101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1556

 

Introduced 2/15/2019, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
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
425 ILCS 35/2  from Ch. 127 1/2, par. 128
425 ILCS 35/2.2

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2020, in addition to all other rates of tax imposed under the Acts, a tax of 3.75% is imposed on the selling price of D.O.T. Class C common fireworks. Provides that "D.O.T. Class C common fireworks" has the meaning ascribed to it in the Pyrotechnic Use Act. Provides that, beginning on January 1, 2020, each month the Department shall pay into the Fire Prevention Fund 50% of the net revenue realized for the preceding month from the tax on the selling price of D.O.T. Class C common fireworks. Amends the Pyrotechnic Use Act. Provides that D.O.T. Class C common fireworks may only be purchased by individuals over the age of 18. Provides that the provision prohibiting the sale and use of fireworks does not apply to D.O.T. Class C common fireworks. Provides that fireworks may only be discharged by individuals over the age of 18. Effective immediately.


LRB101 10446 HLH 55552 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1556LRB101 10446 HLH 55552 b

1    AN ACT concerning fireworks.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Sections
53-10 and 9 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property functionally
14used or consumed is a by-product or waste product that has been
15refined, manufactured, or produced from property purchased at
16retail, then the tax is imposed on the lower of the fair market
17value, if any, of the specific property so used in this State
18or on the selling price of the property purchased at retail.
19For purposes of this Section "fair market value" means the
20price at which property would change hands between a willing
21buyer and a willing seller, neither being under any compulsion
22to buy or sell and both having reasonable knowledge of the
23relevant facts. The fair market value shall be established by

 

 

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1Illinois sales by the taxpayer of the same property as that
2functionally used or consumed, or if there are no such sales by
3the taxpayer, then comparable sales or purchases of property of
4like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, with
10respect to sales tax holiday items as defined in Section 3-6 of
11this Act, the tax is imposed at the rate of 1.25%.
12    With respect to gasohol, the tax imposed by this Act
13applies to (i) 70% of the proceeds of sales made on or after
14January 1, 1990, and before July 1, 2003, (ii) 80% of the
15proceeds of sales made on or after July 1, 2003 and on or
16before July 1, 2017, and (iii) 100% of the proceeds of sales
17made thereafter. If, at any time, however, the tax under this
18Act on sales of gasohol is imposed at the rate of 1.25%, then
19the tax imposed by this Act applies to 100% of the proceeds of
20sales of gasohol made during that time.
21    With respect to majority blended ethanol fuel, the tax
22imposed by this Act does not apply to the proceeds of sales
23made on or after July 1, 2003 and on or before December 31,
242023 but applies to 100% of the proceeds of sales made
25thereafter.
26    With respect to biodiesel blends with no less than 1% and

 

 

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1no more than 10% biodiesel, the tax imposed by this Act applies
2to (i) 80% of the proceeds of sales made on or after July 1,
32003 and on or before December 31, 2018 and (ii) 100% of the
4proceeds of sales made thereafter. If, at any time, however,
5the tax under this Act on sales of biodiesel blends with no
6less than 1% and no more than 10% biodiesel is imposed at the
7rate of 1.25%, then the tax imposed by this Act applies to 100%
8of the proceeds of sales of biodiesel blends with no less than
91% and no more than 10% biodiesel made during that time.
10    With respect to 100% biodiesel and biodiesel blends with
11more than 10% but no more than 99% biodiesel, the tax imposed
12by this Act does not apply to the proceeds of sales made on or
13after July 1, 2003 and on or before December 31, 2023 but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, products
20classified as Class III medical devices by the United States
21Food and Drug Administration that are used for cancer treatment
22pursuant to a prescription, as well as any accessories and
23components related to those devices, modifications to a motor
24vehicle for the purpose of rendering it usable by a person with
25a disability, and insulin, urine testing materials, syringes,
26and needles used by diabetics, for human use, the tax is

 

 

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

 

 

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

 

 

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1        (A) A "Drug Facts" panel; or
2        (B) A statement of the "active ingredient(s)" with a
3    list of those ingredients contained in the compound,
4    substance or preparation.
5    Beginning on the effective date of this amendatory Act of
6the 98th General Assembly, "prescription and nonprescription
7medicines and drugs" includes medical cannabis purchased from a
8registered dispensing organization under the Compassionate Use
9of Medical Cannabis Pilot Program Act.
10    If the property that is purchased at retail from a retailer
11is acquired outside Illinois and used outside Illinois before
12being brought to Illinois for use here and is taxable under
13this Act, the "selling price" on which the tax is computed
14shall be reduced by an amount that represents a reasonable
15allowance for depreciation for the period of prior out-of-state
16use.
17    Beginning on January 1, 2020, in addition to all other
18rates of tax imposed under this Act, a tax of 3.75% is imposed
19on the selling price of D.O.T. Class C common fireworks.
20"D.O.T. Class C common fireworks" has the meaning ascribed to
21it in the Pyrotechnic Use Act.
22(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
23100-22, eff. 7-6-17.)
 
24    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
25    Sec. 9. Except as to motor vehicles, watercraft, aircraft,

 

 

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1and trailers that are required to be registered with an agency
2of this State, each retailer required or authorized to collect
3the tax imposed by this Act shall pay to the Department the
4amount of such tax (except as otherwise provided) at the time
5when he is required to file his return for the period during
6which such tax was collected, less a discount of 2.1% prior to
7January 1, 1990, and 1.75% on and after January 1, 1990, or $5
8per calendar year, whichever is greater, which is allowed to
9reimburse the retailer for expenses incurred in collecting the
10tax, keeping records, preparing and filing returns, remitting
11the tax and supplying data to the Department on request. In the
12case of retailers who report and pay the tax on a transaction
13by transaction basis, as provided in this Section, such
14discount shall be taken with each such tax remittance instead
15of when such retailer files his periodic return. The discount
16allowed under this Section is allowed only for returns that are
17filed in the manner required by this Act. The Department may
18disallow the discount for retailers whose certificate of
19registration is revoked at the time the return is filed, but
20only if the Department's decision to revoke the certificate of
21registration has become final. A retailer need not remit that
22part of any tax collected by him to the extent that he is
23required to remit and does remit the tax imposed by the
24Retailers' Occupation Tax Act, with respect to the sale of the
25same property.
26    Where such tangible personal property is sold under a

 

 

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1conditional sales contract, or under any other form of sale
2wherein the payment of the principal sum, or a part thereof, is
3extended beyond the close of the period for which the return is
4filed, the retailer, in collecting the tax (except as to motor
5vehicles, watercraft, aircraft, and trailers that are required
6to be registered with an agency of this State), may collect for
7each tax return period, only the tax applicable to that part of
8the selling price actually received during such tax return
9period.
10    Except as provided in this Section, on or before the
11twentieth day of each calendar month, such retailer shall file
12a return for the preceding calendar month. Such return shall be
13filed on forms prescribed by the Department and shall furnish
14such information as the Department may reasonably require. On
15and after January 1, 2018, except for returns for motor
16vehicles, watercraft, aircraft, and trailers that are required
17to be registered with an agency of this State, with respect to
18retailers whose annual gross receipts average $20,000 or more,
19all returns required to be filed pursuant to this Act shall be
20filed electronically. Retailers who demonstrate that they do
21not have access to the Internet or demonstrate hardship in
22filing electronically may petition the Department to waive the
23electronic filing requirement.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5        1. The name of the seller;
6        2. The address of the principal place of business from
7    which he engages in the business of selling tangible
8    personal property at retail in this State;
9        3. The total amount of taxable receipts received by him
10    during the preceding calendar month from sales of tangible
11    personal property by him during such preceding calendar
12    month, including receipts from charge and time sales, but
13    less all deductions allowed by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due;
17        5-5. The signature of the taxpayer; and
18        6. Such other reasonable information as the Department
19    may require.
20    If a taxpayer fails to sign a return within 30 days after
21the proper notice and demand for signature by the Department,
22the return shall be considered valid and any amount shown to be
23due on the return shall be deemed assessed.
24    Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

 

 

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1funds transfer. Beginning October 1, 1994, a taxpayer who has
2an average monthly tax liability of $100,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1995, a taxpayer who has
5an average monthly tax liability of $50,000 or more shall make
6all payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 2000, a taxpayer who has
8an annual tax liability of $200,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. The term "annual tax liability" shall be the
11sum of the taxpayer's liabilities under this Act, and under all
12other State and local occupation and use tax laws administered
13by the Department, for the immediately preceding calendar year.
14The term "average monthly tax liability" means the sum of the
15taxpayer's liabilities under this Act, and under all other
16State and local occupation and use tax laws administered by the
17Department, for the immediately preceding calendar year
18divided by 12. Beginning on October 1, 2002, a taxpayer who has
19a tax liability in the amount set forth in subsection (b) of
20Section 2505-210 of the Department of Revenue Law shall make
21all payments required by rules of the Department by electronic
22funds transfer.
23    Before August 1 of each year beginning in 1993, the
24Department shall notify all taxpayers required to make payments
25by electronic funds transfer. All taxpayers required to make
26payments by electronic funds transfer shall make those payments

