101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2331

 

Introduced , by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.891 new
30 ILCS 105/6z-107 new
35 ILCS 105/3-10
35 ILCS 105/9  from Ch. 120, par. 439.9
35 ILCS 110/3-10  from Ch. 120, par. 439.33-10
35 ILCS 110/9  from Ch. 120, par. 439.39
35 ILCS 115/3-10  from Ch. 120, par. 439.103-10
35 ILCS 115/9  from Ch. 120, par. 439.109
35 ILCS 120/2-10
35 ILCS 120/3  from Ch. 120, par. 442

    Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 3.75% surcharge on firearms and firearm component parts. Amends the State Finance Act. Creates the Youthbuild Assistance Fund. Provides that the 3.75% surcharge shall be deposited into the Fund. Sets forth the purposes for which moneys in the Fund may be used. Effective immediately.


LRB101 04564 HLH 49572 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2331LRB101 04564 HLH 49572 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.891 and 6z-107 as follows:
 
6    (30 ILCS 105/5.891 new)
7    Sec. 5.891. The Youthbuild Assistance Fund.
 
8    (30 ILCS 105/6z-107 new)
9    Sec. 6z-107. Youthbuild Assistance Fund; creation. The
10Youthbuild Assistance Fund is hereby created as a special fund
11in the State treasury. Moneys in the Fund may be used, subject
12to appropriation, to provide grants related to youth
13programming.
 
14    Section 10. The Use Tax Act is amended by changing Sections
153-10 and 9 as follows:
 
16    (35 ILCS 105/3-10)
17    Sec. 3-10. Rate of tax. Unless otherwise provided in this
18Section, the tax imposed by this Act is at the rate of 6.25% of
19either the selling price or the fair market value, if any, of
20the tangible personal property. In all cases where property

 

 

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1functionally used or consumed is the same as the property that
2was purchased at retail, then the tax is imposed on the selling
3price of the property. In all cases where property functionally
4used or consumed is a by-product or waste product that has been
5refined, manufactured, or produced from property purchased at
6retail, then the tax is imposed on the lower of the fair market
7value, if any, of the specific property so used in this State
8or on the selling price of the property purchased at retail.
9For purposes of this Section "fair market value" means the
10price at which property would change hands between a willing
11buyer and a willing seller, neither being under any compulsion
12to buy or sell and both having reasonable knowledge of the
13relevant facts. The fair market value shall be established by
14Illinois sales by the taxpayer of the same property as that
15functionally used or consumed, or if there are no such sales by
16the taxpayer, then comparable sales or purchases of property of
17like kind and character in Illinois.
18    Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22    Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 3-6 of
24this Act, the tax is imposed at the rate of 1.25%.
25    With respect to gasohol, the tax imposed by this Act
26applies to (i) 70% of the proceeds of sales made on or after

 

 

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1January 1, 1990, and before July 1, 2003, (ii) 80% of the
2proceeds of sales made on or after July 1, 2003 and on or
3before July 1, 2017, and (iii) 100% of the proceeds of sales
4made thereafter. If, at any time, however, the tax under this
5Act on sales of gasohol is imposed at the rate of 1.25%, then
6the tax imposed by this Act applies to 100% of the proceeds of
7sales of gasohol made during that time.
8    With respect to majority blended ethanol fuel, the tax
9imposed by this Act does not apply to the proceeds of sales
10made on or after July 1, 2003 and on or before December 31,
112023 but applies to 100% of the proceeds of sales made
12thereafter.
13    With respect to biodiesel blends with no less than 1% and
14no more than 10% biodiesel, the tax imposed by this Act applies
15to (i) 80% of the proceeds of sales made on or after July 1,
162003 and on or before December 31, 2018 and (ii) 100% of the
17proceeds of sales made thereafter. If, at any time, however,
18the tax under this Act on sales of biodiesel blends with no
19less than 1% and no more than 10% biodiesel is imposed at the
20rate of 1.25%, then the tax imposed by this Act applies to 100%
21of the proceeds of sales of biodiesel blends with no less than
221% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel and biodiesel blends with
24more than 10% but no more than 99% biodiesel, the tax imposed
25by this Act does not apply to the proceeds of sales made on or
26after July 1, 2003 and on or before December 31, 2023 but

 

 

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1applies to 100% of the proceeds of sales made thereafter.
2    With respect to food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption) and prescription and
6nonprescription medicines, drugs, medical appliances, products
7classified as Class III medical devices by the United States
8Food and Drug Administration that are used for cancer treatment
9pursuant to a prescription, as well as any accessories and
10components related to those devices, modifications to a motor
11vehicle for the purpose of rendering it usable by a person with
12a disability, and insulin, urine testing materials, syringes,
13and needles used by diabetics, for human use, the tax is
14imposed at the rate of 1%. For the purposes of this Section,
15until September 1, 2009: the term "soft drinks" means any
16complete, finished, ready-to-use, non-alcoholic drink, whether
17carbonated or not, including but not limited to soda water,
18cola, fruit juice, vegetable juice, carbonated water, and all
19other preparations commonly known as soft drinks of whatever
20kind or description that are contained in any closed or sealed
21bottle, can, carton, or container, regardless of size; but
22"soft drinks" does not include coffee, tea, non-carbonated
23water, infant formula, milk or milk products as defined in the
24Grade A Pasteurized Milk and Milk Products Act, or drinks
25containing 50% or more natural fruit or vegetable juice.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "soft drinks" means non-alcoholic
2beverages that contain natural or artificial sweeteners. "Soft
3drinks" do not include beverages that contain milk or milk
4products, soy, rice or similar milk substitutes, or greater
5than 50% of vegetable or fruit juice by volume.
6    Until August 1, 2009, and notwithstanding any other
7provisions of this Act, "food for human consumption that is to
8be consumed off the premises where it is sold" includes all
9food sold through a vending machine, except soft drinks and
10food products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine. Beginning
12August 1, 2009, and notwithstanding any other provisions of
13this Act, "food for human consumption that is to be consumed
14off the premises where it is sold" includes all food sold
15through a vending machine, except soft drinks, candy, and food
16products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine.
18    Notwithstanding any other provisions of this Act,
19beginning September 1, 2009, "food for human consumption that
20is to be consumed off the premises where it is sold" does not
21include candy. For purposes of this Section, "candy" means a
22preparation of sugar, honey, or other natural or artificial
23sweeteners in combination with chocolate, fruits, nuts or other
24ingredients or flavorings in the form of bars, drops, or
25pieces. "Candy" does not include any preparation that contains
26flour or requires refrigeration.

 

 

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1    Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "nonprescription medicines and
3drugs" does not include grooming and hygiene products. For
4purposes of this Section, "grooming and hygiene products"
5includes, but is not limited to, soaps and cleaning solutions,
6shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
7lotions and screens, unless those products are available by
8prescription only, regardless of whether the products meet the
9definition of "over-the-counter-drugs". For the purposes of
10this paragraph, "over-the-counter-drug" means a drug for human
11use that contains a label that identifies the product as a drug
12as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
13label includes:
14        (A) A "Drug Facts" panel; or
15        (B) A statement of the "active ingredient(s)" with a
16    list of those ingredients contained in the compound,
17    substance or preparation.
18    Beginning on the effective date of this amendatory Act of
19the 98th General Assembly, "prescription and nonprescription
20medicines and drugs" includes medical cannabis purchased from a
21registered dispensing organization under the Compassionate Use
22of Medical Cannabis Pilot Program Act.
23    Beginning January 1, 2020, in addition to all other rates
24of tax imposed under this Act, a surcharge of 3.75% is imposed
25on the selling price of (i) each firearm purchased in the State
26and (ii) each firearm component part that is purchased in the

 

 

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1State and sold separately from the firearm. "Firearm" has the
2meaning ascribed to that term in Section 1.1 of the Firearm
3Owners Identification Card Act.
4    If the property that is purchased at retail from a retailer
5is acquired outside Illinois and used outside Illinois before
6being brought to Illinois for use here and is taxable under
7this Act, the "selling price" on which the tax is computed
8shall be reduced by an amount that represents a reasonable
9allowance for depreciation for the period of prior out-of-state
10use.
11(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
12100-22, eff. 7-6-17.)
 
13    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
14    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
15and trailers that are required to be registered with an agency
16of this State, each retailer required or authorized to collect
17the tax imposed by this Act shall pay to the Department the
18amount of such tax (except as otherwise provided) at the time
19when he is required to file his return for the period during
20which such tax was collected, less a discount of 2.1% prior to
21January 1, 1990, and 1.75% on and after January 1, 1990, or $5
22per calendar year, whichever is greater, which is allowed to
23reimburse the retailer for expenses incurred in collecting the
24tax, keeping records, preparing and filing returns, remitting
25the tax and supplying data to the Department on request. In the

 

 

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1case of retailers who report and pay the tax on a transaction
2by transaction basis, as provided in this Section, such
3discount shall be taken with each such tax remittance instead
4of when such retailer files his periodic return. The discount
5allowed under this Section is allowed only for returns that are
6filed in the manner required by this Act. The Department may
7disallow the discount for retailers whose certificate of
8registration is revoked at the time the return is filed, but
9only if the Department's decision to revoke the certificate of
10registration has become final. A retailer need not remit that
11part of any tax collected by him to the extent that he is
12required to remit and does remit the tax imposed by the
13Retailers' Occupation Tax Act, with respect to the sale of the
14same property.
15    Where such tangible personal property is sold under a
16conditional sales contract, or under any other form of sale
17wherein the payment of the principal sum, or a part thereof, is
18extended beyond the close of the period for which the return is
19filed, the retailer, in collecting the tax (except as to motor
20vehicles, watercraft, aircraft, and trailers that are required
21to be registered with an agency of this State), may collect for
22each tax return period, only the tax applicable to that part of
23the selling price actually received during such tax return
24period.
25    Except as provided in this Section, on or before the
26twentieth day of each calendar month, such retailer shall file

 

 

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1a return for the preceding calendar month. Such return shall be
2filed on forms prescribed by the Department and shall furnish
3such information as the Department may reasonably require. On
4and after January 1, 2018, except for returns for motor
5vehicles, watercraft, aircraft, and trailers that are required
6to be registered with an agency of this State, with respect to
7retailers whose annual gross receipts average $20,000 or more,
8all returns required to be filed pursuant to this Act shall be
9filed electronically. Retailers who demonstrate that they do
10not have access to the Internet or demonstrate hardship in
11filing electronically may petition the Department to waive the
12electronic filing requirement.
13    The Department may require returns to be filed on a
14quarterly basis. If so required, a return for each calendar
15quarter shall be filed on or before the twentieth day of the
16calendar month following the end of such calendar quarter. The
17taxpayer shall also file a return with the Department for each
18of the first two months of each calendar quarter, on or before
19the twentieth day of the following calendar month, stating:
20        1. The name of the seller;
21        2. The address of the principal place of business from
22    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 him
25    during the preceding calendar month from sales of tangible
26    personal property by him during such preceding calendar

 

 

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1    month, including receipts from charge and time sales, but
2    less all deductions allowed by law;
3        4. The amount of credit provided in Section 2d of this
4    Act;
5        5. The amount of tax due;
6        5-5. The signature of the taxpayer; and
7        6. Such other reasonable information as the Department
8    may require.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department,
11the return shall be considered valid and any amount shown to be
12due on the return shall be deemed assessed.
13    Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1995, a taxpayer who has
20an average monthly tax liability of $50,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 2000, a taxpayer who has
23an annual tax liability of $200,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. The term "annual tax liability" shall be the
26sum of the taxpayer's liabilities under this Act, and under all

 

 

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1other State and local occupation and use tax laws administered
2by the Department, for the immediately preceding calendar year.
3The term "average monthly tax liability" means the sum of the
4taxpayer's liabilities under this Act, and under all other
5State and local occupation and use tax laws administered by the
6Department, for the immediately preceding calendar year
7divided by 12. Beginning on October 1, 2002, a taxpayer who has
8a tax liability in the amount set forth in subsection (b) of
9Section 2505-210 of the Department of Revenue Law shall make
10all payments required by rules of the Department by electronic
11funds transfer.
12    Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make payments
14by electronic funds transfer. All taxpayers required to make
15payments by electronic funds transfer shall make those payments
16for a minimum of one year beginning on October 1.
17    Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20    All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those payments
23in the manner authorized by the Department.
24    The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

 

 

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1    Before October 1, 2000, if the taxpayer's average monthly
2tax liability to the Department under this Act, the Retailers'
3Occupation Tax Act, the Service Occupation Tax Act, the Service
4Use Tax Act was $10,000 or more during the preceding 4 complete
5calendar quarters, he shall file a return with the Department
6each month by the 20th day of the month next following the
7month during which such tax liability is incurred and shall
8make payments to the Department on or before the 7th, 15th,
922nd and last day of the month during which such liability is
10incurred. On and after October 1, 2000, if the taxpayer's
11average monthly tax liability to the Department under this Act,
12the Retailers' Occupation Tax Act, the Service Occupation Tax
13Act, and the Service Use Tax Act was $20,000 or more during the
14preceding 4 complete calendar quarters, he shall file a return
15with the Department each month by the 20th day of the month
16next following the month during which such tax liability is
17incurred and shall make payment to the Department on or before
18the 7th, 15th, 22nd and last day of the month during which such
19liability is incurred. If the month during which such tax
20liability is incurred began prior to January 1, 1985, each
21payment shall be in an amount equal to 1/4 of the taxpayer's
22actual liability for the month or an amount set by the
23Department not to exceed 1/4 of the average monthly liability
24of the taxpayer to the Department for the preceding 4 complete
25calendar quarters (excluding the month of highest liability and
26the month of lowest liability in such 4 quarter period). If the

 

 

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1month during which such tax liability is incurred begins on or
2after January 1, 1985, and prior to January 1, 1987, each
3payment shall be in an amount equal to 22.5% of the taxpayer's
4actual liability for the month or 27.5% of the taxpayer's
5liability for the same calendar month of the preceding year. If
6the month during which such tax liability is incurred begins on
7or after January 1, 1987, and prior to January 1, 1988, each
8payment shall be in an amount equal to 22.5% of the taxpayer's
9actual liability for the month or 26.25% of the taxpayer's
10liability for the same calendar month of the preceding year. If
11the month during which such tax liability is incurred begins on
12or after January 1, 1988, and prior to January 1, 1989, or
13begins on or after January 1, 1996, each payment shall be in an
14amount equal to 22.5% of the taxpayer's actual liability for
15the month or 25% of the taxpayer's liability for the same
16calendar month of the preceding year. If the month during which
17such tax liability is incurred begins on or after January 1,
181989, and prior to January 1, 1996, each payment shall be in an
19amount equal to 22.5% of the taxpayer's actual liability for
20the month or 25% of the taxpayer's liability for the same
21calendar month of the preceding year or 100% of the taxpayer's
22actual liability for the quarter monthly reporting period. The
23amount of such quarter monthly payments shall be credited
24against the final tax liability of the taxpayer's return for
25that month. Before October 1, 2000, once applicable, the
26requirement of the making of quarter monthly payments to the

 

 

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1Department shall continue until such taxpayer's average
2monthly liability to the Department during the preceding 4
3complete calendar quarters (excluding the month of highest
4liability and the month of lowest liability) is less than
5$9,000, or until such taxpayer's average monthly liability to
6the Department as computed for each calendar quarter of the 4
7preceding complete calendar quarter period is less than
8$10,000. However, if a taxpayer can show the Department that a
9substantial change in the taxpayer's business has occurred
10which causes the taxpayer to anticipate that his average
11monthly tax liability for the reasonably foreseeable future
12will fall below the $10,000 threshold stated above, then such
13taxpayer may petition the Department for change in such
14taxpayer's reporting status. On and after October 1, 2000, once
15applicable, the requirement of the making of quarter monthly
16payments to the Department shall continue until such taxpayer's
17average monthly liability to the Department during the
18preceding 4 complete calendar quarters (excluding the month of
19highest liability and the month of lowest liability) is less
20than $19,000 or until such taxpayer's average monthly liability
21to the Department as computed for each calendar quarter of the
224 preceding complete calendar quarter period is less than
23$20,000. However, if a taxpayer can show the Department that a
24substantial change in the taxpayer's business has occurred
25which causes the taxpayer to anticipate that his average
26monthly tax liability for the reasonably foreseeable future

 

 

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1will fall below the $20,000 threshold stated above, then such
2taxpayer may petition the Department for a change in such
3taxpayer's reporting status. The Department shall change such
4taxpayer's reporting status unless it finds that such change is
5seasonal in nature and not likely to be long term. If any such
6quarter monthly payment is not paid at the time or in the
7amount required by this Section, then the taxpayer shall be
8liable for penalties and interest on the difference between the
9minimum amount due and the amount of such quarter monthly
10payment actually and timely paid, except insofar as the
11taxpayer has previously made payments for that month to the
12Department in excess of the minimum payments previously due as
13provided in this Section. The Department shall make reasonable
14rules and regulations to govern the quarter monthly payment
15amount and quarter monthly payment dates for taxpayers who file
16on other than a calendar monthly basis.
17    If any such payment provided for in this Section exceeds
18the taxpayer's liabilities under this Act, the Retailers'
19Occupation Tax Act, the Service Occupation Tax Act and the
20Service Use Tax Act, as shown by an original monthly return,
21the Department shall issue to the taxpayer a credit memorandum
22no later than 30 days after the date of payment, which
23memorandum may be submitted by the taxpayer to the Department
24in payment of tax liability subsequently to be remitted by the
25taxpayer to the Department or be assigned by the taxpayer to a
26similar taxpayer under this Act, the Retailers' Occupation Tax

