i) unjustified 33 absences from Board meetings or other failure to meet Board 34 responsibilities, (ii) failure to recuse himself or herself SB1854 Enrolled -35- LRB9215370EGfg 1 when required by subsection (c) of this Section or Department 2 rule, or (iii) failure to maintain the professional position 3 required by Department rule. No member of the Board may have 4 a pending or indicated report of child abuse or neglect or a 5 pending complaint or criminal conviction of any of the 6 offenses set forth in paragraph (b) of Section 4.2 of the 7 Child Care Act of 1969. 8 The members of the Board shall receive no compensation 9 for the performance of their duties as members, but each 10 member shall be reimbursed for his or her reasonable and 11 necessary expenses incurred in attending the meetings of the 12 Board. 13 (c) The Board shall make recommendations to the Director 14 regarding licensure rules. Board members must recuse 15 themselves from sitting on any matter involving an employee 16 of a child welfare agency at which the Board member is an 17 employee or contractual employee. The Board shall make a 18 final determination concerning revocation, suspension, or 19 reinstatement of an employee's direct child welfare service 20 license after a hearing conducted under the Department's 21 rules. Upon notification of the manner of the vote to all the 22 members, votes on a final determination may be cast in 23 person, by telephonic or electronic means, or by mail at the 24 discretion of the chairperson. A simple majority of the 25 members appointed and serving is required when Board members 26 vote by mail or by telephonic or electronic means. A 27 majority of the currently appointed and serving Board members 28 constitutes a quorum. A majority of a quorum is required 29 when a recommendation is voted on during a Board meeting. A 30 vacancy in the membership of the Board shall not impair the 31 right of a quorum to perform all the duties of the Board. 32 Board members are not personally liable in any action based 33 upon a disciplinary proceeding or otherwise for any action 34 taken in good faith as a member of the Board. SB1854 Enrolled -36- LRB9215370EGfg 1 (d) The Director may assign Department employees to 2 provide staffing services to the Board. The Department must 3 promulgate any rules necessary to implement and administer 4 the requirements of this Section. 5 (Source: P.A. 92-471, eff. 8-22-01.) 6 (20 ILCS 505/5e) 7 Sec. 5e.5d.Advocacy Office for Children and Families. 8 The Department of Children and Family Services shall 9 establish and maintain an Advocacy Office for Children and 10 Families that shall, in addition to other duties assigned by 11 the Director, receive and respond to complaints that may be 12 filed by children, parents, caretakers, and relatives of 13 children receiving child welfare services from the Department 14 of Children and Family Services or its agents. The 15 Department shall promulgate policies and procedures for 16 filing, processing, investigating, and resolving the 17 complaints. The Department shall make a final report to the 18 complainant of its findings. If a final report is not 19 completed, the Department shall report on its disposition 20 every 30 days. The Advocacy Office shall include a statewide 21 toll-free telephone number that may be used to file 22 complaints, or to obtain information about the delivery of 23 child welfare services by the Department or its agents. This 24 telephone number shall be included in all appropriate notices 25 and handbooks regarding services available through the 26 Department. 27 (Source: P.A. 92-334, eff. 8-10-01; revised 10-17-01.) 28 (20 ILCS 505/7) (from Ch. 23, par. 5007) 29 Sec. 7. Placement of children; considerations. 30 (a) In placing any child under this Act, the Department 31 shall place such child, as far as possible, in the care and 32 custody of some individual holding the same religious belief SB1854 Enrolled -37- LRB9215370EGfg 1 as the parents of the child, or with some child care facility 2 which is operated by persons of like religious faith as the 3 parents of such child. 4 (b) In placing a child under this Act, the Department 5 may place a child with a relative if the Department has 6 reason to believe that the relative will be able to 7 adequately provide for the child's safety and welfare. The 8 Department may not place a child with a relative, with the 9 exception of certain circumstances which may be waived as 10 defined by the Department in rules, if the results of a check 11 of the Law Enforcement Agency Data System (LEADS) identifies 12 a prior criminal conviction of the relative or any adult 13 member of the relative's household for any of the following 14 offenses under the Criminal Code of 1961: 15 (1) murder; 16 (1.1) solicitation of murder; 17 (1.2) solicitation of murder for hire; 18 (1.3) intentional homicide of an unborn child; 19 (1.4) voluntary manslaughter of an unborn child; 20 (1.5) involuntary manslaughter; 21 (1.6) reckless homicide; 22 (1.7) concealment of a homicidal death; 23 (1.8) involuntary manslaughter of an unborn child; 24 (1.9) reckless homicide of an unborn child; 25 (1.10) drug-induced homicide; 26 (2) a sex offense under Article 11, except offenses 27 described in Sections 11-7, 11-8, 11-12, and 11-13; 28 (3) kidnapping; 29 (3.1) aggravated unlawful restraint; 30 (3.2) forcible detention; 31 (3.3) aiding and abetting child abduction; 32 (4) aggravated kidnapping; 33 (5) child abduction; 34 (6) aggravated battery of a child; SB1854 Enrolled -38- LRB9215370EGfg 1 (7) criminal sexual assault; 2 (8) aggravated criminal sexual assault; 3 (8.1) predatory criminal sexual assault of a child; 4 (9) criminal sexual abuse; 5 (10) aggravated sexual abuse; 6 (11) heinous battery; 7 (12) aggravated battery with a firearm; 8 (13) tampering with food, drugs, or cosmetics; 9 (14) drug-induced infliction of great bodily harm; 10 (15) aggravated stalking; 11 (16) home invasion; 12 (17) vehicular invasion; 13 (18) criminal transmission of HIV; 14 (19) criminal abuse or neglect of an elderly or 15 disabled person; 16 (20) child abandonment; 17 (21) endangering the life or health of a child; 18 (22) ritual mutilation; 19 (23) ritualized abuse of a child; 20 (24) an offense in any other state the elements of 21 which are similar and bear a substantial relationship to 22 any of the foregoing offenses. 23 For the purpose of this subsection, "relative" shall include 24 any person, 21 years of age or over, other than the parent, 25 who (i) is currently related to the child in any of the 26 following ways by blood or adoption: grandparent, sibling, 27 great-grandparent, uncle, aunt, nephew, niece, first cousin, 28 second cousin, godparent, great-uncle, or great-aunt; or (ii) 29 is the spouse of such a relative; or (iii) is the child's 30 step-father, step-mother, or adult step-brother or 31 step-sister; "relative" also includes a person related in any 32 of the foregoing ways to a sibling of a child, even though 33 the person is not related to the child, when the child and 34 its sibling are placed together with that person. A relative SB1854 Enrolled -39- LRB9215370EGfg 1 with whom a child is placed pursuant to this subsection may, 2 but is not required to, apply for licensure as a foster 3 family home pursuant to the Child Care Act of 1969; provided, 4 however, that as of July 1, 1995, foster care payments shall 5 be made only to licensed foster family homes pursuant to the 6 terms of Section 5 of this Act. 7 (c) In placing a child under this Act, the Department 8 shall ensure that the child's health, safety, and best 9 interests are met in making a family foster care placement. 10 The Department shall consider the individual needs of the 11 child and the capacity of the prospective foster or adoptive 12 parents to meet the needs of the child. When a child must be 13 placed outside his or her home and cannot be immediately 14 returned to his or her parents or guardian, a comprehensive, 15 individualized assessment shall be performed of that child at 16 which time the needs of the child shall be determined. Only 17 if race, color, or national origin is identified as a 18 legitimate factor in advancing the child's best interests 19 shall it be considered. Race, color, or national origin 20 shall not be routinely considered in making a placement 21 decision. The Department shall make special efforts for the 22 diligent recruitment of potential foster and adoptive 23 families that reflect the ethnic and racial diversity of the 24 children for whom foster and adoptive homes are needed. 25 "Special efforts" shall include contacting and working with 26 community organizations and religious organizations and may 27 include contracting with those organizations, utilizing local 28 media and other local resources, and conducting outreach 29 activities. 30 (c-1) At the time of placement, the Department shall 31 consider concurrent planning, as described in subsection 32 (l-1) of Section 5, so that permanency may occur at the 33 earliest opportunity. Consideration should be given so that 34 if reunification fails or is delayed, the placement made is SB1854 Enrolled -40- LRB9215370EGfg 1 the best available placement to provide permanency for the 2 child. 3 (d) The Department may accept gifts, grants, offers of 4 services, and other contributions to use in making special 5 recruitment efforts. 6 (e) The Department in placing children in adoptive or 7 foster care homes may not, in any policy or practice relating 8 to the placement of children for adoption or foster care, 9 discriminate against any child or prospective adoptive or 10 foster parent on the basis of race. 11 (Source: P.A. 92-192, eff. 1-1-02; 92-328, eff. 1-1-02; 12 92-334, eff. 8-10-01; revised 10-15-01.) 13 Section 12. The Department of Commerce and Community 14 Affairs Law of the Civil Administrative Code of Illinois is 15 amended by changing Sections 605-605 and 605-710 as follows: 16 (20 ILCS 605/605-605) (was 20 ILCS 605/46.57) 17 Sec. 605-605. Illinois Product and Services Exchange Law 18Act. 19 (a) This Section may be cited as the Illinois Product 20 and Services Exchange LawAct. 21 (b) It is hereby found and declared that many large 22 Illinois firms and government agencies are purchasing 23 products and services from vendors in locations other than 24 Illinois, and that there is a need to assist those large 25 businesses and government agencies in locating Illinois 26 vendors who can provide those products and services of equal 27 quality and at comparable or lower costs; it is further found 28 and declared that the purchase of needed products and 29 services within the State by large firms and government 30 agencies would aid the survival and expansion of small 31 businesses in Illinois and help to strengthen the State's 32 economy. SB1854 Enrolled -41- LRB9215370EGfg 1 (c) As used in this Section, "Illinois Product and 2 Services Exchange" means a program aimed at promoting the 3 purchase of goods and services produced in Illinois by firms 4 and government agencies within the State. 5 (d) The Department shall have the authority to establish 6 and administer an Illinois Product and Services Exchange 7 Program, which may include, but is not limited to, the 8 following powers and duties: 9 (1) To accept grants, loans, or appropriations from 10 the federal government or the State or any agency or 11 instrumentality thereof, and to assess fees for any 12 services performed under the Illinois Product and 13 Services Exchange Program, to carry out the Program. 14 (2) To form an Illinois Product and Services 15 Exchange Council, made up of Illinois large firms and 16 small firms to provide advice and counsel in directing a 17 statewide Product and Services Exchange Program. 18 (3) To publicize and advertise to Illinois firms 19 and government agencies the importance and benefits of 20 buying goods and services provided by vendors located 21 within the State. 22 (4) To secure the cooperation of Illinois' large 23 firms, federal, State, and local governments, non-profit 24 agencies, and others to carry out this program. 25 (5) To match the needs for products and services of 26 business firms and government agencies with the 27 capabilities of small Illinois firms that can provide 28 those needed goods and services. 29 (6) To hold purchasing agent seminars, fairs, 30 conferences, and workshops to aid small Illinois 31 businesses in obtaining contracts for goods and services 32 from larger firms and government agencies within the 33 State. 34 (7) To assist business firms and government SB1854 Enrolled -42- LRB9215370EGfg 1 agencies to analyze their buying activities and to find 2 ways to carry out those activities in an effective and 3 economical manner, while promoting subcontract activity 4 with small Illinois firms. 5 (8) To establish manual and electronic buying 6 directories, including stand alone computer data bases 7 that list qualified vendors and procurement 8 opportunities. 9 (9) To promote through other means the use by 10 government agencies and large businesses of products and 11 services produced by small Illinois firms. 12 (10) To subcontract, grant funds, or otherwise 13 participate with qualified private firms, existing 14 procurement centers, or other organizations that have 15 designed programs, approved in accordance with procedures 16 determined by the Department, that are aimed at assisting 17 small Illinois firms obtain contracts for products and 18 services from local government agencies and large 19 Illinois businesses. 20 (11) To develop and administer guidelines for 21 projects that provide assistance to the Department in 22 connection with the Illinois Product and Services 23 Exchange Program. 24 (Source: P.A. 91-239, eff. 1-1-00; revised 1-25-02.) 25 (20 ILCS 605/605-710) 26 Sec. 605-710. Regional tourism development 27 organizations. 28 (a) The Department may, subject to appropriation, 29 provide grants from the Tourism Promotion Fund for the 30 administrative costs of not-for-profit regional tourism 31 development organizations that assist the Department in 32 developing tourism throughout a multi-county geographical 33 area designated by the Department. Regional tourism SB1854 Enrolled -43- LRB9215370EGfg 1 development organizations receiving funds under this Section 2 may be required by the Department to submit to audits of 3 contracts awarded by the Department to determine whether the 4 regional tourism development organization has performed all 5 contractual obligations under those contracts. 6 Every employee of a regional tourism development 7 organization receiving funds under this Section shall 8 disclose to the organization's governing board and to the 9 Department any economic interest that employee may have in 10 any entity with which the regional tourism development 11 organization has contracted or to which the regional tourism 12 development organization has granted funds. 13 (b) The Department, from moneys transferred from the 14 General Revenue Fund to the Tourism Promotion Fund and 15 appropriated from the Tourism Promotion Fund, shall first 16 provide funding of $5,000,000 annually to a governmental 17 entity with at least 2,000,000 square feet of exhibition 18 space that has as part of its duties the promotion of 19 cultural, scientific and trade exhibits and events within a 20 county with a population of more than 3,000,000, to be used 21 for any of the governmental entity's general corporate 22 purposes. 23 (Source: P.A. 92-11, eff. 6-11-01; 92-38, eff. 6-28-01; 24 revised 9-18-01.) 25 Section 13. The Interagency Wetland Policy Act of 1989 26 is amended by changing Section 2-1 as follows: 27 (20 ILCS 830/2-1) (from Ch. 96 1/2, par. 9702-1) 28 Sec. 2-1. Interagency Wetlands Committee. An Interagency 29 Wetlands Committee, chaired by the Director of Natural 30 Resources or his or her representative, is established. The 31 Directors of the following agencies, or their respective 32 representativesrepresentative, shall serve as members of the SB1854 Enrolled -44- LRB9215370EGfg 1 Committee: 2 CapitalCapitolDevelopment Board, 3 Department of Agriculture, 4 Department of Commerce and Community Affairs, 5 Environmental Protection Agency, 6 Department of Transportation, and 7 Historic Preservation Agency. 8 The Interagency Wetlands Committee shall also include 2 9 additional persons with relevant expertise designated by the 10 Director of Natural Resources. 11 The Interagency Wetlands Committee shall advise the 12 Director in the administration of this Act. This will 13 include: 14 (a) Developing rules and regulations for the 15 implementation and administration of this Act. 16 (b) Establishing guidelines for developing 17 individual Agency Action Plans. 18 (c) Developing and adopting technical procedures 19 for the consistent identification, delineation and 20 evaluation of existing wetlands and quantification of 21 their functional values and the evaluation of wetland 22 restoration or creation projects. 23 (d) Developing a research program for wetland 24 function, restoration and creation. 25 (e) Preparing reports, including: 26 (1) A biennial report to the Governor and the 27 General Assembly on the impact of State supported 28 activities on wetlands. 29 (2) A comprehensive report on the status of 30 the State's wetland resources, including 31 recommendations for additional programs, by January 32 15, 1991. 33 (f) Development of educational materials to promote 34 the protection of wetlands. SB1854 Enrolled -45- LRB9215370EGfg 1 (Source: P.A. 89-445, eff. 2-7-96; revised 12-2-01.) 2 Section 14. The Department of State Police Law of the 3 Civil Administrative Code of Illinois is amended by changing 4 Sections 2605-302 and 2605-555 as follows: 5 (20 ILCS 2605/2605-302) (was 20 ILCS 2605/55a in part) 6 Sec. 2605-302. Arrest reports. 7 (a) When an individual is arrested, the following 8 information must be made available to the news media for 9 inspection and copying: 10 (1) Information that identifies the individual, 11 including the name, age, address, and photograph, when 12 and if available. 13 (2) Information detailing any charges relating to 14 the arrest. 15 (3) The time and location of the arrest. 16 (4) The name of the investigating or arresting law 17 enforcement agency. 18 (5) If the individual is incarcerated, the amount 19 of any bail or bond. 20 (6) If the individual is incarcerated, the time and 21 date that the individual was received, discharged, or 22 transferred from the arresting agency's custody. 23 (b) The information required by this Section must be 24 made available to the news media for inspection and copying 25 as soon as practicable, but in no event shall the time period 26 exceed 72 hours from the arrest. The information described 27 in items (3), (4), (5), and (6) of subsection (a), however, 28 may be withheld if it is determined that disclosure would (i) 29 interfere with pending or actually and reasonably 30 contemplated law enforcement proceedings conducted by any law 31 enforcement or correctional agency; (ii) endanger the life or 32 physical safety of law enforcement or correctional personnel SB1854 Enrolled -46- LRB9215370EGfg 1 or any other person; or (iii) compromise the security of any 2 correctional facility. 3 (c) For the purposes of this Section, the term "news 4 media" means personnel of a newspaper or other periodical 5 issued at regular intervals whether in print or electronic 6 format, a news service whether in print or electronic format, 7 a radio station, a television station, a television network, 8 a community antenna television service, or a person or 9 corporation engaged in making news reels or other motion 10 picture news for public showing. 11 (d) Each law enforcement or correctional agency may 12 charge fees for arrest records, but in no instance may the 13 fee exceed the actual cost of copying and reproduction. The 14 fees may not include the cost of the labor used to reproduce 15 the arrest record. 16 (e) The provisions of this Section do not supersede the 17 confidentiality provisions for arrest records of the Juvenile 18 Court Act of 1987. 19 (Source: P.A. 91-309, eff. 7-29-99; 92-16, eff. 6-28-01; 20 incorporates 92-335, eff. 8-10-01; revised 9-17-01.) 21 (20 ILCS 2605/2605-555) 22 Sec. 2605-555. Pilot program; Project Exile. 23 (a) The Department shall establish a Project Exile pilot 24 program to combat gun violence. 25 (b) Through the pilot program, the Department, in 26 coordination with local law enforcement agencies, State's 27 Attorneys, and United States Attorneys, shall, to the extent 28 possible, encourage the prosecution in federal court of all 29 persons who illegally use, attempt to use, or threaten to use 30 firearms against the person or property of another, of all 31 persons who use or possess a firearm in connection with a 32 violation of the Cannabis Control Act or the Illinois 33 Controlled Substances Act, all persons who have been SB1854 Enrolled -47- LRB9215370EGfg 1 convicted of a felony under the laws of this State or any 2 other jurisdiction who possess any weapon prohibited under 3 Section 24-1 of the Criminal Code of 1961 or any firearm or 4 any firearm ammunition, and of all persons who use or possess 5 a firearm in connection with a violation of an order of 6 protection issued under the Illinois Domestic Violence Act of 7 1986 or Article 112A of the Code of Criminal Procedure of 8 1963 or in connection with the offense of domestic battery. 9 The program shall also encourage public outreach by law 10 enforcement agencies. 11 (c) There is created the Project Exile Fund, a special 12 fund in the State treasury. Moneys appropriated for the 13 purposes of Project Exile and moneys from any other private 14 or public source, including without limitation grants from 15 the Department of Commerce and Community Affairs, shall be 16 deposited into the Fund. Moneys in the Fund, subject to 17 appropriation, may be used by the Department of State Police 18 to develop and administer the Project Exile pilot program. 19 (d) The Department shall report to the General Assembly 20 by March 1, 2003 regarding the implementation and effects of 21 the Project Exile pilot program and shall by that date make 22 recommendations to the General Assembly for changes in the 23 program that the Department deems appropriate. 24 The requirement for reporting to the General Assembly 25 shall be satisfied by filing copies of the report with the 26 Speaker, the Minority Leader, and the Clerk of the House of 27 Representatives,andwith the President, the Minority Leader, 28 and the Secretary of the Senate, and with the Legislative 29 Research Unit, as required by Section 3.1 of the General 30 Assembly Organization Act, and filing such additional copies 31 with the State Government Report Distribution Center for the 32 General Assembly as is required under paragraph (t) of 33 Section 7 of the State Library Act. 34 (Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01; SB1854 Enrolled -48- LRB9215370EGfg 1 revised 10-15-01.) 2 Section 15. The Criminal Identification Act is amended 3 by changing Section 5 as follows: 4 (20 ILCS 2630/5) (from Ch. 38, par. 206-5) 5 Sec. 5. Arrest reports; expungement. 6 (a) All policing bodies of this State shall furnish to 7 the Department, daily, in the form and detail the Department 8 requires, fingerprints and descriptions of all persons who 9 are arrested on charges of violating any penal statute of 10 this State for offenses that are classified as felonies and 11 Class A or B misdemeanors and of all minors of the age of 10 12 and over who have been arrested for an offense which would be 13 a felony if committed by an adult, and may forward such 14 fingerprints and descriptions for minors arrested for Class A 15 or B misdemeanors. Moving or nonmoving traffic violations 16 under the Illinois Vehicle Code shall not be reported except 17 for violations of Chapter 4, Section 11-204.1, or Section 18 11-501 of that Code. In addition, conservation offenses, as 19 defined in the Supreme Court Rule 501(c), that are classified 20 as Class B misdemeanors shall not be reported. 21 Whenever an adult or minor prosecuted as an adult, not 22 having previously been convicted of any criminal offense or 23 municipal ordinance violation, charged with a violation of a 24 municipal ordinance or a felony or misdemeanor, is acquitted 25 or released without being convicted, whether the acquittal or 26 release occurred before, on, or after the effective date of 27 this amendatory Act of 1991, the Chief Judge of the circuit 28 wherein the charge was brought, any judge of that circuit 29 designated by the Chief Judge, or in counties of less than 30 3,000,000 inhabitants, the presiding trial judge at the 31 defendant's trial may upon verified petition of the defendant 32 order the record of arrest expunged from the official records SB1854 Enrolled -49- LRB9215370EGfg 1 of the arresting authority and the Department and order that 2 the records of the clerk of the circuit court be sealed until 3 further order of the court upon good cause shown and the name 4 of the defendant obliterated on the official index required 5 to be kept by the circuit court clerk under Section 16 of the 6 Clerks of Courts Act, but the order shall not affect any 7 index issued by the circuit court clerk before the entry of 8 the order. The Department may charge the petitioner a fee 9 equivalent to the cost of processing any order to expunge or 10 seal the records, and the fee shall be deposited into the 11 State Police Services Fund. The records of those arrests, 12 however, that result in a disposition of supervision for any 13 offense shall not be expunged from the records of the 14 arresting authority or the Department nor impounded by the 15 court until 2 years after discharge and dismissal of 16 supervision. Those records that result from a supervision 17 for a violation of Section 3-707, 3-708, 3-710, 5-401.3, or 18 11-503 of the Illinois Vehicle Code or a similar provision of 19 a local ordinance, or for a violation of Section 12-3.2, 20 12-15 or 16A-3 of the Criminal Code of 1961, or probation 21 under Section 10 of the Cannabis Control Act, Section 410 of 22 the Illinois Controlled Substances Act, Section 12-4.3(b)(1) 23 and (2) of the Criminal Code of 1961 (as those provisions 24 existed before their deletion by Public Act 89-313), Section 25 10-102 of the Illinois Alcoholism and Other Drug Dependency 26 Act when the judgment of conviction has been vacated, Section 27 40-10 of the Alcoholism and Other Drug Abuse and Dependency 28 Act when the judgment of conviction has been vacated, or 29 Section 10 of the Steroid Control Act shall not be expunged 30 from the records of the arresting authority nor impounded by 31 the court until 5 years after termination of probation or 32 supervision. Those records that result from a supervision 33 for a violation of Section 11-501 of the Illinois Vehicle 34 Code or a similar provision of a local ordinance, shall not SB1854 Enrolled -50- LRB9215370EGfg 1 be expunged. All records set out above may be ordered by the 2 court to be expunged from the records of the arresting 3 authority and impounded by the court after 5 years, but shall 4 not be expunged by the Department, but shall, on court order 5 be sealed by the Department and may be disseminated by the 6 Department only as required by law or to the arresting 7 authority, the State's Attorney, and the court upon a later 8 arrest for the same or a similar offense or for the purpose 9 of sentencing for any subsequent felony. Upon conviction for 10 any offense, the Department of Corrections shall have access 11 to all sealed records of the Department pertaining to that 12 individual. 13 (a-5) Those records maintained by the Department for 14 persons arrested prior to their 17th birthday shall be 15 expunged as provided in Section 5-915 of the Juvenile Court 16 Act of 1987. 17 (b) Whenever a person has been convicted of a crime or 18 of the violation of a municipal ordinance, in the name of a 19 person whose identity he has stolen or otherwise come into 20 possession of, the aggrieved person from whom the identity 21 was stolen or otherwise obtained without authorization, upon 22 learning of the person having been arrested using his 23 identity, may, upon verified petition to the chief judge of 24 the circuit wherein the arrest was made, have a court order 25 entered nunc pro tunc by the chief judge to correct the 26 arrest record, conviction record, if any, and all official 27 records of the arresting authority, the Department, other 28 criminal justice agencies, the prosecutor, and the trial 29 court concerning such arrest, if any, by removing his name 30 from all such records in connection with the arrest and 31 conviction, if any, and by inserting in the records the name 32 of the offender, if known or ascertainable, in lieu of the 33 aggrieved'shasname. The records of the clerk of the 34 circuit court clerk shall be sealed until further order of SB1854 Enrolled -51- LRB9215370EGfg 1 the court upon good cause shown and the name of the aggrieved 2 person obliterated on the official index required to be kept 3 by the circuit court clerk under Section 16 of the Clerks of 4 Courts Act, but the order shall not affect any index issued 5 by the circuit court clerk before the entry of the order. 6 Nothing in this Section shall limit the Department of State 7 Police or other criminal justice agencies or prosecutors from 8 listing under an offender's name the false names he or she 9 has used. For purposes of this Section, convictions for 10 moving and nonmoving traffic violations other than 11 convictions for violations of Chapter 4, Section 11-204.1 or 12 Section 11-501 of the Illinois Vehicle Code shall not be a 13 bar to expunging the record of arrest and court records for 14 violation of a misdemeanor or municipal ordinance. 15 (c) Whenever a person who has been convicted of an 16 offense is granted a pardon by the Governor which 17 specifically authorizes expungement, he may, upon verified 18 petition to the chief judge of the circuit where the person 19 had been convicted, any judge of the circuit designated by 20 the Chief Judge, or in counties of less than 3,000,000 21 inhabitants, the presiding trial judge at the defendant's 22 trial, may have a court order entered expunging the record of 23 arrest from the official records of the arresting authority 24 and order that the records of the clerk of the circuit court 25 and the Department be sealed until further order of the court 26 upon good cause shown or as otherwise provided herein, and 27 the name of the defendant obliterated from the official index 28 requested to be kept by the circuit court clerk under Section 29 16 of the Clerks of Courts Act in connection with the arrest 30 and conviction for the offense for which he had been pardoned 31 but the order shall not affect any index issued by the 32 circuit court clerk before the entry of the order. All 33 records sealed by the Department may be disseminated by the 34 Department only as required by law or to the arresting SB1854 Enrolled -52- LRB9215370EGfg 1 authority, the State's Attorney, and the court upon a later 2 arrest for the same or similar offense or for the purpose of 3 sentencing for any subsequent felony. Upon conviction for 4 any subsequent offense, the Department of Corrections shall 5 have access to all sealed records of the Department 6 pertaining to that individual. Upon entry of the order of 7 expungement, the clerk of the circuit court shall promptly 8 mail a copy of the order to the person who was pardoned. 9 (c-5) Whenever a person has been convicted of criminal 10 sexual assault, aggravated criminal sexual assault, predatory 11 criminal sexual assault of a child, criminal sexual abuse, or 12 aggravated criminal sexual abuse, the victim of that offense 13 may request that the State's Attorney of the county in which 14 the conviction occurred file a verified petition with the 15 presiding trial judge at the defendant's trial to have a 16 court order entered to seal the records of the clerk of the 17 circuit court in connection with the proceedings of the trial 18 court concerning that offense. However, the records of the 19 arresting authority and the Department of State Police 20 concerning the offense shall not be sealed. The court, upon 21 good cause shown, shall make the records of the clerk of the 22 circuit court in connection with the proceedings of the trial 23 court concerning the offense available for public inspection. 24 (d) Notice of the petition for subsections (a), (b), and 25 (c) shall be served upon the State's Attorney or prosecutor 26 charged with the duty of prosecuting the offense, the 27 Department of State Police, the arresting agency and the 28 chief legal officer of the unit of local government affecting 29 the arrest. Unless the State's Attorney or prosecutor, the 30 Department of State Police, the arresting agency or such 31 chief legal officer objects to the petition within 30 days 32 from the date of the notice, the court shall enter an order 33 granting or denying the petition. The clerk of the court 34 shall promptly mail a copy of the order to the person, the SB1854 Enrolled -53- LRB9215370EGfg 1 arresting agency, the prosecutor, the Department of State 2 Police and such other criminal justice agencies as may be 3 ordered by the judge. 4 (e) Nothing herein shall prevent the Department of State 5 Police from maintaining all records of any person who is 6 admitted to probation upon terms and conditions and who 7 fulfills those terms and conditions pursuant to Section 10 of 8 the Cannabis Control Act, Section 410 of the Illinois 9 Controlled Substances Act, Section 12-4.3 of the Criminal 10 Code of 1961, Section 10-102 of the Illinois Alcoholism and 11 Other Drug Dependency Act, Section 40-10 of the Alcoholism 12 and Other Drug Abuse and Dependency Act, or Section 10 of the 13 Steroid Control Act. 14 (f) No court order issued pursuant to the expungement 15 provisions of this Section shall become final for purposes of 16 appeal until 30 days after notice is received by the 17 Department. Any court order contrary to the provisions of 18 this Section is void. 19 (g) Except as otherwise provided in subsection (c-5) of 20 this Section, the court shall not order the sealing or 21 expungement of the arrest records and records of the circuit 22 court clerk of any person granted supervision for or 23 convicted of any sexual offense committed against a minor 24 under 18 years of age. For the purposes of this Section, 25 "sexual offense committed against a minor" includes but is 26 not limited to the offenses of indecent solicitation of a 27 child or criminal sexual abuse when the victim of such 28 offense is under 18 years of age. 29 (Source: P.A. 90-590, eff. 1-1-00; 91-295, eff. 1-1-00; 30 91-357, eff. 7-29-99; revised 12-3-01.) 31 Section 16. The Department of Veterans Affairs Act is 32 amended by changing Section 2 as follows: SB1854 Enrolled -54- LRB9215370EGfg 1 (20 ILCS 2805/2) (from Ch. 126 1/2, par. 67) 2 Sec. 2. Powers and duties. The Department shall have 3 the following powers and duties: 4 To perform such acts at the request of any veteran, or 5 his or her spouse, surviving spouse or dependents as shall be 6 reasonably necessary or reasonably incident to obtaining or 7 endeavoring to obtain for the requester any advantage, 8 benefit or emolument accruing or due to such person under any 9 law of the United States, the State of Illinois or any other 10 state or governmental agency by reason of the service of such 11 veteran, and in pursuance thereof shall: 12 1. Contact veterans, their survivors and dependents 13 and advise them of the benefits of state and federal laws 14 and assist them in obtaining such benefits; 15 2. Establish field offices and direct the 16 activities of the personnel assigned to such offices; 17 3. Create a volunteer field force of accredited 18 representatives, representing educational institutions, 19 labor organizations, veterans organizations, employers, 20 churches, and farm organizations; 21 4. Conduct informational and training services; 22 5. Conduct educational programs through newspapers, 23 periodicals and radio for the specific purpose of 24 disseminating information affecting veterans and their 25 dependents; 26 6. Coordinate the services and activities of all 27 state departments having services and resources affecting 28 veterans and their dependents; 29 7. Encourage and assist in the coordination of 30 agencies within counties giving service to veterans and 31 their dependents; 32 8. Cooperate with veterans organizations and other 33 governmental agencies; 34 9. Make, alter, amend and promulgate reasonable SB1854 Enrolled -55- LRB9215370EGfg 1 rules and procedures for the administration of this Act; 2and3 10. Make and publish annual reports to the Governor 4 regarding the administration and general operation of the 5 Department; and.6 11. Encourage the State to implement more programs 7 to address the wide range of issues faced by Persian Gulf 8 War Veterans, especially those who took part in combat, 9 by creating an official commission to further study 10 Persian Gulf War Diseases. The commission shall consist 11 of 9 members appointed as follows: the Speaker and 12 Minority Leader of the House of Representatives and the 13 President and Minority Leader of the Senate shall each 14 appoint one member from the General Assembly, the 15 Governor shall appoint 4 members to represent veterans' 16 organizations, and the Department shall appoint one 17 member. The commission members shall serve without 18 compensation. 19 The Department may accept and hold on behalf of the 20 State, if for the public interest, a grant, gift, devise or 21 bequest of money or property to the Department made for the 22 general benefit of Illinois veterans, including the conduct 23 of informational and training services by the Department and 24 other authorized purposes of the Department. The Department 25 shall cause each grant, gift, devise or bequest to be kept as 26 a distinct fund and shall invest such funds in the manner 27 provided by the Public Funds Investment Act, as now or 28 hereafter amended, and shall make such reports as may be 29 required by the Comptroller concerning what funds are so held 30 and the manner in which such funds are invested. The 31 Department may make grants from these funds for the general 32 benefit of Illinois veterans. Grants from these funds, 33 except for the funds established under Sections 2.01a and 34 2.03, shall be subject to appropriation. SB1854 Enrolled -56- LRB9215370EGfg 1 The Department has the power to make grants, from funds 2 appropriated from the Korean War Veterans National Museum and 3 Library Fund, to private organizations for the benefit of the 4 Korean War Veterans National Museum and Library. 5 (Source: P.A. 92-198, eff. 8-1-01; revised 9-18-01.) 6 Section 17. The Illinois Development Finance Authority 7 Act is amended by changing Section 5 as follows: 8 (20 ILCS 3505/5) (from Ch. 48, par. 850.05) 9 Sec. 5. All official acts of the Authority shall require 10 the approval of at least 9 members. It shall be the duty of 11 the Authority to promote employment within those areas of the 12 State duly certified from time to time by the Department of 13 Commerce and Community Affairs as areas of critical labor 14 surplus. To this end the Authority shall utilize the powers 15 herein conferred upon it to assist in the development and 16 construction or acquisition of industrial projects within 17 such areas of the State. 18 The Authority is hereby authorized to utilize its powers 19 with respect to prospective industrial projects to be located 20 at any given time within any general areas then currently 21 certified by the Department of Commerce and Community Affairs 22 as areas of critical labor surplus. In addition, upon being 23 requested to utilize its powers with respect to a prospective 24 industrial project to be located outside of any areas then 25 currently certified as areas of critical labor surplus, the 26 Authority may refer such request to the Department of 27 Commerce and Community Affairs for its determination as to 28 whether the proposed location is within any specific area of 29 critical labor surplus not hitherto generally certified. If 30 the proposed location is certified by the Department as being 31 within an area of critical labor surplus, the Authority may 32 similarly utilize its powers with respect to such prospective SB1854 Enrolled -57- LRB9215370EGfg 1 industrial project. 2 In evaluating the eligibility of any prospective 3 industrial project to be located within any area of critical 4 labor surplus, the Authority shall consider,(1) the 5 financial responsibility of the prospective applicant and 6 user, and (2) the relationship between the amount of funds to 7 be provided by exercise of powers of the Authority and the 8 degree to which the project (A) will contribute to creation 9 or retention of employment, including employment in the 10 construction industry, (B) will contribute to the economic 11 development of the area in which the industrial project is 12 located and (C) will produce goods or services for which 13 there is a need or demand. 14 (Source: P.A. 92-212, eff. 8-2-01; revised 12-3-01.) 15 Section 18. The State Finance Act is amended by setting 16 forth and renumbering multiple versions of Sections 5.545, 17 5.546, and 6z-51 as follows: 18 (30 ILCS 105/5.543) 19 Sec. 5.543.5.545.The Energy Infrastructure Fund. 20 (Source: P.A. 92-12, eff. 7-1-01; revised 10-19-01.) 21 (30 ILCS 105/5.544) 22 Sec. 5.544.5.546.The Energy Efficiency Investment Fund. 23 (Source: P.A. 92-12, eff. 6-30-01; revised 10-19-01.) 24 (30 ILCS 105/5.545) 25 Sec. 5.545. The Digital Divide Elimination Fund. 26 (Source: P.A. 92-22, eff. 6-30-01.) 27 (30 ILCS 105/5.546) 28 Sec. 5.546. The Digital Divide Elimination Infrastructure 29 Fund. SB1854 Enrolled -58- LRB9215370EGfg 1 (Source: P.A. 92-22, eff. 6-30-01.) 2 (30 ILCS 105/5.547) 3 Sec. 5.547.5.545.The Medical Special Purposes Trust 4 Fund. 5 (Source: P.A. 92-37, eff. 7-1-01; revised 10-19-01.) 6 (30 ILCS 105/5.548) 7 Sec. 5.548.5.545.The Child Support Administrative 8 Fund. 9 (Source: P.A. 92-44, eff. 7-1-01; revised 19-19-01.) 10 (30 ILCS 105/5.552) 11 Sec. 5.552.5.545.The ICCB Adult Education Fund. 12 (Source: P.A. 92-49, eff. 7-9-01; revised 10-19-01.) 13 (30 ILCS 105/5.553) 14 Sec. 5.553.5.545.The Medicaid Buy-In Program Revolving 15 Fund. 16 (Source: P.A. 92-163, eff. 7-25-01; revised 10-19-01.) 17 (30 ILCS 105/5.554) 18 Sec. 5.554.5.545.The Korean War Veterans National 19 Museum and Library Fund. 20 (Source: P.A. 92-198, eff. 8-1-01; revised 10-19-01.) 21 (30 ILCS 105/5.555) 22 Sec. 5.555.5.545.The Corporate Headquarters Relocation 23 Assistance Fund. 24 (Source: P.A. 92-207, eff. 8-1-01; revised 10-19-01.) 25 (30 ILCS 105/5.556) 26 Sec. 5.556.5.545.The Statewide Economic Development 27 Fund. SB1854 Enrolled -59- LRB9215370EGfg 1 (Source: P.A. 92-208, eff. 8-2-01; revised 10-19-01.) 2 (30 ILCS 105/5.557) 3 Sec. 5.557.5.545.The Real Estate Audit Fund. 4 (Source: P.A. 92-217, eff. 8-2-01; revised 10-19-01.) 5 (30 ILCS 105/5.558) 6 Sec. 5.558.5.545.The Home Inspector Administration 7 Fund. 8 (Source: P.A. 92-239, eff. 8-3-01; revised 10-19-01.) 9 (30 ILCS 105/5.559) 10 Sec. 5.559.5.545. 5.546.The Project Exile Fund. 11 (Source: P.A. 92-332, eff. 8-10-01; 92-342, eff. 8-10-01; 12 revised 10-19-01.) 13 (30 ILCS 105/5.560) 14 Sec. 5.560.5.545.The Illinois AgriFIRST Program Fund. 15 (Source: P.A. 92-346, eff. 8-14-01; revised 10-19-01.) 16 (30 ILCS 105/5.561) 17 Sec. 5.561.5.545.The Secretary of State DUI 18 Administration Fund. 19 (Source: P.A. 92-418, eff. 8-17-01; revised 10-19-01.) 20 (30 ILCS 105/5.562) 21 Sec. 5.562.5.545.The Illinois Future Teacher Corps 22 Scholarship Fund. 23 (Source: P.A. 92-445, eff. 8-17-01; revised 10-19-01.) 24 (30 ILCS 105/5.563) 25 Sec. 5.563.5.545.The Illinois Animal Abuse Fund. 26 (Source: P.A. 92-454, eff. 1-1-02; revised 10-19-01.) SB1854 Enrolled -60- LRB9215370EGfg 1 (30 ILCS 105/5.564) 2 Sec. 5.564.5.545.The Marine Corps Scholarship Fund. 3 (Source: P.A. 92-467, eff. 1-1-02; revised 10-19-01.) 4 (30 ILCS 105/5.565) 5 Sec. 5.565.5.545.The Chicago and Northeast Illinois 6 District Council of Carpenters Fund. 7 (Source: P.A. 92-477, eff. 1-1-02; revised 10-19-01.) 8 (30 ILCS 105/5.566) 9 Sec. 5.566.5.545.The Brownfields Site Restoration 10 Program Fund. Subsections (b) and (c) of Section 5 of this 11 Act do not apply to this Fund. 12 (Source: P.A. 92-486, eff. 1-1-02; revised 10-19-01.) 13 (30 ILCS 105/5.567) 14 Sec. 5.567.5.545.The Secretary of State Police Services 15 Fund. 16 (Source: P.A. 92-501, eff. 12-19-01; revised 12-28-01.) 