 

 

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1for a minimum of one year beginning on October 1.
2    Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5    All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those payments
8in the manner authorized by the Department.
9    The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12    Before October 1, 2000, if the taxpayer's average monthly
13tax liability to the Department under this Act, the Retailers'
14Occupation Tax Act, the Service Occupation Tax Act, the Service
15Use Tax Act was $10,000 or more during the preceding 4 complete
16calendar quarters, he shall file a return with the Department
17each month by the 20th day of the month next following the
18month during which such tax liability is incurred and shall
19make payments to the Department on or before the 7th, 15th,
2022nd and last day of the month during which such liability is
21incurred. On and after October 1, 2000, if the taxpayer's
22average monthly tax liability to the Department under this Act,
23the Retailers' Occupation Tax Act, the Service Occupation Tax
24Act, and the Service Use Tax Act was $20,000 or more during the
25preceding 4 complete calendar quarters, he shall file a return
26with the Department each month by the 20th day of the month

 

 

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1next following the month during which such tax liability is
2incurred and shall make payment to the Department on or before
3the 7th, 15th, 22nd and last day of the month during which such
4liability is incurred. If the month during which such tax
5liability is incurred began prior to January 1, 1985, each
6payment shall be in an amount equal to 1/4 of the taxpayer's
7actual liability for the month or an amount set by the
8Department not to exceed 1/4 of the average monthly liability
9of the taxpayer to the Department for the preceding 4 complete
10calendar quarters (excluding the month of highest liability and
11the month of lowest liability in such 4 quarter period). If the
12month during which such tax liability is incurred begins on or
13after January 1, 1985, and prior to January 1, 1987, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 27.5% of the taxpayer's
16liability for the same calendar month of the preceding year. If
17the month during which such tax liability is incurred begins on
18or after January 1, 1987, and prior to January 1, 1988, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 26.25% of the taxpayer's
21liability for the same calendar month of the preceding year. If
22the month during which such tax liability is incurred begins on
23or after January 1, 1988, and prior to January 1, 1989, or
24begins on or after January 1, 1996, each payment shall be in an
25amount equal to 22.5% of the taxpayer's actual liability for
26the month or 25% of the taxpayer's liability for the same

 

 

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1calendar month of the preceding year. If the month during which
2such tax liability is incurred begins on or after January 1,
31989, and prior to January 1, 1996, each payment shall be in an
4amount equal to 22.5% of the taxpayer's actual liability for
5the month or 25% of the taxpayer's liability for the same
6calendar month of the preceding year or 100% of the taxpayer's
7actual liability for the quarter monthly reporting period. The
8amount of such quarter monthly payments shall be credited
9against the final tax liability of the taxpayer's return for
10that month. Before October 1, 2000, once applicable, the
11requirement of the making of quarter monthly payments to the
12Department shall continue until such taxpayer's average
13monthly liability to the Department during the preceding 4
14complete calendar quarters (excluding the month of highest
15liability and the month of lowest liability) is less than
16$9,000, or until such taxpayer's average monthly liability to
17the Department as computed for each calendar quarter of the 4
18preceding complete calendar quarter period is less than
19$10,000. However, if a taxpayer can show the Department that a
20substantial change in the taxpayer's business has occurred
21which causes the taxpayer to anticipate that his average
22monthly tax liability for the reasonably foreseeable future
23will fall below the $10,000 threshold stated above, then such
24taxpayer may petition the Department for change in such
25taxpayer's reporting status. On and after October 1, 2000, once
26applicable, the requirement of the making of quarter monthly

 

 

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1payments to the Department shall continue until such taxpayer's
2average monthly liability to the Department during the
3preceding 4 complete calendar quarters (excluding the month of
4highest liability and the month of lowest liability) is less
5than $19,000 or until such taxpayer's average monthly liability
6to the Department as computed for each calendar quarter of the
74 preceding complete calendar quarter period is less than
8$20,000. 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 $20,000 threshold stated above, then such
13taxpayer may petition the Department for a change in such
14taxpayer's reporting status. The Department shall change such
15taxpayer's reporting status unless it finds that such change is
16seasonal in nature and not likely to be long term. If any such
17quarter monthly payment is not paid at the time or in the
18amount required by this Section, then the taxpayer shall be
19liable for penalties and interest on the difference between the
20minimum amount due and the amount of such quarter monthly
21payment actually and timely paid, except insofar as the
22taxpayer has previously made payments for that month to the
23Department in excess of the minimum payments previously due as
24provided in this Section. The Department shall make reasonable
25rules and regulations to govern the quarter monthly payment
26amount and quarter monthly payment dates for taxpayers who file

 

 

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1on other than a calendar monthly basis.
2    If any such payment provided for in this Section exceeds
3the taxpayer's liabilities under this Act, the Retailers'
4Occupation Tax Act, the Service Occupation Tax Act and the
5Service Use Tax Act, as shown by an original monthly return,
6the Department shall issue to the taxpayer a credit memorandum
7no later than 30 days after the date of payment, which
8memorandum may be submitted by the taxpayer to the Department
9in payment of tax liability subsequently to be remitted by the
10taxpayer to the Department or be assigned by the taxpayer to a
11similar taxpayer under this Act, the Retailers' Occupation 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, except that if such excess
15payment is shown on an original monthly return and is made
16after December 31, 1986, no credit memorandum shall be issued,
17unless requested by the taxpayer. If no such request is made,
18the taxpayer may credit such excess payment against tax
19liability subsequently to be remitted by the taxpayer to the
20Department under this Act, the Retailers' Occupation Tax Act,
21the Service Occupation Tax Act or the Service Use Tax Act, in
22accordance with reasonable rules and regulations prescribed by
23the Department. If the Department subsequently determines that
24all or any part of the credit taken was not actually due to the
25taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
26be reduced by 2.1% or 1.75% of the difference between the

 

 

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1credit taken and that actually due, and the taxpayer shall be
2liable for penalties and interest on such difference.
3    If the retailer is otherwise required to file a monthly
4return and if the retailer's average monthly tax liability to
5the Department does not exceed $200, the Department may
6authorize his returns to be filed on a quarter annual basis,
7with the return for January, February, and March of a given
8year being due by April 20 of such year; with the return for
9April, May and June of a given year being due by July 20 of such
10year; with the return for July, August and September of a given
11year being due by October 20 of such year, and with the return
12for October, November and December of a given year being due by
13January 20 of the following year.
14    If the retailer is otherwise required to file a monthly or
15quarterly return and if the retailer's average monthly tax
16liability to the Department does not exceed $50, the Department
17may authorize his returns to be filed on an annual basis, with
18the return for a given year being due by January 20 of the
19following year.
20    Such quarter annual and annual returns, as to form and
21substance, shall be subject to the same requirements as monthly
22returns.
23    Notwithstanding any other provision in this Act concerning
24the time within which a retailer may file his return, in the
25case of any retailer who ceases to engage in a kind of business
26which makes him responsible for filing returns under this Act,

 

 

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1such retailer shall file a final return under this Act with the
2Department not more than one month after discontinuing such
3business.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, except as otherwise provided in this
7Section, every retailer selling this kind of tangible personal
8property shall file, with the Department, upon a form to be
9prescribed and supplied by the Department, a separate return
10for each such item of tangible personal property which the
11retailer sells, except that if, in the same transaction, (i) a
12retailer of aircraft, watercraft, motor vehicles or trailers
13transfers more than one aircraft, watercraft, motor vehicle or
14trailer to another aircraft, watercraft, motor vehicle or
15trailer retailer for the purpose of resale or (ii) a retailer
16of aircraft, watercraft, motor vehicles, or trailers transfers
17more than one aircraft, watercraft, motor vehicle, or trailer
18to a purchaser for use as a qualifying rolling stock as
19provided in Section 3-55 of this Act, then that seller may
20report the transfer of all the aircraft, watercraft, motor
21vehicles or trailers involved in that transaction to the
22Department on the same uniform invoice-transaction reporting
23return form. For purposes of this Section, "watercraft" means a
24Class 2, Class 3, or Class 4 watercraft as defined in Section
253-2 of the Boat Registration and Safety Act, a personal
26watercraft, or any boat equipped with an inboard motor.