 

 

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1Act, the Service Occupation Tax Act or the Service Use Tax Act,
2in accordance with reasonable rules and regulations to be
3prescribed by the Department, except that if such excess
4payment is shown on an original monthly return and is made
5after December 31, 1986, no credit memorandum shall be issued,
6unless requested by the taxpayer. If no such request is made,
7the taxpayer may credit such excess payment against tax
8liability subsequently to be remitted by the taxpayer to the
9Department under this Act, the Retailers' Occupation Tax Act,
10the Service Occupation Tax Act or the Service Use Tax Act, in
11accordance with reasonable rules and regulations prescribed by
12the Department. If the Department subsequently determines that
13all or any part of the credit taken was not actually due to the
14taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
15be reduced by 2.1% or 1.75% of the difference between the
16credit taken and that actually due, and the taxpayer shall be
17liable for penalties and interest on such difference.
18    If the retailer is otherwise required to file a monthly
19return and if the retailer's average monthly tax liability to
20the Department does not exceed $200, the Department may
21authorize his returns to be filed on a quarter annual basis,
22with the return for January, February, and March of a given
23year being due by April 20 of such year; with the return for
24April, May and June of a given year being due by July 20 of such
25year; with the return for July, August and September of a given
26year being due by October 20 of such year, and with the return

 

 

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1for October, November and December of a given year being due by
2January 20 of the following year.
3    If the retailer is otherwise required to file a monthly or
4quarterly return and if the retailer's average monthly tax
5liability to the Department does not exceed $50, the Department
6may authorize his returns to be filed on an annual basis, with
7the return for a given year being due by January 20 of the
8following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as monthly
11returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a retailer may file his return, in the
14case of any retailer who ceases to engage in a kind of business
15which makes him responsible for filing returns under this Act,
16such retailer shall file a final return under this Act with the
17Department not more than one month after discontinuing such
18business.
19    In addition, with respect to motor vehicles, watercraft,
20aircraft, and trailers that are required to be registered with
21an agency of this State, every retailer selling this kind of
22tangible personal property shall file, with the Department,
23upon a form to be prescribed and supplied by the Department, a
24separate return for each such item of tangible personal
25property which the retailer sells, except that if, in the same
26transaction, (i) a retailer of aircraft, watercraft, motor

 

 

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1vehicles or trailers transfers more than one aircraft,
2watercraft, motor vehicle or trailer to another aircraft,
3watercraft, motor vehicle or trailer retailer for the purpose
4of resale or (ii) a retailer of aircraft, watercraft, motor
5vehicles, or trailers transfers more than one aircraft,
6watercraft, motor vehicle, or trailer to a purchaser for use as
7a qualifying rolling stock as provided in Section 3-55 of this
8Act, then that seller may report the transfer of all the
9aircraft, watercraft, motor vehicles or trailers involved in
10that transaction to the Department on the same uniform
11invoice-transaction reporting return form. For purposes of
12this Section, "watercraft" means a Class 2, Class 3, or Class 4
13watercraft as defined in Section 3-2 of the Boat Registration
14and Safety Act, a personal watercraft, or any boat equipped
15with an inboard motor.
16    The transaction reporting return in the case of motor
17vehicles or trailers that are required to be registered with an
18agency of this State, shall be the same document as the Uniform
19Invoice referred to in Section 5-402 of the Illinois Vehicle
20Code and must show the name and address of the seller; the name
21and address of the purchaser; the amount of the selling price
22including the amount allowed by the retailer for traded-in
23property, if any; the amount allowed by the retailer for the
24traded-in tangible personal property, if any, to the extent to
25which Section 2 of this Act allows an exemption for the value
26of traded-in property; the balance payable after deducting such

 

 

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1trade-in allowance from the total selling price; the amount of
2tax due from the retailer with respect to such transaction; the
3amount of tax collected from the purchaser by the retailer on
4such transaction (or satisfactory evidence that such tax is not
5due in that particular instance, if that is claimed to be the
6fact); the place and date of the sale; a sufficient
7identification of the property sold; such other information as
8is required in Section 5-402 of the Illinois Vehicle Code, and
9such other information as the Department may reasonably
10require.
11    The transaction reporting return in the case of watercraft
12and aircraft must show the name and address of the seller; the
13name and address of the purchaser; the amount of the selling
14price including the amount allowed by the retailer for
15traded-in property, if any; the amount allowed by the retailer
16for the traded-in tangible personal property, if any, to the
17extent to which Section 2 of this Act allows an exemption for
18the value of traded-in property; the balance payable after
19deducting such trade-in allowance from the total selling price;
20the amount of tax due from the retailer with respect to such
21transaction; the amount of tax collected from the purchaser by
22the retailer on such transaction (or satisfactory evidence that
23such tax is not due in that particular instance, if that is
24claimed to be the fact); the place and date of the sale, a
25sufficient identification of the property sold, and such other
26information as the Department may reasonably require.

 

 

HB2331- 20 -LRB101 04564 HLH 49572 b

1    Such transaction reporting return shall be filed not later
2than 20 days after the date of delivery of the item that is
3being sold, but may be filed by the retailer at any time sooner
4than that if he chooses to do so. The transaction reporting
5return and tax remittance or proof of exemption from the tax
6that is imposed by this Act may be transmitted to the
7Department by way of the State agency with which, or State
8officer with whom, the tangible personal property must be
9titled or registered (if titling or registration is required)
10if the Department and such agency or State officer determine
11that this procedure will expedite the processing of
12applications for title or registration.
13    With each such transaction reporting return, the retailer
14shall remit the proper amount of tax due (or shall submit
15satisfactory evidence that the sale is not taxable if that is
16the case), to the Department or its agents, whereupon the
17Department shall issue, in the purchaser's name, a tax receipt
18(or a certificate of exemption if the Department is satisfied
19that the particular sale is tax exempt) which such purchaser
20may submit to the agency with which, or State officer with
21whom, he must title or register the tangible personal property
22that is involved (if titling or registration is required) in
23support of such purchaser's application for an Illinois
24certificate or other evidence of title or registration to such
25tangible personal property.
26    No retailer's failure or refusal to remit tax under this

 

 

HB2331- 21 -LRB101 04564 HLH 49572 b

1Act precludes a user, who has paid the proper tax to the
2retailer, from obtaining his certificate of title or other
3evidence of title or registration (if titling or registration
4is required) upon satisfying the Department that such user has
5paid the proper tax (if tax is due) to the retailer. The
6Department shall adopt appropriate rules to carry out the
7mandate of this paragraph.
8    If the user who would otherwise pay tax to the retailer
9wants the transaction reporting return filed and the payment of
10tax or proof of exemption made to the Department before the
11retailer is willing to take these actions and such user has not
12paid the tax to the retailer, such user may certify to the fact
13of such delay by the retailer, and may (upon the Department
14being satisfied of the truth of such certification) transmit
15the information required by the transaction reporting return
16and the remittance for tax or proof of exemption directly to
17the Department and obtain his tax receipt or exemption
18determination, in which event the transaction reporting return
19and tax remittance (if a tax payment was required) shall be
20credited by the Department to the proper retailer's account
21with the Department, but without the 2.1% or 1.75% discount
22provided for in this Section being allowed. When the user pays
23the tax directly to the Department, he shall pay the tax in the
24same amount and in the same form in which it would be remitted
25if the tax had been remitted to the Department by the retailer.
26    Where a retailer collects the tax with respect to the

 

 

HB2331- 22 -LRB101 04564 HLH 49572 b

1selling price of tangible personal property which he sells and
2the purchaser thereafter returns such tangible personal
3property and the retailer refunds the selling price thereof to
4the purchaser, such retailer shall also refund, to the
5purchaser, the tax so collected from the purchaser. When filing
6his return for the period in which he refunds such tax to the
7purchaser, the retailer may deduct the amount of the tax so
8refunded by him to the purchaser from any other use tax which
9such retailer may be required to pay or remit to the
10Department, as shown by such return, if the amount of the tax
11to be deducted was previously remitted to the Department by
12such retailer. If the retailer has not previously remitted the
13amount of such tax to the Department, he is entitled to no
14deduction under this Act upon refunding such tax to the
15purchaser.
16    Any retailer filing a return under this Section shall also
17include (for the purpose of paying tax thereon) the total tax
18covered by such return upon the selling price of tangible
19personal property purchased by him at retail from a retailer,
20but as to which the tax imposed by this Act was not collected
21from the retailer filing such return, and such retailer shall
22remit the amount of such tax to the Department when filing such
23return.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable retailers, who are required to file

 

 

HB2331- 23 -LRB101 04564 HLH 49572 b

1returns hereunder and also under the Retailers' Occupation Tax
2Act, to furnish all the return information required by both
3Acts on the one form.
4    Where the retailer has more than one business registered
5with the Department under separate registration under this Act,
6such retailer may not file each return that is due as a single
7return covering all such registered businesses, but shall file
8separate returns for each such registered business.
9    Beginning January 1, 1990, each month the Department shall
10pay into the State and Local Sales Tax Reform Fund, a special
11fund in the State Treasury which is hereby created, the net
12revenue realized for the preceding month from the 1% tax on
13sales of food for human consumption which is to be consumed off
14the premises where it is sold (other than alcoholic beverages,
15soft drinks and food which has been prepared for immediate
16consumption) and prescription and nonprescription medicines,
17drugs, medical appliances, products classified as Class III
18medical devices by the United States Food and Drug
19Administration that are used for cancer treatment pursuant to a
20prescription, as well as any accessories and components related
21to those devices, and insulin, urine testing materials,
22syringes and needles used by diabetics.
23    Beginning January 1, 1990, each month the Department shall
24pay into the County and Mass Transit District Fund 4% of the
25net revenue realized for the preceding month from the 6.25%
26general rate on the selling price of tangible personal property

 

 

HB2331- 24 -LRB101 04564 HLH 49572 b

1which is purchased outside Illinois at retail from a retailer
2and which is titled or registered by an agency of this State's
3government.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund, a special
6fund in the State Treasury, 20% of the net revenue realized for
7the preceding month from the 6.25% general rate on the selling
8price of tangible personal property, other than tangible
9personal property which is purchased outside Illinois at retail
10from a retailer and which is titled or registered by an agency
11of this State's government.
12    Beginning August 1, 2000, each month the Department shall
13pay into the State and Local Sales Tax Reform Fund 100% of the
14net revenue realized for the preceding month from the 1.25%
15rate on the selling price of motor fuel and gasohol. Beginning
16September 1, 2010, each month the Department shall pay into the
17State and Local Sales Tax Reform Fund 100% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of sales tax holiday items.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of tangible personal property which is
24purchased outside Illinois at retail from a retailer and which
25is titled or registered by an agency of this State's
26government.

 

 

HB2331- 25 -LRB101 04564 HLH 49572 b

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7are now taxed at 6.25%.
8    Beginning July 1, 2011, each month the Department shall pay
9into the Clean Air Act Permit Fund 80% of the net revenue
10realized for the preceding month from the 6.25% general rate on
11the selling price of sorbents used in Illinois in the process
12of sorbent injection as used to comply with the Environmental
13Protection Act or the federal Clean Air Act, but the total
14payment into the Clean Air Act Permit Fund under this Act and
15the Retailers' Occupation Tax Act shall not exceed $2,000,000
16in any fiscal year.
17    Beginning July 1, 2013, each month the Department shall pay
18into the Underground Storage Tank Fund from the proceeds
19collected under this Act, the Service Use Tax Act, the Service
20Occupation Tax Act, and the Retailers' Occupation Tax Act an
21amount equal to the average monthly deficit in the Underground
22Storage Tank Fund during the prior year, as certified annually
23by the Illinois Environmental Protection Agency, but the total
24payment into the Underground Storage Tank Fund under this Act,
25the Service Use Tax Act, the Service Occupation Tax Act, and
26the Retailers' Occupation Tax Act shall not exceed $18,000,000

 

 

HB2331- 26 -LRB101 04564 HLH 49572 b

1in any State fiscal year. As used in this paragraph, the
2"average monthly deficit" shall be equal to the difference
3between the average monthly claims for payment by the fund and
4the average monthly revenues deposited into the fund, excluding
5payments made pursuant to this paragraph.
6    Beginning July 1, 2015, of the remainder of the moneys
7received by the Department under this Act, the Service Use Tax
8Act, the Service Occupation Tax Act, and the Retailers'
9Occupation Tax Act, each month the Department shall deposit
10$500,000 into the State Crime Laboratory Fund.
11    Beginning January 1, 2020, the Department shall pay into
12the Youthbuild Assistance Fund 100% of the net revenue realized
13for the preceding month from the 3.75% surcharge on the selling
14price of firearms and firearm component parts.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

 

 

HB2331- 27 -LRB101 04564 HLH 49572 b

1may be, of moneys being hereinafter called the "Tax Act
2Amount", and (2) the amount transferred to the Build Illinois
3Fund from the State and Local Sales Tax Reform Fund shall be
4less than the Annual Specified Amount (as defined in Section 3
5of the Retailers' Occupation Tax Act), an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and further provided, that if on the last
9business day of any month the sum of (1) the Tax Act Amount
10required to be deposited into the Build Illinois Bond Account
11in the Build Illinois Fund during such month and (2) the amount
12transferred during such month to the Build Illinois Fund from
13the State and Local Sales Tax Reform Fund shall have been less
14than 1/12 of the Annual Specified Amount, an amount equal to
15the difference shall be immediately paid into the Build
16Illinois Fund from other moneys received by the Department
17pursuant to the Tax Acts; and, further provided, that in no
18event shall the payments required under the preceding proviso
19result in aggregate payments into the Build Illinois Fund
20pursuant to this clause (b) for any fiscal year in excess of
21the greater of (i) the Tax Act Amount or (ii) the Annual
22Specified Amount for such fiscal year; and, further provided,
23that the amounts payable into the Build Illinois Fund under
24this clause (b) shall be payable only until such time as the
25aggregate amount on deposit under each trust indenture securing
26Bonds issued and outstanding pursuant to the Build Illinois

 

 

HB2331- 28 -LRB101 04564 HLH 49572 b

1Bond Act is sufficient, taking into account any future
2investment income, to fully provide, in accordance with such
3indenture, for the defeasance of or the payment of the
4principal of, premium, if any, and interest on the Bonds
5secured by such indenture and on any Bonds expected to be
6issued thereafter and all fees and costs payable with respect
7thereto, all as certified by the Director of the Bureau of the
8Budget (now Governor's Office of Management and Budget). If on
9the last business day of any month in which Bonds are
10outstanding pursuant to the Build Illinois Bond Act, the
11aggregate of the moneys deposited in the Build Illinois Bond
12Account in the Build Illinois Fund in such month shall be less
13than the amount required to be transferred in such month from
14the Build Illinois Bond Account to the Build Illinois Bond
15Retirement and Interest Fund pursuant to Section 13 of the
16Build Illinois Bond Act, an amount equal to such deficiency
17shall be immediately paid from other moneys received by the
18Department pursuant to the Tax Acts to the Build Illinois Fund;
19provided, however, that any amounts paid to the Build Illinois
20Fund in any fiscal year pursuant to this sentence shall be
21deemed to constitute payments pursuant to clause (b) of the
22preceding sentence and shall reduce the amount otherwise
23payable for such fiscal year pursuant to clause (b) of the
24preceding sentence. The moneys received by the Department
25pursuant to this Act and required to be deposited into the
26Build Illinois Fund are subject to the pledge, claim and charge

 

 

HB2331- 29 -LRB101 04564 HLH 49572 b

1set forth in Section 12 of the Build Illinois Bond Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of the sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000
262004103,000,000

 

 

HB2331- 30 -LRB101 04564 HLH 49572 b

12005108,000,000
22006113,000,000
32007119,000,000
42008126,000,000
52009132,000,000
62010139,000,000
72011146,000,000
82012153,000,000
92013161,000,000
102014170,000,000
112015179,000,000
122016189,000,000
132017199,000,000
142018210,000,000
152019221,000,000
162020233,000,000
172021246,000,000
182022260,000,000
192023275,000,000
202024 275,000,000
212025 275,000,000
222026 279,000,000
232027 292,000,000
242028 307,000,000
252029 322,000,000
262030 338,000,000

 

 

HB2331- 31 -LRB101 04564 HLH 49572 b

12031 350,000,000
22032 350,000,000
3and
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11    Beginning July 20, 1993 and in each month of each fiscal
12year thereafter, one-eighth of the amount requested in the
13certificate of the Chairman of the Metropolitan Pier and
14Exposition Authority for that fiscal year, less the amount
15deposited into the McCormick Place Expansion Project Fund by
16the State Treasurer in the respective month under subsection
17(g) of Section 13 of the Metropolitan Pier and Exposition
18Authority Act, plus cumulative deficiencies in the deposits
19required under this Section for previous months and years,
20shall be deposited into the McCormick Place Expansion Project
21Fund, until the full amount requested for the fiscal year, but
22not in excess of the amount specified above as "Total Deposit",
23has been deposited.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB2331- 32 -LRB101 04564 HLH 49572 b