17 (30 ILCS 105/5.568) 18 (This Section may contain text from a Public Act with a 19 delayed effective date) 20 Sec. 5.568.5.545.The Pet Overpopulation Control Fund. 21 (Source: P.A. 92-520, eff. 6-1-02; revised 1-16-02.) 22 (30 ILCS 105/6z-51) 23 Sec. 6z-51. Budget Stabilization Fund. 24 (a) The Budget Stabilization Fund, a special fund in the 25 State Treasury, shall consist of moneys appropriated or 26 transferred to that Fund, as provided in Section 6z-43 and as 27 otherwise provided by law. 28 (b) The State Comptroller may direct the State Treasurer 29 to transfer moneys from the Budget Stabilization Fund to the SB1854 Enrolled -61- LRB9215370EGfg 1 General Revenue Fund in order to meet deficits resulting from 2 timing variations between disbursements and the receipt of 3 funds within a fiscal year. Any moneys so borrowed shall be 4 repaid by June 30 of the fiscal year in which they were 5 borrowed. 6 (Source: P.A. 92-11, eff. 6-11-01.) 7 (30 ILCS 105/6z-54) 8 Sec. 6z-54.6z-51.The Energy Infrastructure Fund. 9 (a) The Energy Infrastructure Fund is created as a 10 special fund in the State treasury. 11 (b) Money in the Energy Infrastructure Fund shall, if 12 and when the State of Illinois issues any bonded indebtedness 13 for financial assistance to new electric generating 14 facilities, as provided in Section 605-332 of the Department 15 of Commerce and Community Affairs Law of the Civil 16 Administrative Code of Illinois, be set aside and used for 17 the purpose of paying and discharging annually the principal 18 and interest on that bonded indebtedness then due and 19 payable, and for no other purpose. 20 In addition to other transfers to the General Obligation 21 Bond Retirement and Interest Fund made pursuant to Section 15 22 of the General Obligation Bond Act, upon each delivery of 23 bonds issued for financial assistance to new electric 24 generating facilities under Section 605-332 of the Department 25 of Commerce and Community Affairs Law of the Civil 26 Administrative Code of Illinois, the State Comptroller shall 27 compute and certify to the State Treasurer the total amount 28 of principal and interest, and premium, if any, on such bonds 29 during the then current and each succeeding fiscal year. On 30 or before the last day of each month, the State Treasurer and 31 the State Comptroller shall transfer from the Energy 32 Infrastructure Fund to the General Obligation Bond Retirement 33 and Interest Fund an amount sufficient to pay the aggregate SB1854 Enrolled -62- LRB9215370EGfg 1 of the principal of, interest on, and premium, if any, on the 2 bonds payable on their next payment date, divided by the 3 number of monthly transfers occurring between the last 4 previous payment date (or the delivery date if no payment 5 date has yet occurred) and the next succeeding payment date. 6 (c) To the extent that moneys in the Energy 7 Infrastructure Fund, in the opinion of the Governor and the 8 Director of the Bureau of the Budget, are in excess of 125% 9 of the maximum debt service in any fiscal year, such surplus 10 shall, subject to appropriation, be used by the Department of 11 Commerce and Community Affairs for financial assistance under 12 other coal development programs administered by the 13 Department, in accordance with the rules of the Department or 14 for other State purposes subject to appropriation. 15 (Source: P.A. 92-12, eff. 7-1-01; revised 10-17-01.) 16 (30 ILCS 105/6z-55) 17 Sec. 6z-55.6z-51.Statewide Economic Development Fund. 18(a)The Statewide Economic Development Fund is created as a 19 special fund in the State treasury. Moneys in the Fund shall 20 be used, subject to appropriation, for the purpose of 21 statewide economic development activities. 22 (Source: P.A. 92-208, eff. 8-2-01; revised 10-17-01.) 23 Section 19. The State Real Property Leasing Act is 24 amended by changing Section 1.5 as follows: 25 (30 ILCS 562/1.5) 26 Sec. 1.5. Leasing to tax delinquents prohibited. A 27 State agency shall not lease any real property to a person 28 who is delinquent in paying any real property taxes on a 29 leasehold estate under Section 9-195 of the Property Tax 30 Code. If a State agency receives noticeunder Section 21-6331of the Property Tax Codethat a lessee of property under the SB1854 Enrolled -63- LRB9215370EGfg 1 agency's control is delinquent in paying property taxes, the 2 agency shall notify the lessee that the lessee has 60 days to 3 pay the delinquent taxes, plus penalties and interest, if 4 any, or the lease shall be terminated. If the lessee fails 5 to submit proof to the agency that the lessee has paid the 6 taxes, penalties, and interest, the agency shall terminate 7 the lease. A person whose lease was terminated under this 8 Section is not allowed to lease State-owned real property or 9 bid on a lease for State-owned real property for a period of 10 2 years after the termination of the lease. 11 Within60 days after the effective date of this Act and12within60 days after entering into an agreement to lease 13 State-owned real property, the State agency leasing the 14 State-owned real property shall notify the county clerk of 15 the county in which the real property is located of the name 16 and mailing address of the lessee. 17 (Source: P.A. 88-676, eff. 12-14-94; revised 12-13-01.) 18 Section 20. The State Property Control Act is amended by 19 changing Section 1.02 as follows: 20 (30 ILCS 605/1.02) (from Ch. 127, par. 133b3) 21 Sec. 1.02. "Property" means State owned property and 22 includes all real estate, with the exception of rights of way 23 for State water resource and highway improvements, traffic 24 signs and traffic signals, and with the exception of common 25 school property; and all tangible personal property with the 26 exception of properties specifically exempted by the 27 administrator, provided that any property originally 28 classified as real property which has been detached from its 29 structure shall be classified as personal property. 30 "Property" does not include property owned by the 31 Illinois Medical District Commission and leased or occupied 32 by others for purposes permitted under the Illinois Medical SB1854 Enrolled -64- LRB9215370EGfg 1 District Act. "Property" also does not include property 2 owned and held by the Illinois Medical District Commission 3 for redevelopment. 4 "Property" does not includethatproperty described under 5 Section 5 of Public Act 92-371this amendatory Act of the692nd General Assemblywith respect to depositing the net 7 proceeds from the sale or exchange of the property as 8 provided in Section 10 of thatthis amendatoryActof the992nd General Assembly. 10 (Source: P.A. 92-371, eff. 8-15-01; revised 10-9-01.) 11 Section 21. The Downstate Public Transportation Act is 12 amended by changing Section 2-2.04 as follows: 13 (30 ILCS 740/2-2.04) (from Ch. 111 2/3, par. 662.04) 14 Sec. 2-2.04. "Eligible operating expenses" means all 15 expenses required for public transportation, including 16 employee wages and benefits, materials, fuels, supplies, 17 rental of facilities, taxes other than income taxes, payment 18 made for debt service (including principal and interest) on 19 publicly owned equipment or facilities, and any other 20 expenditure which is an operating expense according to 21 standard accounting practices for the providing of public 22 transportation. Eligible operating expenses shall not include 23 allowances: (a) for depreciation whether funded or unfunded; 24 (b) for amortization of any intangible costs; (c) for debt 25 service on capital acquired with the assistance of capital 26 grant funds provided by the State of Illinois; (d) for 27 profits or return on investment; (e) for excessive payment to 28 associated entities; (f) for Comprehensive Employment 29 Training Act expenses; (g) for costs reimbursed under 30 Sections 6 and 8 of the "Urban Mass Transportation Act of 31 1964", as amended; (h) for entertainment expenses; (i) for 32 charter expenses; (j) for fines and penalties; (k) for SB1854 Enrolled -65- LRB9215370EGfg 1 charitable donations; (l) for interest expense on long term 2 borrowing and debt retirement other than on publicly owned 3 equipment or facilities; (m) for income taxes; or (n) for 4 such other expenses as the Department may determine 5 consistent with federal Department of Transportation 6 regulations or requirements. 7 With respect to participants other than any Metro-East 8 Transit District participant and those receiving federal 9 research development and demonstration funds pursuant to 10 Section 6 of the "Urban Mass Transportation Act of 1964", as 11 amended, during the fiscal year ending June 30, 1979, the 12 maximum eligible operating expenses for any such participant 13 in any fiscal year after Fiscal Year 1980 shall be the amount 14 appropriated for such participant for the fiscal year ending 15 June 30, 1980, plus in each year a 10% increase over the 16 maximum established for the preceding fiscal year. For 17 Fiscal Year 1980 the maximum eligible operating expenses for 18 any such participant shall be the amount of projected 19 operating expenses upon which the appropriation for such 20 participant for Fiscal Year 1980 is based. 21 With respect to participants receiving federal research 22 development and demonstration operating assistance funds for 23 operating assistance pursuant to Section 6 of the "Urban Mass 24 Transportation Act of 1964", as amended, during the fiscal 25 year ending June 30, 1979, the maximum eligible operating 26 expenses for any such participant in any fiscal year after 27 Fiscal Year 1980 shall not exceed such participant's eligible 28 operating expenses for the fiscal year ending June 30, 1980, 29 plus in each year a 10% increase over the maximum established 30 for the preceding fiscal year. For Fiscal Year 1980, the 31 maximum eligible operating expenses for any such participant 32 shall be the eligible operating expenses incurred during such 33 fiscal year, or projected operating expenses upon which the 34 appropriation for such participant for the Fiscal Year 1980 SB1854 Enrolled -66- LRB9215370EGfg 1 is based; whichever is less. 2 With respect to all participants other than any 3 Metro-East Transit District participant, the maximum eligible 4 operating expenses for any such participant in any fiscal 5 year after Fiscal Year 1985 shall be the amount appropriated 6 for such participant for the fiscal year ending June 30, 7 1985, plus in each year a 10% increase over the maximum 8 established for the preceding year. For Fiscal Year 1985, 9 the maximum eligible operating expenses for any such 10 participant shall be the amount of projected operating 11 expenses upon which the appropriation for such participant 12 for Fiscal Year 1985 is based. 13 With respect to any mass transit district participant 14 that has increased its district boundaries by annexing 15 counties since 1998 and is maintaining a level of local 16 financial support, including all income and revenues, equal 17 to or greater than the level in the State fiscal year ending 18 June 30, 2001, the maximum eligible operating expenses for 19 any State fiscal year after 2002 shall be the amount 20 appropriated for that participant for the State fiscal year 21 ending June 30, 2002, plus, in each State fiscal year, a 10% 22 increase over the preceding State fiscal year. For State 23 fiscal year 2002, the maximum eligible operating expenses for 24 any such participant shall be the amount of projected 25 operating expenses upon which the appropriation for that 26 participant for State fiscal year 2002 is based. For that 27 participant, eligible operating expenses for State fiscal 28 year 2002 in excess of the eligible operating expenses for 29 the State fiscal year ending June 30, 2001, plus 10%, must 30 be attributed to the provision of services in the newly 31 annexed counties. 32 With respect to a participant that receives an initial 33 appropriation in State fiscal year 2002, the maximum eligible 34 operating expenses for any State fiscal year after 2003 shall SB1854 Enrolled -67- LRB9215370EGfg 1 be the amount appropriated for that participant for the State 2 fiscal year ending June 30, 2003, plus, in each year, a 10% 3 increase over the preceding year. For State fiscal year 4 2003, the maximum eligible operating expenses for any such 5 participant shall be the amount of projected operating 6 expenses upon which the appropriation for that participant 7 for State fiscal year 2003 is based., or Fiscal Year 20028 (Source: P.A. 92-258, eff. 8-7-01; 92-464, eff. 8-22-01; 9 revised 10-15-01.) 10 Section 22. The State Mandates Act is amended by 11 changing Sections 8.24 and 8.25 as follows: 12 (30 ILCS 805/8.24) 13 Sec. 8.24.8.25.Exempt mandate. Notwithstanding 14 Sections 6 and 8 of this Act, no reimbursement by the State 15 is required for the implementation of any mandate created by 16 Public Act 91-699, 91-722, 91-834, 91-852, 91-870, 91-885, 17 91-887,or91-897, 91-939, or 91-954.this amendatory Act of18the 91st General Assembly.19 (Source: P.A. 91-699, eff. 1-1-01; 91-722, eff. 6-2-00; 20 91-834, eff. 1-1-01; 91-852, eff. 6-22-00; 91-870, eff. 21 6-22-00; 91-885, eff. 7-6-00; 91-887, eff. 7-6-00; 91-897, 22 eff. 7-6-00; 91-939, eff. 2-1-01; 91-954, eff. 1-1-02; 92-16, 23 eff. 6-28-01; revised 7-23-01.) 24 (30 ILCS 805/8.25) 25 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 26 and 8 of this Act, no reimbursement by the State is required 27 for the implementation of any mandate created by Public Act 28 92-36, 92-50, 92-52, 92-53, 92-166, 92-281, 92-382, 92-388, 29 92-416, 92-424, or 92-465.this amendatory Act of the 92nd30General Assembly.31 (Source: P.A. 92-36, eff. 6-28-01; 92-50, eff. 7-12-01; SB1854 Enrolled -68- LRB9215370EGfg 1 92-52, eff. 7-12-01; 92-53, eff. 7-12-01; 92-166, eff. 2 1-1-02; 92-281, eff. 8-7-01; 92-382, eff. 8-16-01; 92-388, 3 eff. 1-1-02; 92-416, eff. 8-17-01; 92-424, eff. 8-17-01; 4 92-465, eff. 1-1-02; revised 10-17-01.) 5 Section 23. The Illinois Income Tax Act is amended by 6 changing Sections 201, 203, 509, and 510 and setting forth 7 and renumbering multiple versions of Section 507V as follows: 8 (35 ILCS 5/201) (from Ch. 120, par. 2-201) 9 Sec. 201. Tax Imposed. 10 (a) In general. A tax measured by net income is hereby 11 imposed on every individual, corporation, trust and estate 12 for each taxable year ending after July 31, 1969 on the 13 privilege of earning or receiving income in or as a resident 14 of this State. Such tax shall be in addition to all other 15 occupation or privilege taxes imposed by this State or by any 16 municipal corporation or political subdivision thereof. 17 (b) Rates. The tax imposed by subsection (a) of this 18 Section shall be determined as follows, except as adjusted by 19 subsection (d-1): 20 (1) In the case of an individual, trust or estate, 21 for taxable years ending prior to July 1, 1989, an amount 22 equal to 2 1/2% of the taxpayer's net income for the 23 taxable year. 24 (2) In the case of an individual, trust or estate, 25 for taxable years beginning prior to July 1, 1989 and 26 ending after June 30, 1989, an amount equal to the sum of 27 (i) 2 1/2% of the taxpayer's net income for the period 28 prior to July 1, 1989, as calculated under Section 202.3, 29 and (ii) 3% of the taxpayer's net income for the period 30 after June 30, 1989, as calculated under Section 202.3. 31 (3) In the case of an individual, trust or estate, 32 for taxable years beginning after June 30, 1989, an SB1854 Enrolled -69- LRB9215370EGfg 1 amount equal to 3% of the taxpayer's net income for the 2 taxable year. 3 (4) (Blank). 4 (5) (Blank). 5 (6) In the case of a corporation, for taxable years 6 ending prior to July 1, 1989, an amount equal to 4% of 7 the taxpayer's net income for the taxable year. 8 (7) In the case of a corporation, for taxable years 9 beginning prior to July 1, 1989 and ending after June 30, 10 1989, an amount equal to the sum of (i) 4% of the 11 taxpayer's net income for the period prior to July 1, 12 1989, as calculated under Section 202.3, and (ii) 4.8% of 13 the taxpayer's net income for the period after June 30, 14 1989, as calculated under Section 202.3. 15 (8) In the case of a corporation, for taxable years 16 beginning after June 30, 1989, an amount equal to 4.8% of 17 the taxpayer's net income for the taxable year. 18 (c) Personal Property Tax Replacement Income Tax. 19 Beginning on July 1, 1979 and thereafter, in addition to such 20 income tax, there is also hereby imposed the Personal 21 Property Tax Replacement Income Tax measured by net income on 22 every corporation (including Subchapter S corporations), 23 partnership and trust, for each taxable year ending after 24 June 30, 1979. Such taxes are imposed on the privilege of 25 earning or receiving income in or as a resident of this 26 State. The Personal Property Tax Replacement Income Tax 27 shall be in addition to the income tax imposed by subsections 28 (a) and (b) of this Section and in addition to all other 29 occupation or privilege taxes imposed by this State or by any 30 municipal corporation or political subdivision thereof. 31 (d) Additional Personal Property Tax Replacement Income 32 Tax Rates. The personal property tax replacement income tax 33 imposed by this subsection and subsection (c) of this Section 34 in the case of a corporation, other than a Subchapter S SB1854 Enrolled -70- LRB9215370EGfg 1 corporation and except as adjusted by subsection (d-1), shall 2 be an additional amount equal to 2.85% of such taxpayer's net 3 income for the taxable year, except that beginning on January 4 1, 1981, and thereafter, the rate of 2.85% specified in this 5 subsection shall be reduced to 2.5%, and in the case of a 6 partnership, trust or a Subchapter S corporation shall be an 7 additional amount equal to 1.5% of such taxpayer's net income 8 for the taxable year. 9 (d-1) Rate reduction for certain foreign insurers. In 10 the case of a foreign insurer, as defined by Section 35A-5 of 11 the Illinois Insurance Code, whose state or country of 12 domicile imposes on insurers domiciled in Illinois a 13 retaliatory tax (excluding any insurer whose premiums from 14 reinsurance assumed are 50% or more of its total insurance 15 premiums as determined under paragraph (2) of subsection (b) 16 of Section 304, except that for purposes of this 17 determination premiums from reinsurance do not include 18 premiums from inter-affiliate reinsurance arrangements), 19 beginning with taxable years ending on or after December 31, 20 1999, the sum of the rates of tax imposed by subsections (b) 21 and (d) shall be reduced (but not increased) to the rate at 22 which the total amount of tax imposed under this Act, net of 23 all credits allowed under this Act, shall equal (i) the total 24 amount of tax that would be imposed on the foreign insurer's 25 net income allocable to Illinois for the taxable year by such 26 foreign insurer's state or country of domicile if that net 27 income were subject to all income taxes and taxes measured by 28 net income imposed by such foreign insurer's state or country 29 of domicile, net of all credits allowed or (ii) a rate of 30 zero if no such tax is imposed on such income by the foreign 31 insurer's state of domicile. For the purposes of this 32 subsection (d-1), an inter-affiliate includes a mutual 33 insurer under common management. 34 (1) For the purposes of subsection (d-1), in no SB1854 Enrolled -71- LRB9215370EGfg 1 event shall the sum of the rates of tax imposed by 2 subsections (b) and (d) be reduced below the rate at 3 which the sum of: 4 (A) the total amount of tax imposed on such 5 foreign insurer under this Act for a taxable year, 6 net of all credits allowed under this Act, plus 7 (B) the privilege tax imposed by Section 409 8 of the Illinois Insurance Code, the fire insurance 9 company tax imposed by Section 12 of the Fire 10 Investigation Act, and the fire department taxes 11 imposed under Section 11-10-1 of the Illinois 12 Municipal Code, 13 equals 1.25% of the net taxable premiums written for the 14 taxable year, as described by subsection (1) of Section 15 409 of the Illinois Insurance Code. This paragraph will 16 in no event increase the rates imposed under subsections 17 (b) and (d). 18 (2) Any reduction in the rates of tax imposed by 19 this subsection shall be applied first against the rates 20 imposed by subsection (b) and only after the tax imposed 21 by subsection (a) net of all credits allowed under this 22 Section other than the credit allowed under subsection 23 (i) has been reduced to zero, against the rates imposed 24 by subsection (d). 25 This subsection (d-1) is exempt from the provisions of 26 Section 250. 27 (e) Investment credit. A taxpayer shall be allowed a 28 credit against the Personal Property Tax Replacement Income 29 Tax for investment in qualified property. 30 (1) A taxpayer shall be allowed a credit equal to 31 .5% of the basis of qualified property placed in service 32 during the taxable year, provided such property is placed 33 in service on or after July 1, 1984. There shall be 34 allowed an additional credit equal to .5% of the basis of SB1854 Enrolled -72- LRB9215370EGfg 1 qualified property placed in service during the taxable 2 year, provided such property is placed in service on or 3 after July 1, 1986, and the taxpayer's base employment 4 within Illinois has increased by 1% or more over the 5 preceding year as determined by the taxpayer's employment 6 records filed with the Illinois Department of Employment 7 Security. Taxpayers who are new to Illinois shall be 8 deemed to have met the 1% growth in base employment for 9 the first year in which they file employment records with 10 the Illinois Department of Employment Security. The 11 provisions added to this Section by Public Act 85-1200 12 (and restored by Public Act 87-895) shall be construed as 13 declaratory of existing law and not as a new enactment. 14 If, in any year, the increase in base employment within 15 Illinois over the preceding year is less than 1%, the 16 additional credit shall be limited to that percentage 17 times a fraction, the numerator of which is .5% and the 18 denominator of which is 1%, but shall not exceed .5%. 19 The investment credit shall not be allowed to the extent 20 that it would reduce a taxpayer's liability in any tax 21 year below zero, nor may any credit for qualified 22 property be allowed for any year other than the year in 23 which the property was placed in service in Illinois. For 24 tax years ending on or after December 31, 1987, and on or 25 before December 31, 1988, the credit shall be allowed for 26 the tax year in which the property is placed in service, 27 or, if the amount of the credit exceeds the tax liability 28 for that year, whether it exceeds the original liability 29 or the liability as later amended, such excess may be 30 carried forward and applied to the tax liability of the 5 31 taxable years following the excess credit years if the 32 taxpayer (i) makes investments which cause the creation 33 of a minimum of 2,000 full-time equivalent jobs in 34 Illinois, (ii) is located in an enterprise zone SB1854 Enrolled -73- LRB9215370EGfg 1 established pursuant to the Illinois Enterprise Zone Act 2 and (iii) is certified by the Department of Commerce and 3 Community Affairs as complying with the requirements 4 specified in clause (i) and (ii) by July 1, 1986. The 5 Department of Commerce and Community Affairs shall notify 6 the Department of Revenue of all such certifications 7 immediately. For tax years ending after December 31, 8 1988, the credit shall be allowed for the tax year in 9 which the property is placed in service, or, if the 10 amount of the credit exceeds the tax liability for that 11 year, whether it exceeds the original liability or the 12 liability as later amended, such excess may be carried 13 forward and applied to the tax liability of the 5 taxable 14 years following the excess credit years. The credit shall 15 be applied to the earliest year for which there is a 16 liability. If there is credit from more than one tax year 17 that is available to offset a liability, earlier credit 18 shall be applied first. 19 (2) The term "qualified property" means property 20 which: 21 (A) is tangible, whether new or used, 22 including buildings and structural components of 23 buildings and signs that are real property, but not 24 including land or improvements to real property that 25 are not a structural component of a building such as 26 landscaping, sewer lines, local access roads, 27 fencing, parking lots, and other appurtenances; 28 (B) is depreciable pursuant to Section 167 of 29 the Internal Revenue Code, except that "3-year 30 property" as defined in Section 168(c)(2)(A) of that 31 Code is not eligible for the credit provided by this 32 subsection (e); 33 (C) is acquired by purchase as defined in 34 Section 179(d) of the Internal Revenue Code; SB1854 Enrolled -74- LRB9215370EGfg 1 (D) is used in Illinois by a taxpayer who is 2 primarily engaged in manufacturing, or in mining 3 coal or fluorite, or in retailing; and 4 (E) has not previously been used in Illinois 5 in such a manner and by such a person as would 6 qualify for the credit provided by this subsection 7 (e) or subsection (f). 8 (3) For purposes of this subsection (e), 9 "manufacturing" means the material staging and production 10 of tangible personal property by procedures commonly 11 regarded as manufacturing, processing, fabrication, or 12 assembling which changes some existing material into new 13 shapes, new qualities, or new combinations. For purposes 14 of this subsection (e) the term "mining" shall have the 15 same meaning as the term "mining" in Section 613(c) of 16 the Internal Revenue Code. For purposes of this 17 subsection (e), the term "retailing" means the sale of 18 tangible personal property or services rendered in 19 conjunction with the sale of tangible consumer goods or 20 commodities. 21 (4) The basis of qualified property shall be the 22 basis used to compute the depreciation deduction for 23 federal income tax purposes. 24 (5) If the basis of the property for federal income 25 tax depreciation purposes is increased after it has been 26 placed in service in Illinois by the taxpayer, the amount 27 of such increase shall be deemed property placed in 28 service on the date of such increase in basis. 29 (6) The term "placed in service" shall have the 30 same meaning as under Section 46 of the Internal Revenue 31 Code. 32 (7) If during any taxable year, any property ceases 33 to be qualified property in the hands of the taxpayer 34 within 48 months after being placed in service, or the SB1854 Enrolled -75- LRB9215370EGfg 1 situs of any qualified property is moved outside Illinois 2 within 48 months after being placed in service, the 3 Personal Property Tax Replacement Income Tax for such 4 taxable year shall be increased. Such increase shall be 5 determined by (i) recomputing the investment credit which 6 would have been allowed for the year in which credit for 7 such property was originally allowed by eliminating such 8 property from such computation and, (ii) subtracting such 9 recomputed credit from the amount of credit previously 10 allowed. For the purposes of this paragraph (7), a 11 reduction of the basis of qualified property resulting 12 from a redetermination of the purchase price shall be 13 deemed a disposition of qualified property to the extent 14 of such reduction. 15 (8) Unless the investment credit is extended by 16 law, the basis of qualified property shall not include 17 costs incurred after December 31, 2003, except for costs 18 incurred pursuant to a binding contract entered into on 19 or before December 31, 2003. 20 (9) Each taxable year ending before December 31, 21 2000, a partnership may elect to pass through to its 22 partners the credits to which the partnership is entitled 23 under this subsection (e) for the taxable year. A 24 partner may use the credit allocated to him or her under 25 this paragraph only against the tax imposed in 26 subsections (c) and (d) of this Section. If the 27 partnership makes that election, those credits shall be 28 allocated among the partners in the partnership in 29 accordance with the rules set forth in Section 704(b) of 30 the Internal Revenue Code, and the rules promulgated 31 under that Section, and the allocated amount of the 32 credits shall be allowed to the partners for that taxable 33 year. The partnership shall make this election on its 34 Personal Property Tax Replacement Income Tax return for SB1854 Enrolled -76- LRB9215370EGfg 1 that taxable year. The election to pass through the 2 credits shall be irrevocable. 3 For taxable years ending on or after December 31, 4 2000, a partner that qualifies its partnership for a 5 subtraction under subparagraph (I) of paragraph (2) of 6 subsection (d) of Section 203 or a shareholder that 7 qualifies a Subchapter S corporation for a subtraction 8 under subparagraph (S) of paragraph (2) of subsection (b) 9 of Section 203 shall be allowed a credit under this 10 subsection (e) equal to its share of the credit earned 11 under this subsection (e) during the taxable year by the 12 partnership or Subchapter S corporation, determined in 13 accordance with the determination of income and 14 distributive share of income under Sections 702 and 704 15 and Subchapter S of the Internal Revenue Code. This 16 paragraph is exempt from the provisions of Section 250. 17 (f) Investment credit; Enterprise Zone. 18 (1) A taxpayer shall be allowed a credit against 19 the tax imposed by subsections (a) and (b) of this 20 Section for investment in qualified property which is 21 placed in service in an Enterprise Zone created pursuant 22 to the Illinois Enterprise Zone Act. For partners, 23 shareholders of Subchapter S corporations, and owners of 24 limited liability companies, if the liability company is 25 treated as a partnership for purposes of federal and 26 State income taxation, there shall be allowed a credit 27 under this subsection (f) to be determined in accordance 28 with the determination of income and distributive share 29 of income under Sections 702 and 704 and Subchapter S of 30 the Internal Revenue Code. The credit shall be .5% of 31 the basis for such property. The credit shall be 32 available only in the taxable year in which the property 33 is placed in service in the Enterprise Zone and shall not 34 be allowed to the extent that it would reduce a SB1854 Enrolled -77- LRB9215370EGfg 1 taxpayer's liability for the tax imposed by subsections 2 (a) and (b) of this Section to below zero. For tax years 3 ending on or after December 31, 1985, the credit shall be 4 allowed for the tax year in which the property is placed 5 in service, or, if the amount of the credit exceeds the 6 tax liability for that year, whether it exceeds the 7 original liability or the liability as later amended, 8 such excess may be carried forward and applied to the tax 9 liability of the 5 taxable years following the excess 10 credit year. The credit shall be applied to the earliest 11 year for which there is a liability. If there is credit 12 from more than one tax year that is available to offset a 13 liability, the credit accruing first in time shall be 14 applied first. 15 (2) The term qualified property means property 16 which: 17 (A) is tangible, whether new or used, 18 including buildings and structural components of 19 buildings; 20 (B) is depreciable pursuant to Section 167 of 21 the Internal Revenue Code, except that "3-year 22 property" as defined in Section 168(c)(2)(A) of that 23 Code is not eligible for the credit provided by this 24 subsection (f); 25 (C) is acquired by purchase as defined in 26 Section 179(d) of the Internal Revenue Code; 27 (D) is used in the Enterprise Zone by the 28 taxpayer; and 29 (E) has not been previously used in Illinois 30 in such a manner and by such a person as would 31 qualify for the credit provided by this subsection 32 (f) or subsection (e). 33 (3) The basis of qualified property shall be the 34 basis used to compute the depreciation deduction for SB1854 Enrolled -78- LRB9215370EGfg 1 federal income tax purposes. 2 (4) If the basis of the property for federal income 3 tax depreciation purposes is increased after it has been 4 placed in service in the Enterprise Zone by the taxpayer, 5 the amount of such increase shall be deemed property 6 placed in service on the date of such increase in basis. 7 (5) The term "placed in service" shall have the 8 same meaning as under Section 46 of the Internal Revenue 9 Code. 10 (6) If during any taxable year, any property ceases 11 to be qualified property in the hands of the taxpayer 12 within 48 months after being placed in service, or the 13 situs of any qualified property is moved outside the 14 Enterprise Zone within 48 months after being placed in 15 service, the tax imposed under subsections (a) and (b) of 16 this Section for such taxable year shall be increased. 17 Such increase shall be determined by (i) recomputing the 18 investment credit which would have been allowed for the 19 year in which credit for such property was originally 20 allowed by eliminating such property from such 21 computation, and (ii) subtracting such recomputed credit 22 from the amount of credit previously allowed. For the 23 purposes of this paragraph (6), a reduction of the basis 24 of qualified property resulting from a redetermination of 25 the purchase price shall be deemed a disposition of 26 qualified property to the extent of such reduction. 27 (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade 28 Zone or Sub-Zone. 29 (1) A taxpayer conducting a trade or business in an 30 enterprise zone or a High Impact Business designated by 31 the Department of Commerce and Community Affairs 32 conducting a trade or business in a federally designated 33 Foreign Trade Zone or Sub-Zone shall be allowed a credit 34 against the tax imposed by subsections (a) and (b) of SB1854 Enrolled -79- LRB9215370EGfg 1 this Section in the amount of $500 per eligible employee 2 hired to work in the zone during the taxable year. 3 (2) To qualify for the credit: 4 (A) the taxpayer must hire 5 or more eligible 5 employees to work in an enterprise zone or federally 6 designated Foreign Trade Zone or Sub-Zone during the 7 taxable year; 8 (B) the taxpayer's total employment within the 9 enterprise zone or federally designated Foreign 10 Trade Zone or Sub-Zone must increase by 5 or more 11 full-time employees beyond the total employed in 12 that zone at the end of the previous tax year for 13 which a jobs tax credit under this Section was 14 taken, or beyond the total employed by the taxpayer 15 as of December 31, 1985, whichever is later; and 16 (C) the eligible employees must be employed 17 180 consecutive days in order to be deemed hired for 18 purposes of this subsection. 19 (3) An "eligible employee" means an employee who 20 is: 21 (A) Certified by the Department of Commerce 22 and Community Affairs as "eligible for services" 23 pursuant to regulations promulgated in accordance 24 with Title II of the Job Training Partnership Act, 25 Training Services for the Disadvantaged or Title III 26 of the Job Training Partnership Act, Employment and 27 Training Assistance for Dislocated Workers Program. 28 (B) Hired after the enterprise zone or 29 federally designated Foreign Trade Zone or Sub-Zone 30 was designated or the trade or business was located 31 in that zone, whichever is later. 32 (C) Employed in the enterprise zone or Foreign 33 Trade Zone or Sub-Zone. An employee is employed in 34 an enterprise zone or federally designated Foreign SB1854 Enrolled -80- LRB9215370EGfg 1 Trade Zone or Sub-Zone if his services are rendered 2 there or it is the base of operations for the 3 services performed. 4 (D) A full-time employee working 30 or more 5 hours per week. 6 (4) For tax years ending on or after December 31, 7 1985 and prior to December 31, 1988, the credit shall be 8 allowed for the tax year in which the eligible employees 9 are hired. For tax years ending on or after December 31, 10 1988, the credit shall be allowed for the tax year 11 immediately following the tax year in which the eligible 12 employees are hired. If the amount of the credit exceeds 13 the tax liability for that year, whether it exceeds the 14 original liability or the liability as later amended, 15 such excess may be carried forward and applied to the tax 16 liability of the 5 taxable years following the excess 17 credit year. The credit shall be applied to the earliest 18 year for which there is a liability. If there is credit 19 from more than one tax year that is available to offset a 20 liability, earlier credit shall be applied first. 21 (5) The Department of Revenue shall promulgate such 22 rules and regulations as may be deemed necessary to carry 23 out the purposes of this subsection (g). 24 (6) The credit shall be available for eligible 25 employees hired on or after January 1, 1986. 26 (h) Investment credit; High Impact Business. 27 (1) Subject to subsections (b) and (b-5) of Section 28 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall 29 be allowed a credit against the tax imposed by 30 subsections (a) and (b) of this Section for investment in 31 qualified property which is placed in service by a 32 Department of Commerce and Community Affairs designated 33 High Impact Business. The credit shall be .5% of the 34 basis for such property. The credit shall not be SB1854 Enrolled -81- LRB9215370EGfg 1 available (i) until the minimum investments in qualified 2 property set forth in subdivision (a)(3)(A) of Section 3 5.5 of the Illinois Enterprise Zone Act have been 4 satisfied or (ii) until the time authorized in subsection 5 (b-5) of the Illinois Enterprise Zone Act for entities 6 designated as High Impact Businesses under subdivisions 7 (a)(3)(B), (a)(3)(C), and (a)(3)(D) of Section 5.5 of the 8 Illinois Enterprise Zone Act, and shall not be allowed to 9 the extent that it would reduce a taxpayer's liability 10 for the tax imposed by subsections (a) and (b) of this 11 Section to below zero. The credit applicable to such 12 investments shall be taken in the taxable year in which 13 such investments have been completed. The credit for 14 additional investments beyond the minimum investment by a 15 designated high impact business authorized under 16 subdivision (a)(3)(A) of Section 5.5 of the Illinois 17 Enterprise Zone Act shall be available only in the 18 taxable year in which the property is placed in service 19 and shall not be allowed to the extent that it would 20 reduce a taxpayer's liability for the tax imposed by 21 subsections (a) and (b) of this Section to below zero. 22 For tax years ending on or after December 31, 1987, the 23 credit shall be allowed for the tax year in which the 24 property is placed in service, or, if the amount of the 25 credit exceeds the tax liability for that year, whether 26 it exceeds the original liability or the liability as 27 later amended, such excess may be carried forward and 28 applied to the tax liability of the 5 taxable years 29 following the excess credit year. The credit shall be 30 applied to the earliest year for which there is a 31 liability. If there is credit from more than one tax 32 year that is available to offset a liability, the credit 33 accruing first in time shall be applied first. 34 Changes made in this subdivision (h)(1) by Public SB1854 Enrolled -82- LRB9215370EGfg 1 Act 88-670 restore changes made by Public Act 85-1182 and 2 reflect existing law. 3 (2) The term qualified property means property 4 which: 5 (A) is tangible, whether new or used, 6 including buildings and structural components of 7 buildings; 8 (B) is depreciable pursuant to Section 167 of 9 the Internal Revenue Code, except that "3-year 10 property" as defined in Section 168(c)(2)(A) of that 11 Code is not eligible for the credit provided by this 12 subsection (h); 13 (C) is acquired by purchase as defined in 14 Section 179(d) of the Internal Revenue Code; and 15 (D) is not eligible for the Enterprise Zone 16 Investment Credit provided by subsection (f) of this 17 Section. 18 (3) The basis of qualified property shall be the 19 basis used to compute the depreciation deduction for 20 federal income tax purposes. 21 (4) If the basis of the property for federal income 22 tax depreciation purposes is increased after it has been 23 placed in service in a federally designated Foreign Trade 24 Zone or Sub-Zone located in Illinois by the taxpayer, the 25 amount of such increase shall be deemed property placed 26 in service on the date of such increase in basis. 27 (5) The term "placed in service" shall have the 28 same meaning as under Section 46 of the Internal Revenue 29 Code. 30 (6) If during any taxable year ending on or before 31 December 31, 1996, any property ceases to be qualified 32 property in the hands of the taxpayer within 48 months 33 after being placed in service, or the situs of any 34 qualified property is moved outside Illinois within 48 SB1854 Enrolled -83- LRB9215370EGfg 1 months after being placed in service, the tax imposed 2 under subsections (a) and (b) of this Section for such 3 taxable year shall be increased. Such increase shall be 4 determined by (i) recomputing the investment credit which 5 would have been allowed for the year in which credit for 6 such property was originally allowed by eliminating such 7 property from such computation, and (ii) subtracting such 8 recomputed credit from the amount of credit previously 9 allowed. For the purposes of this paragraph (6), a 10 reduction of the basis of qualified property resulting 11 from a redetermination of the purchase price shall be 12 deemed a disposition of qualified property to the extent 13 of such reduction. 14 (7) Beginning with tax years ending after December 15 31, 1996, if a taxpayer qualifies for the credit under 16 this subsection (h) and thereby is granted a tax 17 abatement and the taxpayer relocates its entire facility 18 in violation of the explicit terms and length of the 19 contract under Section 18-183 of the Property Tax Code, 20 the tax imposed under subsections (a) and (b) of this 21 Section shall be increased for the taxable year in which 22 the taxpayer relocated its facility by an amount equal to 23 the amount of credit received by the taxpayer under this 24 subsection (h). 25 (i) Credit for Personal Property Tax Replacement Income 26 Tax. A credit shall be allowed against the tax imposed by 27 subsections (a) and (b) of this Section for the tax imposed 28 by subsections (c) and (d) of this Section. This credit 29 shall be computed by multiplying the tax imposed by 30 subsections (c) and (d) of this Section by a fraction, the 31 numerator of which is base income allocable to Illinois and 32 the denominator of which is Illinois base income, and further 33 multiplying the product by the tax rate imposed by 34 subsections (a) and (b) of this Section. SB1854 Enrolled -84- LRB9215370EGfg 1 Any credit earned on or after December 31, 1986 under 2 this subsection which is unused in the year the credit is 3 computed because it exceeds the tax liability imposed by 4 subsections (a) and (b) for that year (whether it exceeds the 5 original liability or the liability as later amended) may be 6 carried forward and applied to the tax liability imposed by 7 subsections (a) and (b) of the 5 taxable years following the 8 excess credit year. This credit shall be applied first to 9 the earliest year for which there is a liability. If there 10 is a credit under this subsection from more than one tax year 11 that is available to offset a liability the earliest credit 12 arising under this subsection shall be applied first. 13 If, during any taxable year ending on or after December 14 31, 1986, the tax imposed by subsections (c) and (d) of this 15 Section for which a taxpayer has claimed a credit under this 16 subsection (i) is reduced, the amount of credit for such tax 17 shall also be reduced. Such reduction shall be determined by 18 recomputing the credit to take into account the reduced tax 19 imposed by subsectionssubsection(c) and (d). If any 20 portion of the reduced amount of credit has been carried to a 21 different taxable year, an amended return shall be filed for 22 such taxable year to reduce the amount of credit claimed. 