 

 

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1    In addition, with respect to motor vehicles, watercraft,
2aircraft, and trailers that are required to be registered with
3an agency of this State, every person who is engaged in the
4business of leasing or renting such items and who, in
5connection with such business, sells any such item to a
6retailer for the purpose of resale is, notwithstanding any
7other provision of this Section to the contrary, authorized to
8meet the return-filing requirement of this Act by reporting the
9transfer of all the aircraft, watercraft, motor vehicles, or
10trailers transferred for resale during a month to the
11Department on the same uniform invoice-transaction reporting
12return form on or before the 20th of the month following the
13month in which the transfer takes place. Notwithstanding any
14other provision of this Act to the contrary, all returns filed
15under this paragraph must be filed by electronic means in the
16manner and form as required by the Department.
17    The transaction reporting return in the case of motor
18vehicles or trailers that are required to be registered with an
19agency of this State, shall be the same document as the Uniform
20Invoice referred to in Section 5-402 of the Illinois Vehicle
21Code and must show the name and address of the seller; the name
22and address of the purchaser; the amount of the selling price
23including the amount allowed by the retailer for traded-in
24property, if any; the amount allowed by the retailer for the
25traded-in tangible personal property, if any, to the extent to
26which Section 2 of this Act allows an exemption for the value

 

 

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

 

 

SB1556- 20 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 21 -LRB101 10446 HLH 55552 b

1    No retailer's failure or refusal to remit tax under this
2Act precludes a user, who has paid the proper tax to the
3retailer, from obtaining his certificate of title or other
4evidence of title or registration (if titling or registration
5is required) upon satisfying the Department that such user has
6paid the proper tax (if tax is due) to the retailer. The
7Department shall adopt appropriate rules to carry out the
8mandate of this paragraph.
9    If the user who would otherwise pay tax to the retailer
10wants the transaction reporting return filed and the payment of
11tax or proof of exemption made to the Department before the
12retailer is willing to take these actions and such user has not
13paid the tax to the retailer, such user may certify to the fact
14of such delay by the retailer, and may (upon the Department
15being satisfied of the truth of such certification) transmit
16the information required by the transaction reporting return
17and the remittance for tax or proof of exemption directly to
18the Department and obtain his tax receipt or exemption
19determination, in which event the transaction reporting return
20and tax remittance (if a tax payment was required) shall be
21credited by the Department to the proper retailer's account
22with the Department, but without the 2.1% or 1.75% discount
23provided for in this Section being allowed. When the user pays
24the tax directly to the Department, he shall pay the tax in the
25same amount and in the same form in which it would be remitted
26if the tax had been remitted to the Department by the retailer.

 

 

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

 

 

SB1556- 23 -LRB101 10446 HLH 55552 b

1return which will enable retailers, who are required to file
2returns hereunder and also under the Retailers' Occupation Tax
3Act, to furnish all the return information required by both
4Acts on the one form.
5    Where the retailer has more than one business registered
6with the Department under separate registration under this Act,
7such retailer may not file each return that is due as a single
8return covering all such registered businesses, but shall file
9separate returns for each such registered business.
10    Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund, a special
12fund in the State Treasury which is hereby created, the net
13revenue realized for the preceding month from the 1% tax
14imposed under this Act.
15    Beginning January 1, 1990, each month the Department shall
16pay into the County and Mass Transit District Fund 4% of the
17net revenue realized for the preceding month from the 6.25%
18general rate on the selling price of tangible personal property
19which is purchased outside Illinois at retail from a retailer
20and which is titled or registered by an agency of this State's
21government.
22    Beginning January 1, 1990, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund, a special
24fund in the State Treasury, 20% of the net revenue realized for
25the preceding month from the 6.25% general rate on the selling
26price of tangible personal property, other than tangible

 

 

SB1556- 24 -LRB101 10446 HLH 55552 b

1personal property which is purchased outside Illinois at retail
2from a retailer and which is titled or registered by an agency
3of this State's government.
4    Beginning August 1, 2000, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund 100% of the
6net revenue realized for the preceding month from the 1.25%
7rate on the selling price of motor fuel and gasohol. Beginning
8September 1, 2010, each month the Department shall pay into the
9State and Local Sales Tax Reform Fund 100% of the net revenue
10realized for the preceding month from the 1.25% rate on the
11selling price of sales tax holiday items.
12    Beginning January 1, 1990, each month the Department shall
13pay into the Local Government Tax Fund 16% of the net revenue
14realized for the preceding month from the 6.25% general rate on
15the selling price of tangible personal property which is
16purchased outside Illinois at retail from a retailer and which
17is titled or registered by an agency of this State's
18government.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2011, each month the Department shall pay

 

 

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1into the Clean Air Act Permit Fund 80% of the net revenue
2realized for the preceding month from the 6.25% general rate on
3the selling price of sorbents used in Illinois in the process
4of sorbent injection as used to comply with the Environmental
5Protection Act or the federal Clean Air Act, but the total
6payment into the Clean Air Act Permit Fund under this Act and
7the Retailers' Occupation Tax Act shall not exceed $2,000,000
8in any fiscal year.
9    Beginning on January 1, 2020, each month the Department
10shall pay into the Fire Prevention Fund 50% of the net revenue
11realized for the preceding month from the 3.75% tax on the
12selling price of D.O.T. Class C common fireworks.
13    Beginning July 1, 2013, each month the Department shall pay
14into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Service Use Tax Act, the Service Occupation Tax Act, and
22the Retailers' Occupation Tax Act shall not exceed $18,000,000
23in any State fiscal year. As used in this paragraph, the
24"average monthly deficit" shall be equal to the difference
25between the average monthly claims for payment by the fund and
26the average monthly revenues deposited into the fund, excluding

 

 

SB1556- 26 -LRB101 10446 HLH 55552 b

1payments made pursuant to this paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under this Act, the Service Use Tax
4Act, the Service Occupation Tax Act, and the Retailers'
5Occupation Tax Act, each month the Department shall deposit
6$500,000 into the State Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

SB1556- 27 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 28 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 29 -LRB101 10446 HLH 55552 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

 

 

SB1556- 30 -LRB101 10446 HLH 55552 b

12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

SB1556- 31 -LRB101 10446 HLH 55552 b

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois Tax
21Increment Fund 0.27% of 80% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
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

 

 

SB1556- 32 -LRB101 10446 HLH 55552 b

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois Fund,
12the McCormick Place Expansion Project Fund, the Illinois Tax
13Increment Fund, and the Energy Infrastructure Fund pursuant to
14the preceding paragraphs or in any amendments to this Section
15hereafter enacted, beginning on the first day of the first
16calendar month to occur on or after August 26, 2014 (the
17effective date of Public Act 98-1098), each month, from the
18collections made under Section 9 of the Use Tax Act, Section 9
19of the Service Use Tax Act, Section 9 of the Service Occupation
20Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
21the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year by
26the Audit Bureau of the Department under the Use Tax Act, the

 

 

SB1556- 33 -LRB101 10446 HLH 55552 b

1Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Subject to payments of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
7Compliance and Administration Fund as provided in this Section,
8beginning on July 1, 2018 the Department shall pay each month
9into the Downstate Public Transportation Fund the moneys
10required to be so paid under Section 2-3 of the Downstate
11Public Transportation Act.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, 75% thereof shall be paid into the State
14Treasury and 25% shall be reserved in a special account and
15used only for the transfer to the Common School Fund as part of
16the monthly transfer from the General Revenue Fund in
17accordance with Section 8a of the State Finance 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

 

 

SB1556- 34 -LRB101 10446 HLH 55552 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3    For greater simplicity of administration, manufacturers,
4importers and wholesalers whose products are sold at retail in
5Illinois by numerous retailers, and who wish to do so, may
6assume the responsibility for accounting and paying to the
7Department all tax accruing under this Act with respect to such
8sales, if the retailers who are affected do not make written
9objection to the Department to this arrangement.
10(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1199-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
127-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
13    Section 10. The Service Use Tax Act is amended by changing
14Sections 3-10 and 9 as follows:
 
15    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18the selling price of tangible personal property transferred as
19an incident to the sale of service, but, for the purpose of
20computing this tax, in no event shall the selling price be less
21than the cost price of the property to the serviceman.
22    Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

 

 