1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois Tax
3Increment Fund 0.27% of 80% of the net revenue realized for the
4preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a 25-year
11period, the Department shall each month pay into the Energy
12Infrastructure Fund 80% of the net revenue realized from the
136.25% general rate on the selling price of Illinois-mined coal
14that was sold to an eligible business. For purposes of this
15paragraph, the term "eligible business" means a new electric
16generating facility certified pursuant to Section 605-332 of
17the Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    Subject to payment of amounts into the Build Illinois Fund,
20the McCormick Place Expansion Project Fund, the Illinois Tax
21Increment Fund, and the Energy Infrastructure Fund pursuant to
22the preceding paragraphs or in any amendments to this Section
23hereafter enacted, beginning on the first day of the first
24calendar month to occur on or after August 26, 2014 (the
25effective date of Public Act 98-1098), each month, from the
26collections made under Section 9 of the Use Tax Act, Section 9

 

 

HB2331- 33 -LRB101 04564 HLH 49572 b

1of the Service Use Tax Act, Section 9 of the Service Occupation
2Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
3the Department shall pay into the Tax Compliance and
4Administration Fund, to be used, subject to appropriation, to
5fund additional auditors and compliance personnel at the
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of
7the cash receipts collected during the preceding fiscal year by
8the Audit Bureau of the Department under the Use Tax Act, the
9Service Use Tax Act, the Service Occupation Tax Act, the
10Retailers' Occupation Tax Act, and associated local occupation
11and use taxes administered by the Department.
12    Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
15Compliance and Administration Fund as provided in this Section,
16beginning on July 1, 2018 the Department shall pay each month
17into the Downstate Public Transportation Fund the moneys
18required to be so paid under Section 2-3 of the Downstate
19Public Transportation Act.
20    Of the remainder of the moneys received by the Department
21pursuant to this Act, 75% thereof shall be paid into the State
22Treasury and 25% shall be reserved in a special account and
23used only for the transfer to the Common School Fund as part of
24the monthly transfer from the General Revenue Fund in
25accordance with Section 8a of the State Finance Act.
26    As soon as possible after the first day of each month, upon

 

 

HB2331- 34 -LRB101 04564 HLH 49572 b

1certification of the Department of Revenue, the Comptroller
2shall order transferred and the Treasurer shall transfer from
3the General Revenue Fund to the Motor Fuel Tax Fund an amount
4equal to 1.7% of 80% of the net revenue realized under this Act
5for the second preceding month. Beginning April 1, 2000, this
6transfer is no longer required and shall not be made.
7    Net revenue realized for a month shall be the revenue
8collected by the State pursuant to this Act, less the amount
9paid out during that month as refunds to taxpayers for
10overpayment of liability.
11    For greater simplicity of administration, manufacturers,
12importers and wholesalers whose products are sold at retail in
13Illinois by numerous retailers, and who wish to do so, may
14assume the responsibility for accounting and paying to the
15Department all tax accruing under this Act with respect to such
16sales, if the retailers who are affected do not make written
17objection to the Department to this arrangement.
18(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1999-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
207-1-18; 100-863, eff. 8-14-18.)
 
21    Section 15. The Service Use Tax Act is amended by changing
22Sections 3-10 and 9 as follows:
 
23    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
24    Sec. 3-10. Rate of tax. Unless otherwise provided in this

 

 

HB2331- 35 -LRB101 04564 HLH 49572 b

1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16July 1, 2017, and (iii) 100% of the selling price thereafter.
17If, at any time, however, the tax under this Act on sales of
18gasohol, as defined in the Use Tax Act, is imposed at the rate
19of 1.25%, then the tax imposed by this Act applies to 100% of
20the proceeds of sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25December 31, 2023 but applies to 100% of the selling price
26thereafter.

 

 

HB2331- 36 -LRB101 04564 HLH 49572 b

1    With respect to biodiesel blends, as defined in the Use Tax
2Act, with no less than 1% and no more than 10% biodiesel, the
3tax imposed by this Act applies to (i) 80% of the selling price
4of property transferred as an incident to the sale of service
5on or after July 1, 2003 and on or before December 31, 2018 and
6(ii) 100% of the proceeds of the selling price thereafter. If,
7at any time, however, the tax under this Act on sales of
8biodiesel blends, as defined in the Use Tax Act, with no less
9than 1% and no more than 10% biodiesel is imposed at the rate
10of 1.25%, then the tax imposed by this Act applies to 100% of
11the proceeds of sales of biodiesel blends with no less than 1%
12and no more than 10% biodiesel made during that time.
13    With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2023 but
19applies to 100% of the selling price thereafter.
20    At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the aggregate
26annual total gross receipts from all sales of service, the tax

 

 

HB2331- 37 -LRB101 04564 HLH 49572 b

1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred as an
3incident to the sale of those services.
4    The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale of
6service subject to this Act or the Service Occupation Tax Act
7by an entity licensed under the Hospital Licensing Act, the
8Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
9Act, the Specialized Mental Health Rehabilitation Act of 2013,
10or the Child Care Act of 1969. The tax shall also be imposed at
11the rate of 1% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, soft drinks, and food that has been
14prepared for immediate consumption and is not otherwise
15included in this paragraph) and prescription and
16nonprescription medicines, drugs, medical appliances, products
17classified as Class III medical devices by the United States
18Food and Drug Administration that are used for cancer treatment
19pursuant to a prescription, as well as any accessories and
20components related to those devices, modifications to a motor
21vehicle for the purpose of rendering it usable by a person with
22a disability, and insulin, urine testing materials, syringes,
23and needles used by diabetics, for human use. For the purposes
24of this Section, until September 1, 2009: the term "soft
25drinks" means any complete, finished, ready-to-use,
26non-alcoholic drink, whether carbonated or not, including but

 

 

HB2331- 38 -LRB101 04564 HLH 49572 b

1not limited to soda water, cola, fruit juice, vegetable juice,
2carbonated water, and all other preparations commonly known as
3soft drinks of whatever kind or description that are contained
4in any closed or sealed bottle, can, carton, or container,
5regardless of size; but "soft drinks" does not include coffee,
6tea, non-carbonated water, infant formula, milk or milk
7products as defined in the Grade A Pasteurized Milk and Milk
8Products Act, or drinks containing 50% or more natural fruit or
9vegetable juice.
10    Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" do not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16    Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

 

 

HB2331- 39 -LRB101 04564 HLH 49572 b

1regardless of the location of the vending machine.
2    Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or other
8ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11    Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
23label includes:
24        (A) A "Drug Facts" panel; or
25        (B) A statement of the "active ingredient(s)" with a
26    list of those ingredients contained in the compound,

 

 

HB2331- 40 -LRB101 04564 HLH 49572 b

1    substance or preparation.
2    Beginning on January 1, 2014 (the effective date of Public
3Act 98-122), "prescription and nonprescription medicines and
4drugs" includes medical cannabis purchased from a registered
5dispensing organization under the Compassionate Use of Medical
6Cannabis Pilot Program Act.
7    Beginning January 1, 2020, in addition to all other rates
8of tax imposed under this Act, a surcharge of 3.75% is imposed
9on the selling price of (i) each firearm purchased in the State
10and (ii) each firearm component part that is purchased in the
11State and sold separately from the firearm. "Firearm" has the
12meaning ascribed to that term in Section 1.1 of the Firearm
13Owners Identification Card Act.
14    If the property that is acquired from a serviceman is
15acquired outside Illinois and used outside Illinois before
16being brought to Illinois for use here and is taxable under
17this Act, the "selling price" on which the tax is computed
18shall be reduced by an amount that represents a reasonable
19allowance for depreciation for the period of prior out-of-state
20use.
21(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
2299-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
237-6-17.)
 
24    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
25    Sec. 9. Each serviceman required or authorized to collect

 

 

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1the tax herein imposed shall pay to the Department the amount
2of such tax (except as otherwise provided) at the time when he
3is required to file his return for the period during which such
4tax was collected, less a discount of 2.1% prior to January 1,
51990 and 1.75% on and after January 1, 1990, or $5 per calendar
6year, whichever is greater, which is allowed to reimburse the
7serviceman for expenses incurred in collecting the tax, keeping
8records, preparing and filing returns, remitting the tax and
9supplying data to the Department on request. The discount
10allowed under this Section is allowed only for returns that are
11filed in the manner required by this Act. The Department may
12disallow the discount for servicemen whose certificate of
13registration is revoked at the time the return is filed, but
14only if the Department's decision to revoke the certificate of
15registration has become final. A serviceman need not remit that
16part of any tax collected by him to the extent that he is
17required to pay and does pay the tax imposed by the Service
18Occupation Tax Act with respect to his sale of service
19involving the incidental transfer by him of the same property.
20    Except as provided hereinafter in this Section, on or
21before the twentieth day of each calendar month, such
22serviceman shall file a return for the preceding calendar month
23in accordance with reasonable Rules and Regulations to be
24promulgated by the Department. Such return shall be filed on a
25form prescribed by the Department and shall contain such
26information as the Department may reasonably require. On and

 

 

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1after January 1, 2018, with respect to servicemen whose annual
2gross receipts average $20,000 or more, all returns required to
3be filed pursuant to this Act shall be filed electronically.
4Servicemen who demonstrate that they do not have access to the
5Internet or demonstrate hardship in filing electronically may
6petition the Department to waive the electronic filing
7requirement.
8    The Department may require returns to be filed on a
9quarterly basis. If so required, a return for each calendar
10quarter shall be filed on or before the twentieth day of the
11calendar month following the end of such calendar quarter. The
12taxpayer shall also file a return with the Department for each
13of the first two months of each calendar quarter, on or before
14the twentieth day of the following calendar month, stating:
15        1. The name of the seller;
16        2. The address of the principal place of business from
17    which he engages in business as a serviceman in this State;
18        3. The total amount of taxable receipts received by him
19    during the preceding calendar month, including receipts
20    from charge and time sales, but less all deductions allowed
21    by law;
22        4. The amount of credit provided in Section 2d of this
23    Act;
24        5. The amount of tax due;
25        5-5. The signature of the taxpayer; and
26        6. Such other reasonable information as the Department

 

 

HB2331- 43 -LRB101 04564 HLH 49572 b

1    may require.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Beginning October 1, 1993, a taxpayer who has an average
7monthly tax liability of $150,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1994, a taxpayer who has
10an average monthly tax liability of $100,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1995, a taxpayer who has
13an average monthly tax liability of $50,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 2000, a taxpayer who has
16an annual tax liability of $200,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. The term "annual tax liability" shall be the
19sum of the taxpayer's liabilities under this Act, and under all
20other State and local occupation and use tax laws administered
21by the Department, for the immediately preceding calendar year.
22The term "average monthly tax liability" means the sum of the
23taxpayer's liabilities under this Act, and under all other
24State and local occupation and use tax laws administered by the
25Department, for the immediately preceding calendar year
26divided by 12. Beginning on October 1, 2002, a taxpayer who has

 

 

HB2331- 44 -LRB101 04564 HLH 49572 b

1a tax liability in the amount set forth in subsection (b) of
2Section 2505-210 of the Department of Revenue Law shall make
3all payments required by rules of the Department by electronic
4funds transfer.
5    Before August 1 of each year beginning in 1993, the
6Department shall notify all taxpayers required to make payments
7by electronic funds transfer. All taxpayers required to make
8payments by electronic funds transfer shall make those payments
9for a minimum of one year beginning on October 1.
10    Any taxpayer not required to make payments by electronic
11funds transfer may make payments by electronic funds transfer
12with the permission of the Department.
13    All taxpayers required to make payment by electronic funds
14transfer and any taxpayers authorized to voluntarily make
15payments by electronic funds transfer shall make those payments
16in the manner authorized by the Department.
17    The Department shall adopt such rules as are necessary to
18effectuate a program of electronic funds transfer and the
19requirements of this Section.
20    If the serviceman is otherwise required to file a monthly
21return and if the serviceman's average monthly tax liability to
22the Department does not exceed $200, the Department may
23authorize his returns to be filed on a quarter annual basis,
24with the return for January, February and March of a given year
25being due by April 20 of such year; with the return for April,
26May and June of a given year being due by July 20 of such year;

 

 

HB2331- 45 -LRB101 04564 HLH 49572 b

1with the return for July, August and September of a given year
2being due by October 20 of such year, and with the return for
3October, November and December of a given year being due by
4January 20 of the following year.
5    If the serviceman is otherwise required to file a monthly
6or quarterly return and if the serviceman's average monthly tax
7liability to the Department does not exceed $50, the Department
8may authorize his returns to be filed on an annual basis, with
9the return for a given year being due by January 20 of the
10following year.
11    Such quarter annual and annual returns, as to form and
12substance, shall be subject to the same requirements as monthly
13returns.
14    Notwithstanding any other provision in this Act concerning
15the time within which a serviceman may file his return, in the
16case of any serviceman who ceases to engage in a kind of
17business which makes him responsible for filing returns under
18this Act, such serviceman shall file a final return under this
19Act with the Department not more than 1 month after
20discontinuing such business.
21    Where a serviceman collects the tax with respect to the
22selling price of property which he sells and the purchaser
23thereafter returns such property and the serviceman refunds the
24selling price thereof to the purchaser, such serviceman shall
25also refund, to the purchaser, the tax so collected from the
26purchaser. When filing his return for the period in which he

 

 

HB2331- 46 -LRB101 04564 HLH 49572 b

1refunds such tax to the purchaser, the serviceman may deduct
2the amount of the tax so refunded by him to the purchaser from
3any other Service Use Tax, Service Occupation Tax, retailers'
4occupation tax or use tax which such serviceman may be required
5to pay or remit to the Department, as shown by such return,
6provided that the amount of the tax to be deducted shall
7previously have been remitted to the Department by such
8serviceman. If the serviceman shall not previously have
9remitted the amount of such tax to the Department, he shall be
10entitled to no deduction hereunder upon refunding such tax to
11the purchaser.
12    Any serviceman filing a return hereunder shall also include
13the total tax upon the selling price of tangible personal
14property purchased for use by him as an incident to a sale of
15service, and such serviceman shall remit the amount of such tax
16to the Department when filing such return.
17    If experience indicates such action to be practicable, the
18Department may prescribe and furnish a combination or joint
19return which will enable servicemen, who are required to file
20returns hereunder and also under the Service Occupation Tax
21Act, to furnish all the return information required by both
22Acts on the one form.
23    Where the serviceman has more than one business registered
24with the Department under separate registration hereunder,
25such serviceman shall not file each return that is due as a
26single return covering all such registered businesses, but

 

 

HB2331- 47 -LRB101 04564 HLH 49572 b

1shall file separate returns for each such registered business.
2    Beginning January 1, 1990, each month the Department shall
3pay into the State and Local Tax Reform Fund, a special fund in
4the State Treasury, the net revenue realized for the preceding
5month from the 1% tax on sales of food for human consumption
6which is to be consumed off the premises where it is sold
7(other than alcoholic beverages, soft drinks and food which has
8been prepared for immediate consumption) and prescription and
9nonprescription medicines, drugs, medical appliances, products
10classified as Class III medical devices, by the United States
11Food and Drug Administration that are used for cancer treatment
12pursuant to a prescription, as well as any accessories and
13components related to those devices, and insulin, urine testing
14materials, syringes and needles used by diabetics.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 20% of the
17net revenue realized for the preceding month from the 6.25%
18general rate on transfers of tangible personal property, other
19than tangible personal property which is purchased outside
20Illinois at retail from a retailer and which is titled or
21registered by an agency of this State's government.
22    Beginning August 1, 2000, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 100% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning October 1, 2009, each month the Department shall

 

 

HB2331- 48 -LRB101 04564 HLH 49572 b

1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service
10Occupation Tax Act, and the Retailers' Occupation Tax Act an
11amount equal to the average monthly deficit in the Underground
12Storage Tank Fund during the prior year, as certified annually
13by the Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Use Tax Act, the Service Occupation Tax Act, and the
16Retailers' Occupation Tax Act shall not exceed $18,000,000 in
17any State fiscal year. As used in this paragraph, the "average
18monthly deficit" shall be equal to the difference between the
19average monthly claims for payment by the fund and the average
20monthly revenues deposited into the fund, excluding payments
21made pursuant to this paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, this Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, each month the Department shall deposit $500,000 into the
26State Crime Laboratory Fund.