23 (j) Training expense credit. Beginning with tax years 24 ending on or after December 31, 1986, a taxpayer shall be 25 allowed a credit against the tax imposed by subsections 26subsection(a) and (b) under this Section for all amounts 27 paid or accrued, on behalf of all persons employed by the 28 taxpayer in Illinois or Illinois residents employed outside 29 of Illinois by a taxpayer, for educational or vocational 30 training in semi-technical or technical fields or 31 semi-skilled or skilled fields, which were deducted from 32 gross income in the computation of taxable income. The 33 credit against the tax imposed by subsections (a) and (b) 34 shall be 1.6% of such training expenses. For partners, SB1854 Enrolled -85- LRB9215370EGfg 1 shareholders of subchapter S corporations, and owners of 2 limited liability companies, if the liability company is 3 treated as a partnership for purposes of federal and State 4 income taxation, there shall be allowed a credit under this 5 subsection (j) to be determined in accordance with the 6 determination of income and distributive share of income 7 under Sections 702 and 704 and subchapter S of the Internal 8 Revenue Code. 9 Any credit allowed under this subsection which is unused 10 in the year the credit is earned may be carried forward to 11 each of the 5 taxable years following the year for which the 12 credit is first computed until it is used. This credit shall 13 be applied first to the earliest year for which there is a 14 liability. If there is a credit under this subsection from 15 more than one tax year that is available to offset a 16 liability the earliest credit arising under this subsection 17 shall be applied first. 18 (k) Research and development credit. 19 Beginning with tax years ending after July 1, 1990, a 20 taxpayer shall be allowed a credit against the tax imposed by 21 subsections (a) and (b) of this Section for increasing 22 research activities in this State. The credit allowed 23 against the tax imposed by subsections (a) and (b) shall be 24 equal to 6 1/2% of the qualifying expenditures for increasing 25 research activities in this State. For partners, 26 shareholders of subchapter S corporations, and owners of 27 limited liability companies, if the liability company is 28 treated as a partnership for purposes of federal and State 29 income taxation, there shall be allowed a credit under this 30 subsection to be determined in accordance with the 31 determination of income and distributive share of income 32 under Sections 702 and 704 and subchapter S of the Internal 33 Revenue Code. 34 For purposes of this subsection, "qualifying SB1854 Enrolled -86- LRB9215370EGfg 1 expenditures" means the qualifying expenditures as defined 2 for the federal credit for increasing research activities 3 which would be allowable under Section 41 of the Internal 4 Revenue Code and which are conducted in this State, 5 "qualifying expenditures for increasing research activities 6 in this State" means the excess of qualifying expenditures 7 for the taxable year in which incurred over qualifying 8 expenditures for the base period, "qualifying expenditures 9 for the base period" means the average of the qualifying 10 expenditures for each year in the base period, and "base 11 period" means the 3 taxable years immediately preceding the 12 taxable year for which the determination is being made. 13 Any credit in excess of the tax liability for the taxable 14 year may be carried forward. A taxpayer may elect to have the 15 unused credit shown on its final completed return carried 16 over as a credit against the tax liability for the following 17 5 taxable years or until it has been fully used, whichever 18 occurs first. 19 If an unused credit is carried forward to a given year 20 from 2 or more earlier years, that credit arising in the 21 earliest year will be applied first against the tax liability 22 for the given year. If a tax liability for the given year 23 still remains, the credit from the next earliest year will 24 then be applied, and so on, until all credits have been used 25 or no tax liability for the given year remains. Any 26 remaining unused credit or credits then will be carried 27 forward to the next following year in which a tax liability 28 is incurred, except that no credit can be carried forward to 29 a year which is more than 5 years after the year in which the 30 expense for which the credit is given was incurred. 31 Unless extended by law, the credit shall not include 32 costs incurred after December 31, 2004, except for costs 33 incurred pursuant to a binding contract entered into on or 34 before December 31, 2004. SB1854 Enrolled -87- LRB9215370EGfg 1 No inference shall be drawn from this amendatory Act of 2 the 91st General Assembly in construing this Section for 3 taxable years beginning before January 1, 1999. 4 (l) Environmental Remediation Tax Credit. 5 (i) For tax years ending after December 31, 1997 6 and on or before December 31, 2001, a taxpayer shall be 7 allowed a credit against the tax imposed by subsections 8 (a) and (b) of this Section for certain amounts paid for 9 unreimbursed eligible remediation costs, as specified in 10 this subsection. For purposes of this Section, 11 "unreimbursed eligible remediation costs" means costs 12 approved by the Illinois Environmental Protection Agency 13 ("Agency") under Section 58.14 of the Environmental 14 Protection Act that were paid in performing environmental 15 remediation at a site for which a No Further Remediation 16 Letter was issued by the Agency and recorded under 17 Section 58.10 of the Environmental Protection Act. The 18 credit must be claimed for the taxable year in which 19 Agency approval of the eligible remediation costs is 20 granted. The credit is not available to any taxpayer if 21 the taxpayer or any related party caused or contributed 22 to, in any material respect, a release of regulated 23 substances on, in, or under the site that was identified 24 and addressed by the remedial action pursuant to the Site 25 Remediation Program of the Environmental Protection Act. 26 After the Pollution Control Board rules are adopted 27 pursuant to the Illinois Administrative Procedure Act for 28 the administration and enforcement of Section 58.9 of the 29 Environmental Protection Act, determinations as to credit 30 availability for purposes of this Section shall be made 31 consistent with those rules. For purposes of this 32 Section, "taxpayer" includes a person whose tax 33 attributes the taxpayer has succeeded to under Section 34 381 of the Internal Revenue Code and "related party" SB1854 Enrolled -88- LRB9215370EGfg 1 includes the persons disallowed a deduction for losses by 2 paragraphs (b), (c), and (f)(1) of Section 267 of the 3 Internal Revenue Code by virtue of being a related 4 taxpayer, as well as any of its partners. The credit 5 allowed against the tax imposed by subsections (a) and 6 (b) shall be equal to 25% of the unreimbursed eligible 7 remediation costs in excess of $100,000 per site, except 8 that the $100,000 threshold shall not apply to any site 9 contained in an enterprise zone as determined by the 10 Department of Commerce and Community Affairs. The total 11 credit allowed shall not exceed $40,000 per year with a 12 maximum total of $150,000 per site. For partners and 13 shareholders of subchapter S corporations, there shall be 14 allowed a credit under this subsection to be determined 15 in accordance with the determination of income and 16 distributive share of income under Sections 702 and 704 17 and subchapter S of the Internal Revenue Code. 18 (ii) A credit allowed under this subsection that is 19 unused in the year the credit is earned may be carried 20 forward to each of the 5 taxable years following the year 21 for which the credit is first earned until it is used. 22 The term "unused credit" does not include any amounts of 23 unreimbursed eligible remediation costs in excess of the 24 maximum credit per site authorized under paragraph (i). 25 This credit shall be applied first to the earliest year 26 for which there is a liability. If there is a credit 27 under this subsection from more than one tax year that is 28 available to offset a liability, the earliest credit 29 arising under this subsection shall be applied first. A 30 credit allowed under this subsection may be sold to a 31 buyer as part of a sale of all or part of the remediation 32 site for which the credit was granted. The purchaser of 33 a remediation site and the tax credit shall succeed to 34 the unused credit and remaining carry-forward period of SB1854 Enrolled -89- LRB9215370EGfg 1 the seller. To perfect the transfer, the assignor shall 2 record the transfer in the chain of title for the site 3 and provide written notice to the Director of the 4 Illinois Department of Revenue of the assignor's intent 5 to sell the remediation site and the amount of the tax 6 credit to be transferred as a portion of the sale. In no 7 event may a credit be transferred to any taxpayer if the 8 taxpayer or a related party would not be eligible under 9 the provisions of subsection (i). 10 (iii) For purposes of this Section, the term "site" 11 shall have the same meaning as under Section 58.2 of the 12 Environmental Protection Act. 13 (m) Education expense credit. 14 Beginning with tax years ending after December 31, 1999, 15 a taxpayer who is the custodian of one or more qualifying 16 pupils shall be allowed a credit against the tax imposed by 17 subsections (a) and (b) of this Section for qualified 18 education expenses incurred on behalf of the qualifying 19 pupils. The credit shall be equal to 25% of qualified 20 education expenses, but in no event may the total credit 21 under this Section claimed by a family that is the custodian 22 of qualifying pupils exceed $500. In no event shall a credit 23 under this subsection reduce the taxpayer's liability under 24 this Act to less than zero. This subsection is exempt from 25 the provisions of Section 250 of this Act. 26 For purposes of this subsection:;27 "Qualifying pupils" means individuals who (i) are 28 residents of the State of Illinois, (ii) are under the age of 29 21 at the close of the school year for which a credit is 30 sought, and (iii) during the school year for which a credit 31 is sought were full-time pupils enrolled in a kindergarten 32 through twelfth grade education program at any school, as 33 defined in this subsection. 34 "Qualified education expense" means the amount incurred SB1854 Enrolled -90- LRB9215370EGfg 1 on behalf of a qualifying pupil in excess of $250 for 2 tuition, book fees, and lab fees at the school in which the 3 pupil is enrolled during the regular school year. 4 "School" means any public or nonpublic elementary or 5 secondary school in Illinois that is in compliance with Title 6 VI of the Civil Rights Act of 1964 and attendance at which 7 satisfies the requirements of Section 26-1 of the School 8 Code, except that nothing shall be construed to require a 9 child to attend any particular public or nonpublic school to 10 qualify for the credit under this Section. 11 "Custodian" means, with respect to qualifying pupils, an 12 Illinois resident who is a parent, the parents, a legal 13 guardian, or the legal guardians of the qualifying pupils. 14 (Source: P.A. 91-9, eff. 1-1-00; 91-357, eff. 7-29-99; 15 91-643, eff. 8-20-99; 91-644, eff. 8-20-99; 91-860, eff. 16 6-22-00; 91-913, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 17 6-28-01; revised 12-3-01.) 18 (35 ILCS 5/203) (from Ch. 120, par. 2-203) 19 Sec. 203. Base income defined. 20 (a) Individuals. 21 (1) In general. In the case of an individual, base 22 income means an amount equal to the taxpayer's adjusted 23 gross income for the taxable year as modified by 24 paragraph (2). 25 (2) Modifications. The adjusted gross income 26 referred to in paragraph (1) shall be modified by adding 27 thereto the sum of the following amounts: 28 (A) An amount equal to all amounts paid or 29 accrued to the taxpayer as interest or dividends 30 during the taxable year to the extent excluded from 31 gross income in the computation of adjusted gross 32 income, except stock dividends of qualified public 33 utilities described in Section 305(e) of the SB1854 Enrolled -91- LRB9215370EGfg 1 Internal Revenue Code; 2 (B) An amount equal to the amount of tax 3 imposed by this Act to the extent deducted from 4 gross income in the computation of adjusted gross 5 income for the taxable year; 6 (C) An amount equal to the amount received 7 during the taxable year as a recovery or refund of 8 real property taxes paid with respect to the 9 taxpayer's principal residence under the Revenue Act 10 of 1939 and for which a deduction was previously 11 taken under subparagraph (L) of this paragraph (2) 12 prior to July 1, 1991, the retrospective application 13 date of Article 4 of Public Act 87-17. In the case 14 of multi-unit or multi-use structures and farm 15 dwellings, the taxes on the taxpayer's principal 16 residence shall be that portion of the total taxes 17 for the entire property which is attributable to 18 such principal residence; 19 (D) An amount equal to the amount of the 20 capital gain deduction allowable under the Internal 21 Revenue Code, to the extent deducted from gross 22 income in the computation of adjusted gross income; 23 (D-5) An amount, to the extent not included in 24 adjusted gross income, equal to the amount of money 25 withdrawn by the taxpayer in the taxable year from a 26 medical care savings account and the interest earned 27 on the account in the taxable year of a withdrawal 28 pursuant to subsection (b) of Section 20 of the 29 Medical Care Savings Account Act or subsection (b) 30 of Section 20 of the Medical Care Savings Account 31 Act of 2000; and 32 (D-10) For taxable years ending after December 33 31, 1997, an amount equal to any eligible 34 remediation costs that the individual deducted in SB1854 Enrolled -92- LRB9215370EGfg 1 computing adjusted gross income and for which the 2 individual claims a credit under subsection (l) of 3 Section 201; 4 and by deducting from the total so obtained the sum of 5 the following amounts: 6 (E) For taxable years ending before December 7 31, 2001, any amount included in such total in 8 respect of any compensation (including but not 9 limited to any compensation paid or accrued to a 10 serviceman while a prisoner of war or missing in 11 action) paid to a resident by reason of being on 12 active duty in the Armed Forces of the United States 13 and in respect of any compensation paid or accrued 14 to a resident who as a governmental employee was a 15 prisoner of war or missing in action, and in respect 16 of any compensation paid to a resident in 1971 or 17 thereafter for annual training performed pursuant to 18 Sections 502 and 503, Title 32, United States Code 19 as a member of the Illinois National Guard. For 20 taxable years ending on or after December 31, 2001, 21 any amount included in such total in respect of any 22 compensation (including but not limited to any 23 compensation paid or accrued to a serviceman while a 24 prisoner of war or missing in action) paid to a 25 resident by reason of being a member of any 26 component of the Armed Forces of the United States 27 and in respect of any compensation paid or accrued 28 to a resident who as a governmental employee was a 29 prisoner of war or missing in action, and in respect 30 of any compensation paid to a resident in 2001 or 31 thereafter by reason of being a member of the 32 Illinois National Guard. The provisions of this 33 amendatory Act of the 92nd General Assembly are 34 exempt from the provisions of Section 250; SB1854 Enrolled -93- LRB9215370EGfg 1 (F) An amount equal to all amounts included in 2 such total pursuant to the provisions of Sections 3 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 4 408 of the Internal Revenue Code, or included in 5 such total as distributions under the provisions of 6 any retirement or disability plan for employees of 7 any governmental agency or unit, or retirement 8 payments to retired partners, which payments are 9 excluded in computing net earnings from self 10 employment by Section 1402 of the Internal Revenue 11 Code and regulations adopted pursuant thereto; 12 (G) The valuation limitation amount; 13 (H) An amount equal to the amount of any tax 14 imposed by this Act which was refunded to the 15 taxpayer and included in such total for the taxable 16 year; 17 (I) An amount equal to all amounts included in 18 such total pursuant to the provisions of Section 111 19 of the Internal Revenue Code as a recovery of items 20 previously deducted from adjusted gross income in 21 the computation of taxable income; 22 (J) An amount equal to those dividends 23 included in such total which were paid by a 24 corporation which conducts business operations in an 25 Enterprise Zone or zones created under the Illinois 26 Enterprise Zone Act, and conducts substantially all 27 of its operations in an Enterprise Zone or zones; 28 (K) An amount equal to those dividends 29 included in such total that were paid by a 30 corporation that conducts business operations in a 31 federally designated Foreign Trade Zone or Sub-Zone 32 and that is designated a High Impact Business 33 located in Illinois; provided that dividends 34 eligible for the deduction provided in subparagraph SB1854 Enrolled -94- LRB9215370EGfg 1 (J) of paragraph (2) of this subsection shall not be 2 eligible for the deduction provided under this 3 subparagraph (K); 4 (L) For taxable years ending after December 5 31, 1983, an amount equal to all social security 6 benefits and railroad retirement benefits included 7 in such total pursuant to Sections 72(r) and 86 of 8 the Internal Revenue Code; 9 (M) With the exception of any amounts 10 subtracted under subparagraph (N), an amount equal 11 to the sum of all amounts disallowed as deductions 12 by (i) Sections 171(a) (2), and 265(2) of the 13 Internal Revenue Code of 1954, as now or hereafter 14 amended, and all amounts of expenses allocable to 15 interest and disallowed as deductions by Section 16 265(1) of the Internal Revenue Code of 1954, as now 17 or hereafter amended; and (ii) for taxable years 18 ending on or after August 13, 1999, Sections 19 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 20 Internal Revenue Code; the provisions of this 21 subparagraph are exempt from the provisions of 22 Section 250; 23 (N) An amount equal to all amounts included in 24 such total which are exempt from taxation by this 25 State either by reason of its statutes or 26 Constitution or by reason of the Constitution, 27 treaties or statutes of the United States; provided 28 that, in the case of any statute of this State that 29 exempts income derived from bonds or other 30 obligations from the tax imposed under this Act, the 31 amount exempted shall be the interest net of bond 32 premium amortization; 33 (O) An amount equal to any contribution made 34 to a job training project established pursuant to SB1854 Enrolled -95- LRB9215370EGfg 1 the Tax Increment Allocation Redevelopment Act; 2 (P) An amount equal to the amount of the 3 deduction used to compute the federal income tax 4 credit for restoration of substantial amounts held 5 under claim of right for the taxable year pursuant 6 to Section 1341 of the Internal Revenue Code of 7 1986; 8 (Q) An amount equal to any amounts included in 9 such total, received by the taxpayer as an 10 acceleration in the payment of life, endowment or 11 annuity benefits in advance of the time they would 12 otherwise be payable as an indemnity for a terminal 13 illness; 14 (R) An amount equal to the amount of any 15 federal or State bonus paid to veterans of the 16 Persian Gulf War; 17 (S) An amount, to the extent included in 18 adjusted gross income, equal to the amount of a 19 contribution made in the taxable year on behalf of 20 the taxpayer to a medical care savings account 21 established under the Medical Care Savings Account 22 Act or the Medical Care Savings Account Act of 2000 23 to the extent the contribution is accepted by the 24 account administrator as provided in that Act; 25 (T) An amount, to the extent included in 26 adjusted gross income, equal to the amount of 27 interest earned in the taxable year on a medical 28 care savings account established under the Medical 29 Care Savings Account Act or the Medical Care Savings 30 Account Act of 2000 on behalf of the taxpayer, other 31 than interest added pursuant to item (D-5) of this 32 paragraph (2); 33 (U) For one taxable year beginning on or after 34 January 1, 1994, an amount equal to the total amount SB1854 Enrolled -96- LRB9215370EGfg 1 of tax imposed and paid under subsections (a) and 2 (b) of Section 201 of this Act on grant amounts 3 received by the taxpayer under the Nursing Home 4 Grant Assistance Act during the taxpayer's taxable 5 years 1992 and 1993; 6 (V) Beginning with tax years ending on or 7 after December 31, 1995 and ending with tax years 8 ending on or before December 31, 2004, an amount 9 equal to the amount paid by a taxpayer who is a 10 self-employed taxpayer, a partner of a partnership, 11 or a shareholder in a Subchapter S corporation for 12 health insurance or long-term care insurance for 13 that taxpayer or that taxpayer's spouse or 14 dependents, to the extent that the amount paid for 15 that health insurance or long-term care insurance 16 may be deducted under Section 213 of the Internal 17 Revenue Code of 1986, has not been deducted on the 18 federal income tax return of the taxpayer, and does 19 not exceed the taxable income attributable to that 20 taxpayer's income, self-employment income, or 21 Subchapter S corporation income; except that no 22 deduction shall be allowed under this item (V) if 23 the taxpayer is eligible to participate in any 24 health insurance or long-term care insurance plan of 25 an employer of the taxpayer or the taxpayer's 26 spouse. The amount of the health insurance and 27 long-term care insurance subtracted under this item 28 (V) shall be determined by multiplying total health 29 insurance and long-term care insurance premiums paid 30 by the taxpayer times a number that represents the 31 fractional percentage of eligible medical expenses 32 under Section 213 of the Internal Revenue Code of 33 1986 not actually deducted on the taxpayer's federal 34 income tax return; SB1854 Enrolled -97- LRB9215370EGfg 1 (W) For taxable years beginning on or after 2 January 1, 1998, all amounts included in the 3 taxpayer's federal gross income in the taxable year 4 from amounts converted from a regular IRA to a Roth 5 IRA. This paragraph is exempt from the provisions of 6 Section 250; 7 (X) For taxable year 1999 and thereafter, an 8 amount equal to the amount of any (i) distributions, 9 to the extent includible in gross income for federal 10 income tax purposes, made to the taxpayer because of 11 his or her status as a victim of persecution for 12 racial or religious reasons by Nazi Germany or any 13 other Axis regime or as an heir of the victim and 14 (ii) items of income, to the extent includible in 15 gross income for federal income tax purposes, 16 attributable to, derived from or in any way related 17 to assets stolen from, hidden from, or otherwise 18 lost to a victim of persecution for racial or 19 religious reasons by Nazi Germany or any other Axis 20 regime immediately prior to, during, and immediately 21 after World War II, including, but not limited to, 22 interest on the proceeds receivable as insurance 23 under policies issued to a victim of persecution for 24 racial or religious reasons by Nazi Germany or any 25 other Axis regime by European insurance companies 26 immediately prior to and during World War II; 27 provided, however, this subtraction from federal 28 adjusted gross income does not apply to assets 29 acquired with such assets or with the proceeds from 30 the sale of such assets; provided, further, this 31 paragraph shall only apply to a taxpayer who was the 32 first recipient of such assets after their recovery 33 and who is a victim of persecution for racial or 34 religious reasons by Nazi Germany or any other Axis SB1854 Enrolled -98- LRB9215370EGfg 1 regime or as an heir of the victim. The amount of 2 and the eligibility for any public assistance, 3 benefit, or similar entitlement is not affected by 4 the inclusion of items (i) and (ii) of this 5 paragraph in gross income for federal income tax 6 purposes. This paragraph is exempt from the 7 provisions of Section 250; and 8 (Y) For taxable years beginning on or after 9 January 1, 2002, moneys contributed in the taxable 10 year to a College Savings Pool account under Section 11 16.5 of the State Treasurer Act. This subparagraph 12 (Y) is exempt from the provisions of Section 250. 13 (b) Corporations. 14 (1) In general. In the case of a corporation, base 15 income means an amount equal to the taxpayer's taxable 16 income for the taxable year as modified by paragraph (2). 17 (2) Modifications. The taxable income referred to 18 in paragraph (1) shall be modified by adding thereto the 19 sum of the following amounts: 20 (A) An amount equal to all amounts paid or 21 accrued to the taxpayer as interest and all 22 distributions received from regulated investment 23 companies during the taxable year to the extent 24 excluded from gross income in the computation of 25 taxable income; 26 (B) An amount equal to the amount of tax 27 imposed by this Act to the extent deducted from 28 gross income in the computation of taxable income 29 for the taxable year; 30 (C) In the case of a regulated investment 31 company, an amount equal to the excess of (i) the 32 net long-term capital gain for the taxable year, 33 over (ii) the amount of the capital gain dividends 34 designated as such in accordance with Section SB1854 Enrolled -99- LRB9215370EGfg 1 852(b)(3)(C) of the Internal Revenue Code and any 2 amount designated under Section 852(b)(3)(D) of the 3 Internal Revenue Code, attributable to the taxable 4 year (this amendatory Act of 1995 (Public Act 89-89) 5 is declarative of existing law and is not a new 6 enactment); 7 (D) The amount of any net operating loss 8 deduction taken in arriving at taxable income, other 9 than a net operating loss carried forward from a 10 taxable year ending prior to December 31, 1986; 11 (E) For taxable years in which a net operating 12 loss carryback or carryforward from a taxable year 13 ending prior to December 31, 1986 is an element of 14 taxable income under paragraph (1) of subsection (e) 15 or subparagraph (E) of paragraph (2) of subsection 16 (e), the amount by which addition modifications 17 other than those provided by this subparagraph (E) 18 exceeded subtraction modifications in such earlier 19 taxable year, with the following limitations applied 20 in the order that they are listed: 21 (i) the addition modification relating to 22 the net operating loss carried back or forward 23 to the taxable year from any taxable year 24 ending prior to December 31, 1986 shall be 25 reduced by the amount of addition modification 26 under this subparagraph (E) which related to 27 that net operating loss and which was taken 28 into account in calculating the base income of 29 an earlier taxable year, and 30 (ii) the addition modification relating 31 to the net operating loss carried back or 32 forward to the taxable year from any taxable 33 year ending prior to December 31, 1986 shall 34 not exceed the amount of such carryback or SB1854 Enrolled -100- LRB9215370EGfg 1 carryforward; 2 For taxable years in which there is a net 3 operating loss carryback or carryforward from more 4 than one other taxable year ending prior to December 5 31, 1986, the addition modification provided in this 6 subparagraph (E) shall be the sum of the amounts 7 computed independently under the preceding 8 provisions of this subparagraph (E) for each such 9 taxable year; and 10 (E-5) For taxable years ending after December 11 31, 1997, an amount equal to any eligible 12 remediation costs that the corporation deducted in 13 computing adjusted gross income and for which the 14 corporation claims a credit under subsection (l) of 15 Section 201; 16 and by deducting from the total so obtained the sum of 17 the following amounts: 18 (F) An amount equal to the amount of any tax 19 imposed by this Act which was refunded to the 20 taxpayer and included in such total for the taxable 21 year; 22 (G) An amount equal to any amount included in 23 such total under Section 78 of the Internal Revenue 24 Code; 25 (H) In the case of a regulated investment 26 company, an amount equal to the amount of exempt 27 interest dividends as defined in subsection (b) (5) 28 of Section 852 of the Internal Revenue Code, paid to 29 shareholders for the taxable year; 30 (I) With the exception of any amounts 31 subtracted under subparagraph (J), an amount equal 32 to the sum of all amounts disallowed as deductions 33 by (i) Sections 171(a) (2), and 265(a)(2) and 34 amounts disallowed as interest expense by Section SB1854 Enrolled -101- LRB9215370EGfg 1 291(a)(3) of the Internal Revenue Code, as now or 2 hereafter amended, and all amounts of expenses 3 allocable to interest and disallowed as deductions 4 by Section 265(a)(1) of the Internal Revenue Code, 5 as now or hereafter amended; and (ii) for taxable 6 years ending on or after August 13, 1999, Sections 7 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i) 8 of the Internal Revenue Code; the provisions of this 9 subparagraph are exempt from the provisions of 10 Section 250; 11 (J) An amount equal to all amounts included in 12 such total which are exempt from taxation by this 13 State either by reason of its statutes or 14 Constitution or by reason of the Constitution, 15 treaties or statutes of the United States; provided 16 that, in the case of any statute of this State that 17 exempts income derived from bonds or other 18 obligations from the tax imposed under this Act, the 19 amount exempted shall be the interest net of bond 20 premium amortization; 21 (K) An amount equal to those dividends 22 included in such total which were paid by a 23 corporation which conducts business operations in an 24 Enterprise Zone or zones created under the Illinois 25 Enterprise Zone Act and conducts substantially all 26 of its operations in an Enterprise Zone or zones; 27 (L) An amount equal to those dividends 28 included in such total that were paid by a 29 corporation that conducts business operations in a 30 federally designated Foreign Trade Zone or Sub-Zone 31 and that is designated a High Impact Business 32 located in Illinois; provided that dividends 33 eligible for the deduction provided in subparagraph 34 (K) of paragraph 2 of this subsection shall not be SB1854 Enrolled -102- LRB9215370EGfg 1 eligible for the deduction provided under this 2 subparagraph (L); 3 (M) For any taxpayer that is a financial 4 organization within the meaning of Section 304(c) of 5 this Act, an amount included in such total as 6 interest income from a loan or loans made by such 7 taxpayer to a borrower, to the extent that such a 8 loan is secured by property which is eligible for 9 the Enterprise Zone Investment Credit. To determine 10 the portion of a loan or loans that is secured by 11 property eligible for a Section 201(f) investment 12 credit to the borrower, the entire principal amount 13 of the loan or loans between the taxpayer and the 14 borrower should be divided into the basis of the 15 Section 201(f) investment credit property which 16 secures the loan or loans, using for this purpose 17 the original basis of such property on the date that 18 it was placed in service in the Enterprise Zone. 19 The subtraction modification available to taxpayer 20 in any year under this subsection shall be that 21 portion of the total interest paid by the borrower 22 with respect to such loan attributable to the 23 eligible property as calculated under the previous 24 sentence; 25 (M-1) For any taxpayer that is a financial 26 organization within the meaning of Section 304(c) of 27 this Act, an amount included in such total as 28 interest income from a loan or loans made by such 29 taxpayer to a borrower, to the extent that such a 30 loan is secured by property which is eligible for 31 the High Impact Business Investment Credit. To 32 determine the portion of a loan or loans that is 33 secured by property eligible for a Section 201(h) 34 investment credit to the borrower, the entire SB1854 Enrolled -103- LRB9215370EGfg 1 principal amount of the loan or loans between the 2 taxpayer and the borrower should be divided into the 3 basis of the Section 201(h) investment credit 4 property which secures the loan or loans, using for 5 this purpose the original basis of such property on 6 the date that it was placed in service in a 7 federally designated Foreign Trade Zone or Sub-Zone 8 located in Illinois. No taxpayer that is eligible 9 for the deduction provided in subparagraph (M) of 10 paragraph (2) of this subsection shall be eligible 11 for the deduction provided under this subparagraph 12 (M-1). The subtraction modification available to 13 taxpayers in any year under this subsection shall be 14 that portion of the total interest paid by the 15 borrower with respect to such loan attributable to 16 the eligible property as calculated under the 17 previous sentence; 18 (N) Two times any contribution made during the 19 taxable year to a designated zone organization to 20 the extent that the contribution (i) qualifies as a 21 charitable contribution under subsection (c) of 22 Section 170 of the Internal Revenue Code and (ii) 23 must, by its terms, be used for a project approved 24 by the Department of Commerce and Community Affairs 25 under Section 11 of the Illinois Enterprise Zone 26 Act; 27 (O) An amount equal to: (i) 85% for taxable 28 years ending on or before December 31, 1992, or, a 29 percentage equal to the percentage allowable under 30 Section 243(a)(1) of the Internal Revenue Code of 31 1986 for taxable years ending after December 31, 32 1992, of the amount by which dividends included in 33 taxable income and received from a corporation that 34 is not created or organized under the laws of the SB1854 Enrolled -104- LRB9215370EGfg 1 United States or any state or political subdivision 2 thereof, including, for taxable years ending on or 3 after December 31, 1988, dividends received or 4 deemed received or paid or deemed paid under 5 Sections 951 through 964 of the Internal Revenue 6 Code, exceed the amount of the modification provided 7 under subparagraph (G) of paragraph (2) of this 8 subsection (b) which is related to such dividends; 9 plus (ii) 100% of the amount by which dividends, 10 included in taxable income and received, including, 11 for taxable years ending on or after December 31, 12 1988, dividends received or deemed received or paid 13 or deemed paid under Sections 951 through 964 of the 14 Internal Revenue Code, from any such corporation 15 specified in clause (i) that would but for the 16 provisions of Section 1504 (b) (3) of the Internal 17 Revenue Code be treated as a member of the 18 affiliated group which includes the dividend 19 recipient, exceed the amount of the modification 20 provided under subparagraph (G) of paragraph (2) of 21 this subsection (b) which is related to such 22 dividends; 23 (P) An amount equal to any contribution made 24 to a job training project established pursuant to 25 the Tax Increment Allocation Redevelopment Act; 26 (Q) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986; 32 (R) In the case of an attorney-in-fact with 33 respect to whom an interinsurer or a reciprocal 34 insurer has made the election under Section 835 of SB1854 Enrolled -105- LRB9215370EGfg 1 the Internal Revenue Code, 26 U.S.C. 835, an amount 2 equal to the excess, if any, of the amounts paid or 3 incurred by that interinsurer or reciprocal insurer 4 in the taxable year to the attorney-in-fact over the 5 deduction allowed to that interinsurer or reciprocal 6 insurer with respect to the attorney-in-fact under 7 Section 835(b) of the Internal Revenue Code for the 8 taxable year; and 9 (S) For taxable years ending on or after 10 December 31, 1997, in the case of a Subchapter S 11 corporation, an amount equal to all amounts of 12 income allocable to a shareholder subject to the 13 Personal Property Tax Replacement Income Tax imposed 14 by subsections (c) and (d) of Section 201 of this 15 Act, including amounts allocable to organizations 16 exempt from federal income tax by reason of Section 17 501(a) of the Internal Revenue Code. This 18 subparagraph (S) is exempt from the provisions of 19 Section 250. 20 (3) Special rule. For purposes of paragraph (2) 21 (A), "gross income" in the case of a life insurance 22 company, for tax years ending on and after December 31, 23 1994, shall mean the gross investment income for the 24 taxable year. 25 (c) Trusts and estates. 26 (1) In general. In the case of a trust or estate, 27 base income means an amount equal to the taxpayer's 28 taxable income for the taxable year as modified by 29 paragraph (2). 30 (2) Modifications. Subject to the provisions of 31 paragraph (3), the taxable income referred to in 32 paragraph (1) shall be modified by adding thereto the sum 33 of the following amounts: 34 (A) An amount equal to all amounts paid or SB1854 Enrolled -106- LRB9215370EGfg 1 accrued to the taxpayer as interest or dividends 2 during the taxable year to the extent excluded from 3 gross income in the computation of taxable income; 4 (B) In the case of (i) an estate, $600; (ii) a 5 trust which, under its governing instrument, is 6 required to distribute all of its income currently, 7 $300; and (iii) any other trust, $100, but in each 8 such case, only to the extent such amount was 9 deducted in the computation of taxable income; 10 (C) An amount equal to the amount of tax 11 imposed by this Act to the extent deducted from 12 gross income in the computation of taxable income 13 for the taxable year; 14 (D) The amount of any net operating loss 15 deduction taken in arriving at taxable income, other 16 than a net operating loss carried forward from a 17 taxable year ending prior to December 31, 1986; 18 (E) For taxable years in which a net operating 19 loss carryback or carryforward from a taxable year 20 ending prior to December 31, 1986 is an element of 21 taxable income under paragraph (1) of subsection (e) 22 or subparagraph (E) of paragraph (2) of subsection 23 (e), the amount by which addition modifications 24 other than those provided by this subparagraph (E) 25 exceeded subtraction modifications in such taxable 26 year, with the following limitations applied in the 27 order that they are listed: 28 (i) the addition modification relating to 29 the net operating loss carried back or forward 30 to the taxable year from any taxable year 31 ending prior to December 31, 1986 shall be 32 reduced by the amount of addition modification 33 under this subparagraph (E) which related to 34 that net operating loss and which was taken SB1854 Enrolled -107- LRB9215370EGfg 1 into account in calculating the base income of 2 an earlier taxable year, and 3 (ii) the addition modification relating 4 to the net operating loss carried back or 5 forward to the taxable year from any taxable 6 year ending prior to December 31, 1986 shall 7 not exceed the amount of such carryback or 8 carryforward; 9 For taxable years in which there is a net 10 operating loss carryback or carryforward from more 11 than one other taxable year ending prior to December 12 31, 1986, the addition modification provided in this 13 subparagraph (E) shall be the sum of the amounts 14 computed independently under the preceding 15 provisions of this subparagraph (E) for each such 16 taxable year; 17 (F) For taxable years ending on or after 18 January 1, 1989, an amount equal to the tax deducted 19 pursuant to Section 164 of the Internal Revenue Code 20 if the trust or estate is claiming the same tax for 21 purposes of the Illinois foreign tax credit under 22 Section 601 of this Act; 23 (G) An amount equal to the amount of the 24 capital gain deduction allowable under the Internal 25 Revenue Code, to the extent deducted from gross 26 income in the computation of taxable income; and 27 (G-5) For taxable years ending after December 28 31, 1997, an amount equal to any eligible 29 remediation costs that the trust or estate deducted 30 in computing adjusted gross income and for which the 31 trust or estate claims a credit under subsection (l) 32 of Section 201; 33 and by deducting from the total so obtained the sum of 34 the following amounts: SB1854 Enrolled -108- LRB9215370EGfg 1 (H) An amount equal to all amounts included in 2 such total pursuant to the provisions of Sections 3 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 4 408 of the Internal Revenue Code or included in such 5 total as distributions under the provisions of any 6 retirement or disability plan for employees of any 7 governmental agency or unit, or retirement payments 8 to retired partners, which payments are excluded in 9 computing net earnings from self employment by 10 Section 1402 of the Internal Revenue Code and 11 regulations adopted pursuant thereto; 12 (I) The valuation limitation amount; 13 (J) An amount equal to the amount of any tax 14 imposed by this Act which was refunded to the 15 taxpayer and included in such total for the taxable 16 year; 17 (K) An amount equal to all amounts included in 18 taxable income as modified by subparagraphs (A), 19 (B), (C), (D), (E), (F) and (G) which are exempt 20 from taxation by this State either by reason of its 21 statutes or Constitution or by reason of the 22 Constitution, treaties or statutes of the United 23 States; provided that, in the case of any statute of 24 this State that exempts income derived from bonds or 25 other obligations from the tax imposed under this 26 Act, the amount exempted shall be the interest net 27 of bond premium amortization; 28 (L) With the exception of any amounts 29 subtracted under subparagraph (K), an amount equal 30 to the sum of all amounts disallowed as deductions 31 by (i) Sections 171(a) (2) and 265(a)(2) of the 32 Internal Revenue Code, as now or hereafter amended, 33 and all amounts of expenses allocable to interest 34 and disallowed as deductions by Section 265(1) of SB1854 Enrolled -109- LRB9215370EGfg 1 the Internal Revenue Code of 1954, as now or 2 hereafter amended; and (ii) for taxable years ending 3 on or after August 13, 1999, Sections 171(a)(2), 4 265, 280C, and 832(b)(5)(B)(i) of the Internal 5 Revenue Code; the provisions of this subparagraph 6 are exempt from the provisions of Section 250; 7 (M) An amount equal to those dividends 8 included in such total which were paid by a 9 corporation which conducts business operations in an 10 Enterprise Zone or zones created under the Illinois 11 Enterprise Zone Act and conducts substantially all 12 of its operations in an Enterprise Zone or Zones; 13 (N) An amount equal to any contribution made 14 to a job training project established pursuant to 15 the Tax Increment Allocation Redevelopment Act; 16 (O) An amount equal to those dividends 17 included in such total that were paid by a 18 corporation that conducts business operations in a 19 federally designated Foreign Trade Zone or Sub-Zone 20 and that is designated a High Impact Business 21 located in Illinois; provided that dividends 22 eligible for the deduction provided in subparagraph 23 (M) of paragraph (2) of this subsection shall not be 24 eligible for the deduction provided under this 25 subparagraph (O); 26 (P) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986; and 32 (Q) For taxable year 1999 and thereafter, an 33 amount equal to the amount of any (i) distributions, 34 to the extent includible in gross income for federal SB1854 Enrolled -110- LRB9215370EGfg 1 income tax purposes, made to the taxpayer because of 2 his or her status as a victim of persecution for 3 racial or religious reasons by Nazi Germany or any 4 other Axis regime or as an heir of the victim and 5 (ii) items of income, to the extent includible in 6 gross income for federal income tax purposes, 7 attributable to, derived from or in any way related 8 to assets stolen from, hidden from, or otherwise 9 lost to a victim of persecution for racial or 10 religious reasons by Nazi Germany or any other Axis 11 regime immediately prior to, during, and immediately 12 after World War II, including, but not limited to, 13 interest on the proceeds receivable as insurance 14 under policies issued to a victim of persecution for 15 racial or religious reasons by Nazi Germany or any 16 other Axis regime by European insurance companies 17 immediately prior to and during World War II; 18 provided, however, this subtraction from federal 19 adjusted gross income does not apply to assets 20 acquired with such assets or with the proceeds from 21 the sale of such assets; provided, further, this 22 paragraph shall only apply to a taxpayer who was the 23 first recipient of such assets after their recovery 24 and who is a victim of persecution for racial or 25 religious reasons by Nazi Germany or any other Axis 26 regime or as an heir of the victim. The amount of 27 and the eligibility for any public assistance, 28 benefit, or similar entitlement is not affected by 29 the inclusion of items (i) and (ii) of this 30 paragraph in gross income for federal income tax 31 purposes. This paragraph is exempt from the 32 provisions of Section 250. 