SB1556- 35 -LRB101 10446 HLH 55552 b

1the Use Tax Act, the tax is imposed at the rate of 1.25%.
2    With respect to gasohol, as defined in the Use Tax Act, the
3tax imposed by this Act applies to (i) 70% of the selling price
4of property transferred as an incident to the sale of service
5on or after January 1, 1990, and before July 1, 2003, (ii) 80%
6of the selling price of property transferred as an incident to
7the sale of service on or after July 1, 2003 and on or before
8July 1, 2017, and (iii) 100% of the selling price thereafter.
9If, at any time, however, the tax under this Act on sales of
10gasohol, as defined in the Use Tax Act, is imposed at the rate
11of 1.25%, then the tax imposed by this Act applies to 100% of
12the proceeds of sales of gasohol made during that time.
13    With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2023 but applies to 100% of the selling price
18thereafter.
19    With respect to biodiesel blends, as defined in the Use Tax
20Act, with no less than 1% and no more than 10% biodiesel, the
21tax imposed by this Act applies to (i) 80% of the selling price
22of property transferred as an incident to the sale of service
23on or after July 1, 2003 and on or before December 31, 2018 and
24(ii) 100% of the proceeds of the selling price thereafter. If,
25at any time, however, the tax under this Act on sales of
26biodiesel blends, as defined in the Use Tax Act, with no less

 

 

SB1556- 36 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 37 -LRB101 10446 HLH 55552 b

1Act, the Specialized Mental Health Rehabilitation Act of 2013,
2or the Child Care Act of 1969. The tax shall also be imposed at
3the rate of 1% on food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks, and food that has been
6prepared for immediate consumption and is not otherwise
7included in this paragraph) and prescription and
8nonprescription medicines, drugs, medical appliances, products
9classified as Class III medical devices by the United States
10Food and Drug Administration that are used for cancer treatment
11pursuant to a prescription, as well as any accessories and
12components related to those devices, modifications to a motor
13vehicle for the purpose of rendering it usable by a person with
14a disability, and insulin, urine testing materials, syringes,
15and needles used by diabetics, for human use. For the purposes
16of this Section, until September 1, 2009: the term "soft
17drinks" means any complete, finished, ready-to-use,
18non-alcoholic drink, whether carbonated or not, including but
19not limited to soda water, cola, fruit juice, vegetable juice,
20carbonated water, and all other preparations commonly known as
21soft drinks of whatever kind or description that are contained
22in any closed or sealed bottle, can, carton, or container,
23regardless of size; but "soft drinks" does not include coffee,
24tea, non-carbonated water, infant formula, milk or milk
25products as defined in the Grade A Pasteurized Milk and Milk
26Products Act, or drinks containing 50% or more natural fruit or

 

 

SB1556- 38 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 39 -LRB101 10446 HLH 55552 b

1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
15label includes:
16        (A) A "Drug Facts" panel; or
17        (B) A statement of the "active ingredient(s)" with a
18    list of those ingredients contained in the compound,
19    substance or preparation.
20    Beginning on January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Pilot Program Act.
25    Beginning on January 1, 2020, in addition to all other
26rates of tax imposed under this Act, a tax of 3.75% is imposed

 

 

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1on the selling price of D.O.T. Class C common fireworks.
2"D.O.T. Class C common fireworks" has the meaning ascribed to
3it in the Pyrotechnic Use Act.
4    If the property that is acquired from a serviceman is
5acquired 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; 99-180, eff. 7-29-15;
1299-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
137-6-17.)
 
14    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
15    Sec. 9. Each serviceman required or authorized to collect
16the tax herein imposed shall pay to the Department the amount
17of such tax (except as otherwise provided) at the time when he
18is required to file his return for the period during which such
19tax was collected, less a discount of 2.1% prior to January 1,
201990 and 1.75% on and after January 1, 1990, or $5 per calendar
21year, whichever is greater, which is allowed to reimburse the
22serviceman for expenses incurred in collecting the tax, keeping
23records, preparing and filing returns, remitting the tax and
24supplying data to the Department on request. The discount
25allowed under this Section is allowed only for returns that are

 

 

SB1556- 41 -LRB101 10446 HLH 55552 b

1filed in the manner required by this Act. The Department may
2disallow the discount for servicemen whose certificate of
3registration is revoked at the time the return is filed, but
4only if the Department's decision to revoke the certificate of
5registration has become final. A serviceman need not remit that
6part of any tax collected by him to the extent that he is
7required to pay and does pay the tax imposed by the Service
8Occupation Tax Act with respect to his sale of service
9involving the incidental transfer by him of the same property.
10    Except as provided hereinafter in this Section, on or
11before the twentieth day of each calendar month, such
12serviceman shall file a return for the preceding calendar month
13in accordance with reasonable Rules and Regulations to be
14promulgated by the Department. Such return shall be filed on a
15form prescribed by the Department and shall contain such
16information as the Department may reasonably require. On and
17after January 1, 2018, with respect to servicemen whose annual
18gross receipts average $20,000 or more, all returns required to
19be filed pursuant to this Act shall be filed electronically.
20Servicemen who demonstrate that they do not have access to the
21Internet or demonstrate hardship in filing electronically may
22petition the Department to waive the electronic filing
23requirement.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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1calendar month following the end of such calendar quarter. The
2taxpayer shall also file a return with the Department for each
3of the first two months of each calendar quarter, on or before
4the twentieth day of the following calendar month, stating:
5        1. The name of the seller;
6        2. The address of the principal place of business from
7    which he engages in business as a serviceman in this State;
8        3. The total amount of taxable receipts received by him
9    during the preceding calendar month, including receipts
10    from charge and time sales, but less all deductions allowed
11    by law;
12        4. The amount of credit provided in Section 2d of this
13    Act;
14        5. The amount of tax due;
15        5-5. The signature of the taxpayer; and
16        6. Such other reasonable information as the Department
17    may require.
18    If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22    Beginning October 1, 1993, a taxpayer who has an average
23monthly tax liability of $150,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1994, a taxpayer who has
26an average monthly tax liability of $100,000 or more shall make

 

 

SB1556- 43 -LRB101 10446 HLH 55552 b

1all payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1995, a taxpayer who has
3an average monthly tax liability of $50,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 2000, a taxpayer who has
6an annual tax liability of $200,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. The term "annual tax liability" shall be the
9sum of the taxpayer's liabilities under this Act, and under all
10other State and local occupation and use tax laws administered
11by the Department, for the immediately preceding calendar year.
12The term "average monthly tax liability" means the sum of the
13taxpayer's liabilities under this Act, and under all other
14State and local occupation and use tax laws administered by the
15Department, for the immediately preceding calendar year
16divided by 12. Beginning on October 1, 2002, a taxpayer who has
17a tax liability in the amount set forth in subsection (b) of
18Section 2505-210 of the Department of Revenue Law shall make
19all payments required by rules of the Department by electronic
20funds transfer.
21    Before August 1 of each year beginning in 1993, the
22Department shall notify all taxpayers required to make payments
23by electronic funds transfer. All taxpayers required to make
24payments by electronic funds transfer shall make those payments
25for a minimum of one year beginning on October 1.
26    Any taxpayer not required to make payments by electronic

 

 

SB1556- 44 -LRB101 10446 HLH 55552 b

1funds transfer may make payments by electronic funds transfer
2with the permission of the Department.
3    All taxpayers required to make payment by electronic funds
4transfer and any taxpayers authorized to voluntarily make
5payments by electronic funds transfer shall make those payments
6in the manner authorized by the Department.
7    The Department shall adopt such rules as are necessary to
8effectuate a program of electronic funds transfer and the
9requirements of this Section.
10    If the serviceman is otherwise required to file a monthly
11return and if the serviceman's average monthly tax liability to
12the Department does not exceed $200, the Department may
13authorize his returns to be filed on a quarter annual basis,
14with the return for January, February and March of a given year
15being due by April 20 of such year; with the return for April,
16May and June of a given year being due by July 20 of such year;
17with the return for July, August and September of a given year
18being due by October 20 of such year, and with the return for
19October, November and December of a given year being due by
20January 20 of the following year.
21    If the serviceman is otherwise required to file a monthly
22or quarterly return and if the serviceman's average monthly tax
23liability to the Department does not exceed $50, the Department
24may authorize his returns to be filed on an annual basis, with
25the return for a given year being due by January 20 of the
26following year.