 

 

HB2331- 49 -LRB101 04564 HLH 49572 b

1    Beginning January 1, 2020, the Department shall pay into
2the Youthbuild Assistance Fund 100% of the net revenue realized
3for the preceding month from the 3.75% surcharge on the selling
4price of firearms and firearm component parts.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, (a) 1.75% thereof shall be paid into the
7Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
8and after July 1, 1989, 3.8% thereof shall be paid into the
9Build Illinois Fund; provided, however, that if in any fiscal
10year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
11may be, of the moneys received by the Department and required
12to be paid into the Build Illinois Fund pursuant to Section 3
13of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
14Act, Section 9 of the Service Use Tax Act, and Section 9 of the
15Service Occupation Tax Act, such Acts being hereinafter called
16the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
17may be, of moneys being hereinafter called the "Tax Act
18Amount", and (2) the amount transferred to the Build Illinois
19Fund from the State and Local Sales Tax Reform Fund shall be
20less than the Annual Specified Amount (as defined in Section 3
21of the Retailers' Occupation Tax Act), an amount equal to the
22difference shall be immediately paid into the Build Illinois
23Fund from other moneys received by the Department pursuant to
24the Tax Acts; and further provided, that if on the last
25business day of any month the sum of (1) the Tax Act Amount
26required to be deposited into the Build Illinois Bond Account

 

 

HB2331- 50 -LRB101 04564 HLH 49572 b

1in the Build Illinois Fund during such month and (2) the amount
2transferred during such month to the Build Illinois Fund from
3the State and Local Sales Tax Reform Fund shall have been less
4than 1/12 of the Annual Specified Amount, an amount equal to
5the difference shall be immediately paid into the Build
6Illinois Fund from other moneys received by the Department
7pursuant to the Tax Acts; and, further provided, that in no
8event shall the payments required under the preceding proviso
9result in aggregate payments into the Build Illinois Fund
10pursuant to this clause (b) for any fiscal year in excess of
11the greater of (i) the Tax Act Amount or (ii) the Annual
12Specified Amount for such fiscal year; and, further provided,
13that the amounts payable into the Build Illinois Fund under
14this clause (b) shall be payable only until such time as the
15aggregate amount on deposit under each trust indenture securing
16Bonds issued and outstanding pursuant to the Build Illinois
17Bond Act is sufficient, taking into account any future
18investment income, to fully provide, in accordance with such
19indenture, for the defeasance of or the payment of the
20principal of, premium, if any, and interest on the Bonds
21secured by such indenture and on any Bonds expected to be
22issued thereafter and all fees and costs payable with respect
23thereto, all as certified by the Director of the Bureau of the
24Budget (now Governor's Office of Management and Budget). If on
25the last business day of any month in which Bonds are
26outstanding pursuant to the Build Illinois Bond Act, the

 

 

HB2331- 51 -LRB101 04564 HLH 49572 b

1aggregate of the moneys deposited in the Build Illinois Bond
2Account in the Build Illinois Fund in such month shall be less
3than the amount required to be transferred in such month from
4the Build Illinois Bond Account to the Build Illinois Bond
5Retirement and Interest Fund pursuant to Section 13 of the
6Build Illinois Bond Act, an amount equal to such deficiency
7shall be immediately paid from other moneys received by the
8Department pursuant to the Tax Acts to the Build Illinois Fund;
9provided, however, that any amounts paid to the Build Illinois
10Fund in any fiscal year pursuant to this sentence shall be
11deemed to constitute payments pursuant to clause (b) of the
12preceding sentence and shall reduce the amount otherwise
13payable for such fiscal year pursuant to clause (b) of the
14preceding sentence. The moneys received by the Department
15pursuant to this Act and required to be deposited into the
16Build Illinois Fund are subject to the pledge, claim and charge
17set forth in Section 12 of the Build Illinois Bond Act.
18    Subject to payment of amounts into the Build Illinois Fund
19as provided in the preceding paragraph or in any amendment
20thereto hereafter enacted, the following specified monthly
21installment of the amount requested in the certificate of the
22Chairman of the Metropolitan Pier and Exposition Authority
23provided under Section 8.25f of the State Finance Act, but not
24in excess of the sums designated as "Total Deposit", shall be
25deposited in the aggregate from collections under Section 9 of
26the Use Tax Act, Section 9 of the Service Use Tax Act, Section

 

 

HB2331- 52 -LRB101 04564 HLH 49572 b

19 of the Service Occupation Tax Act, and Section 3 of the
2Retailers' Occupation Tax Act into the McCormick Place
3Expansion Project Fund in the specified fiscal years.
4Fiscal YearTotal Deposit
51993         $0
61994 53,000,000
71995 58,000,000
81996 61,000,000
91997 64,000,000
101998 68,000,000
111999 71,000,000
122000 75,000,000
132001 80,000,000
142002 93,000,000
152003 99,000,000
162004103,000,000
172005108,000,000
182006113,000,000
192007119,000,000
202008126,000,000
212009132,000,000
222010139,000,000
232011146,000,000
242012153,000,000
252013161,000,000

 

 

HB2331- 53 -LRB101 04564 HLH 49572 b

12014170,000,000
22015179,000,000
32016189,000,000
42017199,000,000
52018210,000,000
62019221,000,000
72020233,000,000
82021246,000,000
92022260,000,000
102023275,000,000
112024 275,000,000
122025 275,000,000
132026 279,000,000
142027 292,000,000
152028 307,000,000
162029 322,000,000
172030 338,000,000
182031 350,000,000
192032 350,000,000
20and
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,

 

 

HB2331- 54 -LRB101 04564 HLH 49572 b

1but not after fiscal year 2060.
2    Beginning July 20, 1993 and in each month of each fiscal
3year thereafter, one-eighth of the amount requested in the
4certificate of the Chairman of the Metropolitan Pier and
5Exposition Authority for that fiscal year, less the amount
6deposited into the McCormick Place Expansion Project Fund by
7the State Treasurer in the respective month under subsection
8(g) of Section 13 of the Metropolitan Pier and Exposition
9Authority Act, plus cumulative deficiencies in the deposits
10required under this Section for previous months and years,
11shall be deposited into the McCormick Place Expansion Project
12Fund, until the full amount requested for the fiscal year, but
13not in excess of the amount specified above as "Total Deposit",
14has been deposited.
15    Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning July 1, 1993 and ending on September 30,
192013, the Department shall each month pay into the Illinois Tax
20Increment Fund 0.27% of 80% of the net revenue realized for the
21preceding month from the 6.25% general rate on the selling
22price of tangible personal property.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning with the receipt of the first report of

 

 

HB2331- 55 -LRB101 04564 HLH 49572 b

1taxes paid by an eligible business and continuing for a 25-year
2period, the Department shall each month pay into the Energy
3Infrastructure Fund 80% of the net revenue realized from the
46.25% general rate on the selling price of Illinois-mined coal
5that was sold to an eligible business. For purposes of this
6paragraph, the term "eligible business" means a new electric
7generating facility certified pursuant to Section 605-332 of
8the Department of Commerce and Economic Opportunity Law of the
9Civil Administrative Code of Illinois.
10    Subject to payment of amounts into the Build Illinois Fund,
11the McCormick Place Expansion Project Fund, the Illinois Tax
12Increment Fund, and the Energy Infrastructure Fund pursuant to
13the preceding paragraphs or in any amendments to this Section
14hereafter enacted, beginning on the first day of the first
15calendar month to occur on or after August 26, 2014 (the
16effective date of Public Act 98-1098), each month, from the
17collections made under Section 9 of the Use Tax Act, Section 9
18of the Service Use Tax Act, Section 9 of the Service Occupation
19Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
20the Department shall pay into the Tax Compliance and
21Administration Fund, to be used, subject to appropriation, to
22fund additional auditors and compliance personnel at the
23Department of Revenue, an amount equal to 1/12 of 5% of 80% of
24the cash receipts collected during the preceding fiscal year by
25the Audit Bureau of the Department under the Use Tax Act, the
26Service Use Tax Act, the Service Occupation Tax Act, the

 

 

HB2331- 56 -LRB101 04564 HLH 49572 b

1Retailers' Occupation Tax Act, and associated local occupation
2and use taxes administered by the Department.
3    Subject to payments of amounts into the Build Illinois
4Fund, the McCormick Place Expansion Project Fund, the Illinois
5Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
6Compliance and Administration Fund as provided in this Section,
7beginning on July 1, 2018 the Department shall pay each month
8into the Downstate Public Transportation Fund the moneys
9required to be so paid under Section 2-3 of the Downstate
10Public Transportation Act.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, 75% thereof shall be paid into the
13General Revenue Fund of the State Treasury and 25% shall be
14reserved in a special account and used only for the transfer to
15the Common School Fund as part of the monthly transfer from the
16General Revenue Fund in accordance with Section 8a of the State
17Finance Act.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

HB2331- 57 -LRB101 04564 HLH 49572 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
4100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
58-14-18.)
 
6    Section 20. The Service Occupation Tax Act is amended by
7changing Sections 3-10 and 9 as follows:
 
8    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
9    Sec. 3-10. Rate of tax. Unless otherwise provided in this
10Section, the tax imposed by this Act is at the rate of 6.25% of
11the "selling price", as defined in Section 2 of the Service Use
12Tax Act, of the tangible personal property. For the purpose of
13computing this tax, in no event shall the "selling price" be
14less than the cost price to the serviceman of the tangible
15personal property transferred. The selling price of each item
16of tangible personal property transferred as an incident of a
17sale of service may be shown as a distinct and separate item on
18the serviceman's billing to the service customer. If the
19selling price is not so shown, the selling price of the
20tangible personal property is deemed to be 50% of the
21serviceman's entire billing to the service customer. When,
22however, a serviceman contracts to design, develop, and produce
23special order machinery or equipment, the tax imposed by this
24Act shall be based on the serviceman's cost price of the

 

 

HB2331- 58 -LRB101 04564 HLH 49572 b

1tangible personal property transferred incident to the
2completion of the contract.
3    Beginning on July 1, 2000 and through December 31, 2000,
4with respect to motor fuel, as defined in Section 1.1 of the
5Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
6the Use Tax Act, the tax is imposed at the rate of 1.25%.
7    With respect to gasohol, as defined in the Use Tax Act, the
8tax imposed by this Act shall apply to (i) 70% of the cost
9price of property transferred as an incident to the sale of
10service on or after January 1, 1990, and before July 1, 2003,
11(ii) 80% of the selling price of property transferred as an
12incident to the sale of service on or after July 1, 2003 and on
13or before July 1, 2017, and (iii) 100% of the cost price
14thereafter. If, at any time, however, the tax under this Act on
15sales of gasohol, as defined in the Use Tax Act, is imposed at
16the rate of 1.25%, then the tax imposed by this Act applies to
17100% of the proceeds of sales of gasohol made during that time.
18    With respect to majority blended ethanol fuel, as defined
19in the Use Tax Act, the tax imposed by this Act does not apply
20to the selling price of property transferred as an incident to
21the sale of service on or after July 1, 2003 and on or before
22December 31, 2023 but applies to 100% of the selling price
23thereafter.
24    With respect to biodiesel blends, as defined in the Use Tax
25Act, with no less than 1% and no more than 10% biodiesel, the
26tax imposed by this Act applies to (i) 80% of the selling price

 

 

HB2331- 59 -LRB101 04564 HLH 49572 b

1of property transferred as an incident to the sale of service
2on or after July 1, 2003 and on or before December 31, 2018 and
3(ii) 100% of the proceeds of the selling price thereafter. If,
4at any time, however, the tax under this Act on sales of
5biodiesel blends, as defined in the Use Tax Act, with no less
6than 1% and no more than 10% biodiesel is imposed at the rate
7of 1.25%, then the tax imposed by this Act applies to 100% of
8the proceeds of sales of biodiesel blends with no less than 1%
9and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel, as defined in the Use Tax
11Act, and biodiesel blends, as defined in the Use Tax Act, with
12more than 10% but no more than 99% biodiesel material, the tax
13imposed by this Act does not apply to the proceeds of the
14selling price of property transferred as an incident to the
15sale of service on or after July 1, 2003 and on or before
16December 31, 2023 but applies to 100% of the selling price
17thereafter.
18    At the election of any registered serviceman made for each
19fiscal year, sales of service in which the aggregate annual
20cost price of tangible personal property transferred as an
21incident to the sales of service is less than 35%, or 75% in
22the case of servicemen transferring prescription drugs or
23servicemen engaged in graphic arts production, of the aggregate
24annual total gross receipts from all sales of service, the tax
25imposed by this Act shall be based on the serviceman's cost
26price of the tangible personal property transferred incident to

 

 

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1the sale of those services.
2    The tax shall be imposed at the rate of 1% on food prepared
3for immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
7Act, the Specialized Mental Health Rehabilitation Act of 2013,
8or the Child Care Act of 1969. The tax shall also be imposed at
9the rate of 1% on food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption and is not otherwise
13included in this paragraph) and prescription and
14nonprescription medicines, drugs, medical appliances, products
15classified as Class III medical devices by the United States
16Food and Drug Administration that are used for cancer treatment
17pursuant to a prescription, as well as any accessories and
18components related to those devices, modifications to a motor
19vehicle for the purpose of rendering it usable by a person with
20a disability, and insulin, urine testing materials, syringes,
21and needles used by diabetics, for human use. For the purposes
22of this Section, until September 1, 2009: the term "soft
23drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including but
25not limited to soda water, cola, fruit juice, vegetable juice,
26carbonated water, and all other preparations commonly known as

 

 

HB2331- 61 -LRB101 04564 HLH 49572 b

1soft drinks of whatever kind or description that are contained
2in any closed or sealed can, carton, or container, regardless
3of size; but "soft drinks" does not include coffee, tea,
4non-carbonated water, infant formula, milk or milk products as
5defined in the Grade A Pasteurized Milk and Milk Products Act,
6or drinks containing 50% or more natural fruit or vegetable
7juice.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "soft drinks" means non-alcoholic
10beverages that contain natural or artificial sweeteners. "Soft
11drinks" do not include beverages that contain milk or milk
12products, soy, rice or similar milk substitutes, or greater
13than 50% of vegetable or fruit juice by volume.
14    Until August 1, 2009, and notwithstanding any other
15provisions of this Act, "food for human consumption that is to
16be consumed off the premises where it is sold" includes all
17food sold through a vending machine, except soft drinks and
18food products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine. Beginning
20August 1, 2009, and notwithstanding any other provisions of
21this Act, "food for human consumption that is to be consumed
22off the premises where it is sold" includes all food sold
23through a vending machine, except soft drinks, candy, and food
24products that are dispensed hot from a vending machine,
25regardless of the location of the vending machine.
26    Notwithstanding any other provisions of this Act,

 

 

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1beginning September 1, 2009, "food for human consumption that
2is to be consumed off the premises where it is sold" does not
3include candy. For purposes of this Section, "candy" means a
4preparation of sugar, honey, or other natural or artificial
5sweeteners in combination with chocolate, fruits, nuts or other
6ingredients or flavorings in the form of bars, drops, or
7pieces. "Candy" does not include any preparation that contains
8flour or requires refrigeration.
9    Notwithstanding any other provisions of this Act,
10beginning September 1, 2009, "nonprescription medicines and
11drugs" does not include grooming and hygiene products. For
12purposes of this Section, "grooming and hygiene products"
13includes, but is not limited to, soaps and cleaning solutions,
14shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
15lotions and screens, unless those products are available by
16prescription only, regardless of whether the products meet the
17definition of "over-the-counter-drugs". For the purposes of
18this paragraph, "over-the-counter-drug" means a drug for human
19use that contains a label that identifies the product as a drug
20as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
21label includes:
22        (A) A "Drug Facts" panel; or
23        (B) A statement of the "active ingredient(s)" with a
24    list of those ingredients contained in the compound,
25    substance or preparation.
26    Beginning on January 1, 2014 (the effective date of Public

 

 

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1Act 98-122), "prescription and nonprescription medicines and
2drugs" includes medical cannabis purchased from a registered
3dispensing organization under the Compassionate Use of Medical
4Cannabis Pilot Program Act.
5    Beginning January 1, 2020, in addition to all other rates
6of tax imposed under this Act, a surcharge of 3.75% is imposed
7on the selling price of (i) each firearm purchased in the State
8and (ii) each firearm component part that is purchased in the
9State and sold separately from the firearm. "Firearm" has the
10meaning ascribed to that term in Section 1.1 of the Firearm
11Owners Identification Card Act.
12(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1399-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
147-6-17.)
 
