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Public Act 92-0393
SB417 Enrolled LRB9201056LDpr
AN ACT in relation to alcoholic liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Section 8-2 as follows:
(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. It is the duty of each manufacturer with
respect to alcoholic liquor produced or imported by such
manufacturer, or purchased tax-free by such manufacturer from
another manufacturer or importing distributor, and of each
importing distributor as to alcoholic liquor purchased by
such importing distributor from foreign importers or from
anyone from any point in the United States outside of this
State or purchased tax-free from another manufacturer or
importing distributor, to pay the tax imposed by Section 8-1
to the Department of Revenue on or before the 15th day of the
calendar month following the calendar month in which such
alcoholic liquor is sold or used by such manufacturer or by
such importing distributor other than in an authorized
tax-free manner or to pay that tax electronically as provided
in this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1), on or
before the 15th day of each calendar month, file in person or
by United States first-class mail, postage pre-paid, with the
Department of Revenue, on forms prescribed and furnished by
the Department, a report in writing in such form as may be
required by the Department in order to compute, and assure
the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month.
Payment of the tax in the amount disclosed by the report
shall accompany the report or, (2) on or before the 15th day
of each calendar month, electronically file with the
Department of Revenue, on forms prescribed and furnished by
the Department, an electronic report in such form as may be
required by the Department in order to compute, and assure
the accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month. An
electronic payment of the tax in the amount disclosed by the
report shall accompany the report. A manufacturer or
distributor who files an electronic report and electronically
pays the tax imposed pursuant to Section 8-1 to the
Department of Revenue on or before the 15th day of the
calendar month following the calendar month in which such
alcoholic liquor is sold or used by that manufacturer or
importing distributor other than in an authorized tax-free
manner shall pay to the Department the amount of the tax
imposed pursuant to Section 8-1, less a discount of 1.75% or
$1,250 per return, whichever is less, which is allowed to
reimburse the manufacturer or importing distributor for the
expenses incurred in keeping and maintaining records,
preparing and filing the electronic returns, remitting the
tax, and supplying data to the Department upon request.
The Department may, if it deems it necessary in order to
insure the payment of the tax imposed by this Article,
require returns to be made more frequently than and covering
periods of less than a month. Such return shall contain such
further information as the Department may reasonably require.
It shall be presumed that all alcoholic liquors acquired
or made by any importing distributor or manufacturer have
been sold or used by him in this State and are the basis for
the tax imposed by this Article unless proven, to the
satisfaction of the Department, that such alcoholic liquors
are (1) still in the possession of such importing distributor
or manufacturer, or (2) prior to the termination of
possession have been lost by theft or through unintentional
destruction, or (3) that such alcoholic liquors are otherwise
exempt from taxation under this Act.
The Department may require any foreign importer to file
monthly information returns, by the 15th day of the month
following the month which any such return covers, if the
Department determines this to be necessary to the proper
performance of the Department's functions and duties under
this Act. Such return shall contain such information as the
Department may reasonably require.
Every manufacturer and importing distributor shall also
file, with the Department, a bond in an amount not less than
$1,000 and not to exceed $100,000 on a form to be approved
by, and with a surety or sureties satisfactory to, the
Department. Such bond shall be conditioned upon the
manufacturer or importing distributor paying to the
Department all monies becoming due from such manufacturer or
importing distributor under this Article. The Department
shall fix the penalty of such bond in each case, taking into
consideration the amount of alcoholic liquor expected to be
sold and used by such manufacturer or importing distributor,
and the penalty fixed by the Department shall be sufficient,
in the Department's opinion, to protect the State of Illinois
against failure to pay any amount due under this Article, but
the amount of the penalty fixed by the Department shall not
exceed twice the amount of tax liability of a monthly return,
nor shall the amount of such penalty be less than $1,000. The
Department shall notify the Commission of the Department's
approval or disapproval of any such manufacturer's or
importing distributor's bond, or of the termination or
cancellation of any such bond, or of the Department's
direction to a manufacturer or importing distributor that he
must file additional bond in order to comply with this
Section. The Commission shall not issue a license to any
applicant for a manufacturer's or importing distributor's
license unless the Commission has received a notification
from the Department showing that such applicant has filed a
satisfactory bond with the Department hereunder and that such
bond has been approved by the Department. Failure by any
licensed manufacturer or importing distributor to keep a
satisfactory bond in effect with the Department or to furnish
additional bond to the Department, when required hereunder by
the Department to do so, shall be grounds for the revocation
or suspension of such manufacturer's or importing
distributor's license by the Commission. If a manufacturer or
importing distributor fails to pay any amount due under this
Article, his bond with the Department shall be deemed
forfeited, and the Department may institute a suit in its own
name on such bond.
After notice and opportunity for a hearing the State
Commission may revoke or suspend the license of any
manufacturer or importing distributor who fails to comply
with the provisions of this Section. Notice of such hearing
and the time and place thereof shall be in writing and shall
contain a statement of the charges against the licensee. Such
notice may be given by United States registered or certified
mail with return receipt requested, addressed to the person
concerned at his last known address and shall be given not
less than 7 days prior to the date fixed for the hearing. An
order revoking or suspending a license under the provisions
of this Section may be reviewed in the manner provided in
Section 7-10 of this Act. No new license shall be granted to
a person whose license has been revoked for a violation of
this Section or, in case of suspension, shall such suspension
be terminated until he has paid to the Department all taxes
and penalties which he owes the State under the provisions of
this Act.
Every manufacturer or importing distributor who has, as
verified by the Department, continuously complied with the
conditions of the bond under this Act for a period of 2 years
shall be considered to be a prior continuous compliance
taxpayer. In determining the consecutive period of time for
qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory
Act of 1987 shall be credited to any manufacturer or
importing distributor.
Every prior continuous compliance taxpayer shall be
exempt from the bond requirements of this Act until the
Department has determined the taxpayer to be delinquent in
the filing of any return or deficient in the payment of any
tax under this Act. Any taxpayer who fails to pay an
admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
The Department shall discharge any surety and shall
release and return any bond or security deposit assigned,
pledged or otherwise provided to it by a taxpayer under this
Section within 30 days after: (1) such taxpayer becomes a
prior continuous compliance taxpayer; or (2) such taxpayer
has ceased to collect receipts on which he is required to
remit tax to the Department, has filed a final tax return,
and has paid to the Department an amount sufficient to
discharge his remaining tax liability as determined by the
Department under this Act.
Section 99. Effective date. This Act takes effect
January 1, 2003.
Passed in the General Assembly May 24, 2001.
Approved August 16, 2001.
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