 

 

SB1556- 45 -LRB101 10446 HLH 55552 b

1    Such quarter annual and annual returns, as to form and
2substance, shall be subject to the same requirements as monthly
3returns.
4    Notwithstanding any other provision in this Act concerning
5the time within which a serviceman may file his return, in the
6case of any serviceman who ceases to engage in a kind of
7business which makes him responsible for filing returns under
8this Act, such serviceman shall file a final return under this
9Act with the Department not more than 1 month after
10discontinuing such business.
11    Where a serviceman collects the tax with respect to the
12selling price of property which he sells and the purchaser
13thereafter returns such property and the serviceman refunds the
14selling price thereof to the purchaser, such serviceman shall
15also refund, to the purchaser, the tax so collected from the
16purchaser. When filing his return for the period in which he
17refunds such tax to the purchaser, the serviceman may deduct
18the amount of the tax so refunded by him to the purchaser from
19any other Service Use Tax, Service Occupation Tax, retailers'
20occupation tax or use tax which such serviceman may be required
21to pay or remit to the Department, as shown by such return,
22provided that the amount of the tax to be deducted shall
23previously have been remitted to the Department by such
24serviceman. If the serviceman shall not previously have
25remitted the amount of such tax to the Department, he shall be
26entitled to no deduction hereunder upon refunding such tax to

 

 

SB1556- 46 -LRB101 10446 HLH 55552 b

1the purchaser.
2    Any serviceman filing a return hereunder shall also include
3the total tax upon the selling price of tangible personal
4property purchased for use by him as an incident to a sale of
5service, and such serviceman shall remit the amount of such tax
6to the Department when filing such return.
7    If experience indicates such action to be practicable, the
8Department may prescribe and furnish a combination or joint
9return which will enable servicemen, who are required to file
10returns hereunder and also under the Service Occupation Tax
11Act, to furnish all the return information required by both
12Acts on the one form.
13    Where the serviceman has more than one business registered
14with the Department under separate registration hereunder,
15such serviceman shall not file each return that is due as a
16single return covering all such registered businesses, but
17shall file separate returns for each such registered business.
18    Beginning January 1, 1990, each month the Department shall
19pay into the State and Local Tax Reform Fund, a special fund in
20the State Treasury, the net revenue realized for the preceding
21month from the 1% tax imposed under this Act.
22    Beginning January 1, 1990, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 20% of the
24net revenue realized for the preceding month from the 6.25%
25general rate on transfers of tangible personal property, other
26than tangible personal property which is purchased outside

 

 

SB1556- 47 -LRB101 10446 HLH 55552 b

1Illinois at retail from a retailer and which is titled or
2registered by an agency of this State's government.
3    Beginning August 1, 2000, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund 100% of the
5net revenue realized for the preceding month from the 1.25%
6rate on the selling price of motor fuel and gasohol.
7    Beginning October 1, 2009, each month the Department shall
8pay into the Capital Projects Fund an amount that is equal to
9an amount estimated by the Department to represent 80% of the
10net revenue realized for the preceding month from the sale of
11candy, grooming and hygiene products, and soft drinks that had
12been taxed at a rate of 1% prior to September 1, 2009 but that
13are now taxed at 6.25%.
14    Beginning July 1, 2013, each month the Department shall pay
15into the Underground Storage Tank Fund from the proceeds
16collected under this Act, the Use Tax Act, the Service
17Occupation Tax Act, and the Retailers' Occupation Tax Act an
18amount equal to the average monthly deficit in the Underground
19Storage Tank Fund during the prior year, as certified annually
20by the Illinois Environmental Protection Agency, but the total
21payment into the Underground Storage Tank Fund under this Act,
22the Use Tax Act, the Service Occupation Tax Act, and the
23Retailers' Occupation Tax Act shall not exceed $18,000,000 in
24any State fiscal year. As used in this paragraph, the "average
25monthly deficit" shall be equal to the difference between the
26average monthly claims for payment by the fund and the average

 

 

SB1556- 48 -LRB101 10446 HLH 55552 b

1monthly revenues deposited into the fund, excluding payments
2made pursuant to this paragraph.
3    Beginning July 1, 2015, of the remainder of the moneys
4received by the Department under the Use Tax Act, this Act, the
5Service Occupation Tax Act, and the Retailers' Occupation Tax
6Act, each month the Department shall deposit $500,000 into the
7State Crime Laboratory Fund.
8    Of the remainder of the moneys received by the Department
9pursuant to this Act, (a) 1.75% thereof shall be paid into the
10Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
11and after July 1, 1989, 3.8% thereof shall be paid into the
12Build Illinois Fund; provided, however, that if in any fiscal
13year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
14may be, of the moneys received by the Department and required
15to be paid into the Build Illinois Fund pursuant to Section 3
16of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
17Act, Section 9 of the Service Use Tax Act, and Section 9 of the
18Service Occupation Tax Act, such Acts being hereinafter called
19the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
20may be, of moneys being hereinafter called the "Tax Act
21Amount", and (2) the amount transferred to the Build Illinois
22Fund from the State and Local Sales Tax Reform Fund shall be
23less than the Annual Specified Amount (as defined in Section 3
24of the Retailers' Occupation Tax Act), an amount equal to the
25difference shall be immediately paid into the Build Illinois
26Fund from other moneys received by the Department pursuant to

 

 

SB1556- 49 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 50 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 51 -LRB101 10446 HLH 55552 b

1in excess of the sums designated as "Total Deposit", shall be
2deposited in the aggregate from collections under Section 9 of
3the Use Tax Act, Section 9 of the Service Use Tax Act, Section
49 of the Service Occupation Tax Act, and Section 3 of the
5Retailers' Occupation Tax Act into the McCormick Place
6Expansion Project Fund in the specified fiscal years.
7Fiscal YearTotal Deposit
81993         $0
91994 53,000,000
101995 58,000,000
111996 61,000,000
121997 64,000,000
131998 68,000,000
141999 71,000,000
152000 75,000,000
162001 80,000,000
172002 93,000,000
182003 99,000,000
192004103,000,000
202005108,000,000
212006113,000,000
222007119,000,000
232008126,000,000
242009132,000,000
252010139,000,000

 

 

SB1556- 52 -LRB101 10446 HLH 55552 b

12011146,000,000
22012153,000,000
32013161,000,000
42014170,000,000
52015179,000,000
62016189,000,000
72017199,000,000
82018210,000,000
92019221,000,000
102020233,000,000
112021246,000,000
122022260,000,000
132023275,000,000
142024 275,000,000
152025 275,000,000
162026 279,000,000
172027 292,000,000
182028 307,000,000
192029 322,000,000
202030 338,000,000
212031 350,000,000
222032 350,000,000
23and
24each fiscal year
25thereafter that bonds
26are outstanding under

 

 

SB1556- 53 -LRB101 10446 HLH 55552 b

1Section 13.2 of the
2Metropolitan Pier and
3Exposition Authority Act,
4but not after fiscal year 2060.
5    Beginning July 20, 1993 and in each month of each fiscal
6year thereafter, one-eighth of the amount requested in the
7certificate of the Chairman of the Metropolitan Pier and
8Exposition Authority for that fiscal year, less the amount
9deposited into the McCormick Place Expansion Project Fund by
10the State Treasurer in the respective month under subsection
11(g) of Section 13 of the Metropolitan Pier and Exposition
12Authority Act, plus cumulative deficiencies in the deposits
13required under this Section for previous months and years,
14shall be deposited into the McCormick Place Expansion Project
15Fund, until the full amount requested for the fiscal year, but
16not in excess of the amount specified above as "Total Deposit",
17has been deposited.
18    Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning July 1, 1993 and ending on September 30,
222013, the Department shall each month pay into the Illinois Tax
23Increment Fund 0.27% of 80% of the net revenue realized for the
24preceding month from the 6.25% general rate on the selling
25price of tangible personal property.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

SB1556- 54 -LRB101 10446 HLH 55552 b

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning with the receipt of the first report of
4taxes paid by an eligible business and continuing for a 25-year
5period, the Department shall each month pay into the Energy
6Infrastructure Fund 80% of the net revenue realized from the
76.25% general rate on the selling price of Illinois-mined coal
8that was sold to an eligible business. For purposes of this
9paragraph, the term "eligible business" means a new electric
10generating facility certified pursuant to Section 605-332 of
11the Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13    Subject to payment of amounts into the Build Illinois Fund,
14the McCormick Place Expansion Project Fund, the Illinois Tax
15Increment Fund, and the Energy Infrastructure Fund pursuant to
16the preceding paragraphs or in any amendments to this Section
17hereafter enacted, beginning on the first day of the first
18calendar month to occur on or after August 26, 2014 (the
19effective date of Public Act 98-1098), each month, from the
20collections made under Section 9 of the Use Tax Act, Section 9
21of the Service Use Tax Act, Section 9 of the Service Occupation
22Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
23the Department shall pay into the Tax Compliance and
24Administration Fund, to be used, subject to appropriation, to
25fund additional auditors and compliance personnel at the
26Department of Revenue, an amount equal to 1/12 of 5% of 80% of

 

 

SB1556- 55 -LRB101 10446 HLH 55552 b

1the cash receipts collected during the preceding fiscal year by
2the Audit Bureau of the Department under the Use Tax Act, the
3Service Use Tax Act, the Service Occupation Tax Act, the
4Retailers' Occupation Tax Act, and associated local occupation
5and use taxes administered by the Department.
6    Beginning on January 1, 2020, each month the Department
7shall pay into the Fire Prevention Fund 50% of the net revenue
8realized for the preceding month from the 3.75% tax on the
9selling price of D.O.T. Class C common fireworks.
10    Subject to payments of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
13Compliance and Administration Fund as provided in this Section,
14beginning on July 1, 2018 the Department shall pay each month
15into the Downstate Public Transportation Fund the moneys
16required to be so paid under Section 2-3 of the Downstate
17Public Transportation Act.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, 75% thereof shall be paid into the
20General Revenue Fund of the State Treasury and 25% shall be
21reserved in a special account and used only for the transfer to
22the Common School Fund as part of the monthly transfer from the
23General Revenue Fund in accordance with Section 8a of the State
24Finance Act.
25    As soon as possible after the first day of each month, upon
26certification of the Department of Revenue, the Comptroller

 

 

SB1556- 56 -LRB101 10446 HLH 55552 b

1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6    Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
11100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
128-14-18; 100-1171, eff. 1-4-19.)
 