33 (3) Limitation. The amount of any modification 34 otherwise required under this subsection shall, under SB1854 Enrolled -111- LRB9215370EGfg 1 regulations prescribed by the Department, be adjusted by 2 any amounts included therein which were properly paid, 3 credited, or required to be distributed, or permanently 4 set aside for charitable purposes pursuant to Internal 5 Revenue Code Section 642(c) during the taxable year. 6 (d) Partnerships. 7 (1) In general. In the case of a partnership, base 8 income means an amount equal to the taxpayer's taxable 9 income for the taxable year as modified by paragraph (2). 10 (2) Modifications. The taxable income referred to 11 in paragraph (1) shall be modified by adding thereto the 12 sum of the following amounts: 13 (A) An amount equal to all amounts paid or 14 accrued to the taxpayer as interest or dividends 15 during the taxable year to the extent excluded from 16 gross income in the computation of taxable income; 17 (B) An amount equal to the amount of tax 18 imposed by this Act to the extent deducted from 19 gross income for the taxable year; 20 (C) The amount of deductions allowed to the 21 partnership pursuant to Section 707 (c) of the 22 Internal Revenue Code in calculating its taxable 23 income; and 24 (D) An amount equal to the amount of the 25 capital gain deduction allowable under the Internal 26 Revenue Code, to the extent deducted from gross 27 income in the computation of taxable income; 28 and by deducting from the total so obtained the following 29 amounts: 30 (E) The valuation limitation amount; 31 (F) An amount equal to the amount of any tax 32 imposed by this Act which was refunded to the 33 taxpayer and included in such total for the taxable 34 year; SB1854 Enrolled -112- LRB9215370EGfg 1 (G) An amount equal to all amounts included in 2 taxable income as modified by subparagraphs (A), 3 (B), (C) and (D) which are exempt from taxation by 4 this State either by reason of its statutes or 5 Constitution or by reason of the Constitution, 6 treaties or statutes of the United States; provided 7 that, in the case of any statute of this State that 8 exempts income derived from bonds or other 9 obligations from the tax imposed under this Act, the 10 amount exempted shall be the interest net of bond 11 premium amortization; 12 (H) Any income of the partnership which 13 constitutes personal service income as defined in 14 Section 1348 (b) (1) of the Internal Revenue Code 15 (as in effect December 31, 1981) or a reasonable 16 allowance for compensation paid or accrued for 17 services rendered by partners to the partnership, 18 whichever is greater; 19 (I) An amount equal to all amounts of income 20 distributable to an entity subject to the Personal 21 Property Tax Replacement Income Tax imposed by 22 subsections (c) and (d) of Section 201 of this Act 23 including amounts distributable to organizations 24 exempt from federal income tax by reason of Section 25 501(a) of the Internal Revenue Code; 26 (J) With the exception of any amounts 27 subtracted under subparagraph (G), an amount equal 28 to the sum of all amounts disallowed as deductions 29 by (i) Sections 171(a) (2), and 265(2) of the 30 Internal Revenue Code of 1954, as now or hereafter 31 amended, and all amounts of expenses allocable to 32 interest and disallowed as deductions by Section 33 265(1) of the Internal Revenue Code, as now or 34 hereafter amended; and (ii) for taxable years ending SB1854 Enrolled -113- LRB9215370EGfg 1 on or after August 13, 1999, Sections 171(a)(2), 2 265, 280C, and 832(b)(5)(B)(i) of the Internal 3 Revenue Code; the provisions of this subparagraph 4 are exempt from the provisions of Section 250; 5 (K) An amount equal to those dividends 6 included in such total which were paid by a 7 corporation which conducts business operations in an 8 Enterprise Zone or zones created under the Illinois 9 Enterprise Zone Act, enacted by the 82nd General 10 Assembly, and which does not conduct such operations 11 other than in an Enterprise Zone or Zones; 12 (L) An amount equal to any contribution made 13 to a job training project established pursuant to 14 the Real Property Tax Increment Allocation 15 Redevelopment Act; 16 (M) An amount equal to those dividends 17 included in such total that were paid by a 18 corporation that conducts business operations in a 19 federally designated Foreign Trade Zone or Sub-Zone 20 and that is designated a High Impact Business 21 located in Illinois; provided that dividends 22 eligible for the deduction provided in subparagraph 23 (K) of paragraph (2) of this subsection shall not be 24 eligible for the deduction provided under this 25 subparagraph (M); and 26 (N) An amount equal to the amount of the 27 deduction used to compute the federal income tax 28 credit for restoration of substantial amounts held 29 under claim of right for the taxable year pursuant 30 to Section 1341 of the Internal Revenue Code of 31 1986. 32 (e) Gross income; adjusted gross income; taxable income. 33 (1) In general. Subject to the provisions of 34 paragraph (2) and subsection (b) (3), for purposes of SB1854 Enrolled -114- LRB9215370EGfg 1 this Section and Section 803(e), a taxpayer's gross 2 income, adjusted gross income, or taxable income for the 3 taxable year shall mean the amount of gross income, 4 adjusted gross income or taxable income properly 5 reportable for federal income tax purposes for the 6 taxable year under the provisions of the Internal Revenue 7 Code. Taxable income may be less than zero. However, for 8 taxable years ending on or after December 31, 1986, net 9 operating loss carryforwards from taxable years ending 10 prior to December 31, 1986, may not exceed the sum of 11 federal taxable income for the taxable year before net 12 operating loss deduction, plus the excess of addition 13 modifications over subtraction modifications for the 14 taxable year. For taxable years ending prior to December 15 31, 1986, taxable income may never be an amount in excess 16 of the net operating loss for the taxable year as defined 17 in subsections (c) and (d) of Section 172 of the Internal 18 Revenue Code, provided that when taxable income of a 19 corporation (other than a Subchapter S corporation), 20 trust, or estate is less than zero and addition 21 modifications, other than those provided by subparagraph 22 (E) of paragraph (2) of subsection (b) for corporations 23 or subparagraph (E) of paragraph (2) of subsection (c) 24 for trusts and estates, exceed subtraction modifications, 25 an addition modification must be made under those 26 subparagraphs for any other taxable year to which the 27 taxable income less than zero (net operating loss) is 28 applied under Section 172 of the Internal Revenue Code or 29 under subparagraph (E) of paragraph (2) of this 30 subsection (e) applied in conjunction with Section 172 of 31 the Internal Revenue Code. 32 (2) Special rule. For purposes of paragraph (1) of 33 this subsection, the taxable income properly reportable 34 for federal income tax purposes shall mean: SB1854 Enrolled -115- LRB9215370EGfg 1 (A) Certain life insurance companies. In the 2 case of a life insurance company subject to the tax 3 imposed by Section 801 of the Internal Revenue Code, 4 life insurance company taxable income, plus the 5 amount of distribution from pre-1984 policyholder 6 surplus accounts as calculated under Section 815a of 7 the Internal Revenue Code; 8 (B) Certain other insurance companies. In the 9 case of mutual insurance companies subject to the 10 tax imposed by Section 831 of the Internal Revenue 11 Code, insurance company taxable income; 12 (C) Regulated investment companies. In the 13 case of a regulated investment company subject to 14 the tax imposed by Section 852 of the Internal 15 Revenue Code, investment company taxable income; 16 (D) Real estate investment trusts. In the 17 case of a real estate investment trust subject to 18 the tax imposed by Section 857 of the Internal 19 Revenue Code, real estate investment trust taxable 20 income; 21 (E) Consolidated corporations. In the case of 22 a corporation which is a member of an affiliated 23 group of corporations filing a consolidated income 24 tax return for the taxable year for federal income 25 tax purposes, taxable income determined as if such 26 corporation had filed a separate return for federal 27 income tax purposes for the taxable year and each 28 preceding taxable year for which it was a member of 29 an affiliated group. For purposes of this 30 subparagraph, the taxpayer's separate taxable income 31 shall be determined as if the election provided by 32 Section 243(b) (2) of the Internal Revenue Code had 33 been in effect for all such years; 34 (F) Cooperatives. In the case of a SB1854 Enrolled -116- LRB9215370EGfg 1 cooperative corporation or association, the taxable 2 income of such organization determined in accordance 3 with the provisions of Section 1381 through 1388 of 4 the Internal Revenue Code; 5 (G) Subchapter S corporations. In the case 6 of: (i) a Subchapter S corporation for which there 7 is in effect an election for the taxable year under 8 Section 1362 of the Internal Revenue Code, the 9 taxable income of such corporation determined in 10 accordance with Section 1363(b) of the Internal 11 Revenue Code, except that taxable income shall take 12 into account those items which are required by 13 Section 1363(b)(1) of the Internal Revenue Code to 14 be separately stated; and (ii) a Subchapter S 15 corporation for which there is in effect a federal 16 election to opt out of the provisions of the 17 Subchapter S Revision Act of 1982 and have applied 18 instead the prior federal Subchapter S rules as in 19 effect on July 1, 1982, the taxable income of such 20 corporation determined in accordance with the 21 federal Subchapter S rules as in effect on July 1, 22 1982; and 23 (H) Partnerships. In the case of a 24 partnership, taxable income determined in accordance 25 with Section 703 of the Internal Revenue Code, 26 except that taxable income shall take into account 27 those items which are required by Section 703(a)(1) 28 to be separately stated but which would be taken 29 into account by an individual in calculating his 30 taxable income. 31 (f) Valuation limitation amount. 32 (1) In general. The valuation limitation amount 33 referred to in subsections (a) (2) (G), (c) (2) (I) and 34 (d)(2) (E) is an amount equal to: SB1854 Enrolled -117- LRB9215370EGfg 1 (A) The sum of the pre-August 1, 1969 2 appreciation amounts (to the extent consisting of 3 gain reportable under the provisions of Section 1245 4 or 1250 of the Internal Revenue Code) for all 5 property in respect of which such gain was reported 6 for the taxable year; plus 7 (B) The lesser of (i) the sum of the 8 pre-August 1, 1969 appreciation amounts (to the 9 extent consisting of capital gain) for all property 10 in respect of which such gain was reported for 11 federal income tax purposes for the taxable year, or 12 (ii) the net capital gain for the taxable year, 13 reduced in either case by any amount of such gain 14 included in the amount determined under subsection 15 (a) (2) (F) or (c) (2) (H). 16 (2) Pre-August 1, 1969 appreciation amount. 17 (A) If the fair market value of property 18 referred to in paragraph (1) was readily 19 ascertainable on August 1, 1969, the pre-August 1, 20 1969 appreciation amount for such property is the 21 lesser of (i) the excess of such fair market value 22 over the taxpayer's basis (for determining gain) for 23 such property on that date (determined under the 24 Internal Revenue Code as in effect on that date), or 25 (ii) the total gain realized and reportable for 26 federal income tax purposes in respect of the sale, 27 exchange or other disposition of such property. 28 (B) If the fair market value of property 29 referred to in paragraph (1) was not readily 30 ascertainable on August 1, 1969, the pre-August 1, 31 1969 appreciation amount for such property is that 32 amount which bears the same ratio to the total gain 33 reported in respect of the property for federal 34 income tax purposes for the taxable year, as the SB1854 Enrolled -118- LRB9215370EGfg 1 number of full calendar months in that part of the 2 taxpayer's holding period for the property ending 3 July 31, 1969 bears to the number of full calendar 4 months in the taxpayer's entire holding period for 5 the property. 6 (C) The Department shall prescribe such 7 regulations as may be necessary to carry out the 8 purposes of this paragraph. 9 (g) Double deductions. Unless specifically provided 10 otherwise, nothing in this Section shall permit the same item 11 to be deducted more than once. 12 (h) Legislative intention. Except as expressly provided 13 by this Section there shall be no modifications or 14 limitations on the amounts of income, gain, loss or deduction 15 taken into account in determining gross income, adjusted 16 gross income or taxable income for federal income tax 17 purposes for the taxable year, or in the amount of such items 18 entering into the computation of base income and net income 19 under this Act for such taxable year, whether in respect of 20 property values as of August 1, 1969 or otherwise. 21 (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; 22 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676, eff. 23 12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01; 92-16, 24 eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff. 8-17-01; 25 revised 9-21-01.) 26 (35 ILCS 5/507V) 27 Sec. 507V. National World War II Memorial Fund checkoff. 28 The Department must print on its standard individual income 29 tax form a provision indicating that if the taxpayer wishes 30 to contribute to the National World War II Memorial Fund, as 31 authorized by this amendatory Act of the 91st General 32 Assembly, he or she may do so by stating the amount of the SB1854 Enrolled -119- LRB9215370EGfg 1 contribution (not less than $1) on the return and that the 2 contribution will reduce the taxpayer's refund or increase 3 the amount of payment to accompany the return. Failure to 4 remit any amount of increased payment reduces the 5 contribution accordingly. This Section does not apply to any 6 amended return. 7 (Source: P.A. 91-833, eff. 1-1-01; 91-836, eff. 1-1-01.) 8 (35 ILCS 5/507W) 9 Sec. 507W.507V.Korean War Veterans National Museum and 10 Library Fund checkoff. Beginning with taxable years ending 11 on or after December 31, 2001, the Department shall print on 12 its standard individual income tax form a provision 13 indicating that if the taxpayer wishes to contribute to the 14 Korean War Veterans National Museum and Library Fund, as 15 authorized by this amendatory Act of the 92nd General 16 Assembly, he or she may do so by stating the amount of the 17 contribution (not less than $1) on the return and that the 18 contribution will reduce the taxpayer's refund or increase 19 the amount of payment to accompany the return. Failure to 20 remit any amount of increased payment shall reduce the 21 contribution accordingly. This Section shall not apply to 22 any amended return. 23 (Source: P.A. 92-198, eff. 8-1-01; revised 10-17-01.) 24 (35 ILCS 5/509) (from Ch. 120, par. 5-509) 25 (Text of Section before amendment by P.A. 92-84) 26 Sec. 509. Tax checkoff explanations. All individual 27 income tax return forms shall contain appropriate 28 explanations and spaces to enable the taxpayers to designate 29 contributions to the Child Abuse Prevention Fund, to the 30 Community Health Center Care Fund, to the Illinois Wildlife 31 Preservation Fund as required by the Illinois Non-Game 32 Wildlife Protection Act, to the Alzheimer's Disease Research SB1854 Enrolled -120- LRB9215370EGfg 1 Fund as required by the Alzheimer's Disease Research Act, to 2 the Assistance to the Homeless Fund as required by this Act, 3 to the Heritage Preservation Fund as required by the Heritage 4 Preservation Act, to the Child Care Expansion Program Fund as 5 required by the Child Care Expansion Program Act, to the Ryan 6 White AIDS Victims Assistance Fund, to the Assistive 7 Technology for Persons with Disabilities Fund, to the 8 Domestic Violence Shelter and Service Fund, to the United 9 States Olympians Assistance Fund, to the Youth Drug Abuse 10 Prevention Fund, to the Persian Gulf Conflict Veterans Fund, 11 to the Literacy Advancement Fund, to the Ryan White Pediatric 12 and Adult AIDS Fund, to the Illinois Special Olympics 13 Checkoff Fund, to the Penny Severns Breast and Cervical 14 Cancer Research Fund, to the Korean War Memorial Fund, to the 15 Heart Disease Treatment and Prevention Fund, to the 16 Hemophilia Treatment Fund, to the Mental Health Research 17 Fund, to the Children's Cancer Fund, to the American Diabetes 18 Association Fund, to the National World War II Memorial Fund, 19 to the Prostate Cancer Research Fund, to the Korean War 20 Veterans National Museum and Library Fund, and to the Meals 21 on Wheels Fund. Each form shall contain a statement that the 22 contributions will reduce the taxpayer's refund or increase 23 the amount of payment to accompany the return. Failure to 24 remit any amount of increased payment shall reduce the 25 contribution accordingly. 26 If, on October 1 of any year, the total contributions to 27 any one of the funds made under this Section do not equal 28 $100,000 or more, the explanations and spaces for designating 29 contributions to the fund shall be removed from the 30 individual income tax return forms for the following and all 31 subsequent years and all subsequent contributions to the fund 32 shall be refunded to the taxpayer. 33 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 34 91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff. SB1854 Enrolled -121- LRB9215370EGfg 1 1-1-01; 92-198, eff. 8-1-01.) 2 (Text of Section after amendment by P.A. 92-84) 3 Sec. 509. Tax checkoff explanations. All individual 4 income tax return forms shall contain appropriate 5 explanations and spaces to enable the taxpayers to designate 6 contributions to the Child Abuse Prevention Fund, to the 7 Illinois Wildlife Preservation Fund as required by the 8 Illinois Non-Game Wildlife Protection Act, to the Alzheimer's 9 Disease Research Fund as required by the Alzheimer's Disease 10 Research Act, to the Assistance to the Homeless Fund as 11 required by this Act, to the Penny Severns Breast and 12 Cervical Cancer Research Fund, to the National World War II 13 Memorial Fund,andto the Prostate Cancer Research Fund, and 14 to the Korean War Veterans National Museum and Library Fund,. 15 Each form shall contain a statement that the contributions 16 will reduce the taxpayer's refund or increase the amount of 17 payment to accompany the return. Failure to remit any amount 18 of increased payment shall reduce the contribution 19 accordingly. 20 If, on October 1 of any year, the total contributions to 21 any one of the funds made under this Section do not equal 22 $100,000 or more, the explanations and spaces for designating 23 contributions to the fund shall be removed from the 24 individual income tax return forms for the following and all 25 subsequent years and all subsequent contributions to the fund 26 shall be refunded to the taxpayer. 27 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 28 91-357, eff. 7-29-99; 91-833, eff. 1-1-01; 91-836, eff. 29 1-1-01; 92-84, eff. 7-1-02; 92-198, eff. 8-1-01; revised 30 9-12-01.) 31 (35 ILCS 5/510) (from Ch. 120, par. 5-510) 32 (Text of Section before amendment by P.A. 92-84) 33 Sec. 510. Determination of amounts contributed. The SB1854 Enrolled -122- LRB9215370EGfg 1 Department shall determine the total amount contributed to 2 each of the following: the Child Abuse Prevention Fund, the 3 Illinois Wildlife Preservation Fund, the Community Health 4 Center Care Fund, the Assistance to the Homeless Fund, the 5 Alzheimer's Disease Research Fund, the Heritage Preservation 6 Fund, the Child Care Expansion Program Fund, the Ryan White 7 AIDS Victims Assistance Fund, the Assistive Technology for 8 Persons with Disabilities Fund, the Domestic Violence Shelter 9 and Service Fund, the United States Olympians Assistance 10 Fund, the Youth Drug Abuse Prevention Fund, the Persian Gulf 11 Conflict Veterans Fund, the Literacy Advancement Fund, the 12 Ryan White Pediatric and Adult AIDS Fund, the Illinois 13 Special Olympics Checkoff Fund, the Penny Severns Breast and 14 Cervical Cancer Research Fund, the Korean War Memorial Fund, 15 the Heart Disease Treatment and Prevention Fund, the 16 Hemophilia Treatment Fund, the Mental Health Research Fund, 17 the Children's Cancer Fund, the American Diabetes 18 Association Fund, the National World War II Memorial Fund, 19 the Prostate Cancer Research Fund, the Korean War Veterans 20 National Museum and Library Fund, and the Meals on Wheels 21 Fund; and shall notify the State Comptroller and the State 22 Treasurer of the amounts to be transferred from the General 23 Revenue Fund to each fund, and upon receipt of such 24 notification the State Treasurer and Comptroller shall 25 transfer the amounts. 26 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 27 91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-198, eff. 28 8-1-01.) 29 (Text of Section after amendment by P.A. 92-84) 30 Sec. 510. Determination of amounts contributed. The 31 Department shall determine the total amount contributed to 32 each of the following: the Child Abuse Prevention Fund, the 33 Illinois Wildlife Preservation Fund, the Assistance to the SB1854 Enrolled -123- LRB9215370EGfg 1 Homeless Fund, the Alzheimer's Disease Research Fund, the 2 Penny Severns Breast and Cervical Cancer Research Fund, the 3 National World War II Memorial Fund,andthe Prostate Cancer 4 Research Fund, and the Korean War Veterans National Museum 5 and Library Fund,; and shall notify the State Comptroller and 6 the State Treasurer of the amounts to be transferred from the 7 General Revenue Fund to each fund, and upon receipt of such 8 notification the State Treasurer and Comptroller shall 9 transfer the amounts. 10 (Source: P.A. 91-104, eff. 7-13-99; 91-107, eff. 7-13-99; 11 91-833, eff. 1-1-01; 91-836, eff. 1-1-01; 92-84, eff. 7-1-02; 12 92-198, eff. 8-1-01; revised 9-12-01.) 13 Section 24. The Economic Development for a Growing 14 Economy Tax Credit Act is amended by changing Section 5-5 as 15 follows: 16 (35 ILCS 10/5-5) 17 Sec. 5-5. Definitions. As used in this Act: 18 "Agreement" means the Agreement between a Taxpayer and 19 the Department under the provisions of Section 5-50 of this 20 Act. 21 "Applicant" means a Taxpayer that is operating a business 22 located or that the Taxpayer plans to locate within the State 23 of Illinois and that is engaged in interstate or intrastate 24 commerce for the purpose of manufacturing, processing, 25 assembling, warehousing, or distributing products, conducting 26 research and development, providing tourism services, or 27 providing services in interstate commerce, office industries, 28 or agricultural processing, but excluding retail, retail 29 food, health, or professional services. "Applicant" does not 30 include a Taxpayer who closes or substantially reduces an 31 operation at one location in the State and relocates 32 substantially the same operation to another location in the SB1854 Enrolled -124- LRB9215370EGfg 1 State. This does not prohibit a Taxpayer from expanding its 2 operations at another location in the State, provided that 3 existing operations of a similar nature located within the 4 State are not closed or substantially reduced. This also 5 does not prohibit a Taxpayer from moving its operations from 6 one location in the State to another location in the State 7 for the purpose of expanding the operation provided that the 8 Department determines that expansion cannot reasonably be 9 accommodated within the municipality in which the business is 10 located, or in the case of a business located in an 11 incorporated area of the county, within the county in which 12 the business is located, after conferring with the chief 13 elected official of the municipality or county and taking 14 into consideration any evidence offered by the municipality 15 or county regarding the ability to accommodate expansion 16 within the municipality or county. 17 "Committee" means the Illinois Business Investment 18 Committee created under Section 5-25 of this Act within the 19 Illinois Economic Development Board. 20 "Credit" means the amount agreed to between the 21 Department and Applicant under this Act, but not to exceed 22 the Incremental Income Tax attributable to the Applicant's 23 project. 24 "Department" means the Department of Commerce and 25 Community Affairs. 26 "Director" means the Director of Commerce and Community 27 Affairs. 28 "Full-time Employee" means an individual who is employed 29 for consideration for at least 35 hours each week or who 30 renders any other standard of service generally accepted by 31 industry custom or practice as full-time employment. 32 "Incremental Income Tax" means the total amount withheld 33 during the taxable year from the compensation of New 34 Employees under Article 7 of the Illinois Income Tax Act SB1854 Enrolled -125- LRB9215370EGfg 1 arising from employment at a project that is the subject of 2 an Agreement. 3 "New Employee" means: 4 (a) A Full-time Employee first employed by a 5 Taxpayer in the project that is the subject of an 6 Agreement and who is hired after the Taxpayer enters into 7 the tax credit Agreement. 8 (b) The term "New Employee" does not include: 9 (1) an employee of the Taxpayer who performs a 10 job that was previously performed by another 11 employee, if that job existed for at least 6 months 12 before hiring the employee; 13 (2) an employee of the Taxpayer who was 14 previously employed in Illinois by a Related Member 15 of the Taxpayer and whose employment was shifted to 16 the Taxpayer after the Taxpayer entered into the tax 17 credit Agreement; or 18 (3) a child, grandchild, parent, or spouse, 19 other than a spouse who is legally separated from 20 the individual, of any individual who has a direct 21 or an indirect ownership interest of at least 5% in 22 the profits, capital, or value of the Taxpayer. 23 (c) Notwithstanding paragraph (1) of subsection 24 (b), an employee may be considered a New Employee under 25 the Agreement if the employee performs a job that was 26 previously performed by an employee who was: 27 (1) treated under the Agreement as a New 28 Employee; and 29 (2) promoted by the Taxpayer to another job. 30 (d) Notwithstanding subsection (a), the Department 31 may award Credit to an Applicant with respect to an 32 employee hired prior to the date of the Agreement if: 33 (1) the Applicant is in receipt of a letter 34 from the Department stating an intent to enter into SB1854 Enrolled -126- LRB9215370EGfg 1 a credit Agreement; 2 (2) the letter described in paragraph (1) is 3 issued by the Department not later than 15 days 4 after the effective date of this Act; and 5 (3) the employee was hired after the date the 6 letter described in paragraph (1) was issued. 7 "Noncompliance Date" means, in the case of a Taxpayer 8 that is not complying with the requirements of the Agreement 9 or the provisions of this Act, the day following the last 10 date upon which the Taxpayer was in compliance with the 11 requirements of the Agreement and the provisions of this Act, 12 as determined by the Director, pursuant to Section 5-65. 13 "Pass Through Entity" means an entity that is exempt from 14 the tax under subsection (b) or (c) of Section 205 of the 15 Illinois Income Tax Act. 16 "Related Member" means a person that, with respect to the 17 Taxpayer during any portion of the taxable year, is any one 18 of the following: 19 (1) An individual stockholder, if the stockholder 20 and the members of the stockholder's family (as defined 21 in Section 318 of the Internal Revenue Code) own 22 directly, indirectly, beneficially, or constructively, in 23 the aggregate, at least 50% of the value of the 24 Taxpayer's outstanding stock. 25 (2) A partnership, estate, or trust and any partner 26 or beneficiary, if the partnership, estate, or trust, and 27 its partners or beneficiaries own directly, indirectly, 28 beneficially, or constructively, in the aggregate, at 29 least 50% of the profits, capitalcapitol, stock, or 30 value of the Taxpayer. 31 (3) A corporation, and any party related to the 32 corporation in a manner that would require an attribution 33 of stock from the corporation to the party or from the 34 party to the corporation under the attribution rules of SB1854 Enrolled -127- LRB9215370EGfg 1 Section 318 of the Internal Revenue Code, if the Taxpayer 2 owns directly, indirectly, beneficially, or 3 constructively at least 50% of the value of the 4 corporation's outstanding stock. 5 (4) A corporation and any party related to that 6 corporation in a manner that would require an attribution 7 of stock from the corporation to the party or from the 8 party to the corporation under the attribution rules of 9 Section 318 of the Internal Revenue Code, if the 10 corporation and all such related parties own in the 11 aggregate at least 50% of the profits, capital, stock, or 12 value of the Taxpayer. 13 (5) A person to or from whom there is attribution 14 of stock ownership in accordance with Section 1563(e) of 15 the Internal Revenue Code, except, for purposes of 16 determining whether a person is a Related Member under 17 this paragraph, 20% shall be substituted for 5% wherever 18 5% appears in Section 1563(e) of the Internal Revenue 19 Code. 20 "Taxpayer" means an individual, corporation, partnership, 21 or other entity that has any Illinois Income Tax liability. 22 (Source: P.A. 91-476, eff. 8-11-99; revised 12-04-01.) 23 Section 25. The Use Tax Act is amended by changing 24 Sections 3-5 and 9 as follows: 25 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 26 Sec. 3-5. Exemptions. Use of the following tangible 27 personal property is exempt from the tax imposed by this Act: 28 (1) Personal property purchased from a corporation, 29 society, association, foundation, institution, or 30 organization, other than a limited liability company, that is 31 organized and operated as a not-for-profit service enterprise 32 for the benefit of persons 65 years of age or older if the SB1854 Enrolled -128- LRB9215370EGfg 1 personal property was not purchased by the enterprise for the 2 purpose of resale by the enterprise. 3 (2) Personal property purchased by a not-for-profit 4 Illinois county fair association for use in conducting, 5 operating, or promoting the county fair. 6 (3) Personal property purchased by a not-for-profit arts 7 or cultural organization that establishes, by proof required 8 by the Department by rule, that it has received an exemption 9 under Section 501(c)(3) of the Internal Revenue Code and that 10 is organized and operated primarily for the presentation or 11 support of arts or cultural programming, activities, or 12 services. These organizations include, but are not limited 13 to, music and dramatic arts organizations such as symphony 14 orchestras and theatrical groups, arts and cultural service 15 organizations, local arts councils, visual arts 16 organizations, and media arts organizations. On and after the 17 effective date of this amendatory Act of the 92nd General 18 Assembly, however, an entity otherwise eligible for this 19 exemption shall not make tax-free purchases unless it has an 20 active identification number issued by the Department. 21 (4) Personal property purchased by a governmental body, 22 by a corporation, society, association, foundation, or 23 institution organized and operated exclusively for 24 charitable, religious, or educational purposes, or by a 25 not-for-profit corporation, society, association, foundation, 26 institution, or organization that has no compensated officers 27 or employees and that is organized and operated primarily for 28 the recreation of persons 55 years of age or older. A limited 29 liability company may qualify for the exemption under this 30 paragraph only if the limited liability company is organized 31 and operated exclusively for educational purposes. On and 32 after July 1, 1987, however, no entity otherwise eligible for 33 this exemption shall make tax-free purchases unless it has an 34 active exemption identification number issued by the SB1854 Enrolled -129- LRB9215370EGfg 1 Department. 2 (5) A passenger car that is a replacement vehicle to the 3 extent that the purchase price of the car is subject to the 4 Replacement Vehicle Tax. 5 (6) Graphic arts machinery and equipment, including 6 repair and replacement parts, both new and used, and 7 including that manufactured on special order, certified by 8 the purchaser to be used primarily for graphic arts 9 production, and including machinery and equipment purchased 10 for lease. Equipment includes chemicals or chemicals acting 11 as catalysts but only if the chemicals or chemicals acting as 12 catalysts effect a direct and immediate change upon a graphic 13 arts product. 14 (7) Farm chemicals. 15 (8) Legal tender, currency, medallions, or gold or 16 silver coinage issued by the State of Illinois, the 17 government of the United States of America, or the government 18 of any foreign country, and bullion. 19 (9) Personal property purchased from a teacher-sponsored 20 student organization affiliated with an elementary or 21 secondary school located in Illinois. 22 (10) A motor vehicle of the first division, a motor 23 vehicle of the second division that is a self-contained motor 24 vehicle designed or permanently converted to provide living 25 quarters for recreational, camping, or travel use, with 26 direct walk through to the living quarters from the driver's 27 seat, or a motor vehicle of the second division that is of 28 the van configuration designed for the transportation of not 29 less than 7 nor more than 16 passengers, as defined in 30 Section 1-146 of the Illinois Vehicle Code, that is used for 31 automobile renting, as defined in the Automobile Renting 32 Occupation and Use Tax Act. 33 (11) Farm machinery and equipment, both new and used, 34 including that manufactured on special order, certified by SB1854 Enrolled -130- LRB9215370EGfg 1 the purchaser to be used primarily for production agriculture 2 or State or federal agricultural programs, including 3 individual replacement parts for the machinery and equipment, 4 including machinery and equipment purchased for lease, and 5 including implements of husbandry defined in Section 1-130 of 6 the Illinois Vehicle Code, farm machinery and agricultural 7 chemical and fertilizer spreaders, and nurse wagons required 8 to be registered under Section 3-809 of the Illinois Vehicle 9 Code, but excluding other motor vehicles required to be 10 registered under the Illinois Vehicle Code. Horticultural 11 polyhouses or hoop houses used for propagating, growing, or 12 overwintering plants shall be considered farm machinery and 13 equipment under this item (11). Agricultural chemical tender 14 tanks and dry boxes shall include units sold separately from 15 a motor vehicle required to be licensed and units sold 16 mounted on a motor vehicle required to be licensed if the 17 selling price of the tender is separately stated. 18 Farm machinery and equipment shall include precision 19 farming equipment that is installed or purchased to be 20 installed on farm machinery and equipment including, but not 21 limited to, tractors, harvesters, sprayers, planters, 22 seeders, or spreaders. Precision farming equipment includes, 23 but is not limited to, soil testing sensors, computers, 24 monitors, software, global positioning and mapping systems, 25 and other such equipment. 26 Farm machinery and equipment also includes computers, 27 sensors, software, and related equipment used primarily in 28 the computer-assisted operation of production agriculture 29 facilities, equipment, and activities such as, but not 30 limited to, the collection, monitoring, and correlation of 31 animal and crop data for the purpose of formulating animal 32 diets and agricultural chemicals. This item (11) is exempt 33 from the provisions of Section 3-90. 34 (12) Fuel and petroleum products sold to or used by an SB1854 Enrolled -131- LRB9215370EGfg 1 air common carrier, certified by the carrier to be used for 2 consumption, shipment, or storage in the conduct of its 3 business as an air common carrier, for a flight destined for 4 or returning from a location or locations outside the United 5 States without regard to previous or subsequent domestic 6 stopovers. 7 (13) Proceeds of mandatory service charges separately 8 stated on customers' bills for the purchase and consumption 9 of food and beverages purchased at retail from a retailer, to 10 the extent that the proceeds of the service charge are in 11 fact turned over as tips or as a substitute for tips to the 12 employees who participate directly in preparing, serving, 13 hosting or cleaning up the food or beverage function with 14 respect to which the service charge is imposed. 15 (14) Oil field exploration, drilling, and production 16 equipment, including (i) rigs and parts of rigs, rotary rigs, 17 cable tool rigs, and workover rigs, (ii) pipe and tubular 18 goods, including casing and drill strings, (iii) pumps and 19 pump-jack units, (iv) storage tanks and flow lines, (v) any 20 individual replacement part for oil field exploration, 21 drilling, and production equipment, and (vi) machinery and 22 equipment purchased for lease; but excluding motor vehicles 23 required to be registered under the Illinois Vehicle Code. 24 (15) Photoprocessing machinery and equipment, including 25 repair and replacement parts, both new and used, including 26 that manufactured on special order, certified by the 27 purchaser to be used primarily for photoprocessing, and 28 including photoprocessing machinery and equipment purchased 29 for lease. 30 (16) Coal exploration, mining, offhighway hauling, 31 processing, maintenance, and reclamation equipment, including 32 replacement parts and equipment, and including equipment 33 purchased for lease, but excluding motor vehicles required to 34 be registered under the Illinois Vehicle Code. SB1854 Enrolled -132- LRB9215370EGfg 1 (17) Distillation machinery and equipment, sold as a 2 unit or kit, assembled or installed by the retailer, 3 certified by the user to be used only for the production of 4 ethyl alcohol that will be used for consumption as motor fuel 5 or as a component of motor fuel for the personal use of the 6 user, and not subject to sale or resale. 7 (18) Manufacturing and assembling machinery and 8 equipment used primarily in the process of manufacturing or 9 assembling tangible personal property for wholesale or retail 10 sale or lease, whether that sale or lease is made directly by 11 the manufacturer or by some other person, whether the 12 materials used in the process are owned by the manufacturer 13 or some other person, or whether that sale or lease is made 14 apart from or as an incident to the seller's engaging in the 15 service occupation of producing machines, tools, dies, jigs, 16 patterns, gauges, or other similar items of no commercial 17 value on special order for a particular purchaser. 18 (19) Personal property delivered to a purchaser or 19 purchaser's donee inside Illinois when the purchase order for 20 that personal property was received by a florist located 21 outside Illinois who has a florist located inside Illinois 22 deliver the personal property. 23 (20) Semen used for artificial insemination of livestock 24 for direct agricultural production. 25 (21) Horses, or interests in horses, registered with and 26 meeting the requirements of any of the Arabian Horse Club 27 Registry of America, Appaloosa Horse Club, American Quarter 28 Horse Association, United States Trotting Association, or 29 Jockey Club, as appropriate, used for purposes of breeding or 30 racing for prizes. 31 (22) Computers and communications equipment utilized for 32 any hospital purpose and equipment used in the diagnosis, 33 analysis, or treatment of hospital patients purchased by a 34 lessor who leases the equipment, under a lease of one year or SB1854 Enrolled -133- LRB9215370EGfg 1 longer executed or in effect at the time the lessor would 2 otherwise be subject to the tax imposed by this Act, to a 3 hospital that has been issued an active tax exemption 4 identification number by the Department under Section 1g of 5 the Retailers' Occupation Tax Act. If the equipment is 6 leased in a manner that does not qualify for this exemption 7 or is used in any other non-exempt manner, the lessor shall 8 be liable for the tax imposed under this Act or the Service 9 Use Tax Act, as the case may be, based on the fair market 10 value of the property at the time the non-qualifying use 11 occurs. No lessor shall collect or attempt to collect an 12 amount (however designated) that purports to reimburse that 13 lessor for the tax imposed by this Act or the Service Use Tax 14 Act, as the case may be, if the tax has not been paid by the 15 lessor. If a lessor improperly collects any such amount from 16 the lessee, the lessee shall have a legal right to claim a 17 refund of that amount from the lessor. If, however, that 18 amount is not refunded to the lessee for any reason, the 19 lessor is liable to pay that amount to the Department. 20 (23) Personal property purchased by a lessor who leases 21 the property, under a lease of one year or longer executed 22 or in effect at the time the lessor would otherwise be 23 subject to the tax imposed by this Act, to a governmental 24 body that has been issued an active sales tax exemption 25 identification number by the Department under Section 1g of 26 the Retailers' Occupation Tax Act. If the property is leased 27 in a manner that does not qualify for this exemption or used 28 in any other non-exempt manner, the lessor shall be liable 29 for the tax imposed under this Act or the Service Use Tax 30 Act, as the case may be, based on the fair market value of 31 the property at the time the non-qualifying use occurs. No 32 lessor shall collect or attempt to collect an amount (however 33 designated) that purports to reimburse that lessor for the 34 tax imposed by this Act or the Service Use Tax Act, as the SB1854 Enrolled -134- LRB9215370EGfg 1 case may be, if the tax has not been paid by the lessor. If 2 a lessor improperly collects any such amount from the lessee, 3 the lessee shall have a legal right to claim a refund of that 4 amount from the lessor. If, however, that amount is not 5 refunded to the lessee for any reason, the lessor is liable 6 to pay that amount to the Department. 7 (24) Beginning with taxable years ending on or after 8 December 31, 1995 and ending with taxable years ending on or 9 before December 31, 2004, personal property that is donated 10 for disaster relief to be used in a State or federally 11 declared disaster area in Illinois or bordering Illinois by a 12 manufacturer or retailer that is registered in this State to 13 a corporation, society, association, foundation, or 14 institution that has been issued a sales tax exemption 15 identification number by the Department that assists victims 16 of the disaster who reside within the declared disaster area. 17 (25) Beginning with taxable years ending on or after 18 December 31, 1995 and ending with taxable years ending on or 19 before December 31, 2004, personal property that is used in 20 the performance of infrastructure repairs in this State, 21 including but not limited to municipal roads and streets, 22 access roads, bridges, sidewalks, waste disposal systems, 23 water and sewer line extensions, water distribution and 24 purification facilities, storm water drainage and retention 25 facilities, and sewage treatment facilities, resulting from a 26 State or federally declared disaster in Illinois or bordering 27 Illinois when such repairs are initiated on facilities 28 located in the declared disaster area within 6 months after 29 the disaster. 30 (26) Beginning July 1, 1999, game or game birds 31 purchased at a "game breeding and hunting preserve area" or 32 an "exotic game hunting area" as those terms are used in the 33 Wildlife Code or at a hunting enclosure approved through 34 rules adopted by the Department of Natural Resources. This SB1854 Enrolled -135- LRB9215370EGfg 1 paragraph is exempt from the provisions of Section 3-90. 