15    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
16    Sec. 9. Each serviceman required or authorized to collect
17the tax herein imposed shall pay to the Department the amount
18of such tax at the time when he is required to file his return
19for the period during which such tax was collectible, less a
20discount of 2.1% prior to January 1, 1990, and 1.75% on and
21after January 1, 1990, or $5 per calendar year, whichever is
22greater, which is allowed to reimburse the serviceman for
23expenses incurred in collecting the tax, keeping records,
24preparing and filing returns, remitting the tax and supplying
25data to the Department on request. The discount allowed under

 

 

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1this Section is allowed only for returns that are filed in the
2manner required by this Act. The Department may disallow the
3discount for servicemen whose certificate of registration is
4revoked at the time the return is filed, but only if the
5Department's decision to revoke the certificate of
6registration has become final.
7    Where such tangible personal property is sold under a
8conditional sales contract, or under any other form of sale
9wherein the payment of the principal sum, or a part thereof, is
10extended beyond the close of the period for which the return is
11filed, the serviceman, in collecting the tax may collect, for
12each tax return period, only the tax applicable to the part of
13the selling price actually received during such tax return
14period.
15    Except as provided hereinafter in this Section, on or
16before the twentieth day of each calendar month, such
17serviceman shall file a return for the preceding calendar month
18in accordance with reasonable rules and regulations to be
19promulgated by the Department of Revenue. Such return shall be
20filed on a form prescribed by the Department and shall contain
21such information as the Department may reasonably require. On
22and after January 1, 2018, with respect to servicemen whose
23annual gross receipts average $20,000 or more, all returns
24required to be filed pursuant to this Act shall be filed
25electronically. Servicemen who demonstrate that they do not
26have access to the Internet or demonstrate hardship in filing

 

 

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1electronically may petition the Department to waive the
2electronic filing requirement.
3    The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10        1. The name of the seller;
11        2. The address of the principal place of business from
12    which he engages in business as a serviceman in this State;
13        3. The total amount of taxable receipts received by him
14    during the preceding calendar month, including receipts
15    from charge and time sales, but less all deductions allowed
16    by law;
17        4. The amount of credit provided in Section 2d of this
18    Act;
19        5. The amount of tax due;
20        5-5. The signature of the taxpayer; and
21        6. Such other reasonable information as the Department
22    may require.
23    If a taxpayer fails to sign a return within 30 days after
24the proper notice and demand for signature by the Department,
25the return shall be considered valid and any amount shown to be
26due on the return shall be deemed assessed.

 

 

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1    Prior to October 1, 2003, and on and after September 1,
22004 a serviceman may accept a Manufacturer's Purchase Credit
3certification from a purchaser in satisfaction of Service Use
4Tax as provided in Section 3-70 of the Service Use Tax Act if
5the purchaser provides the appropriate documentation as
6required by Section 3-70 of the Service Use Tax Act. A
7Manufacturer's Purchase Credit certification, accepted prior
8to October 1, 2003 or on or after September 1, 2004 by a
9serviceman as provided in Section 3-70 of the Service Use Tax
10Act, may be used by that serviceman to satisfy Service
11Occupation Tax liability in the amount claimed in the
12certification, not to exceed 6.25% of the receipts subject to
13tax from a qualifying purchase. A Manufacturer's Purchase
14Credit reported on any original or amended return filed under
15this Act after October 20, 2003 for reporting periods prior to
16September 1, 2004 shall be disallowed. Manufacturer's Purchase
17Credit reported on annual returns due on or after January 1,
182005 will be disallowed for periods prior to September 1, 2004.
19No Manufacturer's Purchase Credit may be used after September
2030, 2003 through August 31, 2004 to satisfy any tax liability
21imposed under this Act, including any audit liability.
22    If the serviceman's average monthly tax liability to the
23Department does not exceed $200, the Department may authorize
24his returns to be filed on a quarter annual basis, with the
25return for January, February and March of a given year being
26due by April 20 of such year; with the return for April, May

 

 

HB2331- 67 -LRB101 04564 HLH 49572 b

1and June of a given year being due by July 20 of such year; with
2the return for July, August and September of a given year being
3due by October 20 of such year, and with the return for
4October, November and December of a given year being due by
5January 20 of the following year.
6    If the serviceman's average monthly tax liability to the
7Department does not exceed $50, the Department may authorize
8his returns to be filed on an annual basis, with the return for
9a given year being due by January 20 of the following year.
10    Such quarter annual and annual returns, as to form and
11substance, shall be subject to the same requirements as monthly
12returns.
13    Notwithstanding any other provision in this Act concerning
14the time within which a serviceman may file his return, in the
15case of any serviceman who ceases to engage in a kind of
16business which makes him responsible for filing returns under
17this Act, such serviceman shall file a final return under this
18Act with the Department not more than 1 month after
19discontinuing such business.
20    Beginning October 1, 1993, a taxpayer who has an average
21monthly tax liability of $150,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. Beginning October 1, 1994, a taxpayer who has
24an average monthly tax liability of $100,000 or more shall make
25all payments required by rules of the Department by electronic
26funds transfer. Beginning October 1, 1995, a taxpayer who has

 

 

HB2331- 68 -LRB101 04564 HLH 49572 b

1an average monthly tax liability of $50,000 or more shall make
2all payments required by rules of the Department by electronic
3funds transfer. Beginning October 1, 2000, a taxpayer who has
4an annual tax liability of $200,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. The term "annual tax liability" shall be the
7sum of the taxpayer's liabilities under this Act, and under all
8other State and local occupation and use tax laws administered
9by the Department, for the immediately preceding calendar year.
10The term "average monthly tax liability" means the sum of the
11taxpayer's liabilities under this Act, and under all other
12State and local occupation and use tax laws administered by the
13Department, for the immediately preceding calendar year
14divided by 12. Beginning on October 1, 2002, a taxpayer who has
15a tax liability in the amount set forth in subsection (b) of
16Section 2505-210 of the Department of Revenue Law shall make
17all payments required by rules of the Department by electronic
18funds transfer.
19    Before August 1 of each year beginning in 1993, the
20Department shall notify all taxpayers required to make payments
21by electronic funds transfer. All taxpayers required to make
22payments by electronic funds transfer shall make those payments
23for a minimum of one year beginning on October 1.
24    Any taxpayer not required to make payments by electronic
25funds transfer may make payments by electronic funds transfer
26with the permission of the Department.

 

 

HB2331- 69 -LRB101 04564 HLH 49572 b

1    All taxpayers required to make payment by electronic funds
2transfer and any taxpayers authorized to voluntarily make
3payments by electronic funds transfer shall make those payments
4in the manner authorized by the Department.
5    The Department shall adopt such rules as are necessary to
6effectuate a program of electronic funds transfer and the
7requirements of this Section.
8    Where a serviceman collects the tax with respect to the
9selling price of tangible personal property which he sells and
10the purchaser thereafter returns such tangible personal
11property and the serviceman refunds the selling price thereof
12to the purchaser, such serviceman shall also refund, to the
13purchaser, the tax so collected from the purchaser. When filing
14his return for the period in which he refunds such tax to the
15purchaser, the serviceman may deduct the amount of the tax so
16refunded by him to the purchaser from any other Service
17Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
18Use Tax which such serviceman may be required to pay or remit
19to the Department, as shown by such return, provided that the
20amount of the tax to be deducted shall previously have been
21remitted to the Department by such serviceman. If the
22serviceman shall not previously have remitted the amount of
23such tax to the Department, he shall be entitled to no
24deduction hereunder upon refunding such tax to the purchaser.
25    If experience indicates such action to be practicable, the
26Department may prescribe and furnish a combination or joint

 

 

HB2331- 70 -LRB101 04564 HLH 49572 b

1return which will enable servicemen, who are required to file
2returns hereunder and also under the Retailers' Occupation Tax
3Act, the Use Tax Act or the Service Use Tax Act, to furnish all
4the return information required by all said Acts on the one
5form.
6    Where the serviceman has more than one business registered
7with the Department under separate registrations hereunder,
8such serviceman shall file separate returns for each registered
9business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund the revenue realized for
12the preceding month from the 1% tax on sales of food for human
13consumption which is to be consumed off the premises where it
14is sold (other than alcoholic beverages, soft drinks and food
15which has been prepared for immediate consumption) and
16prescription and nonprescription medicines, drugs, medical
17appliances, products classified as Class III medical devices by
18the United States Food and Drug Administration that are used
19for cancer treatment pursuant to a prescription, as well as any
20accessories and components related to those devices, and
21insulin, urine testing materials, syringes and needles used by
22diabetics.
23    Beginning January 1, 1990, each month the Department shall
24pay into the County and Mass Transit District Fund 4% of the
25revenue realized for the preceding month from the 6.25% general
26rate.

 

 

HB2331- 71 -LRB101 04564 HLH 49572 b

1    Beginning August 1, 2000, each month the Department shall
2pay into the County and Mass Transit District Fund 20% of the
3net revenue realized for the preceding month from the 1.25%
4rate on the selling price of motor fuel and gasohol.
5    Beginning January 1, 1990, each month the Department shall
6pay into the Local Government Tax Fund 16% of the revenue
7realized for the preceding month from the 6.25% general rate on
8transfers of tangible personal property.
9    Beginning August 1, 2000, each month the Department shall
10pay into the Local Government Tax Fund 80% of the net revenue
11realized for the preceding month from the 1.25% rate on the
12selling price of motor fuel and gasohol.
13    Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20    Beginning July 1, 2013, each month the Department shall pay
21into the Underground Storage Tank Fund from the proceeds
22collected under this Act, the Use Tax Act, the Service Use Tax
23Act, and the Retailers' Occupation Tax Act an amount equal to
24the average monthly deficit in the Underground Storage Tank
25Fund during the prior year, as certified annually by the
26Illinois Environmental Protection Agency, but the total

 

 

HB2331- 72 -LRB101 04564 HLH 49572 b

1payment into the Underground Storage Tank Fund under this Act,
2the Use Tax Act, the Service Use Tax Act, and the Retailers'
3Occupation Tax Act shall not exceed $18,000,000 in any State
4fiscal year. As used in this paragraph, the "average monthly
5deficit" shall be equal to the difference between the average
6monthly claims for payment by the fund and the average monthly
7revenues deposited into the fund, excluding payments made
8pursuant to this paragraph.
9    Beginning July 1, 2015, of the remainder of the moneys
10received by the Department under the Use Tax Act, the Service
11Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
12each month the Department shall deposit $500,000 into the State
13Crime Laboratory Fund.
14    Beginning January 1, 2020, the Department shall pay into
15the Youthbuild Assistance Fund 100% of the net revenue realized
16for the preceding month from the 3.75% surcharge on the selling
17price of firearms and firearm component parts.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, (a) 1.75% thereof shall be paid into the
20Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21and after July 1, 1989, 3.8% thereof shall be paid into the
22Build Illinois Fund; provided, however, that if in any fiscal
23year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24may be, of the moneys received by the Department and required
25to be paid into the Build Illinois Fund pursuant to Section 3
26of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

 

 

HB2331- 73 -LRB101 04564 HLH 49572 b

1Act, Section 9 of the Service Use Tax Act, and Section 9 of the
2Service Occupation Tax Act, such Acts being hereinafter called
3the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
4may be, of moneys being hereinafter called the "Tax Act
5Amount", and (2) the amount transferred to the Build Illinois
6Fund from the State and Local Sales Tax Reform Fund shall be
7less than the Annual Specified Amount (as defined in Section 3
8of the Retailers' Occupation Tax Act), an amount equal to the
9difference shall be immediately paid into the Build Illinois
10Fund from other moneys received by the Department pursuant to
11the Tax Acts; and further provided, that if on the last
12business day of any month the sum of (1) the Tax Act Amount
13required to be deposited into the Build Illinois Account in the
14Build Illinois Fund during such month and (2) the amount
15transferred during such month to the Build Illinois Fund from
16the State and Local Sales Tax Reform Fund shall have been less
17than 1/12 of the Annual Specified Amount, an amount equal to
18the difference shall be immediately paid into the Build
19Illinois Fund from other moneys received by the Department
20pursuant to the Tax Acts; and, further provided, that in no
21event shall the payments required under the preceding proviso
22result in aggregate payments into the Build Illinois Fund
23pursuant to this clause (b) for any fiscal year in excess of
24the greater of (i) the Tax Act Amount or (ii) the Annual
25Specified Amount for such fiscal year; and, further provided,
26that the amounts payable into the Build Illinois Fund under

 

 

HB2331- 74 -LRB101 04564 HLH 49572 b

1this clause (b) shall be payable only until such time as the
2aggregate amount on deposit under each trust indenture securing
3Bonds issued and outstanding pursuant to the Build Illinois
4Bond Act is sufficient, taking into account any future
5investment income, to fully provide, in accordance with such
6indenture, for the defeasance of or the payment of the
7principal of, premium, if any, and interest on the Bonds
8secured by such indenture and on any Bonds expected to be
9issued thereafter and all fees and costs payable with respect
10thereto, all as certified by the Director of the Bureau of the
11Budget (now Governor's Office of Management and Budget). If on
12the last business day of any month in which Bonds are
13outstanding pursuant to the Build Illinois Bond Act, the
14aggregate of the moneys deposited in the Build Illinois Bond
15Account in the Build Illinois Fund in such month shall be less
16than the amount required to be transferred in such month from
17the Build Illinois Bond Account to the Build Illinois Bond
18Retirement and Interest Fund pursuant to Section 13 of the
19Build Illinois Bond Act, an amount equal to such deficiency
20shall be immediately paid from other moneys received by the
21Department pursuant to the Tax Acts to the Build Illinois Fund;
22provided, however, that any amounts paid to the Build Illinois
23Fund in any fiscal year pursuant to this sentence shall be
24deemed to constitute payments pursuant to clause (b) of the
25preceding sentence and shall reduce the amount otherwise
26payable for such fiscal year pursuant to clause (b) of the

 

 

HB2331- 75 -LRB101 04564 HLH 49572 b

1preceding sentence. The moneys received by the Department
2pursuant to this Act and required to be deposited into the
3Build Illinois Fund are subject to the pledge, claim and charge
4set forth in Section 12 of the Build Illinois Bond Act.
5    Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of the sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
17Fiscal YearTotal Deposit
181993         $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

 

 

HB2331- 76 -LRB101 04564 HLH 49572 b

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021246,000,000
222022260,000,000
232023275,000,000
242024 275,000,000
252025 275,000,000
262026 279,000,000

 

 

HB2331- 77 -LRB101 04564 HLH 49572 b

12027 292,000,000
22028 307,000,000
32029 322,000,000
42030 338,000,000
52031 350,000,000
62032 350,000,000
7and
8each fiscal year
9thereafter that bonds
10are outstanding under
11Section 13.2 of the
12Metropolitan Pier and
13Exposition Authority Act,
14but not after fiscal year 2060.
15    Beginning July 20, 1993 and in each month of each fiscal
16year thereafter, one-eighth of the amount requested in the
17certificate of the Chairman of the Metropolitan Pier and
18Exposition Authority for that fiscal year, less the amount
19deposited into the McCormick Place Expansion Project Fund by
20the State Treasurer in the respective month under subsection
21(g) of Section 13 of the Metropolitan Pier and Exposition
22Authority Act, plus cumulative deficiencies in the deposits
23required under this Section for previous months and years,
24shall be deposited into the McCormick Place Expansion Project
25Fund, until the full amount requested for the fiscal year, but
26not in excess of the amount specified above as "Total Deposit",

 

 

HB2331- 78 -LRB101 04564 HLH 49572 b

1has been deposited.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993 and ending on September 30,
62013, the Department shall each month pay into the Illinois Tax
7Increment Fund 0.27% of 80% of the net revenue realized for the
8preceding month from the 6.25% general rate on the selling
9price of tangible personal property.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning with the receipt of the first report of
14taxes paid by an eligible business and continuing for a 25-year
15period, the Department shall each month pay into the Energy
16Infrastructure Fund 80% of the net revenue realized from the
176.25% general rate on the selling price of Illinois-mined coal
18that was sold to an eligible business. For purposes of this
19paragraph, the term "eligible business" means a new electric
20generating facility certified pursuant to Section 605-332 of
21the Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    Subject to payment of amounts into the Build Illinois Fund,
24the McCormick Place Expansion Project Fund, the Illinois Tax
25Increment Fund, and the Energy Infrastructure Fund pursuant to
26the preceding paragraphs or in any amendments to this Section

 

 

HB2331- 79 -LRB101 04564 HLH 49572 b

1hereafter enacted, beginning on the first day of the first
2calendar month to occur on or after August 26, 2014 (the
3effective date of Public Act 98-1098), each month, from the
4collections made under Section 9 of the Use Tax Act, Section 9
5of the Service Use Tax Act, Section 9 of the Service Occupation
6Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
7the Department shall pay into the Tax Compliance and
8Administration Fund, to be used, subject to appropriation, to
9fund additional auditors and compliance personnel at the
10Department of Revenue, an amount equal to 1/12 of 5% of 80% of
11the cash receipts collected during the preceding fiscal year by
12the Audit Bureau of the Department under the Use Tax Act, the
13Service Use Tax Act, the Service Occupation Tax Act, the
14Retailers' Occupation Tax Act, and associated local occupation
15and use taxes administered by the Department.
16    Subject to payments of amounts into the Build Illinois
17Fund, the McCormick Place Expansion Project Fund, the Illinois
18Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
19Compliance and Administration Fund as provided in this Section,
20beginning on July 1, 2018 the Department shall pay each month
21into the Downstate Public Transportation Fund the moneys
22required to be so paid under Section 2-3 of the Downstate
23Public Transportation Act.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% shall be paid into the General
26Revenue Fund of the State Treasury and 25% shall be reserved in

 

 

HB2331- 80 -LRB101 04564 HLH 49572 b

1a special account and used only for the transfer to the Common
2School Fund as part of the monthly transfer from the General
3Revenue Fund in accordance with Section 8a of the State Finance
4Act.
5    The Department may, upon separate written notice to a
6taxpayer, require the taxpayer to prepare and file with the
7Department on a form prescribed by the Department within not
8less than 60 days after receipt of the notice an annual
9information return for the tax year specified in the notice.
10Such annual return to the Department shall include a statement
11of gross receipts as shown by the taxpayer's last Federal
12income tax return. If the total receipts of the business as
13reported in the Federal income tax return do not agree with the
14gross receipts reported to the Department of Revenue for the
15same period, the taxpayer shall attach to his annual return a
16schedule showing a reconciliation of the 2 amounts and the
17reasons for the difference. The taxpayer's annual return to the
18Department shall also disclose the cost of goods sold by the
19taxpayer during the year covered by such return, opening and
20closing inventories of such goods for such year, cost of goods
21used from stock or taken from stock and given away by the
22taxpayer during such year, pay roll information of the
23taxpayer's business during such year and any additional
24reasonable information which the Department deems would be
25helpful in determining the accuracy of the monthly, quarterly
26or annual returns filed by such taxpayer as hereinbefore

 

 

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1provided for in this Section.
2    If the annual information return required by this Section
3is not filed when and as required, the taxpayer shall be liable
4as follows:
5        (i) Until January 1, 1994, the taxpayer shall be liable
6    for a penalty equal to 1/6 of 1% of the tax due from such
7    taxpayer under this Act during the period to be covered by
8    the annual return for each month or fraction of a month
9    until such return is filed as required, the penalty to be
10    assessed and collected in the same manner as any other
11    penalty provided for in this Act.
12        (ii) On and after January 1, 1994, the taxpayer shall
13    be liable for a penalty as described in Section 3-4 of the
14    Uniform Penalty and Interest Act.
15    The chief executive officer, proprietor, owner or highest
16ranking manager shall sign the annual return to certify the
17accuracy of the information contained therein. Any person who
18willfully signs the annual return containing false or
19inaccurate information shall be guilty of perjury and punished
20accordingly. The annual return form prescribed by the
21Department shall include a warning that the person signing the
22return may be liable for perjury.
23    The foregoing portion of this Section concerning the filing
24of an annual information return shall not apply to a serviceman
25who is not required to file an income tax return with the
26United States Government.