13    Section 15. The Service Occupation Tax Act is amended by
14changing Sections 3-10 and 9 as follows:
 
15    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
16    Sec. 3-10. Rate of tax. Unless otherwise provided in this
17Section, the tax imposed by this Act is at the rate of 6.25% of
18the "selling price", as defined in Section 2 of the Service Use
19Tax Act, of the tangible personal property. For the purpose of
20computing this tax, in no event shall the "selling price" be
21less than the cost price to the serviceman of the tangible
22personal property transferred. The selling price of each item
23of tangible personal property transferred as an incident of a
24sale of service may be shown as a distinct and separate item on

 

 

SB1556- 57 -LRB101 10446 HLH 55552 b

1the serviceman's billing to the service customer. If the
2selling price is not so shown, the selling price of the
3tangible personal property is deemed to be 50% of the
4serviceman's entire billing to the service customer. When,
5however, a serviceman contracts to design, develop, and produce
6special order machinery or equipment, the tax imposed by this
7Act shall be based on the serviceman's cost price of the
8tangible personal property transferred incident to the
9completion of the contract.
10    Beginning on July 1, 2000 and through December 31, 2000,
11with respect to motor fuel, as defined in Section 1.1 of the
12Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13the Use Tax Act, the tax is imposed at the rate of 1.25%.
14    With respect to gasohol, as defined in the Use Tax Act, the
15tax imposed by this Act shall apply to (i) 70% of the cost
16price of property transferred as an incident to the sale of
17service on or after January 1, 1990, and before July 1, 2003,
18(ii) 80% of the selling price of property transferred as an
19incident to the sale of service on or after July 1, 2003 and on
20or before July 1, 2017, and (iii) 100% of the cost price
21thereafter. If, at any time, however, the tax under this Act on
22sales of gasohol, as defined in the Use Tax Act, is imposed at
23the rate of 1.25%, then the tax imposed by this Act applies to
24100% of the proceeds of sales of gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

SB1556- 58 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 59 -LRB101 10446 HLH 55552 b

1cost price of tangible personal property transferred as an
2incident to the sales of service is less than 35%, or 75% in
3the case of servicemen transferring prescription drugs or
4servicemen engaged in graphic arts production, of the aggregate
5annual total gross receipts from all sales of service, the tax
6imposed by this Act shall be based on the serviceman's cost
7price of the tangible personal property transferred incident to
8the sale of those services.
9    The tax shall be imposed at the rate of 1% on food prepared
10for immediate consumption and transferred incident to a sale of
11service subject to this Act or the Service Occupation Tax Act
12by an entity licensed under the Hospital Licensing Act, the
13Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
14Act, the Specialized Mental Health Rehabilitation Act of 2013,
15or the Child Care Act of 1969. The tax shall also be imposed at
16the rate of 1% on food for human consumption that is to be
17consumed off the premises where it is sold (other than
18alcoholic beverages, soft drinks, and food that has been
19prepared for immediate consumption and is not otherwise
20included in this paragraph) and prescription and
21nonprescription medicines, drugs, medical appliances, products
22classified as Class III medical devices by the United States
23Food and Drug Administration that are used for cancer treatment
24pursuant to a prescription, as well as any accessories and
25components related to those devices, modifications to a motor
26vehicle for the purpose of rendering it usable by a person with

 

 

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

 

 

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

 

 

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1as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on January 1, 2014 (the effective date of Public
8Act 98-122), "prescription and nonprescription medicines and
9drugs" includes medical cannabis purchased from a registered
10dispensing organization under the Compassionate Use of Medical
11Cannabis Pilot Program Act.
12    Beginning on January 1, 2020, in addition to all other
13rates of tax imposed under this Act, a tax of 3.75% is imposed
14on the selling price of D.O.T. Class C common fireworks.
15"D.O.T. Class C common fireworks" has the meaning ascribed to
16it in the Pyrotechnic Use Act.
17(Source: P.A. 99-143, eff. 7-27-15; 99-180, eff. 7-29-15;
1899-642, eff. 7-28-16; 99-858, eff. 8-19-16; 100-22, eff.
197-6-17.)
 
20    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax at the time when he is required to file his return
24for the period during which such tax was collectible, less a
25discount of 2.1% prior to January 1, 1990, and 1.75% on and

 

 

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1after January 1, 1990, or $5 per calendar year, whichever is
2greater, which is allowed to reimburse the serviceman for
3expenses incurred in collecting the tax, keeping records,
4preparing and filing returns, remitting the tax and supplying
5data to the Department on request. The discount allowed under
6this Section is allowed only for returns that are filed in the
7manner required by this Act. The Department may disallow the
8discount for servicemen whose certificate of registration is
9revoked at the time the return is filed, but only if the
10Department's decision to revoke the certificate of
11registration has become final.
12    Where such tangible personal property is sold under a
13conditional sales contract, or under any other form of sale
14wherein the payment of the principal sum, or a part thereof, is
15extended beyond the close of the period for which the return is
16filed, the serviceman, in collecting the tax may collect, for
17each tax return period, only the tax applicable to the part of
18the selling price actually received during such tax return
19period.
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 of Revenue. Such return shall be
25filed on a form prescribed by the Department and shall contain
26such information as the Department may reasonably require. On

 

 

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1and after January 1, 2018, with respect to servicemen whose
2annual gross receipts average $20,000 or more, all returns
3required to be filed pursuant to this Act shall be filed
4electronically. Servicemen who demonstrate that they do not
5have access to the Internet or demonstrate hardship in filing
6electronically may petition the Department to waive the
7electronic filing requirement.
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

 

 

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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    Prior to October 1, 2003, and on and after September 1,
72004 a serviceman may accept a Manufacturer's Purchase Credit
8certification from a purchaser in satisfaction of Service Use
9Tax as provided in Section 3-70 of the Service Use Tax Act if
10the purchaser provides the appropriate documentation as
11required by Section 3-70 of the Service Use Tax Act. A
12Manufacturer's Purchase Credit certification, accepted prior
13to October 1, 2003 or on or after September 1, 2004 by a
14serviceman as provided in Section 3-70 of the Service Use Tax
15Act, may be used by that serviceman to satisfy Service
16Occupation Tax liability in the amount claimed in the
17certification, not to exceed 6.25% of the receipts subject to
18tax from a qualifying purchase. A Manufacturer's Purchase
19Credit reported on any original or amended return filed under
20this Act after October 20, 2003 for reporting periods prior to
21September 1, 2004 shall be disallowed. Manufacturer's Purchase
22Credit reported on annual returns due on or after January 1,
232005 will be disallowed for periods prior to September 1, 2004.
24No Manufacturer's Purchase Credit may be used after September
2530, 2003 through August 31, 2004 to satisfy any tax liability
26imposed under this Act, including any audit liability.