2 (27) A motor vehicle, as that term is defined in Section 3 1-146 of the Illinois Vehicle Code, that is donated to a 4 corporation, limited liability company, society, association, 5 foundation, or institution that is determined by the 6 Department to be organized and operated exclusively for 7 educational purposes. For purposes of this exemption, "a 8 corporation, limited liability company, society, association, 9 foundation, or institution organized and operated exclusively 10 for educational purposes" means all tax-supported public 11 schools, private schools that offer systematic instruction in 12 useful branches of learning by methods common to public 13 schools and that compare favorably in their scope and 14 intensity with the course of study presented in tax-supported 15 schools, and vocational or technical schools or institutes 16 organized and operated exclusively to provide a course of 17 study of not less than 6 weeks duration and designed to 18 prepare individuals to follow a trade or to pursue a manual, 19 technical, mechanical, industrial, business, or commercial 20 occupation. 21 (28) Beginning January 1, 2000, personal property, 22 including food, purchased through fundraising events for the 23 benefit of a public or private elementary or secondary 24 school, a group of those schools, or one or more school 25 districts if the events are sponsored by an entity recognized 26 by the school district that consists primarily of volunteers 27 and includes parents and teachers of the school children. 28 This paragraph does not apply to fundraising events (i) for 29 the benefit of private home instruction or (ii) for which the 30 fundraising entity purchases the personal property sold at 31 the events from another individual or entity that sold the 32 property for the purpose of resale by the fundraising entity 33 and that profits from the sale to the fundraising entity. 34 This paragraph is exempt from the provisions of Section 3-90. SB1854 Enrolled -136- LRB9215370EGfg 1 (29) Beginning January 1, 2000 and through December 31, 2 2001, new or used automatic vending machines that prepare and 3 serve hot food and beverages, including coffee, soup, and 4 other items, and replacement parts for these machines. 5 Beginning January 1, 2002, machines and parts for machines 6 used in commercial, coin-operated amusement and vending 7 business if a use or occupation tax is paid on the gross 8 receipts derived from the use of the commercial, 9 coin-operated amusement and vending machines. This paragraph 10 is exempt from the provisions of Section 3-90. 11 (30) Food for human consumption that is to be consumed 12 off the premises where it is sold (other than alcoholic 13 beverages, soft drinks, and food that has been prepared for 14 immediate consumption) and prescription and nonprescription 15 medicines, drugs, medical appliances, and insulin, urine 16 testing materials, syringes, and needles used by diabetics, 17 for human use, when purchased for use by a person receiving 18 medical assistance under Article 5 of the Illinois Public Aid 19 Code who resides in a licensed long-term care facility, as 20 defined in the Nursing Home Care Act. 21 (31) Beginning on the effective date of this amendatory 22 Act of the 92nd General Assembly, computers and 23 communications equipment utilized for any hospital purpose 24 and equipment used in the diagnosis, analysis, or treatment 25 of hospital patients purchased by a lessor who leases the 26 equipment, under a lease of one year or longer executed or in 27 effect at the time the lessor would otherwise be subject to 28 the tax imposed by this Act, to a hospital that has been 29 issued an active tax exemption identification number by the 30 Department under Section 1g of the Retailers' Occupation Tax 31 Act. If the equipment is leased in a manner that does not 32 qualify for this exemption or is used in any other nonexempt 33 manner, the lessor shall be liable for the tax imposed under 34 this Act or the Service Use Tax Act, as the case may be, SB1854 Enrolled -137- LRB9215370EGfg 1 based on the fair market value of the property at the time 2 the nonqualifying use occurs. No lessor shall collect or 3 attempt to collect an amount (however designated) that 4 purports to reimburse that lessor for the tax imposed by this 5 Act or the Service Use Tax Act, as the case may be, if the 6 tax has not been paid by the lessor. If a lessor improperly 7 collects any such amount from the lessee, the lessee shall 8 have a legal right to claim a refund of that amount from the 9 lessor. If, however, that amount is not refunded to the 10 lessee for any reason, the lessor is liable to pay that 11 amount to the Department. This paragraph is exempt from the 12 provisions of Section 3-90. 13 (32) Beginning on the effective date of this amendatory 14 Act of the 92nd General Assembly, personal property purchased 15 by a lessor who leases the property, under a lease of one 16 year or longer executed or in effect at the time the lessor 17 would otherwise be subject to the tax imposed by this Act, to 18 a governmental body that has been issued an active sales tax 19 exemption identification number by the Department under 20 Section 1g of the Retailers' Occupation Tax Act. If the 21 property is leased in a manner that does not qualify for this 22 exemption or used in any other nonexempt manner, the lessor 23 shall be liable for the tax imposed under this Act or the 24 Service Use Tax Act, as the case may be, based on the fair 25 market value of the property at the time the nonqualifying 26 use occurs. No lessor shall collect or attempt to collect an 27 amount (however designated) that purports to reimburse that 28 lessor for the tax imposed by this Act or the Service Use Tax 29 Act, as the case may be, if the tax has not been paid by the 30 lessor. If a lessor improperly collects any such amount from 31 the lessee, the lessee shall have a legal right to claim a 32 refund of that amount from the lessor. If, however, that 33 amount is not refunded to the lessee for any reason, the 34 lessor is liable to pay that amount to the Department. This SB1854 Enrolled -138- LRB9215370EGfg 1 paragraph is exempt from the provisions of Section 3-90. 2 (Source: P.A. 90-14, eff. 7-1-97; 90-552, eff. 12-12-97; 3 90-605, eff. 6-30-98; 91-51, eff. 6-30-99; 91-200, eff. 4 7-20-99; 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, 5 eff. 8-20-99; 91-901, eff. 1-1-01; 92-35, eff. 7-1-01; 6 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 7 8-23-01; revised 10-10-01.) 8 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 9 Sec. 9. Except as to motor vehicles, watercraft, 10 aircraft, and trailers that are required to be registered 11 with an agency of this State, each retailer required or 12 authorized to collect the tax imposed by this Act shall pay 13 to the Department the amount of such tax (except as otherwise 14 provided) at the time when he is required to file his return 15 for the period during which such tax was collected, less a 16 discount of 2.1% prior to January 1, 1990, and 1.75% on and 17 after January 1, 1990, or $5 per calendar year, whichever is 18 greater, which is allowed to reimburse the retailer for 19 expenses incurred in collecting the tax, keeping records, 20 preparing and filing returns, remitting the tax and supplying 21 data to the Department on request. In the case of retailers 22 who report and pay the tax on a transaction by transaction 23 basis, as provided in this Section, such discount shall be 24 taken with each such tax remittance instead of when such 25 retailer files his periodic return. A retailer need not 26 remit that part of any tax collected by him to the extent 27 that he is required to remit and does remit the tax imposed 28 by the Retailers' Occupation Tax Act, with respect to the 29 sale of the same property. 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 SB1854 Enrolled -139- LRB9215370EGfg 1 return is filed, the retailer, in collecting the tax (except 2 as to motor vehicles, watercraft, aircraft, and trailers that 3 are required to be registered with an agency of this State), 4 may collect for each tax return period, only the tax 5 applicable to that part of the selling price actually 6 received during such tax return period. 7 Except as provided in this Section, on or before the 8 twentieth day of each calendar month, such retailer shall 9 file a return for the preceding calendar month. Such return 10 shall be filed on forms prescribed by the Department and 11 shall furnish 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 the business of selling tangible 24 personal property at retail in this State; 25 3. The total amount of taxable receipts received by 26 him during the preceding calendar month from sales of 27 tangible personal property by him during such preceding 28 calendar month, including receipts from charge and time 29 sales, but less all deductions allowed by law; 30 4. The amount of credit provided in Section 2d of 31 this Act; 32 5. The amount of tax due; 33 5-5. The signature of the taxpayer; and 34 6. Such other reasonable information as the SB1854 Enrolled -140- LRB9215370EGfg 1 Department may require. 2 If a taxpayer fails to sign a return within 30 days after 3 the proper notice and demand for signature by the Department, 4 the return shall be considered valid and any amount shown to 5 be due on the return shall be deemed assessed. 6 Beginning October 1, 1993, a taxpayer who has an average 7 monthly tax liability of $150,000 or more shall make all 8 payments required by rules of the Department by electronic 9 funds transfer. Beginning October 1, 1994, a taxpayer who has 10 an average monthly tax liability of $100,000 or more shall 11 make all payments required by rules of the Department by 12 electronic funds transfer. Beginning October 1, 1995, a 13 taxpayer who has an average monthly tax liability of $50,000 14 or more shall make all payments required by rules of the 15 Department by electronic funds transfer. Beginning October 1, 16 2000, a taxpayer who has an annual tax liability of $200,000 17 or more shall make all payments required by rules of the 18 Department by electronic funds transfer. The term "annual 19 tax liability" shall be the sum of the taxpayer's liabilities 20 under this Act, and under all other State and local 21 occupation and use tax laws administered by the Department, 22 for the immediately preceding calendar year. The term 23 "average monthly tax liability" means the sum of the 24 taxpayer's liabilities under this Act, and under all other 25 State and local occupation and use tax laws administered by 26 the Department, for the immediately preceding calendar year 27 divided by 12. Beginning on October 1, 2002, a taxpayer who 28 has a tax liability in the amount set forth in subsection (b) 29 of Section 2505-210 of the Department of Revenue Law shall 30 make all payments required by rules of the Department by 31 electronic funds transfer. 32 Before August 1 of each year beginning in 1993, the 33 Department shall notify all taxpayers required to make 34 payments by electronic funds transfer. All taxpayers required SB1854 Enrolled -141- LRB9215370EGfg 1 to make payments by electronic funds transfer shall make 2 those payments for a minimum of one year beginning on October 3 1. 4 Any taxpayer not required to make payments by electronic 5 funds transfer may make payments by electronic funds transfer 6 with the permission of the Department. 7 All taxpayers required to make payment by electronic 8 funds transfer and any taxpayers authorized to voluntarily 9 make payments by electronic funds transfer shall make those 10 payments in the manner authorized by the Department. 11 The Department shall adopt such rules as are necessary to 12 effectuate a program of electronic funds transfer and the 13 requirements of this Section. 14 Before October 1, 2000, if the taxpayer's average monthly 15 tax liability to the Department under this Act, the 16 Retailers' Occupation Tax Act, the Service Occupation Tax 17 Act, the Service Use Tax Act was $10,000 or more during the 18 preceding 4 complete calendar quarters, he shall file a 19 return with the Department each month by the 20th day of the 20 month next following the month during which such tax 21 liability is incurred and shall make payments to the 22 Department on or before the 7th, 15th, 22nd and last day of 23 the month during which such liability is incurred. On and 24 after October 1, 2000, if the taxpayer's average monthly tax 25 liability to the Department under this Act, the Retailers' 26 Occupation Tax Act, the Service Occupation Tax Act, and the 27 Service Use Tax Act was $20,000 or more during the preceding 28 4 complete calendar quarters, he shall file a return with the 29 Department each month by the 20th day of the month next 30 following the month during which such tax liability is 31 incurred and shall make payment to the Department on or 32 before the 7th, 15th, 22nd and last day of the month during 33 which such liability is incurred. If the month during which 34 such tax liability is incurred began prior to January 1, SB1854 Enrolled -142- LRB9215370EGfg 1 1985, each payment shall be in an amount equal to 1/4 of the 2 taxpayer's actual liability for the month or an amount set by 3 the Department not to exceed 1/4 of the average monthly 4 liability of the taxpayer to the Department for the preceding 5 4 complete calendar quarters (excluding the month of highest 6 liability and the month of lowest liability in such 4 quarter 7 period). If the month during which such tax liability is 8 incurred begins on or after January 1, 1985, and prior to 9 January 1, 1987, each payment shall be in an amount equal to 10 22.5% of the taxpayer's actual liability for the month or 11 27.5% of the taxpayer's liability for the same calendar month 12 of the preceding year. If the month during which such tax 13 liability is incurred begins on or after January 1, 1987, and 14 prior to January 1, 1988, each payment shall be in an amount 15 equal to 22.5% of the taxpayer's actual liability for the 16 month or 26.25% of the taxpayer's liability for the same 17 calendar month of the preceding year. If the month during 18 which such tax liability is incurred begins on or after 19 January 1, 1988, and prior to January 1, 1989, or begins on 20 or after January 1, 1996, each payment shall be in an amount 21 equal to 22.5% of the taxpayer's actual liability for the 22 month or 25% of the taxpayer's liability for the same 23 calendar month of the preceding year. If the month during 24 which such tax liability is incurred begins on or after 25 January 1, 1989, and prior to January 1, 1996, each payment 26 shall be in an amount equal to 22.5% of the taxpayer's actual 27 liability for the month or 25% of the taxpayer's liability 28 for the same calendar month of the preceding year or 100% of 29 the taxpayer's actual liability for the quarter monthly 30 reporting period. The amount of such quarter monthly 31 payments shall be credited against the final tax liability of 32 the taxpayer's return for that month. Before October 1, 33 2000, once applicable, the requirement of the making of 34 quarter monthly payments to the Department shall continue SB1854 Enrolled -143- LRB9215370EGfg 1 until such taxpayer's average monthly liability to the 2 Department during the preceding 4 complete calendar quarters 3 (excluding the month of highest liability and the month of 4 lowest liability) is less than $9,000, or until such 5 taxpayer's average monthly liability to the Department as 6 computed for each calendar quarter of the 4 preceding 7 complete calendar quarter period is less than $10,000. 8 However, if a taxpayer can show the Department that a 9 substantial change in the taxpayer's business has occurred 10 which causes the taxpayer to anticipate that his average 11 monthly tax liability for the reasonably foreseeable future 12 will fall below the $10,000 threshold stated above, then such 13 taxpayer may petition the Department for change in such 14 taxpayer's reporting status. On and after October 1, 2000, 15 once applicable, the requirement of the making of quarter 16 monthly payments to the Department shall continue until such 17 taxpayer's average monthly liability to the Department during 18 the preceding 4 complete calendar quarters (excluding the 19 month of highest liability and the month of lowest liability) 20 is less than $19,000 or until such taxpayer's average monthly 21 liability to the Department as computed for each calendar 22 quarter of the 4 preceding complete calendar quarter period 23 is less than $20,000. However, if a taxpayer can show the 24 Department that a substantial change in the taxpayer's 25 business has occurred which causes the taxpayer to anticipate 26 that his average monthly tax liability for the reasonably 27 foreseeable future will fall below the $20,000 threshold 28 stated above, then such taxpayer may petition the Department 29 for a change in such taxpayer's reporting status. The 30 Department shall change such taxpayer's reporting status 31 unless it finds that such change is seasonal in nature and 32 not likely to be long term. If any such quarter monthly 33 payment is not paid at the time or in the amount required by 34 this Section, then the taxpayer shall be liable for penalties SB1854 Enrolled -144- LRB9215370EGfg 1 and interest on the difference between the minimum amount due 2 and the amount of such quarter monthly payment actually and 3 timely paid, except insofar as the taxpayer has previously 4 made payments for that month to the Department in excess of 5 the minimum payments previously due as provided in this 6 Section. The Department shall make reasonable rules and 7 regulations to govern the quarter monthly payment amount and 8 quarter monthly payment dates for taxpayers who file on other 9 than a calendar monthly basis. 10 If any such payment provided for in this Section exceeds 11 the taxpayer's liabilities under this Act, the Retailers' 12 Occupation Tax Act, the Service Occupation Tax Act and the 13 Service Use Tax Act, as shown by an original monthly return, 14 the Department shall issue to the taxpayer a credit 15 memorandum no later than 30 days after the date of payment, 16 which memorandum may be submitted by the taxpayer to the 17 Department in payment of tax liability subsequently to be 18 remitted by the taxpayer to the Department or be assigned by 19 the taxpayer to a similar taxpayer under this Act, the 20 Retailers' Occupation Tax Act, the Service Occupation Tax Act 21 or the Service Use Tax Act, in accordance with reasonable 22 rules and regulations to be prescribed by the Department, 23 except that if such excess payment is shown on an original 24 monthly return and is made after December 31, 1986, no credit 25 memorandum shall be issued, unless requested by the taxpayer. 26 If no such request is made, the taxpayer may credit such 27 excess payment against tax liability subsequently to be 28 remitted by the taxpayer to the Department under this Act, 29 the Retailers' Occupation Tax Act, the Service Occupation Tax 30 Act or the Service Use Tax Act, in accordance with reasonable 31 rules and regulations prescribed by the Department. If the 32 Department subsequently determines that all or any part of 33 the credit taken was not actually due to the taxpayer, the 34 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced SB1854 Enrolled -145- LRB9215370EGfg 1 by 2.1% or 1.75% of the difference between the credit taken 2 and that actually due, and the taxpayer shall be liable for 3 penalties and interest on such difference. 4 If the retailer is otherwise required to file a monthly 5 return and if the retailer's average monthly tax liability to 6 the Department does not exceed $200, the Department may 7 authorize his returns to be filed on a quarter annual basis, 8 with the return for January, February, and March of a given 9 year being due by April 20 of such year; with the return for 10 April, May and June of a given year being due by July 20 of 11 such year; with the return for July, August and September of 12 a given year being due by October 20 of such year, and with 13 the return for October, November and December of a given year 14 being due by January 20 of the following year. 15 If the retailer is otherwise required to file a monthly 16 or quarterly return and if the retailer's average monthly tax 17 liability to the Department does not exceed $50, the 18 Department may authorize his returns to be filed on an annual 19 basis, with the return for a given year being due by January 20 20 of the following year. 21 Such quarter annual and annual returns, as to form and 22 substance, shall be subject to the same requirements as 23 monthly returns. 24 Notwithstanding any other provision in this Act 25 concerning the time within which a retailer may file his 26 return, in the case of any retailer who ceases to engage in a 27 kind of business which makes him responsible for filing 28 returns under this Act, such retailer shall file a final 29 return under this Act with the Department not more than one 30 month after discontinuing such business. 31 In addition, with respect to motor vehicles, watercraft, 32 aircraft, and trailers that are required to be registered 33 with an agency of this State, every retailer selling this 34 kind of tangible personal property shall file, with the SB1854 Enrolled -146- LRB9215370EGfg 1 Department, upon a form to be prescribed and supplied by the 2 Department, a separate return for each such item of tangible 3 personal property which the retailer sells, except that if, 4 in the same transaction, (i) a retailer of aircraft, 5 watercraft, motor vehicles or trailers transfers more than 6 one aircraft, watercraft, motor vehicle or trailer to another 7 aircraft, watercraft, motor vehicle or trailer retailer for 8 the purpose of resale or (ii) a retailer of aircraft, 9 watercraft, motor vehicles, or trailers transfers more than 10 one aircraft, watercraft, motor vehicle, or trailer to a 11 purchaser for use as a qualifying rolling stock as provided 12 in Section 3-55 of this Act, then that seller may report the 13 transfer of all the aircraft, watercraft, motor vehicles or 14 trailers involved in that transaction to the Department on 15 the same uniform invoice-transaction reporting return form. 16 For purposes of this Section, "watercraft" means a Class 2, 17 Class 3, or Class 4 watercraft as defined in Section 3-2 of 18 the Boat Registration and Safety Act, a personal watercraft, 19 or any boat equipped with an inboard motor. 20 The transaction reporting return in the case of motor 21 vehicles or trailers that are required to be registered with 22 an agency of this State, shall be the same document as the 23 Uniform Invoice referred to in Section 5-402 of the Illinois 24 Vehicle Code and must show the name and address of the 25 seller; the name and address of the purchaser; the amount of 26 the selling price including the amount allowed by the 27 retailer for traded-in property, if any; the amount allowed 28 by the retailer for the traded-in tangible personal property, 29 if any, to the extent to which Section 2 of this Act allows 30 an exemption for the value of traded-in property; the balance 31 payable after deducting such trade-in allowance from the 32 total selling price; the amount of tax due from the retailer 33 with respect to such transaction; the amount of tax collected 34 from the purchaser by the retailer on such transaction (or SB1854 Enrolled -147- LRB9215370EGfg 1 satisfactory evidence that such tax is not due in that 2 particular instance, if that is claimed to be the fact); the 3 place and date of the sale; a sufficient identification of 4 the property sold; such other information as is required in 5 Section 5-402 of the Illinois Vehicle Code, and such other 6 information as the Department may reasonably require. 7 The transaction reporting return in the case of 8 watercraft and aircraft must show the name and address of the 9 seller; the name and address of the purchaser; the amount of 10 the selling price including the amount allowed by the 11 retailer for traded-in property, if any; the amount allowed 12 by the retailer for the traded-in tangible personal property, 13 if any, to the extent to which Section 2 of this Act allows 14 an exemption for the value of traded-in property; the balance 15 payable after deducting such trade-in allowance from the 16 total selling price; the amount of tax due from the retailer 17 with respect to such transaction; the amount of tax collected 18 from the purchaser by the retailer on such transaction (or 19 satisfactory evidence that such tax is not due in that 20 particular instance, if that is claimed to be the fact); the 21 place and date of the sale, a sufficient identification of 22 the property sold, and such other information as the 23 Department may reasonably require. 24 Such transaction reporting return shall be filed not 25 later than 20 days after the date of delivery of the item 26 that is being sold, but may be filed by the retailer at any 27 time sooner than that if he chooses to do so. The 28 transaction reporting return and tax remittance or proof of 29 exemption from the tax that is imposed by this Act may be 30 transmitted to the Department by way of the State agency with 31 which, or State officer with whom, the tangible personal 32 property must be titled or registered (if titling or 33 registration is required) if the Department and such agency 34 or State officer determine that this procedure will expedite SB1854 Enrolled -148- LRB9215370EGfg 1 the processing of applications for title or registration. 2 With each such transaction reporting return, the retailer 3 shall remit the proper amount of tax due (or shall submit 4 satisfactory evidence that the sale is not taxable if that is 5 the case), to the Department or its agents, whereupon the 6 Department shall issue, in the purchaser's name, a tax 7 receipt (or a certificate of exemption if the Department is 8 satisfied that the particular sale is tax exempt) which such 9 purchaser may submit to the agency with which, or State 10 officer with whom, he must title or register the tangible 11 personal property that is involved (if titling or 12 registration is required) in support of such purchaser's 13 application for an Illinois certificate or other evidence of 14 title or registration to such tangible personal property. 15 No retailer's failure or refusal to remit tax under this 16 Act precludes a user, who has paid the proper tax to the 17 retailer, from obtaining his certificate of title or other 18 evidence of title or registration (if titling or registration 19 is required) upon satisfying the Department that such user 20 has paid the proper tax (if tax is due) to the retailer. The 21 Department shall adopt appropriate rules to carry out the 22 mandate of this paragraph. 23 If the user who would otherwise pay tax to the retailer 24 wants the transaction reporting return filed and the payment 25 of tax or proof of exemption made to the Department before 26 the retailer is willing to take these actions and such user 27 has not paid the tax to the retailer, such user may certify 28 to the fact of such delay by the retailer, and may (upon the 29 Department being satisfied of the truth of such 30 certification) transmit the information required by the 31 transaction reporting return and the remittance for tax or 32 proof of exemption directly to the Department and obtain his 33 tax receipt or exemption determination, in which event the 34 transaction reporting return and tax remittance (if a tax SB1854 Enrolled -149- LRB9215370EGfg 1 payment was required) shall be credited by the Department to 2 the proper retailer's account with the Department, but 3 without the 2.1% or 1.75% discount provided for in this 4 Section being allowed. When the user pays the tax directly 5 to the Department, he shall pay the tax in the same amount 6 and in the same form in which it would be remitted if the tax 7 had been remitted to the Department by the retailer. 8 Where a retailer collects the tax with respect to the 9 selling price of tangible personal property which he sells 10 and the purchaser thereafter returns such tangible personal 11 property and the retailer refunds the selling price thereof 12 to the purchaser, such retailer shall also refund, to the 13 purchaser, the tax so collected from the purchaser. When 14 filing his return for the period in which he refunds such tax 15 to the purchaser, the retailer may deduct the amount of the 16 tax so refunded by him to the purchaser from any other use 17 tax which such retailer may be required to pay or remit to 18 the Department, as shown by such return, if the amount of the 19 tax to be deducted was previously remitted to the Department 20 by such retailer. If the retailer has not previously 21 remitted the amount of such tax to the Department, he is 22 entitled to no deduction under this Act upon refunding such 23 tax to the purchaser. 24 Any retailer filing a return under this Section shall 25 also include (for the purpose of paying tax thereon) the 26 total tax covered by such return upon the selling price of 27 tangible personal property purchased by him at retail from a 28 retailer, but as to which the tax imposed by this Act was not 29 collected from the retailer filing such return, and such 30 retailer shall remit the amount of such tax to the Department 31 when filing such return. 32 If experience indicates such action to be practicable, 33 the Department may prescribe and furnish a combination or 34 joint return which will enable retailers, who are required to SB1854 Enrolled -150- LRB9215370EGfg 1 file returns hereunder and also under the Retailers' 2 Occupation Tax Act, to furnish all the return information 3 required by both Acts on the one form. 4 Where the retailer has more than one business registered 5 with the Department under separate registration under this 6 Act, such retailer may not file each return that is due as a 7 single return covering all such registered businesses, but 8 shall file separate returns for each such registered 9 business. 10 Beginning January 1, 1990, each month the Department 11 shall pay into the State and Local Sales Tax Reform Fund, a 12 special fund in the State Treasury which is hereby created, 13 the net revenue realized for the preceding month from the 1% 14 tax on sales of food for human consumption which is to be 15 consumed off the premises where it is sold (other than 16 alcoholic beverages, soft drinks and food which has been 17 prepared for immediate consumption) and prescription and 18 nonprescription medicines, drugs, medical appliances and 19 insulin, urine testing materials, syringes and needles used 20 by diabetics. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the County and Mass Transit District Fund 4% 23 of the net revenue realized for the preceding month from the 24 6.25% general rate on the selling price of tangible personal 25 property which is purchased outside Illinois at retail from a 26 retailer and which is titled or registered by an agency of 27 this State's government. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the State and Local Sales Tax Reform Fund, a 30 special fund in the State Treasury, 20% of the net revenue 31 realized for the preceding month from the 6.25% general rate 32 on the selling price of tangible personal property, other 33 than tangible personal property which is purchased outside 34 Illinois at retail from a retailer and which is titled or SB1854 Enrolled -151- LRB9215370EGfg 1 registered by an agency of this State's government. 2 Beginning August 1, 2000, each month the Department shall 3 pay into the State and Local Sales Tax Reform Fund 100% of 4 the net revenue realized for the preceding month from the 5 1.25% rate on the selling price of motor fuel and gasohol. 6 Beginning January 1, 1990, each month the Department 7 shall pay into the Local Government Tax Fund 16% of the net 8 revenue realized for the preceding month from the 6.25% 9 general rate on the selling price of tangible personal 10 property which is purchased outside Illinois at retail from a 11 retailer and which is titled or registered by an agency of 12 this State's government. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into SB1854 Enrolled -152- LRB9215370EGfg 1 the Build Illinois Bond Account in the Build Illinois Fund 2 during such month and (2) the amount transferred during such 3 month to the Build Illinois Fund from the State and Local 4 Sales Tax Reform Fund shall have been less than 1/12 of the 5 Annual Specified Amount, an amount equal to the difference 6 shall be immediately paid into the Build Illinois Fund from 7 other moneys received by the Department pursuant to the Tax 8 Acts; and, further provided, that in no event shall the 9 payments required under the preceding proviso result in 10 aggregate payments into the Build Illinois Fund pursuant to 11 this clause (b) for any fiscal year in excess of the greater 12 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 13 for such fiscal year; and, further provided, that the amounts 14 payable into the Build Illinois Fund under this clause (b) 15 shall be payable only until such time as the aggregate amount 16 on deposit under each trust indenture securing Bonds issued 17 and outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois SB1854 Enrolled -153- LRB9215370EGfg 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 93,000,000 SB1854 Enrolled -154- LRB9215370EGfg 1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 246,000,000 20 2022 260,000,000 21 2023 and 275,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority 28 Act, but not after fiscal year 2042. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB1854 Enrolled -155- LRB9215370EGfg 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund .4% of the net revenue 13 realized for the preceding month from the 5% general rate, or 14 .4% of 80% of the net revenue realized for the preceding 15 month from the 6.25% general rate, as the case may be, on the 16 selling price of tangible personal property which amount 17 shall, subject to appropriation, be distributed as provided 18 in Section 2 of the State Revenue Sharing Act. No payments or 19 distributions pursuant to this paragraph shall be made if the 20 tax imposed by this Act on photoprocessing products is 21 declared unconstitutional, or if the proceeds from such tax 22 are unavailable for distribution because of litigation. 23 Subject to payment of amounts into the Build Illinois 24 Fund, the McCormick Place Expansion Project Fund, and the 25 Local Government Distributive Fund pursuant to the preceding 26 paragraphs or in any amendments thereto hereafter enacted, 27 beginning July 1, 1993, the Department shall each month pay 28 into the Illinois Tax Increment Fund 0.27% of 80% of the net 29 revenue realized for the preceding month from the 6.25% 30 general rate on the selling price of tangible personal 31 property. 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 SB1854 Enrolled -156- LRB9215370EGfg 1 paragraphs or in any amendments thereto hereafter enacted, 2 beginning with the receipt of the first report of taxes paid 3 by an eligible business and continuing for a 25-year period, 4 the Department shall each month pay into the Energy 5 Infrastructure Fund 80% of the net revenue realized from the 6 6.25% general rate on the selling price of Illinois-mined 7 coal that was sold to an eligible business. For purposes of 8 this paragraph, the term "eligible business" means a new 9 electric generating facility certified pursuant to Section 10 605-332 of the Department of Commerce and Community Affairs 11 Law of the Civil Administrative Code of Illinois. 12 Of the remainder of the moneys received by the Department 13 pursuant to this Act, 75% thereof shall be paid into the 14 State Treasury and 25% shall be reserved in a special account 15 and used only for the transfer to the Common School Fund as 16 part of the monthly transfer from the General Revenue Fund in 17 accordance with Section 8a of the State Finance Act. 18 As soon as possible after the first day of each month, 19 upon certification of the Department of Revenue, the 20 Comptroller shall order transferred and the Treasurer shall 21 transfer from the General Revenue Fund to the Motor Fuel Tax 22 Fund an amount equal to 1.7% of 80% of the net revenue 23 realized under this Act for the second preceding month. 24 Beginning April 1, 2000, this transfer is no longer required 25 and shall not be made. 26 Net revenue realized for a month shall be the revenue 27 collected by the State pursuant to this Act, less the amount 28 paid out during that month as refunds to taxpayers for 29 overpayment of liability. 30 For greater simplicity of administration, manufacturers, 31 importers and wholesalers whose products are sold at retail 32 in Illinois by numerous retailers, and who wish to do so, may 33 assume the responsibility for accounting and paying to the 34 Department all tax accruing under this Act with respect to SB1854 Enrolled -157- LRB9215370EGfg 1 such sales, if the retailers who are affected do not make 2 written objection to the Department to this arrangement. 3 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 4 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 5 7-1-00; 91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff. 6 6-28-01; 92-208, eff. 8-2-01; 92-492, eff. 1-1-02; revised 7 9-14-01.) 8 Section 26. The Service Use Tax Act is amended by 9 changing Sections 3-5 and 9 as follows: 10 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5) 11 Sec. 3-5. Exemptions. Use of the following tangible 12 personal property is exempt from the tax imposed by this Act: 13 (1) Personal property purchased from a corporation, 14 society, association, foundation, institution, or 15 organization, other than a limited liability company, that is 16 organized and operated as a not-for-profit service enterprise 17 for the benefit of persons 65 years of age or older if the 18 personal property was not purchased by the enterprise for the 19 purpose of resale by the enterprise. 20 (2) Personal property purchased by a non-profit Illinois 21 county fair association for use in conducting, operating, or 22 promoting the county fair. 23 (3) Personal property purchased by a not-for-profit arts 24 or cultural organization that establishes, by proof required 25 by the Department by rule, that it has received an exemption 26 under Section 501(c)(3) of the Internal Revenue Code and that 27 is organized and operated primarily for the presentation or 28 support of arts or cultural programming, activities, or 29 services. These organizations include, but are not limited 30 to, music and dramatic arts organizations such as symphony 31 orchestras and theatrical groups, arts and cultural service 32 organizations, local arts councils, visual arts SB1854 Enrolled -158- LRB9215370EGfg 1 organizations, and media arts organizations. On and after the 2 effective date of this amendatory Act of the 92nd General 3 Assembly, however, an entity otherwise eligible for this 4 exemption shall not make tax-free purchases unless it has an 5 active identification number issued by the Department. 6 (4) Legal tender, currency, medallions, or gold or 7 silver coinage issued by the State of Illinois, the 8 government of the United States of America, or the government 9 of any foreign country, and bullion. 10 (5) Graphic arts machinery and equipment, including 11 repair and replacement parts, both new and used, and 12 including that manufactured on special order or purchased for 13 lease, certified by the purchaser to be used primarily for 14 graphic arts production. Equipment includes chemicals or 15 chemicals acting as catalysts but only if the chemicals or 16 chemicals acting as catalysts effect a direct and immediate 17 change upon a graphic arts product. 18 (6) Personal property purchased from a teacher-sponsored 19 student organization affiliated with an elementary or 20 secondary school located in Illinois. 21 (7) Farm machinery and equipment, both new and used, 22 including that manufactured on special order, certified by 23 the purchaser to be used primarily for production agriculture 24 or State or federal agricultural programs, including 25 individual replacement parts for the machinery and equipment, 26 including machinery and equipment purchased for lease, and 27 including implements of husbandry defined in Section 1-130 of 28 the Illinois Vehicle Code, farm machinery and agricultural 29 chemical and fertilizer spreaders, and nurse wagons required 30 to be registered under Section 3-809 of the Illinois Vehicle 31 Code, but excluding other motor vehicles required to be 32 registered under the Illinois Vehicle Code. Horticultural 33 polyhouses or hoop houses used for propagating, growing, or 34 overwintering plants shall be considered farm machinery and SB1854 Enrolled -159- LRB9215370EGfg 1 equipment under this item (7). Agricultural chemical tender 2 tanks and dry boxes shall include units sold separately from 3 a motor vehicle required to be licensed and units sold 4 mounted on a motor vehicle required to be licensed if the 5 selling price of the tender is separately stated. 6 Farm machinery and equipment shall include precision 7 farming equipment that is installed or purchased to be 8 installed on farm machinery and equipment including, but not 9 limited to, tractors, harvesters, sprayers, planters, 10 seeders, or spreaders. Precision farming equipment includes, 11 but is not limited to, soil testing sensors, computers, 12 monitors, software, global positioning and mapping systems, 13 and other such equipment. 14 Farm machinery and equipment also includes computers, 15 sensors, software, and related equipment used primarily in 16 the computer-assisted operation of production agriculture 17 facilities, equipment, and activities such as, but not 18 limited to, the collection, monitoring, and correlation of 19 animal and crop data for the purpose of formulating animal 20 diets and agricultural chemicals. This item (7) is exempt 21 from the provisions of Section 3-75. 22 (8) Fuel and petroleum products sold to or used by an 23 air common carrier, certified by the carrier to be used for 24 consumption, shipment, or storage in the conduct of its 25 business as an air common carrier, for a flight destined for 26 or returning from a location or locations outside the United 27 States without regard to previous or subsequent domestic 28 stopovers. 29 (9) Proceeds of mandatory service charges separately 30 stated on customers' bills for the purchase and consumption 31 of food and beverages acquired as an incident to the purchase 32 of a service from a serviceman, to the extent that the 33 proceeds of the service charge are in fact turned over as 34 tips or as a substitute for tips to the employees who SB1854 Enrolled -160- LRB9215370EGfg 1 participate directly in preparing, serving, hosting or 2 cleaning up the food or beverage function with respect to 3 which the service charge is imposed. 4 (10) Oil field exploration, drilling, and production 5 equipment, including (i) rigs and parts of rigs, rotary rigs, 6 cable tool rigs, and workover rigs, (ii) pipe and tubular 7 goods, including casing and drill strings, (iii) pumps and 8 pump-jack units, (iv) storage tanks and flow lines, (v) any 9 individual replacement part for oil field exploration, 10 drilling, and production equipment, and (vi) machinery and 11 equipment purchased for lease; but excluding motor vehicles 12 required to be registered under the Illinois Vehicle Code. 13 (11) Proceeds from the sale of photoprocessing machinery 14 and equipment, including repair and replacement parts, both 15 new and used, including that manufactured on special order, 16 certified by the purchaser to be used primarily for 17 photoprocessing, and including photoprocessing machinery and 18 equipment purchased for lease. 19 (12) Coal exploration, mining, offhighway hauling, 20 processing, maintenance, and reclamation equipment, including 21 replacement parts and equipment, and including equipment 22 purchased for lease, but excluding motor vehicles required to 23 be registered under the Illinois Vehicle Code. 24 (13) Semen used for artificial insemination of livestock 25 for direct agricultural production. 26 (14) Horses, or interests in horses, registered with and 27 meeting the requirements of any of the Arabian Horse Club 28 Registry of America, Appaloosa Horse Club, American Quarter 29 Horse Association, United States Trotting Association, or 30 Jockey Club, as appropriate, used for purposes of breeding or 31 racing for prizes. 