 

 

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1    As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8    Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12    For greater simplicity of administration, it shall be
13permissible for manufacturers, importers and wholesalers whose
14products are sold by numerous servicemen in Illinois, and who
15wish to do so, to assume the responsibility for accounting and
16paying to the Department all tax accruing under this Act with
17respect to such sales, if the servicemen who are affected do
18not make written objection to the Department to this
19arrangement.
20(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
21100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
228-14-18.)
 
23    Section 25. The Retailers' Occupation Tax Act is amended by
24changing Sections 2-10 and 3 as follows:
 

 

 

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1    (35 ILCS 120/2-10)
2    Sec. 2-10. Rate of tax. Unless otherwise provided in this
3Section, the tax imposed by this Act is at the rate of 6.25% of
4gross receipts from sales of tangible personal property made in
5the course of business.
6    Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10    Beginning on August 6, 2010 through August 15, 2010, with
11respect to sales tax holiday items as defined in Section 2-8 of
12this Act, the tax is imposed at the rate of 1.25%.
13    Within 14 days after the effective date of this amendatory
14Act of the 91st General Assembly, each retailer of motor fuel
15and gasohol shall cause the following notice to be posted in a
16prominently visible place on each retail dispensing device that
17is used to dispense motor fuel or gasohol in the State of
18Illinois: "As of July 1, 2000, the State of Illinois has
19eliminated the State's share of sales tax on motor fuel and
20gasohol through December 31, 2000. The price on this pump
21should reflect the elimination of the tax." The notice shall be
22printed in bold print on a sign that is no smaller than 4
23inches by 8 inches. The sign shall be clearly visible to
24customers. Any retailer who fails to post or maintain a
25required sign through December 31, 2000 is guilty of a petty
26offense for which the fine shall be $500 per day per each

 

 

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1retail premises where a violation occurs.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act applies to (i) 70% of the proceeds of
4sales made on or after January 1, 1990, and before July 1,
52003, (ii) 80% of the proceeds of sales made on or after July
61, 2003 and on or before July 1, 2017, and (iii) 100% of the
7proceeds of sales made thereafter. If, at any time, however,
8the tax under this Act on sales of gasohol, as defined in the
9Use Tax Act, is imposed at the rate of 1.25%, then the tax
10imposed by this Act applies to 100% of the proceeds of sales of
11gasohol made during that time.
12    With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the proceeds of sales made on or after July 1, 2003 and on or
15before December 31, 2023 but applies to 100% of the proceeds of
16sales made thereafter.
17    With respect to biodiesel blends, as defined in the Use Tax
18Act, with no less than 1% and no more than 10% biodiesel, the
19tax imposed by this Act applies to (i) 80% of the proceeds of
20sales made on or after July 1, 2003 and on or before December
2131, 2018 and (ii) 100% of the proceeds of sales made
22thereafter. If, at any time, however, the tax under this Act on
23sales of biodiesel blends, as defined in the Use Tax Act, with
24no less than 1% and no more than 10% biodiesel is imposed at
25the rate of 1.25%, then the tax imposed by this Act applies to
26100% of the proceeds of sales of biodiesel blends with no less

 

 

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1than 1% and no more than 10% biodiesel made during that time.
2    With respect to 100% biodiesel, as defined in the Use Tax
3Act, and biodiesel blends, as defined in the Use Tax Act, with
4more than 10% but no more than 99% biodiesel, the tax imposed
5by this Act does not apply to the proceeds of sales made on or
6after July 1, 2003 and on or before December 31, 2023 but
7applies to 100% of the proceeds of sales made thereafter.
8    With respect to food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, soft drinks, and food that has been
11prepared for immediate consumption) and prescription and
12nonprescription medicines, drugs, medical appliances, products
13classified as Class III medical devices by the United States
14Food and Drug Administration that are used for cancer treatment
15pursuant to a prescription, as well as any accessories and
16components related to those devices, modifications to a motor
17vehicle for the purpose of rendering it usable by a person with
18a disability, and insulin, urine testing materials, syringes,
19and needles used by diabetics, for human use, the tax is
20imposed at the rate of 1%. For the purposes of this Section,
21until September 1, 2009: the term "soft drinks" means any
22complete, finished, ready-to-use, non-alcoholic drink, whether
23carbonated or not, including but not limited to soda water,
24cola, fruit juice, vegetable juice, carbonated water, and all
25other preparations commonly known as soft drinks of whatever
26kind or description that are contained in any closed or sealed

 

 

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1bottle, can, carton, or container, regardless of size; but
2"soft drinks" does not include coffee, tea, non-carbonated
3water, infant formula, milk or milk products as defined in the
4Grade A Pasteurized Milk and Milk Products Act, or drinks
5containing 50% or more natural fruit or vegetable juice.
6    Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "soft drinks" means non-alcoholic
8beverages that contain natural or artificial sweeteners. "Soft
9drinks" do not include beverages that contain milk or milk
10products, soy, rice or similar milk substitutes, or greater
11than 50% of vegetable or fruit juice by volume.
12    Until August 1, 2009, and notwithstanding any other
13provisions of this Act, "food for human consumption that is to
14be consumed off the premises where it is sold" includes all
15food sold through a vending machine, except soft drinks and
16food products that are dispensed hot from a vending machine,
17regardless of the location of the vending machine. Beginning
18August 1, 2009, and notwithstanding any other provisions of
19this Act, "food for human consumption that is to be consumed
20off the premises where it is sold" includes all food sold
21through a vending machine, except soft drinks, candy, and food
22products that are dispensed hot from a vending machine,
23regardless of the location of the vending machine.
24    Notwithstanding any other provisions of this Act,
25beginning September 1, 2009, "food for human consumption that
26is to be consumed off the premises where it is sold" does not

 

 

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1include candy. For purposes of this Section, "candy" means a
2preparation of sugar, honey, or other natural or artificial
3sweeteners in combination with chocolate, fruits, nuts or other
4ingredients or flavorings in the form of bars, drops, or
5pieces. "Candy" does not include any preparation that contains
6flour or requires refrigeration.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "nonprescription medicines and
9drugs" does not include grooming and hygiene products. For
10purposes of this Section, "grooming and hygiene products"
11includes, but is not limited to, soaps and cleaning solutions,
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
13lotions and screens, unless those products are available by
14prescription only, regardless of whether the products meet the
15definition of "over-the-counter-drugs". For the purposes of
16this paragraph, "over-the-counter-drug" means a drug for human
17use that contains a label that identifies the product as a drug
18as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
19label includes:
20        (A) A "Drug Facts" panel; or
21        (B) A statement of the "active ingredient(s)" with a
22    list of those ingredients contained in the compound,
23    substance or preparation.
24    Beginning on the effective date of this amendatory Act of
25the 98th General Assembly, "prescription and nonprescription
26medicines and drugs" includes medical cannabis purchased from a

 

 

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1registered dispensing organization under the Compassionate Use
2of Medical Cannabis Pilot Program Act.
3    Beginning January 1, 2020, in addition to all other rates
4of tax imposed under this Act, a surcharge of 3.75% is imposed
5on the selling price of (i) each firearm purchased in the State
6and (ii) each firearm component part that is purchased in the
7State and sold separately from the firearm. "Firearm" has the
8meaning ascribed to that term in Section 1.1 of the Firearm
9Owners Identification Card Act.
10(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
11100-22, eff. 7-6-17.)
 
12    (35 ILCS 120/3)  (from Ch. 120, par. 442)
13    Sec. 3. Except as provided in this Section, on or before
14the twentieth day of each calendar month, every person engaged
15in the business of selling tangible personal property at retail
16in this State during the preceding calendar month shall file a
17return with the Department, stating:
18        1. The name of the seller;
19        2. His residence address and the address of his
20    principal place of business and the address of the
21    principal place of business (if that is a different
22    address) from which he engages in the business of selling
23    tangible personal property at retail in this State;
24        3. Total amount of receipts received by him during the
25    preceding calendar month or quarter, as the case may be,

 

 

HB2331- 89 -LRB101 04564 HLH 49572 b

1    from sales of tangible personal property, and from services
2    furnished, by him during such preceding calendar month or
3    quarter;
4        4. Total amount received by him during the preceding
5    calendar month or quarter on charge and time sales of
6    tangible personal property, and from services furnished,
7    by him prior to the month or quarter for which the return
8    is filed;
9        5. Deductions allowed by law;
10        6. Gross receipts which were received by him during the
11    preceding calendar month or quarter and upon the basis of
12    which the tax is imposed;
13        7. The amount of credit provided in Section 2d of this
14    Act;
15        8. The amount of tax due;
16        9. The signature of the taxpayer; and
17        10. Such other reasonable information as the
18    Department may require.
19    On and after January 1, 2018, except for returns for motor
20vehicles, watercraft, aircraft, and trailers that are required
21to be registered with an agency of this State, with respect to
22retailers whose annual gross receipts average $20,000 or more,
23all returns required to be filed pursuant to this Act shall be
24filed electronically. Retailers who demonstrate that they do
25not have access to the Internet or demonstrate hardship in
26filing electronically may petition the Department to waive the

 

 

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1electronic filing requirement.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Each return shall be accompanied by the statement of
7prepaid tax issued pursuant to Section 2e for which credit is
8claimed.
9    Prior to October 1, 2003, and on and after September 1,
102004 a retailer may accept a Manufacturer's Purchase Credit
11certification from a purchaser in satisfaction of Use Tax as
12provided in Section 3-85 of the Use Tax Act if the purchaser
13provides the appropriate documentation as required by Section
143-85 of the Use Tax Act. A Manufacturer's Purchase Credit
15certification, accepted by a retailer prior to October 1, 2003
16and on and after September 1, 2004 as provided in Section 3-85
17of the Use Tax Act, may be used by that retailer to satisfy
18Retailers' Occupation Tax liability in the amount claimed in
19the certification, not to exceed 6.25% of the receipts subject
20to tax from a qualifying purchase. A Manufacturer's Purchase
21Credit reported on any original or amended return filed under
22this Act after October 20, 2003 for reporting periods prior to
23September 1, 2004 shall be disallowed. Manufacturer's
24Purchaser Credit reported on annual returns due on or after
25January 1, 2005 will be disallowed for periods prior to
26September 1, 2004. No Manufacturer's Purchase Credit may be

 

 

HB2331- 91 -LRB101 04564 HLH 49572 b

1used after September 30, 2003 through August 31, 2004 to
2satisfy any tax liability imposed under this Act, including any
3audit liability.
4    The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11        1. The name of the seller;
12        2. The address of the principal place of business from
13    which he engages in the business of selling tangible
14    personal property at retail in this State;
15        3. The total amount of taxable receipts received by him
16    during the preceding calendar month from sales of tangible
17    personal property by him during such preceding calendar
18    month, including receipts from charge and time sales, but
19    less all deductions allowed by law;
20        4. The amount of credit provided in Section 2d of this
21    Act;
22        5. The amount of tax due; and
23        6. Such other reasonable information as the Department
24    may require.
25    Beginning on October 1, 2003, any person who is not a
26licensed distributor, importing distributor, or manufacturer,

 

 

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1as defined in the Liquor Control Act of 1934, but is engaged in
2the business of selling, at retail, alcoholic liquor shall file
3a statement with the Department of Revenue, in a format and at
4a time prescribed by the Department, showing the total amount
5paid for alcoholic liquor purchased during the preceding month
6and such other information as is reasonably required by the
7Department. The Department may adopt rules to require that this
8statement be filed in an electronic or telephonic format. Such
9rules may provide for exceptions from the filing requirements
10of this paragraph. For the purposes of this paragraph, the term
11"alcoholic liquor" shall have the meaning prescribed in the
12Liquor Control Act of 1934.
13    Beginning on October 1, 2003, every distributor, importing
14distributor, and manufacturer of alcoholic liquor as defined in
15the Liquor Control Act of 1934, shall file a statement with the
16Department of Revenue, no later than the 10th day of the month
17for the preceding month during which transactions occurred, by
18electronic means, showing the total amount of gross receipts
19from the sale of alcoholic liquor sold or distributed during
20the preceding month to purchasers; identifying the purchaser to
21whom it was sold or distributed; the purchaser's tax
22registration number; and such other information reasonably
23required by the Department. A distributor, importing
24distributor, or manufacturer of alcoholic liquor must
25personally deliver, mail, or provide by electronic means to
26each retailer listed on the monthly statement a report

 

 

HB2331- 93 -LRB101 04564 HLH 49572 b

1containing a cumulative total of that distributor's, importing
2distributor's, or manufacturer's total sales of alcoholic
3liquor to that retailer no later than the 10th day of the month
4for the preceding month during which the transaction occurred.
5The distributor, importing distributor, or manufacturer shall
6notify the retailer as to the method by which the distributor,
7importing distributor, or manufacturer will provide the sales
8information. If the retailer is unable to receive the sales
9information by electronic means, the distributor, importing
10distributor, or manufacturer shall furnish the sales
11information by personal delivery or by mail. For purposes of
12this paragraph, the term "electronic means" includes, but is
13not limited to, the use of a secure Internet website, e-mail,
14or facsimile.
15    If a total amount of less than $1 is payable, refundable or
16creditable, such amount shall be disregarded if it is less than
1750 cents and shall be increased to $1 if it is 50 cents or more.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

HB2331- 94 -LRB101 04564 HLH 49572 b

1funds transfer. Beginning October 1, 2000, a taxpayer who has
2an annual tax liability of $200,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. The term "annual tax liability" shall be the
5sum of the taxpayer's liabilities under this Act, and under all
6other State and local occupation and use tax laws administered
7by the Department, for the immediately preceding calendar year.
8The term "average monthly tax liability" shall be the sum of
9the taxpayer's liabilities under this Act, and under all other
10State and local occupation and use tax laws administered by the
11Department, for the immediately preceding calendar year
12divided by 12. Beginning on October 1, 2002, a taxpayer who has
13a tax liability in the amount set forth in subsection (b) of
14Section 2505-210 of the Department of Revenue Law shall make
15all payments required by rules of the Department by electronic
16funds transfer.
17    Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make payments
19by electronic funds transfer. All taxpayers required to make
20payments by electronic funds transfer shall make those payments
21for a minimum of one year beginning on October 1.
22    Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25    All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

 

 

HB2331- 95 -LRB101 04564 HLH 49572 b

1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Any amount which is required to be shown or reported on any
7return or other document under this Act shall, if such amount
8is not a whole-dollar amount, be increased to the nearest
9whole-dollar amount in any case where the fractional part of a
10dollar is 50 cents or more, and decreased to the nearest
11whole-dollar amount where the fractional part of a dollar is
12less than 50 cents.
13    If the retailer is otherwise required to file a monthly
14return and if the retailer's average monthly tax liability to
15the Department does not exceed $200, the Department may
16authorize his returns to be filed on a quarter annual basis,
17with the return for January, February and March of a given year
18being due by April 20 of such year; with the return for April,
19May and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the retailer is otherwise required to file a monthly or
25quarterly return and if the retailer's average monthly tax
26liability with the Department does not exceed $50, the

 

 