 

 

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1    If the serviceman's average monthly tax liability to the
2Department does not exceed $200, the Department may authorize
3his returns to be filed on a quarter annual basis, with the
4return for January, February and March of a given year being
5due by April 20 of such year; with the return for April, May
6and June of a given year being due by July 20 of such year; with
7the return for July, August and September of a given year being
8due by October 20 of such year, and with the return for
9October, November and December of a given year being due by
10January 20 of the following year.
11    If the serviceman's average monthly tax liability to the
12Department does not exceed $50, the Department may authorize
13his returns to be filed on an annual basis, with the return for
14a given year being due by January 20 of the following year.
15    Such quarter annual and annual returns, as to form and
16substance, shall be subject to the same requirements as monthly
17returns.
18    Notwithstanding any other provision in this Act concerning
19the time within which a serviceman may file his return, in the
20case of any serviceman who ceases to engage in a kind of
21business which makes him responsible for filing returns under
22this Act, such serviceman shall file a final return under this
23Act with the Department not more than 1 month after
24discontinuing such business.
25    Beginning October 1, 1993, a taxpayer who has an average
26monthly tax liability of $150,000 or more shall make all

 

 

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1payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1994, a taxpayer who has
3an average monthly tax liability of $100,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1995, a taxpayer who has
6an average monthly tax liability of $50,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 2000, a taxpayer who has
9an annual tax liability of $200,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. The term "annual tax liability" shall be the
12sum of the taxpayer's liabilities under this Act, and under all
13other State and local occupation and use tax laws administered
14by the Department, for the immediately preceding calendar year.
15The term "average monthly tax liability" means the sum of the
16taxpayer's liabilities under this Act, and under all other
17State and local occupation and use tax laws administered by the
18Department, for the immediately preceding calendar year
19divided by 12. Beginning on October 1, 2002, a taxpayer who has
20a tax liability in the amount set forth in subsection (b) of
21Section 2505-210 of the Department of Revenue Law shall make
22all payments required by rules of the Department by electronic
23funds transfer.
24    Before August 1 of each year beginning in 1993, the
25Department shall notify all taxpayers required to make payments
26by electronic funds transfer. All taxpayers required to make

 

 

SB1556- 68 -LRB101 10446 HLH 55552 b

1payments by electronic funds transfer shall make those payments
2for a minimum of one year beginning on October 1.
3    Any taxpayer not required to make payments by electronic
4funds transfer may make payments by electronic funds transfer
5with the permission of the Department.
6    All taxpayers required to make payment by electronic funds
7transfer and any taxpayers authorized to voluntarily make
8payments by electronic funds transfer shall make those payments
9in the manner authorized by the Department.
10    The Department shall adopt such rules as are necessary to
11effectuate a program of electronic funds transfer and the
12requirements of this Section.
13    Where a serviceman collects the tax with respect to the
14selling price of tangible personal property which he sells and
15the purchaser thereafter returns such tangible personal
16property and the serviceman refunds the selling price thereof
17to the purchaser, such serviceman shall also refund, to the
18purchaser, the tax so collected from the purchaser. When filing
19his return for the period in which he refunds such tax to the
20purchaser, the serviceman may deduct the amount of the tax so
21refunded by him to the purchaser from any other Service
22Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
23Use Tax which such serviceman may be required to pay or remit
24to the Department, as shown by such return, provided that the
25amount of the tax to be deducted shall previously have been
26remitted to the Department by such serviceman. If the

 

 

SB1556- 69 -LRB101 10446 HLH 55552 b

1serviceman shall not previously have remitted the amount of
2such tax to the Department, he shall be entitled to no
3deduction hereunder upon refunding such tax to the purchaser.
4    If experience indicates such action to be practicable, the
5Department may prescribe and furnish a combination or joint
6return which will enable servicemen, who are required to file
7returns hereunder and also under the Retailers' Occupation Tax
8Act, the Use Tax Act or the Service Use Tax Act, to furnish all
9the return information required by all said Acts on the one
10form.
11    Where the serviceman has more than one business registered
12with the Department under separate registrations hereunder,
13such serviceman shall file separate returns for each registered
14business.
15    Beginning January 1, 1990, each month the Department shall
16pay into the Local Government Tax Fund the revenue realized for
17the preceding month from the 1% tax imposed under this Act.
18    Beginning January 1, 1990, each month the Department shall
19pay into the County and Mass Transit District Fund 4% of the
20revenue realized for the preceding month from the 6.25% general
21rate.
22    Beginning August 1, 2000, each month the Department shall
23pay into the County and Mass Transit District Fund 20% 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 January 1, 1990, each month the Department shall

 

 

SB1556- 70 -LRB101 10446 HLH 55552 b

1pay into the Local Government Tax Fund 16% of the revenue
2realized for the preceding month from the 6.25% general rate on
3transfers of tangible personal property.
4    Beginning August 1, 2000, each month the Department shall
5pay into the Local Government Tax Fund 80% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of motor fuel and gasohol.
8    Beginning October 1, 2009, each month the Department shall
9pay into the Capital Projects Fund an amount that is equal to
10an amount estimated by the Department to represent 80% of the
11net revenue realized for the preceding month from the sale of
12candy, grooming and hygiene products, and soft drinks that had
13been taxed at a rate of 1% prior to September 1, 2009 but that
14are now taxed at 6.25%.
15    Beginning July 1, 2013, each month the Department shall pay
16into the Underground Storage Tank Fund from the proceeds
17collected under this Act, the Use Tax Act, the Service Use Tax
18Act, and the Retailers' Occupation Tax Act an amount equal to
19the average monthly deficit in the Underground Storage Tank
20Fund during the prior year, as certified annually by the
21Illinois Environmental Protection Agency, but the total
22payment into the Underground Storage Tank Fund under this Act,
23the Use Tax Act, the Service Use Tax Act, and the Retailers'
24Occupation Tax Act shall not exceed $18,000,000 in any State
25fiscal year. As used in this paragraph, the "average monthly
26deficit" shall be equal to the difference between the average

 

 

SB1556- 71 -LRB101 10446 HLH 55552 b

1monthly claims for payment by the fund and the average monthly
2revenues deposited into the fund, excluding payments made
3pursuant to this paragraph.
4    Beginning July 1, 2015, of the remainder of the moneys
5received by the Department under the Use Tax Act, the Service
6Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
7each month the Department shall deposit $500,000 into the State
8Crime Laboratory Fund.
9    Beginning on January 1, 2020, each month the Department
10shall pay into the Fire Prevention Fund 50% of the net revenue
11realized for the preceding month from the 3.75% tax on the
12selling price of D.O.T. Class C common fireworks.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, (a) 1.75% thereof shall be paid into the
15Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16and after July 1, 1989, 3.8% thereof shall be paid into the
17Build Illinois Fund; provided, however, that if in any fiscal
18year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19may be, of the moneys received by the Department and required
20to be paid into the Build Illinois Fund pursuant to Section 3
21of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23Service Occupation Tax Act, such Acts being hereinafter called
24the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25may be, of moneys being hereinafter called the "Tax Act
26Amount", and (2) the amount transferred to the Build Illinois

 

 

SB1556- 72 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 73 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 74 -LRB101 10446 HLH 55552 b

1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of the sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000

 

 

SB1556- 75 -LRB101 10446 HLH 55552 b

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

SB1556- 76 -LRB101 10446 HLH 55552 b

12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
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 July 1, 1993 and ending on September 30,

 

 

SB1556- 77 -LRB101 10446 HLH 55552 b

12013, the Department shall each month pay into the Illinois Tax
2Increment Fund 0.27% of 80% of the net revenue realized for the
3preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning with the receipt of the first report of
9taxes paid by an eligible business and continuing for a 25-year
10period, the Department shall each month pay into the Energy
11Infrastructure Fund 80% of the net revenue realized from the
126.25% general rate on the selling price of Illinois-mined coal
13that was sold to an eligible business. For purposes of this
14paragraph, the term "eligible business" means a new electric
15generating facility certified pursuant to Section 605-332 of
16the Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois Fund,
19the McCormick Place Expansion Project Fund, the Illinois Tax
20Increment Fund, and the Energy Infrastructure Fund pursuant to
21the preceding paragraphs or in any amendments to this Section
22hereafter enacted, beginning on the first day of the first
23calendar month to occur on or after August 26, 2014 (the
24effective date of Public Act 98-1098), each month, from the
25collections made under Section 9 of the Use Tax Act, Section 9
26of the Service Use Tax Act, Section 9 of the Service Occupation

 

 

SB1556- 78 -LRB101 10446 HLH 55552 b

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

 

 

SB1556- 79 -LRB101 10446 HLH 55552 b

1taxpayer, require the taxpayer to prepare and file with the
2Department on a form prescribed by the Department within not
3less than 60 days after receipt of the notice an annual
4information return for the tax year specified in the notice.
5Such annual return to the Department shall include a statement
6of gross receipts as shown by the taxpayer's last Federal
7income tax return. If the total receipts of the business as
8reported in the Federal income tax return do not agree with the
9gross receipts reported to the Department of Revenue for the
10same period, the taxpayer shall attach to his annual return a
11schedule showing a reconciliation of the 2 amounts and the
12reasons for the difference. The taxpayer's annual return to the
13Department shall also disclose the cost of goods sold by the
14taxpayer during the year covered by such return, opening and
15closing inventories of such goods for such year, cost of goods
16used from stock or taken from stock and given away by the
17taxpayer during such year, pay roll information of the
18taxpayer's business during such year and any additional
19reasonable information which the Department deems would be
20helpful in determining the accuracy of the monthly, quarterly
21or annual returns filed by such taxpayer as hereinbefore
22provided for in this Section.
23    If the annual information return required by this Section
24is not filed when and as required, the taxpayer shall be liable
25as follows:
26        (i) Until January 1, 1994, the taxpayer shall be liable