32 (15) Computers and communications equipment utilized for 33 any hospital purpose and equipment used in the diagnosis, 34 analysis, or treatment of hospital patients purchased by a SB1854 Enrolled -161- LRB9215370EGfg 1 lessor who leases the equipment, under a lease of one year or 2 longer executed or in effect at the time the lessor would 3 otherwise be subject to the tax imposed by this Act, to a 4 hospital that has been issued an active tax exemption 5 identification number by the Department under Section 1g of 6 the Retailers' Occupation Tax Act. If the equipment is leased 7 in a manner that does not qualify for this exemption or is 8 used in any other non-exempt manner, the lessor shall be 9 liable for the tax imposed under this Act or the Use Tax Act, 10 as the case may be, based on the fair market value of the 11 property at the time the non-qualifying use occurs. No 12 lessor shall collect or attempt to collect an amount (however 13 designated) that purports to reimburse that lessor for the 14 tax imposed by this Act or the Use Tax Act, as the case may 15 be, if the tax has not been paid by the lessor. If a lessor 16 improperly collects any such amount from the lessee, the 17 lessee shall have a legal right to claim a refund of that 18 amount from the lessor. If, however, that amount is not 19 refunded to the lessee for any reason, the lessor is liable 20 to pay that amount to the Department. 21 (16) Personal property purchased by a lessor who leases 22 the property, under a lease of one year or longer executed or 23 in effect at the time the lessor would otherwise be subject 24 to the tax imposed by this Act, to a governmental body that 25 has been issued an active tax exemption identification number 26 by the Department under Section 1g of the Retailers' 27 Occupation Tax Act. If the property is leased in a manner 28 that does not qualify for this exemption or is used in any 29 other non-exempt manner, the lessor shall be liable for the 30 tax imposed under this Act or the Use Tax Act, as the case 31 may be, based on the fair market value of the property at the 32 time the non-qualifying use occurs. No lessor shall collect 33 or attempt to collect an amount (however designated) that 34 purports to reimburse that lessor for the tax imposed by this SB1854 Enrolled -162- LRB9215370EGfg 1 Act or the Use Tax Act, as the case may be, if the tax has 2 not been paid by the lessor. If a lessor improperly collects 3 any such amount from the lessee, the lessee shall have a 4 legal right to claim a refund of that amount from the lessor. 5 If, however, that amount is not refunded to the lessee for 6 any reason, the lessor is liable to pay that amount to the 7 Department. 8 (17) Beginning with taxable years ending on or after 9 December 31, 1995 and ending with taxable years ending on or 10 before December 31, 2004, personal property that is donated 11 for disaster relief to be used in a State or federally 12 declared disaster area in Illinois or bordering Illinois by a 13 manufacturer or retailer that is registered in this State to 14 a corporation, society, association, foundation, or 15 institution that has been issued a sales tax exemption 16 identification number by the Department that assists victims 17 of the disaster who reside within the declared disaster area. 18 (18) Beginning with taxable years ending on or after 19 December 31, 1995 and ending with taxable years ending on or 20 before December 31, 2004, personal property that is used in 21 the performance of infrastructure repairs in this State, 22 including but not limited to municipal roads and streets, 23 access roads, bridges, sidewalks, waste disposal systems, 24 water and sewer line extensions, water distribution and 25 purification facilities, storm water drainage and retention 26 facilities, and sewage treatment facilities, resulting from a 27 State or federally declared disaster in Illinois or bordering 28 Illinois when such repairs are initiated on facilities 29 located in the declared disaster area within 6 months after 30 the disaster. 31 (19) Beginning July 1, 1999, game or game birds 32 purchased at a "game breeding and hunting preserve area" or 33 an "exotic game hunting area" as those terms are used in the 34 Wildlife Code or at a hunting enclosure approved through SB1854 Enrolled -163- LRB9215370EGfg 1 rules adopted by the Department of Natural Resources. This 2 paragraph is exempt from the provisions of Section 3-75. 3 (20) A motor vehicle, as that term is defined in Section 4 1-146 of the Illinois Vehicle Code, that is donated to a 5 corporation, limited liability company, society, association, 6 foundation, or institution that is determined by the 7 Department to be organized and operated exclusively for 8 educational purposes. For purposes of this exemption, "a 9 corporation, limited liability company, society, association, 10 foundation, or institution organized and operated exclusively 11 for educational purposes" means all tax-supported public 12 schools, private schools that offer systematic instruction in 13 useful branches of learning by methods common to public 14 schools and that compare favorably in their scope and 15 intensity with the course of study presented in tax-supported 16 schools, and vocational or technical schools or institutes 17 organized and operated exclusively to provide a course of 18 study of not less than 6 weeks duration and designed to 19 prepare individuals to follow a trade or to pursue a manual, 20 technical, mechanical, industrial, business, or commercial 21 occupation. 22 (21) Beginning January 1, 2000, personal property, 23 including food, purchased through fundraising events for the 24 benefit of a public or private elementary or secondary 25 school, a group of those schools, or one or more school 26 districts if the events are sponsored by an entity recognized 27 by the school district that consists primarily of volunteers 28 and includes parents and teachers of the school children. 29 This paragraph does not apply to fundraising events (i) for 30 the benefit of private home instruction or (ii) for which the 31 fundraising entity purchases the personal property sold at 32 the events from another individual or entity that sold the 33 property for the purpose of resale by the fundraising entity 34 and that profits from the sale to the fundraising entity. SB1854 Enrolled -164- LRB9215370EGfg 1 This paragraph is exempt from the provisions of Section 3-75. 2 (22) Beginning January 1, 2000 and through December 31, 3 2001, new or used automatic vending machines that prepare and 4 serve hot food and beverages, including coffee, soup, and 5 other items, and replacement parts for these machines. 6 Beginning January 1, 2002, machines and parts for machines 7 used in commercial, coin-operated amusement and vending 8 business if a use or occupation tax is paid on the gross 9 receipts derived from the use of the commercial, 10 coin-operated amusement and vending machines. This paragraph 11 is exempt from the provisions of Section 3-75. 12 (23) Food for human consumption that is to be consumed 13 off the premises where it is sold (other than alcoholic 14 beverages, soft drinks, and food that has been prepared for 15 immediate consumption) and prescription and nonprescription 16 medicines, drugs, medical appliances, and insulin, urine 17 testing materials, syringes, and needles used by diabetics, 18 for human use, when purchased for use by a person receiving 19 medical assistance under Article 5 of the Illinois Public Aid 20 Code who resides in a licensed long-term care facility, as 21 defined in the Nursing Home Care Act. 22 (24)(23)Beginning on the effective date of this 23 amendatory Act of the 92nd General Assembly, computers and 24 communications equipment utilized for any hospital purpose 25 and equipment used in the diagnosis, analysis, or treatment 26 of hospital patients purchased by a lessor who leases the 27 equipment, under a lease of one year or longer executed or in 28 effect at the time the lessor would otherwise be subject to 29 the tax imposed by this Act, to a hospital that has been 30 issued an active tax exemption identification number by the 31 Department under Section 1g of the Retailers' Occupation Tax 32 Act. If the equipment is leased in a manner that does not 33 qualify for this exemption or is used in any other nonexempt 34 manner, the lessor shall be liable for the tax imposed under SB1854 Enrolled -165- LRB9215370EGfg 1 this Act or the Use Tax Act, as the case may be, based on the 2 fair market value of the property at the time the 3 nonqualifying use occurs. No lessor shall collect or attempt 4 to collect an amount (however designated) that purports to 5 reimburse that lessor for the tax imposed by this Act or the 6 Use Tax Act, as the case may be, if the tax has not been paid 7 by the lessor. If a lessor improperly collects any such 8 amount from the lessee, the lessee shall have a legal right 9 to claim a refund of that amount from the lessor. If, 10 however, that amount is not refunded to the lessee for any 11 reason, the lessor is liable to pay that amount to the 12 Department. This paragraph is exempt from the provisions of 13 Section 3-75. 14 (25)(24)Beginning on the effective date of this 15 amendatory Act of the 92nd General Assembly, personal 16 property purchased by a lessor who leases the property, under 17 a lease of one year or longer executed or in effect at the 18 time the lessor would otherwise be subject to the tax imposed 19 by this Act, to a governmental body that has been issued an 20 active tax exemption identification number by the Department 21 under Section 1g of the Retailers' Occupation Tax Act. If 22 the property is leased in a manner that does not qualify for 23 this exemption or is used in any other nonexempt manner, the 24 lessor shall be liable for the tax imposed under this Act or 25 the Use Tax Act, as the case may be, based on the fair market 26 value of the property at the time the nonqualifying use 27 occurs. No lessor shall collect or attempt to collect an 28 amount (however designated) that purports to reimburse that 29 lessor for the tax imposed by this Act or the Use Tax Act, as 30 the case may be, if the tax has not been paid by the lessor. 31 If a lessor improperly collects any such amount from the 32 lessee, the lessee shall have a legal right to claim a refund 33 of that amount from the lessor. If, however, that amount is 34 not refunded to the lessee for any reason, the lessor is SB1854 Enrolled -166- LRB9215370EGfg 1 liable to pay that amount to the Department. This paragraph 2 is exempt from the provisions of Section 3-75. 3 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 4 91-439, eff. 8-6-99; 91-637, eff. 8-20-99; 91-644, eff. 5 8-20-99; 92-16, eff. 6-28-01; 92-35, eff. 7-1-01; 92-227, 6 eff. 8-2-01; 92-337, eff. 8-10-01; 92-484, eff. 8-23-01; 7 revised 10-10-01.) 8 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 9 Sec. 9. Each serviceman required or authorized to 10 collect the tax herein imposed shall pay to the Department 11 the amount of such tax (except as otherwise provided) at the 12 time when he is required to file his return for the period 13 during which such tax was collected, less a discount of 2.1% 14 prior to January 1, 1990 and 1.75% on and after January 1, 15 1990, or $5 per calendar year, whichever is greater, which is 16 allowed to reimburse the serviceman for expenses incurred in 17 collecting the tax, keeping records, preparing and filing 18 returns, remitting the tax and supplying data to the 19 Department on request. A serviceman need not remit that part 20 of any tax collected by him to the extent that he is required 21 to pay and does pay the tax imposed by the Service Occupation 22 Tax Act with respect to his sale of service involving the 23 incidental transfer by him of the same property. 24 Except as provided hereinafter in this Section, on or 25 before the twentieth day of each calendar month, such 26 serviceman shall file a return for the preceding calendar 27 month in accordance with reasonable Rules and Regulations to 28 be promulgated by the Department. Such return shall be filed 29 on a form prescribed by the Department and shall contain such 30 information as the Department may reasonably require. 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 SB1854 Enrolled -167- LRB9215370EGfg 1 calendar month following the end of such calendar quarter. 2 The taxpayer shall also file a return with the Department for 3 each of the first two months of each calendar quarter, on or 4 before the twentieth day of the following calendar month, 5 stating: 6 1. The name of the seller; 7 2. The address of the principal place of business 8 from which he engages in business as a serviceman in this 9 State; 10 3. The total amount of taxable receipts received by 11 him during the preceding calendar month, including 12 receipts from charge and time sales, but less all 13 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; 17 5-5. The signature of the taxpayer; and 18 6. Such other reasonable information as the 19 Department may require. 20 If a taxpayer fails to sign a return within 30 days after 21 the proper notice and demand for signature by the Department, 22 the return shall be considered valid and any amount shown to 23 be due on the return shall be deemed assessed. 24 Beginning October 1, 1993, a taxpayer who has an average 25 monthly tax liability of $150,000 or more shall make all 26 payments required by rules of the Department by electronic 27 funds transfer. Beginning October 1, 1994, a taxpayer who 28 has an average monthly tax liability of $100,000 or more 29 shall make all payments required by rules of the Department 30 by electronic funds transfer. Beginning October 1, 1995, a 31 taxpayer who has an average monthly tax liability of $50,000 32 or more shall make all payments required by rules of the 33 Department by electronic funds transfer. Beginning October 1, 34 2000, a taxpayer who has an annual tax liability of $200,000 SB1854 Enrolled -168- LRB9215370EGfg 1 or more shall make all payments required by rules of the 2 Department by electronic funds transfer. The term "annual 3 tax liability" shall be the sum of the taxpayer's liabilities 4 under this Act, and under all other State and local 5 occupation and use tax laws administered by the Department, 6 for the immediately preceding calendar year. The term 7 "average monthly tax liability" means the sum of the 8 taxpayer's liabilities under this Act, and under all other 9 State and local occupation and use tax laws administered by 10 the Department, for the immediately preceding calendar year 11 divided by 12. Beginning on October 1, 2002, a taxpayer who 12 has a tax liability in the amount set forth in subsection (b) 13 of Section 2505-210 of the Department of Revenue Law shall 14 make all payments required by rules of the Department by 15 electronic funds transfer. 16 Before August 1 of each year beginning in 1993, the 17 Department shall notify all taxpayers required to make 18 payments by electronic funds transfer. All taxpayers required 19 to make payments by electronic funds transfer shall make 20 those payments for a minimum of one year beginning on October 21 1. 22 Any taxpayer not required to make payments by electronic 23 funds transfer may make payments by electronic funds transfer 24 with the permission of the Department. 25 All taxpayers required to make payment by electronic 26 funds transfer and any taxpayers authorized to voluntarily 27 make payments by electronic funds transfer shall make those 28 payments in the manner authorized by the Department. 29 The Department shall adopt such rules as are necessary to 30 effectuate a program of electronic funds transfer and the 31 requirements of this Section. 32 If the serviceman is otherwise required to file a monthly 33 return and if the serviceman's average monthly tax liability 34 to the Department does not exceed $200, the Department may SB1854 Enrolled -169- LRB9215370EGfg 1 authorize his returns to be filed on a quarter annual basis, 2 with the return for January, February and March of a given 3 year being due by April 20 of such year; with the return for 4 April, May and June of a given year being due by July 20 of 5 such year; with the return for July, August and September of 6 a given year being due by October 20 of such year, and with 7 the return for October, November and December of a given year 8 being due by January 20 of the following year. 9 If the serviceman is otherwise required to file a monthly 10 or quarterly return and if the serviceman's average monthly 11 tax liability to the Department does not exceed $50, the 12 Department may authorize his returns to be filed on an annual 13 basis, with the return for a given year being due by January 14 20 of the following year. 15 Such quarter annual and annual returns, as to form and 16 substance, shall be subject to the same requirements as 17 monthly returns. 18 Notwithstanding any other provision in this Act 19 concerning the time within which a serviceman may file his 20 return, in the case of any serviceman who ceases to engage in 21 a kind of business which makes him responsible for filing 22 returns under this Act, such serviceman shall file a final 23 return under this Act with the Department not more than 1 24 month after discontinuing such business. 25 Where a serviceman collects the tax with respect to the 26 selling price of property which he sells and the purchaser 27 thereafter returns such property and the serviceman refunds 28 the selling price thereof to the purchaser, such serviceman 29 shall also refund, to the purchaser, the tax so collected 30 from the purchaser. When filing his return for the period in 31 which he refunds such tax to the purchaser, the serviceman 32 may deduct the amount of the tax so refunded by him to the 33 purchaser from any other Service Use Tax, Service Occupation 34 Tax, retailers' occupation tax or use tax which such SB1854 Enrolled -170- LRB9215370EGfg 1 serviceman may be required to pay or remit to the Department, 2 as shown by such return, provided that the amount of the tax 3 to be deducted shall previously have been remitted to the 4 Department by such serviceman. If the serviceman shall not 5 previously have remitted the amount of such tax to the 6 Department, he shall be entitled to no deduction hereunder 7 upon refunding such tax to the purchaser. 8 Any serviceman filing a return hereunder shall also 9 include the total tax upon the selling price of tangible 10 personal property purchased for use by him as an incident to 11 a sale of service, and such serviceman shall remit the amount 12 of such tax to the Department when filing such return. 13 If experience indicates such action to be practicable, 14 the Department may prescribe and furnish a combination or 15 joint return which will enable servicemen, who are required 16 to file returns hereunder and also under the Service 17 Occupation Tax Act, to furnish all the return information 18 required by both Acts on the one form. 19 Where the serviceman has more than one business 20 registered with the Department under separate registration 21 hereunder, such serviceman shall not file each return that is 22 due as a single return covering all such registered 23 businesses, but shall file separate returns for each such 24 registered business. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Tax Reform Fund, a special 27 fund in the State Treasury, the net revenue realized for the 28 preceding month from the 1% tax on sales of food for human 29 consumption which is to be consumed off the premises where it 30 is sold (other than alcoholic beverages, soft drinks and food 31 which has been prepared for immediate consumption) and 32 prescription and nonprescription medicines, drugs, medical 33 appliances and insulin, urine testing materials, syringes and 34 needles used by diabetics. SB1854 Enrolled -171- LRB9215370EGfg 1 Beginning January 1, 1990, each month the Department 2 shall pay into the State and Local Sales Tax Reform Fund 20% 3 of the net revenue realized for the preceding month from the 4 6.25% general rate on transfers of tangible personal 5 property, other than tangible personal property which is 6 purchased outside Illinois at retail from a retailer and 7 which is titled or registered by an agency of this State's 8 government. 9 Beginning August 1, 2000, each month the Department shall 10 pay into the State and Local Sales Tax Reform Fund 100% of 11 the net revenue realized for the preceding month from the 12 1.25% rate on the selling price of motor fuel and gasohol. 13 Of the remainder of the moneys received by the Department 14 pursuant to this Act, (a) 1.75% thereof shall be paid into 15 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 16 and on and after July 1, 1989, 3.8% thereof shall be paid 17 into the Build Illinois Fund; provided, however, that if in 18 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 19 as the case may be, of the moneys received by the Department 20 and required to be paid into the Build Illinois Fund pursuant 21 to Section 3 of the Retailers' Occupation Tax Act, Section 9 22 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 23 Section 9 of the Service Occupation Tax Act, such Acts being 24 hereinafter called the "Tax Acts" and such aggregate of 2.2% 25 or 3.8%, as the case may be, of moneys being hereinafter 26 called the "Tax Act Amount", and (2) the amount transferred 27 to the Build Illinois Fund from the State and Local Sales Tax 28 Reform Fund shall be less than the Annual Specified Amount 29 (as defined in Section 3 of the Retailers' Occupation Tax 30 Act), an amount equal to the difference shall be immediately 31 paid into the Build Illinois Fund from other moneys received 32 by the Department pursuant to the Tax Acts; and further 33 provided, that if on the last business day of any month the 34 sum of (1) the Tax Act Amount required to be deposited into SB1854 Enrolled -172- LRB9215370EGfg 1 the Build Illinois Bond Account in the Build Illinois Fund 2 during such month and (2) the amount transferred during such 3 month to the Build Illinois Fund from the State and Local 4 Sales Tax Reform Fund shall have been less than 1/12 of the 5 Annual Specified Amount, an amount equal to the difference 6 shall be immediately paid into the Build Illinois Fund from 7 other moneys received by the Department pursuant to the Tax 8 Acts; and, further provided, that in no event shall the 9 payments required under the preceding proviso result in 10 aggregate payments into the Build Illinois Fund pursuant to 11 this clause (b) for any fiscal year in excess of the greater 12 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 13 for such fiscal year; and, further provided, that the amounts 14 payable into the Build Illinois Fund under this clause (b) 15 shall be payable only until such time as the aggregate amount 16 on deposit under each trust indenture securing Bonds issued 17 and outstanding pursuant to the Build Illinois Bond Act is 18 sufficient, taking into account any future investment income, 19 to fully provide, in accordance with such indenture, for the 20 defeasance of or the payment of the principal of, premium, if 21 any, and interest on the Bonds secured by such indenture and 22 on any Bonds expected to be issued thereafter and all fees 23 and costs payable with respect thereto, all as certified by 24 the Director of the Bureau of the Budget. If on the last 25 business day of any month in which Bonds are outstanding 26 pursuant to the Build Illinois Bond Act, the aggregate of the 27 moneys deposited in the Build Illinois Bond Account in the 28 Build Illinois Fund in such month shall be less than the 29 amount required to be transferred in such month from the 30 Build Illinois Bond Account to the Build Illinois Bond 31 Retirement and Interest Fund pursuant to Section 13 of the 32 Build Illinois Bond Act, an amount equal to such deficiency 33 shall be immediately paid from other moneys received by the 34 Department pursuant to the Tax Acts to the Build Illinois SB1854 Enrolled -173- LRB9215370EGfg 1 Fund; provided, however, that any amounts paid to the Build 2 Illinois Fund in any fiscal year pursuant to this sentence 3 shall be deemed to constitute payments pursuant to clause (b) 4 of the preceding sentence and shall reduce the amount 5 otherwise payable for such fiscal year pursuant to clause (b) 6 of the preceding sentence. The moneys received by the 7 Department pursuant to this Act and required to be deposited 8 into the Build Illinois Fund are subject to the pledge, claim 9 and charge set forth in Section 12 of the Build Illinois Bond 10 Act. 11 Subject to payment of amounts into the Build Illinois 12 Fund as provided in the preceding paragraph or in any 13 amendment thereto hereafter enacted, the following specified 14 monthly installment of the amount requested in the 15 certificate of the Chairman of the Metropolitan Pier and 16 Exposition Authority provided under Section 8.25f of the 17 State Finance Act, but not in excess of the sums designated 18 as "Total Deposit", shall be deposited in the aggregate from 19 collections under Section 9 of the Use Tax Act, Section 9 of 20 the Service Use Tax Act, Section 9 of the Service Occupation 21 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 22 into the McCormick Place Expansion Project Fund in the 23 specified fiscal years. 24 Fiscal Year Total Deposit 25 1993 $0 26 1994 53,000,000 27 1995 58,000,000 28 1996 61,000,000 29 1997 64,000,000 30 1998 68,000,000 31 1999 71,000,000 32 2000 75,000,000 33 2001 80,000,000 34 2002 93,000,000 SB1854 Enrolled -174- LRB9215370EGfg 1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 246,000,000 20 2022 260,000,000 21 2023 and 275,000,000 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and 27 Exposition Authority Act, 28 but not after fiscal year 2042. 29 Beginning July 20, 1993 and in each month of each fiscal 30 year thereafter, one-eighth of the amount requested in the 31 certificate of the Chairman of the Metropolitan Pier and 32 Exposition Authority for that fiscal year, less the amount 33 deposited into the McCormick Place Expansion Project Fund by 34 the State Treasurer in the respective month under subsection SB1854 Enrolled -175- LRB9215370EGfg 1 (g) of Section 13 of the Metropolitan Pier and Exposition 2 Authority Act, plus cumulative deficiencies in the deposits 3 required under this Section for previous months and years, 4 shall be deposited into the McCormick Place Expansion Project 5 Fund, until the full amount requested for the fiscal year, 6 but not in excess of the amount specified above as "Total 7 Deposit", has been deposited. 8 Subject to payment of amounts into the Build Illinois 9 Fund and the McCormick Place Expansion Project Fund pursuant 10 to the preceding paragraphs or in any amendment thereto 11 hereafter enacted, each month the Department shall pay into 12 the Local Government Distributive Fund 0.4% of the net 13 revenue realized for the preceding month from the 5% general 14 rate or 0.4% of 80% of the net revenue realized for the 15 preceding month from the 6.25% general rate, as the case may 16 be, on the selling price of tangible personal property which 17 amount shall, subject to appropriation, be distributed as 18 provided in Section 2 of the State Revenue Sharing Act. No 19 payments or distributions pursuant to this paragraph shall be 20 made if the tax imposed by this Act on photo processing 21 products is declared unconstitutional, or if the proceeds 22 from such tax are unavailable for distribution because of 23 litigation. 24 Subject to payment of amounts into the Build Illinois 25 Fund, the McCormick Place Expansion Project Fund, and the 26 Local Government Distributive Fund pursuant to the preceding 27 paragraphs or in any amendments thereto hereafter enacted, 28 beginning July 1, 1993, the Department shall each month pay 29 into the Illinois Tax Increment Fund 0.27% of 80% of the net 30 revenue realized for the preceding month from the 6.25% 31 general rate on the selling price of tangible personal 32 property. 33 Subject to payment of amounts into the Build Illinois 34 Fund, the McCormick Place Expansion Project Fund, and the SB1854 Enrolled -176- LRB9215370EGfg 1 Local Government Distributive Fund pursuant to the preceding 2 paragraphs or in any amendments thereto hereafter enacted, 3 beginning with the receipt of the first report of taxes paid 4 by an eligible business and continuing for a 25-year period, 5 the Department shall each month pay into the Energy 6 Infrastructure Fund 80% of the net revenue realized from the 7 6.25% general rate on the selling price of Illinois-mined 8 coal that was sold to an eligible business. For purposes of 9 this paragraph, the term "eligible business" means a new 10 electric generating facility certified pursuant to Section 11 605-332 of the Department of Commerce and Community Affairs 12 Law of the Civil Administrative Code of Illinois. 13 All remaining moneys received by the Department pursuant 14 to this Act shall be paid into the General Revenue Fund of 15 the State Treasury. 16 As soon as possible after the first day of each month, 17 upon certification of the Department of Revenue, the 18 Comptroller shall order transferred and the Treasurer shall 19 transfer from the General Revenue Fund to the Motor Fuel Tax 20 Fund an amount equal to 1.7% of 80% of the net revenue 21 realized under this Act for the second preceding month. 22 Beginning April 1, 2000, this transfer is no longer required 23 and shall not be made. 24 Net revenue realized for a month shall be the revenue 25 collected by the State pursuant to this Act, less the amount 26 paid out during that month as refunds to taxpayers for 27 overpayment of liability. 28 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 29 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 30 7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff. 31 1-1-02; revised 9-14-01.) 32 Section 27. The Service Occupation Tax Act is amended by 33 changing Sections 3-5 and 9 as follows: SB1854 Enrolled -177- LRB9215370EGfg 1 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5) 2 Sec. 3-5. Exemptions. The following tangible personal 3 property is exempt from the tax imposed by this Act: 4 (1) Personal property sold by a corporation, society, 5 association, foundation, institution, or organization, other 6 than a limited liability company, that is organized and 7 operated as a not-for-profit service enterprise for the 8 benefit of persons 65 years of age or older if the personal 9 property was not purchased by the enterprise for the purpose 10 of resale by the enterprise. 11 (2) Personal property purchased by a not-for-profit 12 Illinois county fair association for use in conducting, 13 operating, or promoting the county fair. 14 (3) Personal property purchased by any not-for-profit 15 arts or cultural organization that establishes, by proof 16 required by the Department by rule, that it has received an 17 exemption under Section 501(c)(3) of the Internal Revenue 18 Code and that is organized and operated primarily for the 19 presentation or support of arts or cultural programming, 20 activities, or services. These organizations include, but 21 are not limited to, music and dramatic arts organizations 22 such as symphony orchestras and theatrical groups, arts and 23 cultural service organizations, local arts councils, visual 24 arts organizations, and media arts organizations. On and 25 after the effective date of this amendatory Act of the 92nd 26 General Assembly, however, an entity otherwise eligible for 27 this exemption shall not make tax-free purchases unless it 28 has an active identification number issued by the Department. 29 (4) Legal tender, currency, medallions, or gold or 30 silver coinage issued by the State of Illinois, the 31 government of the United States of America, or the government 32 of any foreign country, and bullion. 33 (5) Graphic arts machinery and equipment, including 34 repair and replacement parts, both new and used, and SB1854 Enrolled -178- LRB9215370EGfg 1 including that manufactured on special order or purchased for 2 lease, certified by the purchaser to be used primarily for 3 graphic arts production. Equipment includes chemicals or 4 chemicals acting as catalysts but only if the chemicals or 5 chemicals acting as catalysts effect a direct and immediate 6 change upon a graphic arts product. 7 (6) Personal property sold by a teacher-sponsored 8 student organization affiliated with an elementary or 9 secondary school located in Illinois. 10 (7) Farm machinery and equipment, both new and used, 11 including that manufactured on special order, certified by 12 the purchaser to be used primarily for production agriculture 13 or State or federal agricultural programs, including 14 individual replacement parts for the machinery and equipment, 15 including machinery and equipment purchased for lease, and 16 including implements of husbandry defined in Section 1-130 of 17 the Illinois Vehicle Code, farm machinery and agricultural 18 chemical and fertilizer spreaders, and nurse wagons required 19 to be registered under Section 3-809 of the Illinois Vehicle 20 Code, but excluding other motor vehicles required to be 21 registered under the Illinois Vehicle Code. Horticultural 22 polyhouses or hoop houses used for propagating, growing, or 23 overwintering plants shall be considered farm machinery and 24 equipment under this item (7). Agricultural chemical tender 25 tanks and dry boxes shall include units sold separately from 26 a motor vehicle required to be licensed and units sold 27 mounted on a motor vehicle required to be licensed if the 28 selling price of the tender is separately stated. 29 Farm machinery and equipment shall include precision 30 farming equipment that is installed or purchased to be 31 installed on farm machinery and equipment including, but not 32 limited to, tractors, harvesters, sprayers, planters, 33 seeders, or spreaders. Precision farming equipment includes, 34 but is not limited to, soil testing sensors, computers, SB1854 Enrolled -179- LRB9215370EGfg 1 monitors, software, global positioning and mapping systems, 2 and other such equipment. 3 Farm machinery and equipment also includes computers, 4 sensors, software, and related equipment used primarily in 5 the computer-assisted operation of production agriculture 6 facilities, equipment, and activities such as, but not 7 limited to, the collection, monitoring, and correlation of 8 animal and crop data for the purpose of formulating animal 9 diets and agricultural chemicals. This item (7) is exempt 10 from the provisions of Section 3-55. 11 (8) Fuel and petroleum products sold to or used by an 12 air common carrier, certified by the carrier to be used for 13 consumption, shipment, or storage in the conduct of its 14 business as an air common carrier, for a flight destined for 15 or returning from a location or locations outside the United 16 States without regard to previous or subsequent domestic 17 stopovers. 18 (9) Proceeds of mandatory service charges separately 19 stated on customers' bills for the purchase and consumption 20 of food and beverages, to the extent that the proceeds of the 21 service charge are in fact turned over as tips or as a 22 substitute for tips to the employees who participate directly 23 in preparing, serving, hosting or cleaning up the food or 24 beverage function with respect to which the service charge is 25 imposed. 26 (10) Oil field exploration, drilling, and production 27 equipment, including (i) rigs and parts of rigs, rotary rigs, 28 cable tool rigs, and workover rigs, (ii) pipe and tubular 29 goods, including casing and drill strings, (iii) pumps and 30 pump-jack units, (iv) storage tanks and flow lines, (v) any 31 individual replacement part for oil field exploration, 32 drilling, and production equipment, and (vi) machinery and 33 equipment purchased for lease; but excluding motor vehicles 34 required to be registered under the Illinois Vehicle Code. SB1854 Enrolled -180- LRB9215370EGfg 1 (11) Photoprocessing machinery and equipment, including 2 repair and replacement parts, both new and used, including 3 that manufactured on special order, certified by the 4 purchaser to be used primarily for photoprocessing, and 5 including photoprocessing machinery and equipment purchased 6 for lease. 7 (12) Coal exploration, mining, offhighway hauling, 8 processing, maintenance, and reclamation equipment, including 9 replacement parts and equipment, and including equipment 10 purchased for lease, but excluding motor vehicles required to 11 be registered under the Illinois Vehicle Code. 12 (13) Food for human consumption that is to be consumed 13 off the premises where it is sold (other than alcoholic 14 beverages, soft drinks and food that has been prepared for 15 immediate consumption) and prescription and non-prescription 16 medicines, drugs, medical appliances, and insulin, urine 17 testing materials, syringes, and needles used by diabetics, 18 for human use, when purchased for use by a person receiving 19 medical assistance under Article 5 of the Illinois Public Aid 20 Code who resides in a licensed long-term care facility, as 21 defined in the Nursing Home Care Act. 22 (14) Semen used for artificial insemination of livestock 23 for direct agricultural production. 24 (15) Horses, or interests in horses, registered with and 25 meeting the requirements of any of the Arabian Horse Club 26 Registry of America, Appaloosa Horse Club, American Quarter 27 Horse Association, United States Trotting Association, or 28 Jockey Club, as appropriate, used for purposes of breeding or 29 racing for prizes. 30 (16) Computers and communications equipment utilized for 31 any hospital purpose and equipment used in the diagnosis, 32 analysis, or treatment of hospital patients sold to a lessor 33 who leases the equipment, under a lease of one year or longer 34 executed or in effect at the time of the purchase, to a SB1854 Enrolled -181- LRB9215370EGfg 1 hospital that has been issued an active tax exemption 2 identification number by the Department under Section 1g of 3 the Retailers' Occupation Tax Act. 4 (17) Personal property sold to a lessor who leases the 5 property, under a lease of one year or longer executed or in 6 effect at the time of the purchase, to a governmental body 7 that has been issued an active tax exemption identification 8 number by the Department under Section 1g of the Retailers' 9 Occupation Tax Act. 10 (18) Beginning with taxable years ending on or after 11 December 31, 1995 and ending with taxable years ending on or 12 before December 31, 2004, personal property that is donated 13 for disaster relief to be used in a State or federally 14 declared disaster area in Illinois or bordering Illinois by a 15 manufacturer or retailer that is registered in this State to 16 a corporation, society, association, foundation, or 17 institution that has been issued a sales tax exemption 18 identification number by the Department that assists victims 19 of the disaster who reside within the declared disaster area. 20 (19) Beginning with taxable years ending on or after 21 December 31, 1995 and ending with taxable years ending on or 22 before December 31, 2004, personal property that is used in 23 the performance of infrastructure repairs in this State, 24 including but not limited to municipal roads and streets, 25 access roads, bridges, sidewalks, waste disposal systems, 26 water and sewer line extensions, water distribution and 27 purification facilities, storm water drainage and retention 28 facilities, and sewage treatment facilities, resulting from a 29 State or federally declared disaster in Illinois or bordering 30 Illinois when such repairs are initiated on facilities 31 located in the declared disaster area within 6 months after 32 the disaster. 33 (20) Beginning July 1, 1999, game or game birds sold at 34 a "game breeding and hunting preserve area" or an "exotic SB1854 Enrolled -182- LRB9215370EGfg 1 game hunting area" as those terms are used in the Wildlife 2 Code or at a hunting enclosure approved through rules adopted 3 by the Department of Natural Resources. This paragraph is 4 exempt from the provisions of Section 3-55. 5 (21) A motor vehicle, as that term is defined in Section 6 1-146 of the Illinois Vehicle Code, that is donated to a 7 corporation, limited liability company, society, association, 8 foundation, or institution that is determined by the 9 Department to be organized and operated exclusively for 10 educational purposes. For purposes of this exemption, "a 11 corporation, limited liability company, society, association, 12 foundation, or institution organized and operated exclusively 13 for educational purposes" means all tax-supported public 14 schools, private schools that offer systematic instruction in 15 useful branches of learning by methods common to public 16 schools and that compare favorably in their scope and 17 intensity with the course of study presented in tax-supported 18 schools, and vocational or technical schools or institutes 19 organized and operated exclusively to provide a course of 20 study of not less than 6 weeks duration and designed to 21 prepare individuals to follow a trade or to pursue a manual, 22 technical, mechanical, industrial, business, or commercial 23 occupation. 24 (22) Beginning January 1, 2000, personal property, 25 including food, purchased through fundraising events for the 26 benefit of a public or private elementary or secondary 27 school, a group of those schools, or one or more school 28 districts if the events are sponsored by an entity recognized 29 by the school district that consists primarily of volunteers 30 and includes parents and teachers of the school children. 31 This paragraph does not apply to fundraising events (i) for 32 the benefit of private home instruction or (ii) for which the 33 fundraising entity purchases the personal property sold at 34 the events from another individual or entity that sold the SB1854 Enrolled -183- LRB9215370EGfg 1 property for the purpose of resale by the fundraising entity 2 and that profits from the sale to the fundraising entity. 3 This paragraph is exempt from the provisions of Section 3-55. 4 (23) Beginning January 1, 2000 and through December 31, 5 2001, new or used automatic vending machines that prepare and 6 serve hot food and beverages, including coffee, soup, and 7 other items, and replacement parts for these machines. 8 Beginning January 1, 2002, machines and parts for machines 9 used in commercial, coin-operated amusement and vending 10 business if a use or occupation tax is paid on the gross 11 receipts derived from the use of the commercial, 12 coin-operated amusement and vending machines. This paragraph 13 is exempt from the provisions of Section 3-55. 14 (24) Beginning on the effective date of this amendatory 15 Act of the 92nd General Assembly, computers and 16 communications equipment utilized for any hospital purpose 17 and equipment used in the diagnosis, analysis, or treatment 18 of hospital patients sold to a lessor who leases the 19 equipment, under a lease of one year or longer executed or in 20 effect at the time of the purchase, to a hospital that has 21 been issued an active tax exemption identification number by 22 the Department under Section 1g of the Retailers' Occupation 23 Tax Act. This paragraph is exempt from the provisions of 24 Section 3-55. 25 (25) Beginning on the effective date of this amendatory 26 Act of the 92nd General Assembly, personal property sold to a 27 lessor who leases the property, under a lease of one year or 28 longer executed or in effect at the time of the purchase, to 29 a governmental body that has been issued an active tax 30 exemption identification number by the Department under 31 Section 1g of the Retailers' Occupation Tax Act. This 32 paragraph is exempt from the provisions of Section 3-55. 33 (26)(24)Beginning on January 1, 2002, tangible 34 personal property purchased from an Illinois retailer by a SB1854 Enrolled -184- LRB9215370EGfg 1 taxpayer engaged in centralized purchasing activities in 2 Illinois who will, upon receipt of the property in Illinois, 3 temporarily store the property in Illinois (i) for the 4 purpose of subsequently transporting it outside this State 5 for use or consumption thereafter solely outside this State 6 or (ii) for the purpose of being processed, fabricated, or 7 manufactured into, attached to, or incorporated into other 8 tangible personal property to be transported outside this 9 State and thereafter used or consumed solely outside this 10 State. The Director of Revenue shall, pursuant to rules 11 adopted in accordance with the Illinois Administrative 12 Procedure Act, issue a permit to any taxpayer in good 13 standing with the Department who is eligible for the 14 exemption under this paragraph (26)(24). The permit issued 15 under this paragraph (26)(24)shall authorize the holder, to 16 the extent and in the manner specified in the rules adopted 17 under this Act, to purchase tangible personal property from a 18 retailer exempt from the taxes imposed by this Act. 19 Taxpayers shall maintain all necessary books and records to 20 substantiate the use and consumption of all such tangible 21 personal property outside of the State of Illinois. 