HB2331- 96 -LRB101 04564 HLH 49572 b

1Department may authorize his returns to be filed on an annual
2basis, with the return for a given year being due by January 20
3of the following year.
4    Such quarter annual and annual returns, as to form and
5substance, shall be subject to the same requirements as monthly
6returns.
7    Notwithstanding any other provision in this Act concerning
8the time within which a retailer may file his return, in the
9case of any retailer who ceases to engage in a kind of business
10which makes him responsible for filing returns under this Act,
11such retailer shall file a final return under this Act with the
12Department not more than one month after discontinuing such
13business.
14    Where the same person has more than one business registered
15with the Department under separate registrations under this
16Act, such person may not file each return that is due as a
17single return covering all such registered businesses, but
18shall file separate returns for each such registered business.
19    In addition, with respect to motor vehicles, watercraft,
20aircraft, and trailers that are required to be registered with
21an agency of this State, every retailer selling this kind of
22tangible personal property shall file, with the Department,
23upon a form to be prescribed and supplied by the Department, a
24separate return for each such item of tangible personal
25property which the retailer sells, except that if, in the same
26transaction, (i) a retailer of aircraft, watercraft, motor

 

 

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1vehicles or trailers transfers more than one aircraft,
2watercraft, motor vehicle or trailer to another aircraft,
3watercraft, motor vehicle retailer or trailer retailer for the
4purpose of resale or (ii) a retailer of aircraft, watercraft,
5motor vehicles, or trailers transfers more than one aircraft,
6watercraft, motor vehicle, or trailer to a purchaser for use as
7a qualifying rolling stock as provided in Section 2-5 of this
8Act, then that seller may report the transfer of all aircraft,
9watercraft, motor vehicles or trailers involved in that
10transaction to the Department on the same uniform
11invoice-transaction reporting return form. For purposes of
12this Section, "watercraft" means a Class 2, Class 3, or Class 4
13watercraft as defined in Section 3-2 of the Boat Registration
14and Safety Act, a personal watercraft, or any boat equipped
15with an inboard motor.
16    Any retailer who sells only motor vehicles, watercraft,
17aircraft, or trailers that are required to be registered with
18an agency of this State, so that all retailers' occupation tax
19liability is required to be reported, and is reported, on such
20transaction reporting returns and who is not otherwise required
21to file monthly or quarterly returns, need not file monthly or
22quarterly returns. However, those retailers shall be required
23to file returns on an annual basis.
24    The transaction reporting return, in the case of motor
25vehicles or trailers that are required to be registered with an
26agency of this State, shall be the same document as the Uniform

 

 

HB2331- 98 -LRB101 04564 HLH 49572 b

1Invoice referred to in Section 5-402 of The Illinois Vehicle
2Code and must show the name and address of the seller; the name
3and address of the purchaser; the amount of the selling price
4including the amount allowed by the retailer for traded-in
5property, if any; the amount allowed by the retailer for the
6traded-in tangible personal property, if any, to the extent to
7which Section 1 of this Act allows an exemption for the value
8of traded-in property; the balance payable after deducting such
9trade-in allowance from the total selling price; the amount of
10tax due from the retailer with respect to such transaction; the
11amount of tax collected from the purchaser by the retailer on
12such transaction (or satisfactory evidence that such tax is not
13due in that particular instance, if that is claimed to be the
14fact); the place and date of the sale; a sufficient
15identification of the property sold; such other information as
16is required in Section 5-402 of The Illinois Vehicle Code, and
17such other information as the Department may reasonably
18require.
19    The transaction reporting return in the case of watercraft
20or aircraft must show the name and address of the seller; the
21name and address of the purchaser; the amount of the selling
22price including the amount allowed by the retailer for
23traded-in property, if any; the amount allowed by the retailer
24for the traded-in tangible personal property, if any, to the
25extent to which Section 1 of this Act allows an exemption for
26the value of traded-in property; the balance payable after

 

 

HB2331- 99 -LRB101 04564 HLH 49572 b

1deducting such trade-in allowance from the total selling price;
2the amount of tax due from the retailer with respect to such
3transaction; the amount of tax collected from the purchaser by
4the retailer on such transaction (or satisfactory evidence that
5such tax is not due in that particular instance, if that is
6claimed to be the fact); the place and date of the sale, a
7sufficient identification of the property sold, and such other
8information as the Department may reasonably require.
9    Such transaction reporting return shall be filed not later
10than 20 days after the day of delivery of the item that is
11being sold, but may be filed by the retailer at any time sooner
12than that if he chooses to do so. The transaction reporting
13return and tax remittance or proof of exemption from the
14Illinois use tax may be transmitted to the Department by way of
15the State agency with which, or State officer with whom the
16tangible personal property must be titled or registered (if
17titling or registration is required) if the Department and such
18agency or State officer determine that this procedure will
19expedite the processing of applications for title or
20registration.
21    With each such transaction reporting return, the retailer
22shall remit the proper amount of tax due (or shall submit
23satisfactory evidence that the sale is not taxable if that is
24the case), to the Department or its agents, whereupon the
25Department shall issue, in the purchaser's name, a use tax
26receipt (or a certificate of exemption if the Department is

 

 

HB2331- 100 -LRB101 04564 HLH 49572 b

1satisfied that the particular sale is tax exempt) which such
2purchaser may submit to the agency with which, or State officer
3with whom, he must title or register the tangible personal
4property that is involved (if titling or registration is
5required) in support of such purchaser's application for an
6Illinois certificate or other evidence of title or registration
7to such tangible personal property.
8    No retailer's failure or refusal to remit tax under this
9Act precludes a user, who has paid the proper tax to the
10retailer, from obtaining his certificate of title or other
11evidence of title or registration (if titling or registration
12is required) upon satisfying the Department that such user has
13paid the proper tax (if tax is due) to the retailer. The
14Department shall adopt appropriate rules to carry out the
15mandate of this paragraph.
16    If the user who would otherwise pay tax to the retailer
17wants the transaction reporting return filed and the payment of
18the tax or proof of exemption made to the Department before the
19retailer is willing to take these actions and such user has not
20paid the tax to the retailer, such user may certify to the fact
21of such delay by the retailer and may (upon the Department
22being satisfied of the truth of such certification) transmit
23the information required by the transaction reporting return
24and the remittance for tax or proof of exemption directly to
25the Department and obtain his tax receipt or exemption
26determination, in which event the transaction reporting return

 

 

HB2331- 101 -LRB101 04564 HLH 49572 b

1and tax remittance (if a tax payment was required) shall be
2credited by the Department to the proper retailer's account
3with the Department, but without the 2.1% or 1.75% discount
4provided for in this Section being allowed. When the user pays
5the tax directly to the Department, he shall pay the tax in the
6same amount and in the same form in which it would be remitted
7if the tax had been remitted to the Department by the retailer.
8    Refunds made by the seller during the preceding return
9period to purchasers, on account of tangible personal property
10returned to the seller, shall be allowed as a deduction under
11subdivision 5 of his monthly or quarterly return, as the case
12may be, in case the seller had theretofore included the
13receipts from the sale of such tangible personal property in a
14return filed by him and had paid the tax imposed by this Act
15with respect to such receipts.
16    Where the seller is a corporation, the return filed on
17behalf of such corporation shall be signed by the president,
18vice-president, secretary or treasurer or by the properly
19accredited agent of such corporation.
20    Where the seller is a limited liability company, the return
21filed on behalf of the limited liability company shall be
22signed by a manager, member, or properly accredited agent of
23the limited liability company.
24    Except as provided in this Section, the retailer filing the
25return under this Section shall, at the time of filing such
26return, pay to the Department the amount of tax imposed by this

 

 

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1Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
2on and after January 1, 1990, or $5 per calendar year,
3whichever is greater, which is allowed to reimburse the
4retailer for the expenses incurred in keeping records,
5preparing and filing returns, remitting the tax and supplying
6data to the Department on request. Any prepayment made pursuant
7to Section 2d of this Act shall be included in the amount on
8which such 2.1% or 1.75% discount is computed. In the case of
9retailers who report and pay the tax on a transaction by
10transaction basis, as provided in this Section, such discount
11shall be taken with each such tax remittance instead of when
12such retailer files his periodic return. The discount allowed
13under this Section is allowed only for returns that are filed
14in the manner required by this Act. The Department may disallow
15the discount for retailers whose certificate of registration is
16revoked at the time the return is filed, but only if the
17Department's decision to revoke the certificate of
18registration has become final.
19    Before October 1, 2000, if the taxpayer's average monthly
20tax liability to the Department under this Act, the Use Tax
21Act, the Service Occupation Tax Act, and the Service Use Tax
22Act, excluding any liability for prepaid sales tax to be
23remitted in accordance with Section 2d of this Act, was $10,000
24or more during the preceding 4 complete calendar quarters, he
25shall file a return with the Department each month by the 20th
26day of the month next following the month during which such tax

 

 

HB2331- 103 -LRB101 04564 HLH 49572 b

1liability is incurred and shall make payments to the Department
2on or before the 7th, 15th, 22nd and last day of the month
3during which such liability is incurred. On and after October
41, 2000, if the taxpayer's average monthly tax liability to the
5Department under this Act, the Use Tax Act, the Service
6Occupation Tax Act, and the Service Use Tax Act, excluding any
7liability for prepaid sales tax to be remitted in accordance
8with Section 2d of this Act, was $20,000 or more during the
9preceding 4 complete calendar quarters, he shall file a return
10with the Department each month by the 20th day of the month
11next following the month during which such tax liability is
12incurred and shall make payment to the Department on or before
13the 7th, 15th, 22nd and last day of the month during which such
14liability is incurred. If the month during which such tax
15liability is incurred began prior to January 1, 1985, each
16payment shall be in an amount equal to 1/4 of the taxpayer's
17actual liability for the month or an amount set by the
18Department not to exceed 1/4 of the average monthly liability
19of the taxpayer to the Department for the preceding 4 complete
20calendar quarters (excluding the month of highest liability and
21the month of lowest liability in such 4 quarter period). If the
22month during which such tax liability is incurred begins on or
23after January 1, 1985 and prior to January 1, 1987, each
24payment shall be in an amount equal to 22.5% of the taxpayer's
25actual liability for the month or 27.5% of the taxpayer's
26liability for the same calendar month of the preceding year. If

 

 

HB2331- 104 -LRB101 04564 HLH 49572 b

1the month during which such tax liability is incurred begins on
2or after January 1, 1987 and prior to January 1, 1988, each
3payment shall be in an amount equal to 22.5% of the taxpayer's
4actual liability for the month or 26.25% of the taxpayer's
5liability for the same calendar month of the preceding year. If
6the month during which such tax liability is incurred begins on
7or after January 1, 1988, and prior to January 1, 1989, or
8begins on or after January 1, 1996, each payment shall be in an
9amount equal to 22.5% of the taxpayer's actual liability for
10the month or 25% of the taxpayer's liability for the same
11calendar month of the preceding year. If the month during which
12such tax liability is incurred begins on or after January 1,
131989, and prior to January 1, 1996, each payment shall be in an
14amount equal to 22.5% of the taxpayer's actual liability for
15the month or 25% of the taxpayer's liability for the same
16calendar month of the preceding year or 100% of the taxpayer's
17actual liability for the quarter monthly reporting period. The
18amount of such quarter monthly payments shall be credited
19against the final tax liability of the taxpayer's return for
20that month. Before October 1, 2000, once applicable, the
21requirement of the making of quarter monthly payments to the
22Department by taxpayers having an average monthly tax liability
23of $10,000 or more as determined in the manner provided above
24shall continue until such taxpayer's average monthly liability
25to the Department during the preceding 4 complete calendar
26quarters (excluding the month of highest liability and the

 

 

HB2331- 105 -LRB101 04564 HLH 49572 b

1month of lowest liability) is less than $9,000, or until such
2taxpayer's average monthly liability to the Department as
3computed for each calendar quarter of the 4 preceding complete
4calendar quarter period is less than $10,000. However, if a
5taxpayer can show the Department that a substantial change in
6the taxpayer's business has occurred which causes the taxpayer
7to anticipate that his average monthly tax liability for the
8reasonably foreseeable future will fall below the $10,000
9threshold stated above, then such taxpayer may petition the
10Department for a change in such taxpayer's reporting status. On
11and after October 1, 2000, once applicable, the requirement of
12the making of quarter monthly payments to the Department by
13taxpayers having an average monthly tax liability of $20,000 or
14more as determined in the manner provided above shall continue
15until such taxpayer's average monthly liability to the
16Department during the preceding 4 complete calendar quarters
17(excluding the month of highest liability and the month of
18lowest liability) is less than $19,000 or until such taxpayer's
19average monthly liability to the Department as computed for
20each calendar quarter of the 4 preceding complete calendar
21quarter period is less than $20,000. However, if a taxpayer can
22show the Department that a substantial change in the taxpayer's
23business has occurred which causes the taxpayer to anticipate
24that his average monthly tax liability for the reasonably
25foreseeable future will fall below the $20,000 threshold stated
26above, then such taxpayer may petition the Department for a

 

 

HB2331- 106 -LRB101 04564 HLH 49572 b

1change in such taxpayer's reporting status. The Department
2shall change such taxpayer's reporting status unless it finds
3that such change is seasonal in nature and not likely to be
4long term. If any such quarter monthly payment is not paid at
5the time or in the amount required by this Section, then the
6taxpayer shall be liable for penalties and interest on the
7difference between the minimum amount due as a payment and the
8amount of such quarter monthly payment actually and timely
9paid, except insofar as the taxpayer has previously made
10payments for that month to the Department in excess of the
11minimum payments previously due as provided in this Section.
12The Department shall make reasonable rules and regulations to
13govern the quarter monthly payment amount and quarter monthly
14payment dates for taxpayers who file on other than a calendar
15monthly basis.
16    The provisions of this paragraph apply before October 1,
172001. Without regard to whether a taxpayer is required to make
18quarter monthly payments as specified above, any taxpayer who
19is required by Section 2d of this Act to collect and remit
20prepaid taxes and has collected prepaid taxes which average in
21excess of $25,000 per month during the preceding 2 complete
22calendar quarters, shall file a return with the Department as
23required by Section 2f and shall make payments to the
24Department on or before the 7th, 15th, 22nd and last day of the
25month during which such liability is incurred. If the month
26during which such tax liability is incurred began prior to

 

 

HB2331- 107 -LRB101 04564 HLH 49572 b

1September 1, 1985 (the effective date of Public Act 84-221),
2each payment shall be in an amount not less than 22.5% of the
3taxpayer's actual liability under Section 2d. If the month
4during which such tax liability is incurred begins on or after
5January 1, 1986, each payment shall be in an amount equal to
622.5% of the taxpayer's actual liability for the month or 27.5%
7of the taxpayer's liability for the same calendar month of the
8preceding calendar year. If the month during which such tax
9liability is incurred begins on or after January 1, 1987, each
10payment shall be in an amount equal to 22.5% of the taxpayer's
11actual liability for the month or 26.25% of the taxpayer's
12liability for the same calendar month of the preceding year.
13The amount of such quarter monthly payments shall be credited
14against the final tax liability of the taxpayer's return for
15that month filed under this Section or Section 2f, as the case
16may be. Once applicable, the requirement of the making of
17quarter monthly payments to the Department pursuant to this
18paragraph shall continue until such taxpayer's average monthly
19prepaid tax collections during the preceding 2 complete
20calendar quarters is $25,000 or less. If any such quarter
21monthly payment is not paid at the time or in the amount
22required, the taxpayer shall be liable for penalties and
23interest on such difference, except insofar as the taxpayer has
24previously made payments for that month in excess of the
25minimum payments previously due.
26    The provisions of this paragraph apply on and after October

 

 

HB2331- 108 -LRB101 04564 HLH 49572 b

11, 2001. Without regard to whether a taxpayer is required to
2make quarter monthly payments as specified above, any taxpayer
3who is required by Section 2d of this Act to collect and remit
4prepaid taxes and has collected prepaid taxes that average in
5excess of $20,000 per month during the preceding 4 complete
6calendar quarters shall file a return with the Department as
7required by Section 2f and shall make payments to the
8Department on or before the 7th, 15th, 22nd and last day of the
9month during which the liability is incurred. Each payment
10shall be in an amount equal to 22.5% of the taxpayer's actual
11liability for the month or 25% of the taxpayer's liability for
12the same calendar month of the preceding year. The amount of
13the quarter monthly payments shall be credited against the
14final tax liability of the taxpayer's return for that month
15filed under this Section or Section 2f, as the case may be.
16Once applicable, the requirement of the making of quarter
17monthly payments to the Department pursuant to this paragraph
18shall continue until the taxpayer's average monthly prepaid tax
19collections during the preceding 4 complete calendar quarters
20(excluding the month of highest liability and the month of
21lowest liability) is less than $19,000 or until such taxpayer's
22average monthly liability to the Department as computed for
23each calendar quarter of the 4 preceding complete calendar
24quarters is less than $20,000. If any such quarter monthly
25payment is not paid at the time or in the amount required, the
26taxpayer shall be liable for penalties and interest on such

 

 