22 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 23 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff. 24 8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35, 25 eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 26 92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.) 27 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 28 Sec. 9. Each serviceman required or authorized to 29 collect the tax herein imposed shall pay to the Department 30 the amount of such tax at the time when he is required to 31 file his return for the period during which such tax was 32 collectible, less a discount of 2.1% prior to January 1, 33 1990, and 1.75% on and after January 1, 1990, or $5 per SB1854 Enrolled -185- LRB9215370EGfg 1 calendar year, whichever is greater, which is allowed to 2 reimburse the serviceman for expenses incurred in collecting 3 the tax, keeping records, preparing and filing returns, 4 remitting the tax and supplying data to the Department on 5 request. 6 Where such tangible personal property is sold under a 7 conditional sales contract, or under any other form of sale 8 wherein the payment of the principal sum, or a part thereof, 9 is extended beyond the close of the period for which the 10 return is filed, the serviceman, in collecting the tax may 11 collect, for each tax return period, only the tax applicable 12 to the part of the selling price actually received during 13 such tax return period. 14 Except as provided hereinafter in this Section, on or 15 before the twentieth day of each calendar month, such 16 serviceman shall file a return for the preceding calendar 17 month in accordance with reasonable rules and regulations to 18 be promulgated by the Department of Revenue. Such return 19 shall be filed on a form prescribed by the Department and 20 shall contain such information as the Department may 21 reasonably require. 22 The Department may require returns to be filed on a 23 quarterly basis. If so required, a return for each calendar 24 quarter shall be filed on or before the twentieth day of the 25 calendar month following the end of such calendar quarter. 26 The taxpayer shall also file a return with the Department for 27 each of the first two months of each calendar quarter, on or 28 before the twentieth day of the following calendar month, 29 stating: 30 1. The name of the seller; 31 2. The address of the principal place of business 32 from which he engages in business as a serviceman in this 33 State; 34 3. The total amount of taxable receipts received by SB1854 Enrolled -186- LRB9215370EGfg 1 him during the preceding calendar month, including 2 receipts from charge and time sales, but less all 3 deductions allowed by law; 4 4. The amount of credit provided in Section 2d of 5 this Act; 6 5. The amount of tax due; 7 5-5. The signature of the taxpayer; and 8 6. Such other reasonable information as the 9 Department may require. 10 If a taxpayer fails to sign a return within 30 days after 11 the proper notice and demand for signature by the Department, 12 the return shall be considered valid and any amount shown to 13 be due on the return shall be deemed assessed. 14 A serviceman may accept a Manufacturer's Purchase Credit 15 certification from a purchaser in satisfaction of Service Use 16 Tax as provided in Section 3-70 of the Service Use Tax Act if 17 the purchaser provides the appropriate documentation as 18 required by Section 3-70 of the Service Use Tax Act. A 19 Manufacturer's Purchase Credit certification, accepted by a 20 serviceman as provided in Section 3-70 of the Service Use Tax 21 Act, may be used by that serviceman to satisfy Service 22 Occupation Tax liability in the amount claimed in the 23 certification, not to exceed 6.25% of the receipts subject to 24 tax from a qualifying purchase. 25 If the serviceman's average monthly tax liability to the 26 Department does not exceed $200, the Department may authorize 27 his returns to be filed on a quarter annual basis, with the 28 return for January, February and March of a given year being 29 due by April 20 of such year; with the return for April, May 30 and June of a given year being due by July 20 of such year; 31 with the return for July, August and September of a given 32 year being due by October 20 of such year, and with the 33 return for October, November and December of a given year 34 being due by January 20 of the following year. SB1854 Enrolled -187- LRB9215370EGfg 1 If the serviceman's average monthly tax liability to the 2 Department does not exceed $50, the Department may authorize 3 his returns to be filed on an annual basis, with the return 4 for a given year being due by January 20 of the following 5 year. 6 Such quarter annual and annual returns, as to form and 7 substance, shall be subject to the same requirements as 8 monthly returns. 9 Notwithstanding any other provision in this Act 10 concerning the time within which a serviceman may file his 11 return, in the case of any serviceman who ceases to engage in 12 a kind of business which makes him responsible for filing 13 returns under this Act, such serviceman shall file a final 14 return under this Act with the Department not more than 1 15 month after discontinuing such business. 16 Beginning October 1, 1993, a taxpayer who has an average 17 monthly tax liability of $150,000 or more shall make all 18 payments required by rules of the Department by electronic 19 funds transfer. Beginning October 1, 1994, a taxpayer who 20 has an average monthly tax liability of $100,000 or more 21 shall make all payments required by rules of the Department 22 by electronic funds transfer. Beginning October 1, 1995, a 23 taxpayer who has an average monthly tax liability of $50,000 24 or more shall make all payments required by rules of the 25 Department by electronic funds transfer. Beginning October 26 1, 2000, a taxpayer who has an annual tax liability of 27 $200,000 or more shall make all payments required by rules of 28 the Department by electronic funds transfer. The term 29 "annual tax liability" shall be the sum of the taxpayer's 30 liabilities under this Act, and under all other State and 31 local occupation and use tax laws administered by the 32 Department, for the immediately preceding calendar year. The 33 term "average monthly tax liability" means the sum of the 34 taxpayer's liabilities under this Act, and under all other SB1854 Enrolled -188- LRB9215370EGfg 1 State and local occupation and use tax laws administered by 2 the Department, for the immediately preceding calendar year 3 divided by 12. Beginning on October 1, 2002, a taxpayer who 4 has a tax liability in the amount set forth in subsection (b) 5 of Section 2505-210 of the Department of Revenue Law shall 6 make all payments required by rules of the Department by 7 electronic funds transfer. 8 Before August 1 of each year beginning in 1993, the 9 Department shall notify all taxpayers required to make 10 payments by electronic funds transfer. All taxpayers 11 required to make payments by electronic funds transfer shall 12 make those payments for a minimum of one year beginning on 13 October 1. 14 Any taxpayer not required to make payments by electronic 15 funds transfer may make payments by electronic funds transfer 16 with the permission of the Department. 17 All taxpayers required to make payment by electronic 18 funds transfer and any taxpayers authorized to voluntarily 19 make payments by electronic funds transfer shall make those 20 payments in the manner authorized by the Department. 21 The Department shall adopt such rules as are necessary to 22 effectuate a program of electronic funds transfer and the 23 requirements of this Section. 24 Where a serviceman collects the tax with respect to the 25 selling price of tangible personal property which he sells 26 and the purchaser thereafter returns such tangible personal 27 property and the serviceman refunds the selling price thereof 28 to the purchaser, such serviceman shall also refund, to the 29 purchaser, the tax so collected from the purchaser. When 30 filing his return for the period in which he refunds such tax 31 to the purchaser, the serviceman may deduct the amount of the 32 tax so refunded by him to the purchaser from any other 33 Service Occupation Tax, Service Use Tax, Retailers' 34 Occupation Tax or Use Tax which such serviceman may be SB1854 Enrolled -189- LRB9215370EGfg 1 required to pay or remit to the Department, as shown by such 2 return, provided that the amount of the tax to be deducted 3 shall previously have been remitted to the Department by such 4 serviceman. If the serviceman shall not previously have 5 remitted the amount of such tax to the Department, he shall 6 be entitled to no deduction hereunder upon refunding such tax 7 to the purchaser. 8 If experience indicates such action to be practicable, 9 the Department may prescribe and furnish a combination or 10 joint return which will enable servicemen, who are required 11 to file returns hereunder and also under the Retailers' 12 Occupation Tax Act, the Use Tax Act or the Service Use Tax 13 Act, to furnish all the return information required by all 14 said Acts on the one form. 15 Where the serviceman has more than one business 16 registered with the Department under separate registrations 17 hereunder, such serviceman shall file separate returns for 18 each registered business. 19 Beginning January 1, 1990, each month the Department 20 shall pay into the Local Government Tax Fund the revenue 21 realized for the preceding month from the 1% tax on sales of 22 food for human consumption which is to be consumed off the 23 premises where it is sold (other than alcoholic beverages, 24 soft drinks and food which has been prepared for immediate 25 consumption) and prescription and nonprescription medicines, 26 drugs, medical appliances and insulin, urine testing 27 materials, syringes and needles used by diabetics. 28 Beginning January 1, 1990, each month the Department 29 shall pay into the County and Mass Transit District Fund 4% 30 of the revenue realized for the preceding month from the 31 6.25% general rate. 32 Beginning August 1, 2000, each month the Department shall 33 pay into the County and Mass Transit District Fund 20% of the 34 net revenue realized for the preceding month from the 1.25% SB1854 Enrolled -190- LRB9215370EGfg 1 rate on the selling price of motor fuel and gasohol. 2 Beginning January 1, 1990, each month the Department 3 shall pay into the Local Government Tax Fund 16% of the 4 revenue realized for the preceding month from the 6.25% 5 general rate on transfers of tangible personal property. 6 Beginning August 1, 2000, each month the Department shall 7 pay into the Local Government Tax Fund 80% of the net revenue 8 realized for the preceding month from the 1.25% rate on the 9 selling price of motor fuel and gasohol. 10 Of the remainder of the moneys received by the Department 11 pursuant to this Act, (a) 1.75% thereof shall be paid into 12 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 13 and on and after July 1, 1989, 3.8% thereof shall be paid 14 into the Build Illinois Fund; provided, however, that if in 15 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 16 as the case may be, of the moneys received by the Department 17 and required to be paid into the Build Illinois Fund pursuant 18 to Section 3 of the Retailers' Occupation Tax Act, Section 9 19 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 20 Section 9 of the Service Occupation Tax Act, such Acts being 21 hereinafter called the "Tax Acts" and such aggregate of 2.2% 22 or 3.8%, as the case may be, of moneys being hereinafter 23 called the "Tax Act Amount", and (2) the amount transferred 24 to the Build Illinois Fund from the State and Local Sales Tax 25 Reform Fund shall be less than the Annual Specified Amount 26 (as defined in Section 3 of the Retailers' Occupation Tax 27 Act), an amount equal to the difference shall be immediately 28 paid into the Build Illinois Fund from other moneys received 29 by the Department pursuant to the Tax Acts; and further 30 provided, that if on the last business day of any month the 31 sum of (1) the Tax Act Amount required to be deposited into 32 the Build Illinois Account in the Build Illinois Fund during 33 such month and (2) the amount transferred during such month 34 to the Build Illinois Fund from the State and Local Sales Tax SB1854 Enrolled -191- LRB9215370EGfg 1 Reform Fund shall have been less than 1/12 of the Annual 2 Specified Amount, an amount equal to the difference shall be 3 immediately paid into the Build Illinois Fund from other 4 moneys received by the Department pursuant to the Tax Acts; 5 and, further provided, that in no event shall the payments 6 required under the preceding proviso result in aggregate 7 payments into the Build Illinois Fund pursuant to this clause 8 (b) for any fiscal year in excess of the greater of (i) the 9 Tax Act Amount or (ii) the Annual Specified Amount for such 10 fiscal year; and, further provided, that the amounts payable 11 into the Build Illinois Fund under this clause (b) shall be 12 payable only until such time as the aggregate amount on 13 deposit under each trust indenture securing Bonds issued and 14 outstanding pursuant to the Build Illinois Bond Act is 15 sufficient, taking into account any future investment income, 16 to fully provide, in accordance with such indenture, for the 17 defeasance of or the payment of the principal of, premium, if 18 any, and interest on the Bonds secured by such indenture and 19 on any Bonds expected to be issued thereafter and all fees 20 and costs payable with respect thereto, all as certified by 21 the Director of the Bureau of the Budget. If on the last 22 business day of any month in which Bonds are outstanding 23 pursuant to the Build Illinois Bond Act, the aggregate of the 24 moneys deposited in the Build Illinois Bond Account in the 25 Build Illinois Fund in such month shall be less than the 26 amount required to be transferred in such month from the 27 Build Illinois Bond Account to the Build Illinois Bond 28 Retirement and Interest Fund pursuant to Section 13 of the 29 Build Illinois Bond Act, an amount equal to such deficiency 30 shall be immediately paid from other moneys received by the 31 Department pursuant to the Tax Acts to the Build Illinois 32 Fund; provided, however, that any amounts paid to the Build 33 Illinois Fund in any fiscal year pursuant to this sentence 34 shall be deemed to constitute payments pursuant to clause (b) SB1854 Enrolled -192- LRB9215370EGfg 1 of the preceding sentence and shall reduce the amount 2 otherwise payable for such fiscal year pursuant to clause (b) 3 of the preceding sentence. The moneys received by the 4 Department pursuant to this Act and required to be deposited 5 into the Build Illinois Fund are subject to the pledge, claim 6 and charge set forth in Section 12 of the Build Illinois Bond 7 Act. 8 Subject to payment of amounts into the Build Illinois 9 Fund as provided in the preceding paragraph or in any 10 amendment thereto hereafter enacted, the following specified 11 monthly installment of the amount requested in the 12 certificate of the Chairman of the Metropolitan Pier and 13 Exposition Authority provided under Section 8.25f of the 14 State Finance Act, but not in excess of the sums designated 15 as "Total Deposit", shall be deposited in the aggregate from 16 collections under Section 9 of the Use Tax Act, Section 9 of 17 the Service Use Tax Act, Section 9 of the Service Occupation 18 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 19 into the McCormick Place Expansion Project Fund in the 20 specified fiscal years. 21 Fiscal Year Total Deposit 22 1993 $0 23 1994 53,000,000 24 1995 58,000,000 25 1996 61,000,000 26 1997 64,000,000 27 1998 68,000,000 28 1999 71,000,000 29 2000 75,000,000 30 2001 80,000,000 31 2002 93,000,000 32 2003 99,000,000 33 2004 103,000,000 34 2005 108,000,000 SB1854 Enrolled -193- LRB9215370EGfg 1 2006 113,000,000 2 2007 119,000,000 3 2008 126,000,000 4 2009 132,000,000 5 2010 139,000,000 6 2011 146,000,000 7 2012 153,000,000 8 2013 161,000,000 9 2014 170,000,000 10 2015 179,000,000 11 2016 189,000,000 12 2017 199,000,000 13 2018 210,000,000 14 2019 221,000,000 15 2020 233,000,000 16 2021 246,000,000 17 2022 260,000,000 18 2023 and 275,000,000 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 2042. 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, SB1854 Enrolled -194- LRB9215370EGfg 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 Fund, and the 23 Local Government Distributive Fund pursuant to the preceding 24 paragraphs or in any amendments thereto hereafter enacted, 25 beginning July 1, 1993, the Department shall each month pay 26 into the Illinois Tax Increment Fund 0.27% of 80% of the net 27 revenue realized for the preceding month from the 6.25% 28 general rate on the selling price of tangible personal 29 property. 30 Subject to payment of amounts into the Build Illinois 31 Fund, the McCormick Place Expansion Project Fund, and the 32 Local Government Distributive Fund pursuant to the preceding 33 paragraphs or in any amendments thereto hereafter enacted, 34 beginning with the receipt of the first report of taxes paid SB1854 Enrolled -195- LRB9215370EGfg 1 by an eligible business and continuing for a 25-year period, 2 the Department shall each month pay into the Energy 3 Infrastructure Fund 80% of the net revenue realized from the 4 6.25% general rate on the selling price of Illinois-mined 5 coal that was sold to an eligible business. For purposes of 6 this paragraph, the term "eligible business" means a new 7 electric generating facility certified pursuant to Section 8 605-332 of the Department of Commerce and Community Affairs 9 Law of the Civil Administrative Code of Illinois. 10 Remaining moneys received by the Department pursuant to 11 this Act shall be paid into the General Revenue Fund of the 12 State Treasury. 13 The Department may, upon separate written notice to a 14 taxpayer, require the taxpayer to prepare and file with the 15 Department on a form prescribed by the Department within not 16 less than 60 days after receipt of the notice an annual 17 information return for the tax year specified in the notice. 18 Such annual return to the Department shall include a 19 statement of gross receipts as shown by the taxpayer's last 20 Federal income tax return. If the total receipts of the 21 business as reported in the Federal income tax return do not 22 agree with the gross receipts reported to the Department of 23 Revenue for the same period, the taxpayer shall attach to his 24 annual return a schedule showing a reconciliation of the 2 25 amounts and the reasons for the difference. The taxpayer's 26 annual return to the Department shall also disclose the cost 27 of goods sold by the taxpayer during the year covered by such 28 return, opening and closing inventories of such goods for 29 such year, cost of goods used from stock or taken from stock 30 and given away by the taxpayer during such year, pay roll 31 information of the taxpayer's business during such year and 32 any additional reasonable information which the Department 33 deems would be helpful in determining the accuracy of the 34 monthly, quarterly or annual returns filed by such taxpayer SB1854 Enrolled -196- LRB9215370EGfg 1 as hereinbefore provided for in this Section. 2 If the annual information return required by this Section 3 is not filed when and as required, the taxpayer shall be 4 liable as follows: 5 (i) Until January 1, 1994, the taxpayer shall be 6 liable for a penalty equal to 1/6 of 1% of the tax due 7 from such taxpayer under this Act during the period to be 8 covered by the annual return for each month or fraction 9 of a month until such return is filed as required, the 10 penalty to be assessed and collected in the same manner 11 as any other penalty provided for in this Act. 12 (ii) On and after January 1, 1994, the taxpayer 13 shall be liable for a penalty as described in Section 3-4 14 of the Uniform Penalty and Interest Act. 15 The chief executive officer, proprietor, owner or highest 16 ranking manager shall sign the annual return to certify the 17 accuracy of the information contained therein. Any person 18 who willfully signs the annual return containing false or 19 inaccurate information shall be guilty of perjury and 20 punished accordingly. The annual return form prescribed by 21 the Department shall include a warning that the person 22 signing the return may be liable for perjury. 23 The foregoing portion of this Section concerning the 24 filing of an annual information return shall not apply to a 25 serviceman who is not required to file an income tax return 26 with the United States Government. 27 As soon as possible after the first day of each month, 28 upon certification of the Department of Revenue, the 29 Comptroller shall order transferred and the Treasurer shall 30 transfer from the General Revenue Fund to the Motor Fuel Tax 31 Fund an amount equal to 1.7% of 80% of the net revenue 32 realized under this Act for the second preceding month. 33 Beginning April 1, 2000, this transfer is no longer required 34 and shall not be made. SB1854 Enrolled -197- LRB9215370EGfg 1 Net revenue realized for a month shall be the revenue 2 collected by the State pursuant to this Act, less the amount 3 paid out during that month as refunds to taxpayers for 4 overpayment of liability. 5 For greater simplicity of administration, it shall be 6 permissible for manufacturers, importers and wholesalers 7 whose products are sold by numerous servicemen in Illinois, 8 and who wish to do so, to assume the responsibility for 9 accounting and paying to the Department all tax accruing 10 under this Act with respect to such sales, if the servicemen 11 who are affected do not make written objection to the 12 Department to this arrangement. 13 (Source: P.A. 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 14 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 91-872, eff. 15 7-1-00; 92-12, eff. 7-1-01; 92-208, eff. 8-2-01; 92-492, eff. 16 1-1-02; revised 9-14-01.) 17 Section 28. The Retailers' Occupation Tax Act is amended 18 by changing Sections 2-5 and 3 as follows: 19 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 20 Sec. 2-5. Exemptions. Gross receipts from proceeds from 21 the sale of the following tangible personal property are 22 exempt from the tax imposed by this Act: 23 (1) Farm chemicals. 24 (2) Farm machinery and equipment, both new and used, 25 including that manufactured on special order, certified by 26 the purchaser to be used primarily for production agriculture 27 or State or federal agricultural programs, including 28 individual replacement parts for the machinery and equipment, 29 including machinery and equipment purchased for lease, and 30 including implements of husbandry defined in Section 1-130 of 31 the Illinois Vehicle Code, farm machinery and agricultural 32 chemical and fertilizer spreaders, and nurse wagons required SB1854 Enrolled -198- LRB9215370EGfg 1 to be registered under Section 3-809 of the Illinois Vehicle 2 Code, but excluding other motor vehicles required to be 3 registered under the Illinois Vehicle Code. Horticultural 4 polyhouses or hoop houses used for propagating, growing, or 5 overwintering plants shall be considered farm machinery and 6 equipment under this item (2). Agricultural chemical tender 7 tanks and dry boxes shall include units sold separately from 8 a motor vehicle required to be licensed and units sold 9 mounted on a motor vehicle required to be licensed, if the 10 selling price of the tender is separately stated. 11 Farm machinery and equipment shall include precision 12 farming equipment that is installed or purchased to be 13 installed on farm machinery and equipment including, but not 14 limited to, tractors, harvesters, sprayers, planters, 15 seeders, or spreaders. Precision farming equipment includes, 16 but is not limited to, soil testing sensors, computers, 17 monitors, software, global positioning and mapping systems, 18 and other such equipment. 19 Farm machinery and equipment also includes computers, 20 sensors, software, and related equipment used primarily in 21 the computer-assisted operation of production agriculture 22 facilities, equipment, and activities such as, but not 23 limited to, the collection, monitoring, and correlation of 24 animal and crop data for the purpose of formulating animal 25 diets and agricultural chemicals. This item (7) is exempt 26 from the provisions of Section 2-70. 27 (3) Distillation machinery and equipment, sold as a unit 28 or kit, assembled or installed by the retailer, certified by 29 the user to be used only for the production of ethyl alcohol 30 that will be used for consumption as motor fuel or as a 31 component of motor fuel for the personal use of the user, and 32 not subject to sale or resale. 33 (4) Graphic arts machinery and equipment, including 34 repair and replacement parts, both new and used, and SB1854 Enrolled -199- LRB9215370EGfg 1 including that manufactured on special order or purchased for 2 lease, certified by the purchaser to be used primarily for 3 graphic arts production. Equipment includes chemicals or 4 chemicals acting as catalysts but only if the chemicals or 5 chemicals acting as catalysts effect a direct and immediate 6 change upon a graphic arts product. 7 (5) A motor vehicle of the first division, a motor 8 vehicle of the second division that is a self-contained motor 9 vehicle designed or permanently converted to provide living 10 quarters for recreational, camping, or travel use, with 11 direct walk through access to the living quarters from the 12 driver's seat, or a motor vehicle of the second division that 13 is of the van configuration designed for the transportation 14 of not less than 7 nor more than 16 passengers, as defined in 15 Section 1-146 of the Illinois Vehicle Code, that is used for 16 automobile renting, as defined in the Automobile Renting 17 Occupation and Use Tax Act. 18 (6) Personal property sold by a teacher-sponsored 19 student organization affiliated with an elementary or 20 secondary school located in Illinois. 21 (7) Proceeds of that portion of the selling price of a 22 passenger car the sale of which is subject to the Replacement 23 Vehicle Tax. 24 (8) Personal property sold to an Illinois county fair 25 association for use in conducting, operating, or promoting 26 the county fair. 27 (9) Personal property sold to a not-for-profit arts or 28 cultural organization that establishes, by proof required by 29 the Department by rule, that it has received an exemption 30 under Section 501(c)(3) of the Internal Revenue Code and that 31 is organized and operated primarily for the presentation or 32 support of arts or cultural programming, activities, or 33 services. These organizations include, but are not limited 34 to, music and dramatic arts organizations such as symphony SB1854 Enrolled -200- LRB9215370EGfg 1 orchestras and theatrical groups, arts and cultural service 2 organizations, local arts councils, visual arts 3 organizations, and media arts organizations. On and after the 4 effective date of this amendatory Act of the 92nd General 5 Assembly, however, an entity otherwise eligible for this 6 exemption shall not make tax-free purchases unless it has an 7 active identification number issued by the Department. 8 (10) Personal property sold by a corporation, society, 9 association, foundation, institution, or organization, other 10 than a limited liability company, that is organized and 11 operated as a not-for-profit service enterprise for the 12 benefit of persons 65 years of age or older if the personal 13 property was not purchased by the enterprise for the purpose 14 of resale by the enterprise. 15 (11) Personal property sold to a governmental body, to a 16 corporation, society, association, foundation, or institution 17 organized and operated exclusively for charitable, religious, 18 or educational purposes, or to a not-for-profit corporation, 19 society, association, foundation, institution, or 20 organization that has no compensated officers or employees 21 and that is organized and operated primarily for the 22 recreation of persons 55 years of age or older. A limited 23 liability company may qualify for the exemption under this 24 paragraph only if the limited liability company is organized 25 and operated exclusively for educational purposes. On and 26 after July 1, 1987, however, no entity otherwise eligible for 27 this exemption shall make tax-free purchases unless it has an 28 active identification number issued by the Department. 29 (12) Personal property sold to interstate carriers for 30 hire for use as rolling stock moving in interstate commerce 31 or to lessors under leases of one year or longer executed or 32 in effect at the time of purchase by interstate carriers for 33 hire for use as rolling stock moving in interstate commerce 34 and equipment operated by a telecommunications provider, SB1854 Enrolled -201- LRB9215370EGfg 1 licensed as a common carrier by the Federal Communications 2 Commission, which is permanently installed in or affixed to 3 aircraft moving in interstate commerce. 4 (13) Proceeds from sales to owners, lessors, or shippers 5 of tangible personal property that is utilized by interstate 6 carriers for hire for use as rolling stock moving in 7 interstate commerce and equipment operated by a 8 telecommunications provider, licensed as a common carrier by 9 the Federal Communications Commission, which is permanently 10 installed in or affixed to aircraft moving in interstate 11 commerce. 12 (14) Machinery and equipment that will be used by the 13 purchaser, or a lessee of the purchaser, primarily in the 14 process of manufacturing or assembling tangible personal 15 property for wholesale or retail sale or lease, whether the 16 sale or lease is made directly by the manufacturer or by some 17 other person, whether the materials used in the process are 18 owned by the manufacturer or some other person, or whether 19 the sale or lease is made apart from or as an incident to the 20 seller's engaging in the service occupation of producing 21 machines, tools, dies, jigs, patterns, gauges, or other 22 similar items of no commercial value on special order for a 23 particular purchaser. 24 (15) Proceeds of mandatory service charges separately 25 stated on customers' bills for purchase and consumption of 26 food and beverages, to the extent that the proceeds of the 27 service charge are in fact turned over as tips or as a 28 substitute for tips to the employees who participate directly 29 in preparing, serving, hosting or cleaning up the food or 30 beverage function with respect to which the service charge is 31 imposed. 32 (16) Petroleum products sold to a purchaser if the 33 seller is prohibited by federal law from charging tax to the 34 purchaser. SB1854 Enrolled -202- LRB9215370EGfg 1 (17) Tangible personal property sold to a common carrier 2 by rail or motor that receives the physical possession of the 3 property in Illinois and that transports the property, or 4 shares with another common carrier in the transportation of 5 the property, out of Illinois on a standard uniform bill of 6 lading showing the seller of the property as the shipper or 7 consignor of the property to a destination outside Illinois, 8 for use outside Illinois. 9 (18) Legal tender, currency, medallions, or gold or 10 silver coinage issued by the State of Illinois, the 11 government of the United States of America, or the government 12 of any foreign country, and bullion. 13 (19) Oil field exploration, drilling, and production 14 equipment, including (i) rigs and parts of rigs, rotary rigs, 15 cable tool rigs, and workover rigs, (ii) pipe and tubular 16 goods, including casing and drill strings, (iii) pumps and 17 pump-jack units, (iv) storage tanks and flow lines, (v) any 18 individual replacement part for oil field exploration, 19 drilling, and production equipment, and (vi) machinery and 20 equipment purchased for lease; but excluding motor vehicles 21 required to be registered under the Illinois Vehicle Code. 22 (20) Photoprocessing machinery and equipment, including 23 repair and replacement parts, both new and used, including 24 that manufactured on special order, certified by the 25 purchaser to be used primarily for photoprocessing, and 26 including photoprocessing machinery and equipment purchased 27 for lease. 28 (21) Coal exploration, mining, offhighway hauling, 29 processing, maintenance, and reclamation equipment, including 30 replacement parts and equipment, and including equipment 31 purchased for lease, but excluding motor vehicles required to 32 be registered under the Illinois Vehicle Code. 33 (22) Fuel and petroleum products sold to or used by an 34 air carrier, certified by the carrier to be used for SB1854 Enrolled -203- LRB9215370EGfg 1 consumption, shipment, or storage in the conduct of its 2 business as an air common carrier, for a flight destined for 3 or returning from a location or locations outside the United 4 States without regard to previous or subsequent domestic 5 stopovers. 6 (23) A transaction in which the purchase order is 7 received by a florist who is located outside Illinois, but 8 who has a florist located in Illinois deliver the property to 9 the purchaser or the purchaser's donee in Illinois. 10 (24) Fuel consumed or used in the operation of ships, 11 barges, or vessels that are used primarily in or for the 12 transportation of property or the conveyance of persons for 13 hire on rivers bordering on this State if the fuel is 14 delivered by the seller to the purchaser's barge, ship, or 15 vessel while it is afloat upon that bordering river. 16 (25) A motor vehicle sold in this State to a nonresident 17 even though the motor vehicle is delivered to the nonresident 18 in this State, if the motor vehicle is not to be titled in 19 this State, and if a driveaway decal permit is issued to the 20 motor vehicle as provided in Section 3-603 of the Illinois 21 Vehicle Code or if the nonresident purchaser has vehicle 22 registration plates to transfer to the motor vehicle upon 23 returning to his or her home state. The issuance of the 24 driveaway decal permit or having the out-of-state 25 registration plates to be transferred is prima facie evidence 26 that the motor vehicle will not be titled in this State. 27 (26) Semen used for artificial insemination of livestock 28 for direct agricultural production. 29 (27) Horses, or interests in horses, registered with and 30 meeting the requirements of any of the Arabian Horse Club 31 Registry of America, Appaloosa Horse Club, American Quarter 32 Horse Association, United States Trotting Association, or 33 Jockey Club, as appropriate, used for purposes of breeding or 34 racing for prizes. SB1854 Enrolled -204- LRB9215370EGfg 1 (28) Computers and communications equipment utilized for 2 any hospital purpose and equipment used in the diagnosis, 3 analysis, or treatment of hospital patients sold to a lessor 4 who leases the equipment, under a lease of one year or longer 5 executed or in effect at the time of the purchase, to a 6 hospital that has been issued an active tax exemption 7 identification number by the Department under Section 1g of 8 this Act. 9 (29) Personal property sold to a lessor who leases the 10 property, under a lease of one year or longer executed or in 11 effect at the time of the purchase, to a governmental body 12 that has been issued an active tax exemption identification 13 number by the Department under Section 1g of this Act. 14 (30) Beginning with taxable years ending on or after 15 December 31, 1995 and ending with taxable years ending on or 16 before December 31, 2004, personal property that is donated 17 for disaster relief to be used in a State or federally 18 declared disaster area in Illinois or bordering Illinois by a 19 manufacturer or retailer that is registered in this State to 20 a corporation, society, association, foundation, or 21 institution that has been issued a sales tax exemption 22 identification number by the Department that assists victims 23 of the disaster who reside within the declared disaster area. 24 (31) Beginning with taxable years ending on or after 25 December 31, 1995 and ending with taxable years ending on or 26 before December 31, 2004, personal property that is used in 27 the performance of infrastructure repairs in this State, 28 including but not limited to municipal roads and streets, 29 access roads, bridges, sidewalks, waste disposal systems, 30 water and sewer line extensions, water distribution and 31 purification facilities, storm water drainage and retention 32 facilities, and sewage treatment facilities, resulting from a 33 State or federally declared disaster in Illinois or bordering 34 Illinois when such repairs are initiated on facilities SB1854 Enrolled -205- LRB9215370EGfg 1 located in the declared disaster area within 6 months after 2 the disaster. 3 (32) Beginning July 1, 1999, game or game birds sold at 4 a "game breeding and hunting preserve area" or an "exotic 5 game hunting area" as those terms are used in the Wildlife 6 Code or at a hunting enclosure approved through rules adopted 7 by the Department of Natural Resources. This paragraph is 8 exempt from the provisions of Section 2-70. 9 (33) A motor vehicle, as that term is defined in Section 10 1-146 of the Illinois Vehicle Code, that is donated to a 11 corporation, limited liability company, society, association, 12 foundation, or institution that is determined by the 13 Department to be organized and operated exclusively for 14 educational purposes. For purposes of this exemption, "a 15 corporation, limited liability company, society, association, 16 foundation, or institution organized and operated exclusively 17 for educational purposes" means all tax-supported public 18 schools, private schools that offer systematic instruction in 19 useful branches of learning by methods common to public 20 schools and that compare favorably in their scope and 21 intensity with the course of study presented in tax-supported 22 schools, and vocational or technical schools or institutes 23 organized and operated exclusively to provide a course of 24 study of not less than 6 weeks duration and designed to 25 prepare individuals to follow a trade or to pursue a manual, 26 technical, mechanical, industrial, business, or commercial 27 occupation. 28 (34) Beginning January 1, 2000, personal property, 29 including food, purchased through fundraising events for the 30 benefit of a public or private elementary or secondary 31 school, a group of those schools, or one or more school 32 districts if the events are sponsored by an entity recognized 33 by the school district that consists primarily of volunteers 34 and includes parents and teachers of the school children. SB1854 Enrolled -206- LRB9215370EGfg 1 This paragraph does not apply to fundraising events (i) for 2 the benefit of private home instruction or (ii) for which the 3 fundraising entity purchases the personal property sold at 4 the events from another individual or entity that sold the 5 property for the purpose of resale by the fundraising entity 6 and that profits from the sale to the fundraising entity. 7 This paragraph is exempt from the provisions of Section 2-70. 8 (35) Beginning January 1, 2000 and through December 31, 9 2001, new or used automatic vending machines that prepare and 10 serve hot food and beverages, including coffee, soup, and 11 other items, and replacement parts for these machines. 12 Beginning January 1, 2002, machines and parts for machines 13 used in commercial, coin-operated amusement and vending 14 business if a use or occupation tax is paid on the gross 15 receipts derived from the use of the commercial, 16 coin-operated amusement and vending machines. This paragraph 17 is exempt from the provisions of Section 2-70. 18 (36) Beginning on the effective date of this amendatory 19 Act of the 92nd General Assembly, computers and 20 communications equipment utilized for any hospital purpose 21 and equipment used in the diagnosis, analysis, or treatment 22 of hospital patients sold to a lessor who leases the 23 equipment, under a lease of one year or longer executed or in 24 effect at the time of the purchase, to a hospital that has 25 been issued an active tax exemption identification number by 26 the Department under Section 1g of this Act. This paragraph 27 is exempt from the provisions of Section 2-70. 28 (37) Beginning on the effective date of this amendatory 29 Act of the 92nd General Assembly, personal property sold to a 30 lessor who leases the property, under a lease of one year or 31 longer executed or in effect at the time of the purchase, to 32 a governmental body that has been issued an active tax 33 exemption identification number by the Department under 34 Section 1g of this Act. This paragraph is exempt from the SB1854 Enrolled -207- LRB9215370EGfg 1 provisions of Section 2-70. 2 (38)(36)Beginning on January 1, 2002, tangible 3 personal property purchased from an Illinois retailer by a 4 taxpayer engaged in centralized purchasing activities in 5 Illinois who will, upon receipt of the property in Illinois, 6 temporarily store the property in Illinois (i) for the 7 purpose of subsequently transporting it outside this State 8 for use or consumption thereafter solely outside this State 9 or (ii) for the purpose of being processed, fabricated, or 10 manufactured into, attached to, or incorporated into other 11 tangible personal property to be transported outside this 12 State and thereafter used or consumed solely outside this 13 State. The Director of Revenue shall, pursuant to rules 14 adopted in accordance with the Illinois Administrative 15 Procedure Act, issue a permit to any taxpayer in good 16 standing with the Department who is eligible for the 17 exemption under this paragraph (38)(36). The permit issued 18 under this paragraph (38)(36)shall authorize the holder, to 19 the extent and in the manner specified in the rules adopted 20 under this Act, to purchase tangible personal property from a 21 retailer exempt from the taxes imposed by this Act. 22 Taxpayers shall maintain all necessary books and records to 23 substantiate the use and consumption of all such tangible 24 personal property outside of the State of Illinois. 25 (Source: P.A. 91-51, eff. 6-30-99; 91-200, eff. 7-20-99; 26 91-439, eff. 8-6-99; 91-533, eff. 8-13-99; 91-637, eff. 27 8-20-99; 91-644, eff. 8-20-99; 92-16, eff. 6-28-01; 92-35, 28 eff. 7-1-01; 92-227, eff. 8-2-01; 92-337, eff. 8-10-01; 29 92-484, eff. 8-23-01; 92-488, eff. 8-23-01; revised 1-15-02.) 30 (35 ILCS 120/3) (from Ch. 120, par. 442) 31 Sec. 3. Except as provided in this Section, on or before 32 the twentieth day of each calendar month, every person 33 engaged in the business of selling tangible personal property SB1854 Enrolled -208- LRB9215370EGfg 1 at retail in this State during the preceding calendar month 2 shall file a return with the Department, stating: 3 1. The name of the seller; 4 2. His residence address and the address of his 5 principal place of business and the address of the 6 principal place of business (if that is a different 7 address) from which he engages in the business of selling 8 tangible personal property at retail in this State; 9 3. Total amount of receipts received by him during 10 the preceding calendar month or quarter, as the case may 11 be, from sales of tangible personal property, and from 12 services furnished, by him during such preceding calendar 13 month or quarter; 14 4. Total amount received by him during the 15 preceding calendar month or quarter on charge and time 16 sales of tangible personal property, and from services 17 furnished, by him prior to the month or quarter for which 18 the return is filed; 19 5. Deductions allowed by law; 20 6. Gross receipts which were received by him during 21 the preceding calendar month or quarter and upon the 22 basis of which the tax is imposed; 23 7. The amount of credit provided in Section 2d of 24 this Act; 25 8. The amount of tax due; 26 9. The signature of the taxpayer; and 27 10. Such other reasonable information as the 28 Department may require. 29 If a taxpayer fails to sign a return within 30 days after 30 the proper notice and demand for signature by the Department, 31 the return shall be considered valid and any amount shown to 32 be due on the return shall be deemed assessed. 33 Each return shall be accompanied by the statement of 34 prepaid tax issued pursuant to Section 2e for which credit is SB1854 Enrolled -209- LRB9215370EGfg 1 claimed. 2 A retailer may accept a Manufacturer's Purchase Credit 3 certification from a purchaser in satisfaction of Use Tax as 4 provided in Section 3-85 of the Use Tax Act if the purchaser 5 provides the appropriate documentation as required by Section 6 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 7 certification, accepted by a retailer as provided in Section 8 3-85 of the Use Tax Act, may be used by that retailer to 9 satisfy Retailers' Occupation Tax liability in the amount 10 claimed in the certification, not to exceed 6.25% of the 11 receipts subject to tax from a qualifying purchase. 12 The Department may require returns to be filed on a 13 quarterly basis. If so required, a return for each calendar 14 quarter shall be filed on or before the twentieth day of the 15 calendar month following the end of such calendar quarter. 16 The taxpayer shall also file a return with the Department for 17 each of the first two months of each calendar quarter, on or 18 before the twentieth day of the following calendar month, 19 stating: 20 1. The name of the seller; 21 2. The address of the principal place of business 22 from which he engages in the business of selling tangible 23 personal property at retail in this State; 24 3. The total amount of taxable receipts received by 25 him during the preceding calendar month from sales of 26 tangible personal property by him during such preceding 27 calendar month, including receipts from charge and time 28 sales, but less all 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; and 32 6. Such other reasonable information as the 33 Department may require. 34 If a total amount of less than $1 is payable, refundable SB1854 Enrolled -210- LRB9215370EGfg 1 or creditable, such amount shall be disregarded if it is less 2 than 50 cents and shall be increased to $1 if it is 50 cents 3 or more. 4 Beginning October 1, 1993, a taxpayer who has an average 5 monthly tax liability of $150,000 or more shall make all 6 payments required by rules of the Department by electronic 7 funds transfer. Beginning October 1, 1994, a taxpayer who 8 has an average monthly tax liability of $100,000 or more 9 shall make all payments required by rules of the Department 10 by electronic funds transfer. Beginning October 1, 1995, a 11 taxpayer who has an average monthly tax liability of $50,000 12 or more shall make all payments required by rules of the 13 Department by electronic funds transfer. Beginning October 14 1, 2000, a taxpayer who has an annual tax liability of 15 $200,000 or more shall make all payments required by rules of 16 the Department by electronic funds transfer. The term 17 "annual tax liability" shall be the sum of the taxpayer's 18 liabilities under this Act, and under all other State and 19 local occupation and use tax laws administered by the 20 Department, for the immediately preceding calendar year. The 21 term "average monthly tax liability" shall be the sum of the 22 taxpayer's liabilities under this Act, and under all other 23 State and local occupation and use tax laws administered by 24 the Department, for the immediately preceding calendar year 25 divided by 12. Beginning on October 1, 2002, a taxpayer who 26 has a tax liability in the amount set forth in subsection (b) 27 of Section 2505-210 of the Department of Revenue Law shall 28 make all payments required by rules of the Department by 29 electronic funds transfer. 30 Before August 1 of each year beginning in 1993, the 31 Department shall notify all taxpayers required to make 32 payments by electronic funds transfer. All taxpayers 33 required to make payments by electronic funds transfer shall 34 make those payments for a minimum of one year beginning on SB1854 Enrolled -211- LRB9215370EGfg 1 October 1. 2 Any taxpayer not required to make payments by electronic 3 funds transfer may make payments by electronic funds transfer 4 with the permission of the Department. 5 All taxpayers required to make payment by electronic 6 funds transfer and any taxpayers authorized to voluntarily 7 make payments by electronic funds transfer shall make those 8 payments in the manner authorized by the Department. 9 The Department shall adopt such rules as are necessary to 10 effectuate a program of electronic funds transfer and the 11 requirements of this Section. 12 Any amount which is required to be shown or reported on 13 any return or other document under this Act shall, if such 14 amount is not a whole-dollar amount, be increased to the 15 nearest whole-dollar amount in any case where the fractional 16 part of a dollar is 50 cents or more, and decreased to the 17 nearest whole-dollar amount where the fractional part of a 18 dollar is less than 50 cents. 19 If the retailer is otherwise required to file a monthly 20 return and if the retailer's average monthly tax liability to 21 the Department does not exceed $200, the Department may 22 authorize his returns to be filed on a quarter annual basis, 23 with the return for January, February and March of a given 24 year being due by April 20 of such year; with the return for 25 April, May and June of a given year being due by July 20 of 26 such year; with the return for July, August and September of 27 a given year being due by October 20 of such year, and with 28 the return for October, November and December of a given year 29 being due by January 20 of the following year. 30 If the retailer is otherwise required to file a monthly 31 or quarterly return and if the retailer's average monthly tax 32 liability with the Department does not exceed $50, the 33 Department may authorize his returns to be filed on an annual 34 basis, with the return for a given year being due by January SB1854 Enrolled -212- LRB9215370EGfg 1 20 of the following year. 2 Such quarter annual and annual returns, as to form and 3 substance, shall be subject to the same requirements as 4 monthly returns. 5 Notwithstanding any other provision in this Act 6 concerning the time within which a retailer may file his 7 return, in the case of any retailer who ceases to engage in a 8 kind of business which makes him responsible for filing 9 returns under this Act, such retailer shall file a final 10 return under this Act with the Department not more than one 11 month after discontinuing such business. 12 Where the same person has more than one business 13 registered with the Department under separate registrations 14 under this Act, such person may not file each return that is 15 due as a single return covering all such registered 16 businesses, but shall file separate returns for each such 17 registered business. 18 In addition, with respect to motor vehicles, watercraft, 19 aircraft, and trailers that are required to be registered 20 with an agency of this State, every retailer selling this 21 kind of tangible personal property shall file, with the 22 Department, upon a form to be prescribed and supplied by the 23 Department, a separate return for each such item of tangible 24 personal property which the retailer sells, except that if, 25 in the same transaction, (i) a retailer of aircraft, 26 watercraft, motor vehicles or trailers transfers more than 27 one aircraft, watercraft, motor vehicle or trailer to another 28 aircraft, watercraft, motor vehicle retailer or trailer 29 retailer for the purpose of resale or (ii) a retailer of 30 aircraft, watercraft, motor vehicles, or trailers transfers 31 more than one aircraft, watercraft, motor vehicle, or trailer 32 to a purchaser for use as a qualifying rolling stock as 33 provided in Section 2-5 of this Act, then that seller may 34 report the transfer of all aircraft, watercraft, motor SB1854 Enrolled -213- LRB9215370EGfg 1 vehicles or trailers involved in that transaction to the 2 Department on the same uniform invoice-transaction reporting 3 return form. For purposes of this Section, "watercraft" 4 means a Class 2, Class 3, or Class 4 watercraft as defined in 5 Section 3-2 of the Boat Registration and Safety Act, a 6 personal watercraft, or any boat equipped with an inboard 7 motor. 8 Any retailer who sells only motor vehicles, watercraft, 9 aircraft, or trailers that are required to be registered with 10 an agency of this State, so that all retailers' occupation 11 tax liability is required to be reported, and is reported, on 12 such transaction reporting returns and who is not otherwise 13 required to file monthly or quarterly returns, need not file 14 monthly or quarterly returns. However, those retailers shall 15 be required to file returns on an annual basis. 16 The transaction reporting return, in the case of motor 17 vehicles or trailers that are required to be registered with 18 an agency of this State, shall be the same document as the 19 Uniform Invoice referred to in Section 5-402 of The Illinois 20 Vehicle Code and must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 1 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale; a sufficient identification of 34 the property sold; such other information as is required in SB1854 Enrolled -214- LRB9215370EGfg 1 Section 5-402 of The Illinois Vehicle Code, and such other 2 information as the Department may reasonably require. 3 The transaction reporting return in the case of 4 watercraft or aircraft must show the name and address of the 5 seller; the name and address of the purchaser; the amount of 6 the selling price including the amount allowed by the 7 retailer for traded-in property, if any; the amount allowed 8 by the retailer for the traded-in tangible personal property, 9 if any, to the extent to which Section 1 of this Act allows 10 an exemption for the value of traded-in property; the balance 11 payable after deducting such trade-in allowance from the 12 total selling price; the amount of tax due from the retailer 13 with respect to such transaction; the amount of tax collected 14 from the purchaser by the retailer on such transaction (or 15 satisfactory evidence that such tax is not due in that 16 particular instance, if that is claimed to be the fact); the 17 place and date of the sale, a sufficient identification of 18 the property sold, and such other information as the 19 Department may reasonably require. 20 Such transaction reporting return shall be filed not 21 later than 20 days after the day of delivery of the item that 22 is being sold, but may be filed by the retailer at any time 23 sooner than that if he chooses to do so. The transaction 24 reporting return and tax remittance or proof of exemption 25 from the Illinois use tax may be transmitted to the 26 Department by way of the State agency with which, or State 27 officer with whom the tangible personal property must be 28 titled or registered (if titling or registration is required) 29 if the Department and such agency or State officer determine 30 that this procedure will expedite the processing of 31 applications for title or registration. 32 With each such transaction reporting return, the retailer 33 shall remit the proper amount of tax due (or shall submit 34 satisfactory evidence that the sale is not taxable if that is SB1854 Enrolled -215- LRB9215370EGfg 1 the case), to the Department or its agents, whereupon the 2 Department shall issue, in the purchaser's name, a use tax 3 receipt (or a certificate of exemption if the Department is 4 satisfied that the particular sale is tax exempt) which such 5 purchaser may submit to the agency with which, or State 6 officer with whom, he must title or register the tangible 7 personal property that is involved (if titling or 8 registration is required) in support of such purchaser's 9 application for an Illinois certificate or other evidence of 10 title or registration to such tangible personal property. 11 No retailer's failure or refusal to remit tax under this 12 Act precludes a user, who has paid the proper tax to the 13 retailer, from obtaining his certificate of title or other 14 evidence of title or registration (if titling or registration 15 is required) upon satisfying the Department that such user 16 has paid the proper tax (if tax is due) to the retailer. The 17 Department shall adopt appropriate rules to carry out the 18 mandate of this paragraph. 19 If the user who would otherwise pay tax to the retailer 20 wants the transaction reporting return filed and the payment 21 of the tax or proof of exemption made to the Department 22 before the retailer is willing to take these actions and such 23 user has not paid the tax to the retailer, such user may 24 certify to the fact of such delay by the retailer and may 25 (upon the Department being satisfied of the truth of such 26 certification) transmit the information required by the 27 transaction reporting return and the remittance for tax or 28 proof of exemption directly to the Department and obtain his 29 tax receipt or exemption determination, in which event the 30 transaction reporting return and tax remittance (if a tax 31 payment was required) shall be credited by the Department to 32 the proper retailer's account with the Department, but 33 without the 2.1% or 1.75% discount provided for in this 34 Section being allowed. When the user pays the tax directly SB1854 Enrolled -216- LRB9215370EGfg 1 to the Department, he shall pay the tax in the same amount 2 and in the same form in which it would be remitted if the tax 3 had been remitted to the Department by the retailer. 4 Refunds made by the seller during the preceding return 5 period to purchasers, on account of tangible personal 6 property returned to the seller, shall be allowed as a 7 deduction under subdivision 5 of his monthly or quarterly 8 return, as the case may be, in case the seller had 9 theretofore included the receipts from the sale of such 10 tangible personal property in a return filed by him and had 11 paid the tax imposed by this Act with respect to such 12 receipts. 13 Where the seller is a corporation, the return filed on 14 behalf of such corporation shall be signed by the president, 15 vice-president, secretary or treasurer or by the properly 16 accredited agent of such corporation. 17 Where the seller is a limited liability company, the 18 return filed on behalf of the limited liability company shall 19 be signed by a manager, member, or properly accredited agent 20 of the limited liability company. 21 Except as provided in this Section, the retailer filing 22 the return under this Section shall, at the time of filing 23 such return, pay to the Department the amount of tax imposed 24 by this Act less a discount of 2.1% prior to January 1, 1990 25 and 1.75% on and after January 1, 1990, or $5 per calendar 26 year, whichever is greater, which is allowed to reimburse the 27 retailer for the expenses incurred in keeping records, 28 preparing and filing returns, remitting the tax and supplying 29 data to the Department on request. Any prepayment made 30 pursuant to Section 2d of this Act shall be included in the 31 amount on which such 2.1% or 1.75% discount is computed. In 32 the case of retailers who report and pay the tax on a 33 transaction by transaction basis, as provided in this 34 Section, such discount shall be taken with each such tax SB1854 Enrolled -217- LRB9215370EGfg 1 remittance instead of when such retailer files his periodic 2 return. 3 Before October 1, 2000, if the taxpayer's average monthly 4 tax liability to the Department under this Act, the Use Tax 5 Act, the Service Occupation Tax Act, and the Service Use Tax 6 Act, excluding any liability for prepaid sales tax to be 7 remitted in accordance with Section 2d of this Act, was 8 $10,000 or more during the preceding 4 complete calendar 9 quarters, he shall file a return with the Department each 10 month by the 20th day of the month next following the month 11 during which such tax liability is incurred and shall make 12 payments to the Department on or before the 7th, 15th, 22nd 13 and last day of the month during which such liability is 14 incurred. On and after October 1, 2000, if the taxpayer's 15 average monthly tax liability to the Department under this 16 Act, the Use Tax Act, the Service Occupation Tax Act, and the 17 Service Use Tax Act, excluding any liability for prepaid 18 sales tax to be remitted in accordance with Section 2d of 19 this Act, was $20,000 or more during the preceding 4 complete 20 calendar quarters, he shall file a return with the Department 21 each month by the 20th day of the month next following the 22 month during which such tax liability is incurred and shall 23 make payment to the Department on or before the 7th, 15th, 24 22nd and last day of the month during which such liability is 25 incurred. If the month during which such tax liability is 26 incurred began prior to January 1, 1985, each payment shall 27 be in an amount equal to 1/4 of the taxpayer's actual 28 liability for the month or an amount set by the Department 29 not to exceed 1/4 of the average monthly liability of the 30 taxpayer to the Department for the preceding 4 complete 31 calendar quarters (excluding the month of highest liability 32 and the month of lowest liability in such 4 quarter period). 33 If the month during which such tax liability is incurred 34 begins on or after January 1, 1985 and prior to January 1, SB1854 Enrolled -218- LRB9215370EGfg 1 1987, each payment shall be in an amount equal to 22.5% of 2 the taxpayer's actual liability for the month or 27.5% of the 3 taxpayer's liability for the same calendar month of the 4 preceding year. If the month during which such tax liability 5 is incurred begins on or after January 1, 1987 and prior to 6 January 1, 1988, each payment shall be in an amount equal to 7 22.5% of the taxpayer's actual liability for the month or 8 26.25% of the taxpayer's liability for the same calendar 9 month of the preceding year. If the month during which such 10 tax liability is incurred begins on or after January 1, 1988, 11 and prior to January 1, 1989, or begins on or after January 12 1, 1996, each payment shall be in an amount equal to 22.5% of 13 the taxpayer's actual liability for the month or 25% 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, 1989, and prior to 17 January 1, 1996, each payment shall be in an amount equal to 18 22.5% of the taxpayer's actual liability for the month or 25% 19 of the taxpayer's liability for the same calendar month of 20 the preceding year or 100% of the taxpayer's actual liability 21 for the quarter monthly reporting period. The amount of such 22 quarter monthly payments shall be credited against the final 23 tax liability of the taxpayer's return for that month. 24 Before October 1, 2000, once applicable, the requirement of 25 the making of quarter monthly payments to the Department by 26 taxpayers having an average monthly tax liability of $10,000 27 or more as determined in the manner provided above shall 28 continue until such taxpayer's average monthly liability to 29 the Department during the preceding 4 complete calendar 30 quarters (excluding the month of highest liability and the 31 month of lowest liability) is less than $9,000, or until such 32 taxpayer's average monthly liability to the Department as 33 computed for each calendar quarter of the 4 preceding 34 complete calendar quarter period is less than $10,000. SB1854 Enrolled -219- LRB9215370EGfg 1 However, if a taxpayer can show the Department that a 2 substantial change in the taxpayer's business has occurred 3 which causes the taxpayer to anticipate that his average 4 monthly tax liability for the reasonably foreseeable future 5 will fall below the $10,000 threshold stated above, then such 6 taxpayer may petition the Department for a change in such 7 taxpayer's reporting status. On and after October 1, 2000, 8 once applicable, the requirement of the making of quarter 9 monthly payments to the Department by taxpayers having an 10 average monthly tax liability of $20,000 or more as 11 determined in the manner provided above shall continue until 12 such taxpayer's average monthly liability to the Department 13 during the preceding 4 complete calendar quarters (excluding 14 the month of highest liability and the month of lowest 15 liability) is less than $19,000 or until such taxpayer's 16 average monthly liability to the Department as computed for 17 each calendar quarter of the 4 preceding complete calendar 18 quarter period is less than $20,000. However, if a taxpayer 19 can show the Department that a substantial change in the 20 taxpayer's business has occurred which causes the taxpayer to 21 anticipate that his average monthly tax liability for the 22 reasonably foreseeable future will fall below the $20,000 23 threshold stated above, then such taxpayer may petition the 24 Department for a change in such taxpayer's reporting status. 25 The Department shall change such taxpayer's reporting status 26 unless it finds that such change is seasonal in nature and 27 not likely to be long term. If any such quarter monthly 28 payment is not paid at the time or in the amount required by 29 this Section, then the taxpayer shall be liable for penalties 30 and interest on the difference between the minimum amount due 31 as a payment and the amount of such quarter monthly payment 32 actually and timely paid, except insofar as the taxpayer has 33 previously made payments for that month to the Department in 34 excess of the minimum payments previously due as provided in SB1854 Enrolled -220- LRB9215370EGfg 1 this Section. The Department shall make reasonable rules and 2 regulations to govern the quarter monthly payment amount and 3 quarter monthly payment dates for taxpayers who file on other 4 than a calendar monthly basis. 5 The provisions of this paragraph apply before October 1, 6 2001. Without regard to whether a taxpayer is required to 7 make quarter monthly payments as specified above, any 8 taxpayer who is required by Section 2d of this Act to collect 9 and remit prepaid taxes and has collected prepaid taxes which 10 average in excess of $25,000 per month during the preceding 2 11 complete calendar quarters, shall file a return with the 12 Department as required by Section 2f and shall make payments 13 to the Department on or before the 7th, 15th, 22nd and last 14 day of the month during which such liability is incurred. If 15 the month during which such tax liability is incurred began 16 prior to the effective date of this amendatory Act of 1985, 17 each payment shall be in an amount not less than 22.5% of the 18 taxpayer's actual liability under Section 2d. If the month 19 during which such tax liability is incurred begins on or 20 after January 1, 1986, each payment shall be in an amount 21 equal to 22.5% of the taxpayer's actual liability for the 22 month or 27.5% of the taxpayer's liability for the same 23 calendar month of the preceding calendar year. If the month 24 during which such tax liability is incurred begins on or 25 after January 1, 1987, each payment shall be in an amount 26 equal to 22.5% of the taxpayer's actual liability for the 27 month or 26.25% of the taxpayer's liability for the same 28 calendar month of the preceding year. The amount of such 29 quarter monthly payments shall be credited against the final 30 tax liability of the taxpayer's return for that month filed 31 under this Section or Section 2f, as the case may be. Once 32 applicable, the requirement of the making of quarter monthly 33 payments to the Department pursuant to this paragraph shall 34 continue until such taxpayer's average monthly prepaid tax SB1854 Enrolled -221- LRB9215370EGfg 1 collections during the preceding 2 complete calendar quarters 2 is $25,000 or less. If any such quarter monthly payment is 3 not paid at the time or in the amount required, the taxpayer 4 shall be liable for penalties and interest on such 5 difference, except insofar as the taxpayer has previously 6 made payments for that month in excess of the minimum 7 payments previously due. 8 The provisions of this paragraph apply on and after 9 October 1, 2001. Without regard to whether a taxpayer is 10 required to make quarter monthly payments as specified above, 11 any taxpayer who is required by Section 2d of this Act to 12 collect and remit prepaid taxes and has collected prepaid 13 taxes that average in excess of $20,000 per month during the 14 preceding 4 complete calendar quarters shall file a return 15 with the Department as required by Section 2f and shall make 16 payments to the Department on or before the 7th, 15th, 22nd 17 and last day of the month during which the liability is 18 incurred. Each payment shall be in an amount equal to 22.5% 19 of the taxpayer's actual liability for the month or 25% of 20 the taxpayer's liability for the same calendar month of the 21 preceding year. The amount of the quarter monthly payments 22 shall be credited against the final tax liability of the 23 taxpayer's return for that month filed under this Section or 24 Section 2f, as the case may be. Once applicable, the 25 requirement of the making of quarter monthly payments to the 26 Department pursuant to this paragraph shall continue until 27 the taxpayer's average monthly prepaid tax collections during 28 the preceding 4 complete calendar quarters (excluding the 29 month of highest liability and the month of lowest liability) 30 is less than $19,000 or until such taxpayer's average monthly 31 liability to the Department as computed for each calendar 32 quarter of the 4 preceding complete calendar quarters is less 33 than $20,000. If any such quarter monthly payment is not 34 paid at the time or in the amount required, the taxpayer SB1854 Enrolled -222- LRB9215370EGfg 1 shall be liable for penalties and interest on such 2 difference, except insofar as the taxpayer has previously 3 made payments for that month in excess of the minimum 4 payments previously due. 5 If any payment provided for in this Section exceeds the 6 taxpayer's liabilities under this Act, the Use Tax Act, the 7 Service Occupation Tax Act and the Service Use Tax Act, as 8 shown on an original monthly return, the Department shall, if 9 requested by the taxpayer, issue to the taxpayer a credit 10 memorandum no later than 30 days after the date of payment. 11 The credit evidenced by such credit memorandum may be 12 assigned by the taxpayer to a similar taxpayer under this 13 Act, the Use Tax Act, the Service Occupation Tax Act or the 14 Service Use Tax Act, in accordance with reasonable rules and 15 regulations to be prescribed by the Department. If no such 16 request is made, the taxpayer may credit such excess payment 17 against tax liability subsequently to be remitted to the 18 Department under this Act, the Use Tax Act, the Service 19 Occupation Tax Act or the Service Use Tax Act, in accordance 20 with reasonable rules and regulations prescribed by the 21 Department. If the Department subsequently determined that 22 all or any part of the credit taken was not actually due to 23 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 24 shall be reduced by 2.1% or 1.75% of the difference between 25 the credit taken and that actually due, and that taxpayer 26 shall be liable for penalties and interest on such 27 difference. 28 If a retailer of motor fuel is entitled to a credit under 29 Section 2d of this Act which exceeds the taxpayer's liability 30 to the Department under this Act for the month which the 31 taxpayer is filing a return, the Department shall issue the 32 taxpayer a credit memorandum for the excess. 33 Beginning January 1, 1990, each month the Department 34 shall pay into the Local Government Tax Fund, a special fund SB1854 Enrolled -223- LRB9215370EGfg 1 in the State treasury which is hereby created, the net 2 revenue realized for the preceding month from the 1% tax on 3 sales of food for human consumption which is to be consumed 4 off the premises where it is sold (other than alcoholic 5 beverages, soft drinks and food which has been prepared for 6 immediate consumption) and prescription and nonprescription 7 medicines, drugs, medical appliances and insulin, urine 8 testing materials, syringes and needles used by diabetics. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the County and Mass Transit District Fund, a 11 special fund in the State treasury which is hereby created, 12 4% of the net revenue realized for the preceding month from 13 the 6.25% general rate. 14 Beginning August 1, 2000, each month the Department shall 15 pay into the County and Mass Transit District Fund 20% of the 16 net revenue realized for the preceding month from the 1.25% 17 rate on the selling price of motor fuel and gasohol. 18 Beginning January 1, 1990, each month the Department 19 shall pay into the Local Government Tax Fund 16% of the net 20 revenue realized for the preceding month from the 6.25% 21 general rate on the selling price of tangible personal 22 property. 23 Beginning August 1, 2000, each month the Department shall 24 pay into the Local Government Tax Fund 80% of the net revenue 25 realized for the preceding month from the 1.25% rate on the 26 selling price of motor fuel and gasohol. 27 Of the remainder of the moneys received by the Department 28 pursuant to this Act, (a) 1.75% thereof shall be paid into 29 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 30 and on and after July 1, 1989, 3.8% thereof shall be paid 31 into the Build Illinois Fund; provided, however, that if in 32 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 33 as the case may be, of the moneys received by the Department 34 and required to be paid into the Build Illinois Fund pursuant SB1854 Enrolled -224- LRB9215370EGfg 1 to this Act, Section 9 of the Use Tax Act, Section 9 of the 2 Service Use Tax Act, and Section 9 of the Service Occupation 3 Tax Act, such Acts being hereinafter called the "Tax Acts" 4 and such aggregate of 2.2% or 3.8%, as the case may be, of 5 moneys being hereinafter called the "Tax Act Amount", and (2) 6 the amount transferred to the Build Illinois Fund from the 7 State and Local Sales Tax Reform Fund shall be less than the 8 Annual Specified Amount (as hereinafter defined), an amount 9 equal to the difference shall be immediately paid into the 10 Build Illinois Fund from other moneys received by the 11 Department pursuant to the Tax Acts; the "Annual Specified 12 Amount" means the amounts specified below for fiscal years 13 1986 through 1993: 14 Fiscal Year Annual Specified Amount 15 1986 $54,800,000 16 1987 $76,650,000 17 1988 $80,480,000 18 1989 $88,510,000 19 1990 $115,330,000 20 1991 $145,470,000 21 1992 $182,730,000 22 1993 $206,520,000; 23 and means the Certified Annual Debt Service Requirement (as 24 defined in Section 13 of the Build Illinois Bond Act) or the 25 Tax Act Amount, whichever is greater, for fiscal year 1994 26 and each fiscal year thereafter; and further provided, that 27 if on the last business day of any month the sum of (1) the 28 Tax Act Amount required to be deposited into the Build 29 Illinois Bond Account in the Build Illinois Fund during such 30 month and (2) the amount transferred to the Build Illinois 31 Fund from the State and Local Sales Tax Reform Fund shall 32 have been less than 1/12 of the Annual Specified Amount, an 33 amount equal to the difference shall be immediately paid into 34 the Build Illinois Fund from other moneys received by the SB1854 Enrolled -225- LRB9215370EGfg 1 Department pursuant to the Tax Acts; and, further provided, 2 that in no event shall the payments required under the 3 preceding proviso result in aggregate payments into the Build 4 Illinois Fund pursuant to this clause (b) for any fiscal year 5 in excess of the greater of (i) the Tax Act Amount or (ii) 6 the Annual Specified Amount for such fiscal year. The 7 amounts payable into the Build Illinois Fund under clause (b) 8 of the first sentence in this paragraph shall be payable only 9 until such time as the aggregate amount on deposit under each 10 trust indenture securing Bonds issued and outstanding 11 pursuant to the Build Illinois Bond Act is sufficient, taking 12 into account any future investment income, to fully provide, 13 in accordance with such indenture, for the defeasance of or 14 the payment of the principal of, premium, if any, and 15 interest on the Bonds secured by such indenture and on any 16 Bonds expected to be issued thereafter and all fees and costs 17 payable with respect thereto, all as certified by the 18 Director of the Bureau of the Budget. If on the last 19 business day of any month in which Bonds are outstanding 20 pursuant to the Build Illinois Bond Act, the aggregate of 21 moneys deposited in the Build Illinois Bond Account in the 22 Build Illinois Fund in such month shall be less than the 23 amount required to be transferred in such month from the 24 Build Illinois Bond Account to the Build Illinois Bond 25 Retirement and Interest Fund pursuant to Section 13 of the 26 Build Illinois Bond Act, an amount equal to such deficiency 27 shall be immediately paid from other moneys received by the 28 Department pursuant to the Tax Acts to the Build Illinois 29 Fund; provided, however, that any amounts paid to the Build 30 Illinois Fund in any fiscal year pursuant to this sentence 31 shall be deemed to constitute payments pursuant to clause (b) 32 of the first sentence of this paragraph and shall reduce the 33 amount otherwise payable for such fiscal year pursuant to 34 that clause (b). The moneys received by the Department SB1854 Enrolled -226- LRB9215370EGfg 1 pursuant to this Act and required to be deposited into the 2 Build Illinois Fund are subject to the pledge, claim and 3 charge set forth in Section 12 of the Build Illinois Bond 4 Act. 5 Subject to payment of amounts into the Build Illinois 6 Fund as provided in the preceding paragraph or in any 7 amendment thereto hereafter enacted, the following specified 8 monthly installment of the amount requested in the 9 certificate of the Chairman of the Metropolitan Pier and 10 Exposition Authority provided under Section 8.25f of the 11 State Finance Act, but not in excess of sums designated as 12 "Total Deposit", shall be deposited in the aggregate from 13 collections under Section 9 of the Use Tax Act, Section 9 of 14 the Service Use Tax Act, Section 9 of the Service Occupation 15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 16 into the McCormick Place Expansion Project Fund in the 17 specified fiscal years. 18 Fiscal Year Total Deposit 19 1993 $0 20 1994 53,000,000 21 1995 58,000,000 22 1996 61,000,000 23 1997 64,000,000 24 1998 68,000,000 25 1999 71,000,000 26 2000 75,000,000 27 2001 80,000,000 28 2002 93,000,000 29 2003 99,000,000 30 2004 103,000,000 31 2005 108,000,000 32 2006 113,000,000 33 2007 119,000,000 34 2008 126,000,000 SB1854 Enrolled -227- LRB9215370EGfg 1 2009 132,000,000 2 2010 139,000,000 3 2011 146,000,000 4 2012 153,000,000 5 2013 161,000,000 6 2014 170,000,000 7 2015 179,000,000 8 2016 189,000,000 9 2017 199,000,000 10 2018 210,000,000 11 2019 221,000,000 12 2020 233,000,000 13 2021 246,000,000 14 2022 260,000,000 15 2023 and 275,000,000 16 each fiscal year 17 thereafter that bonds 18 are outstanding under 19 Section 13.2 of the 20 Metropolitan Pier and 21 Exposition Authority 22 Act, but not after fiscal year 2042. 23 Beginning July 20, 1993 and in each month of each fiscal 24 year thereafter, one-eighth of the amount requested in the 25 certificate of the Chairman of the Metropolitan Pier and 26 Exposition Authority for that fiscal year, less the amount 27 deposited into the McCormick Place Expansion Project Fund by 28 the State Treasurer in the respective month under subsection 29 (g) of Section 13 of the Metropolitan Pier and Exposition 30 Authority Act, plus cumulative deficiencies in the deposits 31 required under this Section for previous months and years, 32 shall be deposited into the McCormick Place Expansion Project 33 Fund, until the full amount requested for the fiscal year, 34 but not in excess of the amount specified above as "Total SB1854 Enrolled -228- LRB9215370EGfg 1 Deposit", has been deposited. 2 Subject to payment of amounts into the Build Illinois 3 Fund and the McCormick Place Expansion Project Fund pursuant 4 to the preceding paragraphs or in any amendment thereto 5 hereafter enacted, each month the Department shall pay into 6 the Local Government Distributive Fund 0.4% of the net 7 revenue realized for the preceding month from the 5% general 8 rate or 0.4% of 80% of the net revenue realized for the 9 preceding month from the 6.25% general rate, as the case may 10 be, on the selling price of tangible personal property which 11 amount shall, subject to appropriation, be distributed as 12 provided in Section 2 of the State Revenue Sharing Act. No 13 payments or distributions pursuant to this paragraph shall be 14 made if the tax imposed by this Act on photoprocessing 15 products is declared unconstitutional, or if the proceeds 16 from such tax are unavailable for distribution because of 17 litigation. 18 Subject to payment of amounts into the Build Illinois 19 Fund,andthe McCormick Place Expansion Project Fund, and the 20 Local Government Distributive Fund pursuant to the preceding 21 paragraphs or in any amendments thereto hereafter enacted, 22 beginning July 1, 1993, the Department shall each month pay 23 into the Illinois Tax Increment Fund 0.27% of 80% of the net 24 revenue realized for the preceding month from the 6.25% 25 general rate on the selling price of tangible personal 26 property. 27 Subject to payment of amounts into the Build Illinois 28 Fund, the McCormick Place Expansion Project Fund, and the 29 Local Government Distributive Fund pursuant to the preceding 30 paragraphs or in any amendments thereto hereafter enacted, 31 beginning with the receipt of the first report of taxes paid 32 by an eligible business and continuing for a 25-year period, 33 the Department shall each month pay into the Energy 34 Infrastructure Fund 80% of the net revenue realized from the SB1854 Enrolled -229- LRB9215370EGfg 1 6.25% general rate on the selling price of Illinois-mined 2 coal that was sold to an eligible business. For purposes of 3 this paragraph, the term "eligible business" means a new 4 electric generating facility certified pursuant to Section 5 605-332 of the Department of Commerce and Community Affairs 6 Law of the Civil Administrative Code of Illinois. 7 Of the remainder of the moneys received by the Department 8 pursuant to this Act, 75% thereof shall be paid into the 9 State Treasury and 25% shall be reserved in a special account 10 and used only for the transfer to the Common School Fund as 11 part of the monthly transfer from the General Revenue Fund in 12 accordance with Section 8a of the State Finance Act. 13 The Department may, upon separate written notice to a 14 taxpayer, require the taxpayer to prepare and file with the 15 Department on a form prescribed by the Department within not 16 less than 60 days after receipt of the notice an annual 17 information return for the tax year specified in the notice. 18 Such annual return to the Department shall include a 19 statement of gross receipts as shown by the retailer's last 20 Federal income tax return. If the total receipts of the 21 business as reported in the Federal income tax return do not 22 agree with the gross receipts reported to the Department of 23 Revenue for the same period, the retailer shall attach to his 24 annual return a schedule showing a reconciliation of the 2 25 amounts and the reasons for the difference. The retailer's 26 annual return to the Department shall also disclose the cost 27 of goods sold by the retailer during the year covered by such 28 return, opening and closing inventories of such goods for 29 such year, costs of goods used from stock or taken from stock 30 and given away by the retailer during such year, payroll 31 information of the retailer's business during such year and 32 any additional reasonable information which the Department 33 deems would be helpful in determining the accuracy of the 34 monthly, quarterly or annual returns filed by such retailer SB1854 Enrolled -230- LRB9215370EGfg 1 as provided for in this Section. 2 If the annual information return required by this Section 3 is not filed when and as required, the taxpayer shall be 4 liable as follows: 5 (i) Until January 1, 1994, the taxpayer shall be 6 liable for a penalty equal to 1/6 of 1% of the tax due 7 from such taxpayer under this Act during the period to be 8 covered by the annual return for each month or fraction 9 of a month until such return is filed as required, the 10 penalty to be assessed and collected in the same manner 11 as any other penalty provided for in this Act. 12 (ii) On and after January 1, 1994, the taxpayer 13 shall be liable for a penalty as described in Section 3-4 14 of the Uniform Penalty and Interest Act. 15 The chief executive officer, proprietor, owner or highest 16 ranking manager shall sign the annual return to certify the 17 accuracy of the information contained therein. Any person 18 who willfully signs the annual return containing false or 19 inaccurate information shall be guilty of perjury and 20 punished accordingly. The annual return form prescribed by 21 the Department shall include a warning that the person 22 signing the return may be liable for perjury. 23 The provisions of this Section concerning the filing of 24 an annual information return do not apply to a retailer who 25 is not required to file an income tax return with the United 26 States Government. 27 As soon as possible after the first day of each month, 28 upon certification of the Department of Revenue, the 29 Comptroller shall order transferred and the Treasurer shall 30 transfer from the General Revenue Fund to the Motor Fuel Tax 31 Fund an amount equal to 1.7% of 80% of the net revenue 32 realized under this Act for the second preceding month. 33 Beginning April 1, 2000, this transfer is no longer required 34 and shall not be made. SB1854 Enrolled -231- LRB9215370EGfg 1 Net revenue realized for a month shall be the revenue 2 collected by the State pursuant to this Act, less the amount 3 paid out during that month as refunds to taxpayers for 4 overpayment of liability. 5 For greater simplicity of administration, manufacturers, 6 importers and wholesalers whose products are sold at retail 7 in Illinois by numerous retailers, and who wish to do so, may 8 assume the responsibility for accounting and paying to the 9 Department all tax accruing under this Act with respect to 10 such sales, if the retailers who are affected do not make 11 written objection to the Department to this arrangement. 12 Any person who promotes, organizes, provides retail 13 selling space for concessionaires or other types of sellers 14 at the Illinois State Fair, DuQuoin State Fair, county fairs, 15 local fairs, art shows, flea markets and similar exhibitions 16 or events, including any transient merchant as defined by 17 Section 2 of the Transient Merchant Act of 1987, is required 18 to file a report with the Department providing the name of 19 the merchant's business, the name of the person or persons 20 engaged in merchant's business, the permanent address and 21 Illinois Retailers Occupation Tax Registration Number of the 22 merchant, the dates and location of the event and other 23 reasonable information that the Department may require. The 24 report must be filed not later than the 20th day of the month 25 next following the month during which the event with retail 26 sales was held. Any person who fails to file a report 27 required by this Section commits a business offense and is 28 subject to a fine not to exceed $250. 29 Any person engaged in the business of selling tangible 30 personal property at retail as a concessionaire or other type 31 of seller at the Illinois State Fair, county fairs, art 32 shows, flea markets and similar exhibitions or events, or any 33 transient merchants, as defined by Section 2 of the Transient 34 Merchant Act of 1987, may be required to make a daily report SB1854 Enrolled -232- LRB9215370EGfg 1 of the amount of such sales to the Department and to make a 2 daily payment of the full amount of tax due. The Department 3 shall impose this requirement when it finds that there is a 4 significant risk of loss of revenue to the State at such an 5 exhibition or event. Such a finding shall be based on 6 evidence that a substantial number of concessionaires or 7 other sellers who are not residents of Illinois will be 8 engaging in the business of selling tangible personal 9 property at retail at the exhibition or event, or other 10 evidence of a significant risk of loss of revenue to the 11 State. The Department shall notify concessionaires and other 12 sellers affected by the imposition of this requirement. In 13