HB2331- 109 -LRB101 04564 HLH 49572 b

1difference, except insofar as the taxpayer has previously made
2payments for that month in excess of the minimum payments
3previously due.
4    If any payment provided for in this Section exceeds the
5taxpayer's liabilities under this Act, the Use Tax Act, the
6Service Occupation Tax Act and the Service Use Tax Act, as
7shown on an original monthly return, the Department shall, if
8requested by the taxpayer, issue to the taxpayer a credit
9memorandum no later than 30 days after the date of payment. The
10credit evidenced by such credit memorandum may be assigned by
11the taxpayer to a similar taxpayer under this Act, the Use Tax
12Act, the Service Occupation Tax Act or the Service Use Tax Act,
13in accordance with reasonable rules and regulations to be
14prescribed by the Department. If no such request is made, the
15taxpayer may credit such excess payment against tax liability
16subsequently to be remitted to the Department under this Act,
17the Use Tax Act, the Service Occupation Tax Act or the Service
18Use Tax Act, in accordance with reasonable rules and
19regulations prescribed by the Department. If the Department
20subsequently determined that all or any part of the credit
21taken was not actually due to the taxpayer, the taxpayer's 2.1%
22and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
23of the difference between the credit taken and that actually
24due, and that taxpayer shall be liable for penalties and
25interest on such difference.
26    If a retailer of motor fuel is entitled to a credit under

 

 

HB2331- 110 -LRB101 04564 HLH 49572 b

1Section 2d of this Act which exceeds the taxpayer's liability
2to the Department under this Act for the month which the
3taxpayer is filing a return, the Department shall issue the
4taxpayer a credit memorandum for the excess.
5    Beginning January 1, 1990, each month the Department shall
6pay into the Local Government Tax Fund, a special fund in the
7State treasury which is hereby created, the net revenue
8realized for the preceding month from the 1% tax on sales of
9food for human consumption which is to be consumed off the
10premises where it is sold (other than alcoholic beverages, soft
11drinks and food which has been prepared for immediate
12consumption) and prescription and nonprescription medicines,
13drugs, medical appliances, products classified as Class III
14medical devices by the United States Food and Drug
15Administration that are used for cancer treatment pursuant to a
16prescription, as well as any accessories and components related
17to those devices, and insulin, urine testing materials,
18syringes and needles used by diabetics.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund, a special
21fund in the State treasury which is hereby created, 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate.
24    Beginning August 1, 2000, each month the Department shall
25pay into the County and Mass Transit District Fund 20% of the
26net revenue realized for the preceding month from the 1.25%

 

 

HB2331- 111 -LRB101 04564 HLH 49572 b

1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into the
3County and Mass Transit District Fund 20% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of tangible personal property.
10    Beginning August 1, 2000, each month the Department shall
11pay into the Local Government Tax Fund 80% of the net revenue
12realized for the preceding month from the 1.25% rate on the
13selling price of motor fuel and gasohol. Beginning September 1,
142010, each month the Department shall pay into the Local
15Government Tax Fund 80% of the net revenue realized for the
16preceding month from the 1.25% rate on the selling price of
17sales tax holiday items.
18    Beginning October 1, 2009, each month the Department shall
19pay into the Capital Projects Fund an amount that is equal to
20an amount estimated by the Department to represent 80% of the
21net revenue realized for the preceding month from the sale of
22candy, grooming and hygiene products, and soft drinks that had
23been taxed at a rate of 1% prior to September 1, 2009 but that
24are now taxed at 6.25%.
25    Beginning July 1, 2011, each month the Department shall pay
26into the Clean Air Act Permit Fund 80% of the net revenue

 

 

HB2331- 112 -LRB101 04564 HLH 49572 b

1realized for the preceding month from the 6.25% general rate on
2the selling price of sorbents used in Illinois in the process
3of sorbent injection as used to comply with the Environmental
4Protection Act or the federal Clean Air Act, but the total
5payment into the Clean Air Act Permit Fund under this Act and
6the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service Use Tax
10Act, and the Service Occupation Tax Act an amount equal to the
11average monthly deficit in the Underground Storage Tank Fund
12during the prior year, as certified annually by the Illinois
13Environmental Protection Agency, but the total payment into the
14Underground Storage Tank Fund under this Act, the Use Tax Act,
15the Service Use Tax Act, and the Service Occupation Tax Act
16shall not exceed $18,000,000 in any State fiscal year. As used
17in this paragraph, the "average monthly deficit" shall be equal
18to the difference between the average monthly claims for
19payment by the fund and the average monthly revenues deposited
20into the fund, excluding payments made pursuant to this
21paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, the Service
24Use Tax Act, the Service Occupation Tax Act, and this Act, each
25month the Department shall deposit $500,000 into the State
26Crime Laboratory Fund.

 

 

HB2331- 113 -LRB101 04564 HLH 49572 b

1    Beginning January 1, 2020, the Department shall pay into
2the Youthbuild Assistance Fund 100% of the net revenue realized
3for the preceding month from the 3.75% surcharge on the selling
4price of firearms and firearm component parts.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, (a) 1.75% thereof shall be paid into the
7Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
8and after July 1, 1989, 3.8% thereof shall be paid into the
9Build Illinois Fund; provided, however, that if in any fiscal
10year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
11may be, of the moneys received by the Department and required
12to be paid into the Build Illinois Fund pursuant to this Act,
13Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
14Act, and Section 9 of the Service Occupation Tax Act, such Acts
15being hereinafter called the "Tax Acts" and such aggregate of
162.2% or 3.8%, as the case may be, of moneys being hereinafter
17called the "Tax Act Amount", and (2) the amount transferred to
18the Build Illinois Fund from the State and Local Sales Tax
19Reform Fund shall be less than the Annual Specified Amount (as
20hereinafter defined), an amount equal to the difference shall
21be immediately paid into the Build Illinois Fund from other
22moneys received by the Department pursuant to the Tax Acts; the
23"Annual Specified Amount" means the amounts specified below for
24fiscal years 1986 through 1993:
25Fiscal YearAnnual Specified Amount
261986$54,800,000

 

 

HB2331- 114 -LRB101 04564 HLH 49572 b

11987$76,650,000
21988$80,480,000
31989$88,510,000
41990$115,330,000
51991$145,470,000
61992$182,730,000
71993$206,520,000;
8and means the Certified Annual Debt Service Requirement (as
9defined in Section 13 of the Build Illinois Bond Act) or the
10Tax Act Amount, whichever is greater, for fiscal year 1994 and
11each fiscal year thereafter; and further provided, that if on
12the last business day of any month the sum of (1) the Tax Act
13Amount required to be deposited into the Build Illinois Bond
14Account in the Build Illinois Fund during such month and (2)
15the amount transferred to the Build Illinois Fund from the
16State and Local Sales Tax Reform Fund shall have been less than
171/12 of the Annual Specified Amount, an amount equal to the
18difference shall be immediately paid into the Build Illinois
19Fund from other moneys received by the Department pursuant to
20the Tax Acts; and, further provided, that in no event shall the
21payments required under the preceding proviso result in
22aggregate payments into the Build Illinois Fund pursuant to
23this clause (b) for any fiscal year in excess of the greater of
24(i) the Tax Act Amount or (ii) the Annual Specified Amount for
25such fiscal year. The amounts payable into the Build Illinois
26Fund under clause (b) of the first sentence in this paragraph

 

 

HB2331- 115 -LRB101 04564 HLH 49572 b

1shall be payable only until such time as the aggregate amount
2on deposit under each trust indenture securing Bonds issued and
3outstanding pursuant to the Build Illinois Bond Act is
4sufficient, taking into account any future investment income,
5to fully provide, in accordance with such indenture, for the
6defeasance of or the payment of the principal of, premium, if
7any, and interest on the Bonds secured by such indenture and on
8any Bonds expected to be issued thereafter and all fees and
9costs payable with respect thereto, all as certified by the
10Director of the Bureau of the Budget (now Governor's Office of
11Management and Budget). If on the last business day of any
12month in which Bonds are outstanding pursuant to the Build
13Illinois Bond Act, the aggregate of moneys deposited in the
14Build Illinois Bond Account in the Build Illinois Fund in such
15month shall be less than the amount required to be transferred
16in such month from the Build Illinois Bond Account to the Build
17Illinois Bond Retirement and Interest Fund pursuant to Section
1813 of the Build Illinois Bond Act, an amount equal to such
19deficiency shall be immediately paid from other moneys received
20by the Department pursuant to the Tax Acts to the Build
21Illinois Fund; provided, however, that any amounts paid to the
22Build Illinois Fund in any fiscal year pursuant to this
23sentence shall be deemed to constitute payments pursuant to
24clause (b) of the first sentence of this paragraph and shall
25reduce the amount otherwise payable for such fiscal year
26pursuant to that clause (b). The moneys received by the

 

 

HB2331- 116 -LRB101 04564 HLH 49572 b

1Department pursuant to this Act and required to be deposited
2into the Build Illinois Fund are subject to the pledge, claim
3and charge set forth in Section 12 of the Build Illinois Bond
4Act.
5    Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
17Fiscal YearTotal Deposit
181993         $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

 

 

HB2331- 117 -LRB101 04564 HLH 49572 b

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021246,000,000
222022260,000,000
232023275,000,000
242024 275,000,000
252025 275,000,000
262026 279,000,000

 

 

HB2331- 118 -LRB101 04564 HLH 49572 b

12027 292,000,000
22028 307,000,000
32029 322,000,000
42030 338,000,000
52031 350,000,000
62032 350,000,000
7and
8each fiscal year
9thereafter that bonds
10are outstanding under
11Section 13.2 of the
12Metropolitan Pier and
13Exposition Authority Act,
14but not after fiscal year 2060.
15    Beginning July 20, 1993 and in each month of each fiscal
16year thereafter, one-eighth of the amount requested in the
17certificate of the Chairman of the Metropolitan Pier and
18Exposition Authority for that fiscal year, less the amount
19deposited into the McCormick Place Expansion Project Fund by
20the State Treasurer in the respective month under subsection
21(g) of Section 13 of the Metropolitan Pier and Exposition
22Authority Act, plus cumulative deficiencies in the deposits
23required under this Section for previous months and years,
24shall be deposited into the McCormick Place Expansion Project
25Fund, until the full amount requested for the fiscal year, but
26not in excess of the amount specified above as "Total Deposit",

 

 

HB2331- 119 -LRB101 04564 HLH 49572 b

1has been deposited.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993 and ending on September 30,
62013, the Department shall each month pay into the Illinois Tax
7Increment Fund 0.27% of 80% of the net revenue realized for the
8preceding month from the 6.25% general rate on the selling
9price of tangible personal property.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning with the receipt of the first report of
14taxes paid by an eligible business and continuing for a 25-year
15period, the Department shall each month pay into the Energy
16Infrastructure Fund 80% of the net revenue realized from the
176.25% general rate on the selling price of Illinois-mined coal
18that was sold to an eligible business. For purposes of this
19paragraph, the term "eligible business" means a new electric
20generating facility certified pursuant to Section 605-332 of
21the Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    Subject to payment of amounts into the Build Illinois Fund,
24the McCormick Place Expansion Project Fund, the Illinois Tax
25Increment Fund, and the Energy Infrastructure Fund pursuant to
26the preceding paragraphs or in any amendments to this Section

 

 

HB2331- 120 -LRB101 04564 HLH 49572 b

1hereafter enacted, beginning on the first day of the first
2calendar month to occur on or after August 26, 2014 (the
3effective date of Public Act 98-1098), each month, from the
4collections made under Section 9 of the Use Tax Act, Section 9
5of the Service Use Tax Act, Section 9 of the Service Occupation
6Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
7the Department shall pay into the Tax Compliance and
8Administration Fund, to be used, subject to appropriation, to
9fund additional auditors and compliance personnel at the
10Department of Revenue, an amount equal to 1/12 of 5% of 80% of
11the cash receipts collected during the preceding fiscal year by
12the Audit Bureau of the Department under the Use Tax Act, the
13Service Use Tax Act, the Service Occupation Tax Act, the
14Retailers' Occupation Tax Act, and associated local occupation
15and use taxes administered by the Department.
16    Subject to payments of amounts into the Build Illinois
17Fund, the McCormick Place Expansion Project Fund, the Illinois
18Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
19Compliance and Administration Fund as provided in this Section,
20beginning on July 1, 2018 the Department shall pay each month
21into the Downstate Public Transportation Fund the moneys
22required to be so paid under Section 2-3 of the Downstate
23Public Transportation Act.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% thereof shall be paid into the State
26Treasury and 25% shall be reserved in a special account and

 

 

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1used only for the transfer to the Common School Fund as part of
2the monthly transfer from the General Revenue Fund in
3accordance with Section 8a of the State Finance Act.
4    The Department may, upon separate written notice to a
5taxpayer, require the taxpayer to prepare and file with the
6Department on a form prescribed by the Department within not
7less than 60 days after receipt of the notice an annual
8information return for the tax year specified in the notice.
9Such annual return to the Department shall include a statement
10of gross receipts as shown by the retailer's last Federal
11income tax return. If the total receipts of the business as
12reported in the Federal income tax return do not agree with the
13gross receipts reported to the Department of Revenue for the
14same period, the retailer shall attach to his annual return a
15schedule showing a reconciliation of the 2 amounts and the
16reasons for the difference. The retailer's annual return to the
17Department shall also disclose the cost of goods sold by the
18retailer during the year covered by such return, opening and
19closing inventories of such goods for such year, costs of goods
20used from stock or taken from stock and given away by the
21retailer during such year, payroll information of the
22retailer's business during such year and any additional
23reasonable information which the Department deems would be
24helpful in determining the accuracy of the monthly, quarterly
25or annual returns filed by such retailer as provided for in
26this Section.

 

 

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1    If the annual information return required by this Section
2is not filed when and as required, the taxpayer shall be liable
3as follows:
4        (i) Until January 1, 1994, the taxpayer shall be liable
5    for a penalty equal to 1/6 of 1% of the tax due from such
6    taxpayer under this Act during the period to be covered by
7    the annual return for each month or fraction of a month
8    until such return is filed as required, the penalty to be
9    assessed and collected in the same manner as any other
10    penalty provided for in this Act.
11        (ii) On and after January 1, 1994, the taxpayer shall
12    be liable for a penalty as described in Section 3-4 of the
13    Uniform Penalty and Interest Act.
14    The chief executive officer, proprietor, owner or highest
15ranking manager shall sign the annual return to certify the
16accuracy of the information contained therein. Any person who
17willfully signs the annual return containing false or
18inaccurate information shall be guilty of perjury and punished
19accordingly. The annual return form prescribed by the
20Department shall include a warning that the person signing the
21return may be liable for perjury.
22    The provisions of this Section concerning the filing of an
23annual information return do not apply to a retailer who is not
24required to file an income tax return with the United States
25Government.
26    As soon as possible after the first day of each month, upon

 

 

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1certification of the Department of Revenue, the Comptroller
2shall order transferred and the Treasurer shall transfer from
3the General Revenue Fund to the Motor Fuel Tax Fund an amount
4equal to 1.7% of 80% of the net revenue realized under this Act
5for the second preceding month. Beginning April 1, 2000, this
6transfer is no longer required and shall not be made.
7    Net revenue realized for a month shall be the revenue
8collected by the State pursuant to this Act, less the amount
9paid out during that month as refunds to taxpayers for
10overpayment of liability.
11    For greater simplicity of administration, manufacturers,
12importers and wholesalers whose products are sold at retail in
13Illinois by numerous retailers, and who wish to do so, may
14assume the responsibility for accounting and paying to the
15Department all tax accruing under this Act with respect to such
16sales, if the retailers who are affected do not make written
17objection to the Department to this arrangement.
18    Any person who promotes, organizes, provides retail
19selling space for concessionaires or other types of sellers at
20the Illinois State Fair, DuQuoin State Fair, county fairs,
21local fairs, art shows, flea markets and similar exhibitions or
22events, including any transient merchant as defined by Section
232 of the Transient Merchant Act of 1987, is required to file a
24report with the Department providing the name of the merchant's
25business, the name of the person or persons engaged in
26merchant's business, the permanent address and Illinois

 

 

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1Retailers Occupation Tax Registration Number of the merchant,
2the dates and location of the event and other reasonable
3information that the Department may require. The report must be
4filed not later than the 20th day of the month next following
5the month during which the event with retail sales was held.
6Any person who fails to file a report required by this Section
7commits a business offense and is subject to a fine not to
8exceed $250.
9    Any person engaged in the business of selling tangible
10personal property at retail as a concessionaire or other type
11of seller at the Illinois State Fair, county fairs, art shows,
12flea markets and similar exhibitions or events, or any
13transient merchants, as defined by Section 2 of the Transient
14Merchant Act of 1987, may be required to make a daily report of
15the amount of such sales to the Department and to make a daily
16payment of the full amount of tax due. The Department shall
17impose this requirement when it finds that there is a
18significant risk of loss of revenue to the State at such an
19exhibition or event. Such a finding shall be based on evidence
20that a substantial number of concessionaires or other sellers
21who are not residents of Illinois will be engaging in the
22business of selling tangible personal property at retail at the
23exhibition or event, or other evidence of a significant risk of
24loss of revenue to the State. The Department shall notify
25concessionaires and other sellers affected by the imposition of
26this requirement. In the absence of notification by the

 

 

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1Department, the concessionaires and other sellers shall file
2their returns as otherwise required in this Section.
3(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
499-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
57-1-18; 100-863, eff. 8-14-18.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.