 

 

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1    for a penalty equal to 1/6 of 1% of the tax due from such
2    taxpayer under this Act during the period to be covered by
3    the annual return for each month or fraction of a month
4    until such return is filed as required, the penalty to be
5    assessed and collected in the same manner as any other
6    penalty provided for in this Act.
7        (ii) On and after January 1, 1994, the taxpayer shall
8    be liable for a penalty as described in Section 3-4 of the
9    Uniform Penalty and Interest Act.
10    The chief executive officer, proprietor, owner or highest
11ranking manager shall sign the annual return to certify the
12accuracy of the information contained therein. Any person who
13willfully signs the annual return containing false or
14inaccurate information shall be guilty of perjury and punished
15accordingly. The annual return form prescribed by the
16Department shall include a warning that the person signing the
17return may be liable for perjury.
18    The foregoing portion of this Section concerning the filing
19of an annual information return shall not apply to a serviceman
20who is not required to file an income tax return with the
21United States Government.
22    As soon as possible after the first day of each month, upon
23certification of the Department of Revenue, the Comptroller
24shall order transferred and the Treasurer shall transfer from
25the General Revenue Fund to the Motor Fuel Tax Fund an amount
26equal to 1.7% of 80% of the net revenue realized under this Act

 

 

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1for the second preceding month. Beginning April 1, 2000, this
2transfer is no longer required and shall not be made.
3    Net revenue realized for a month shall be the revenue
4collected by the State pursuant to this Act, less the amount
5paid out during that month as refunds to taxpayers for
6overpayment of liability.
7    For greater simplicity of administration, it shall be
8permissible for manufacturers, importers and wholesalers whose
9products are sold by numerous servicemen in Illinois, and who
10wish to do so, to assume the responsibility for accounting and
11paying to the Department all tax accruing under this Act with
12respect to such sales, if the servicemen who are affected do
13not make written objection to the Department to this
14arrangement.
15(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
16100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
178-14-18; 100-1171, eff. 1-4-19.)
 
18    Section 20. The Retailers' Occupation Tax Act is amended by
19changing Sections 2-10 and 3 as follows:
 
20    (35 ILCS 120/2-10)
21    Sec. 2-10. Rate of tax. Unless otherwise provided in this
22Section, the tax imposed by this Act is at the rate of 6.25% of
23gross receipts from sales of tangible personal property made in
24the course of business.

 

 

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1    Beginning on July 1, 2000 and through December 31, 2000,
2with respect to motor fuel, as defined in Section 1.1 of the
3Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
4the Use Tax Act, the tax is imposed at the rate of 1.25%.
5    Beginning on August 6, 2010 through August 15, 2010, with
6respect to sales tax holiday items as defined in Section 2-8 of
7this Act, the tax is imposed at the rate of 1.25%.
8    Within 14 days after the effective date of this amendatory
9Act of the 91st General Assembly, each retailer of motor fuel
10and gasohol shall cause the following notice to be posted in a
11prominently visible place on each retail dispensing device that
12is used to dispense motor fuel or gasohol in the State of
13Illinois: "As of July 1, 2000, the State of Illinois has
14eliminated the State's share of sales tax on motor fuel and
15gasohol through December 31, 2000. The price on this pump
16should reflect the elimination of the tax." The notice shall be
17printed in bold print on a sign that is no smaller than 4
18inches by 8 inches. The sign shall be clearly visible to
19customers. Any retailer who fails to post or maintain a
20required sign through December 31, 2000 is guilty of a petty
21offense for which the fine shall be $500 per day per each
22retail premises where a violation occurs.
23    With respect to gasohol, as defined in the Use Tax Act, the
24tax imposed by this Act applies to (i) 70% of the proceeds of
25sales made on or after January 1, 1990, and before July 1,
262003, (ii) 80% of the proceeds of sales made on or after July

 

 

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11, 2003 and on or before July 1, 2017, and (iii) 100% of the
2proceeds of sales made thereafter. If, at any time, however,
3the tax under this Act on sales of gasohol, as defined in the
4Use Tax Act, is imposed at the rate of 1.25%, then the tax
5imposed by this Act applies to 100% of the proceeds of sales of
6gasohol made during that time.
7    With respect to majority blended ethanol fuel, as defined
8in the Use Tax Act, the tax imposed by this Act does not apply
9to the proceeds of sales made on or after July 1, 2003 and on or
10before December 31, 2023 but applies to 100% of the proceeds of
11sales made thereafter.
12    With respect to biodiesel blends, as defined in the Use Tax
13Act, with no less than 1% and no more than 10% biodiesel, the
14tax imposed by this Act applies to (i) 80% of the proceeds of
15sales made on or after July 1, 2003 and on or before December
1631, 2018 and (ii) 100% of the proceeds of sales made
17thereafter. If, at any time, however, the tax under this Act on
18sales of biodiesel blends, as defined in the Use Tax Act, with
19no less than 1% and no more than 10% biodiesel is imposed at
20the rate of 1.25%, then the tax imposed by this Act applies to
21100% of the proceeds of sales of biodiesel blends with no less
22than 1% and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of sales made on or

 

 

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1after July 1, 2003 and on or before December 31, 2023 but
2applies to 100% of the proceeds of sales made thereafter.
3    With respect to food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks, and food that has been
6prepared for immediate consumption) and prescription and
7nonprescription medicines, drugs, medical appliances, products
8classified as Class III medical devices by the United States
9Food and Drug Administration that are used for cancer treatment
10pursuant to a prescription, as well as any accessories and
11components related to those devices, modifications to a motor
12vehicle for the purpose of rendering it usable by a person with
13a disability, and insulin, urine testing materials, syringes,
14and needles used by diabetics, for human use, the tax is
15imposed at the rate of 1%. For the purposes of this Section,
16until September 1, 2009: the term "soft drinks" means any
17complete, finished, ready-to-use, non-alcoholic drink, whether
18carbonated or not, including but not limited to soda water,
19cola, fruit juice, vegetable juice, carbonated water, and all
20other preparations commonly known as soft drinks of whatever
21kind or description that are contained in any closed or sealed
22bottle, can, carton, or container, regardless of size; but
23"soft drinks" does not include coffee, tea, non-carbonated
24water, infant formula, milk or milk products as defined in the
25Grade A Pasteurized Milk and Milk Products Act, or drinks
26containing 50% or more natural fruit or vegetable juice.

 

 

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

 

 

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

 

 

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1"D.O.T. Class C common fireworks" has the meaning ascribed to
2it in the Pyrotechnic Use Act.
3(Source: P.A. 99-143, eff. 7-27-15; 99-858, eff. 8-19-16;
4100-22, eff. 7-6-17.)
 
5    (35 ILCS 120/3)  (from Ch. 120, par. 442)
6    Sec. 3. Except as provided in this Section, on or before
7the twentieth day of each calendar month, every person engaged
8in the business of selling tangible personal property at retail
9in this State during the preceding calendar month shall file a
10return with the Department, stating:
11        1. The name of the seller;
12        2. His residence address and the address of his
13    principal place of business and the address of the
14    principal place of business (if that is a different
15    address) from which he engages in the business of selling
16    tangible personal property at retail in this State;
17        3. Total amount of receipts received by him during the
18    preceding calendar month or quarter, as the case may be,
19    from sales of tangible personal property, and from services
20    furnished, by him during such preceding calendar month or
21    quarter;
22        4. Total amount received by him during the preceding
23    calendar month or quarter on charge and time sales of
24    tangible personal property, and from services furnished,
25    by him prior to the month or quarter for which the return

 

 

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1    is filed;
2        5. Deductions allowed by law;
3        6. Gross receipts which were received by him during the
4    preceding calendar month or quarter and upon the basis of
5    which the tax is imposed;
6        7. The amount of credit provided in Section 2d of this
7    Act;
8        8. The amount of tax due;
9        9. The signature of the taxpayer; and
10        10. Such other reasonable information as the
11    Department may require.
12    On and after January 1, 2018, except for returns for motor
13vehicles, watercraft, aircraft, and trailers that are required
14to be registered with an agency of this State, with respect to
15retailers whose annual gross receipts average $20,000 or more,
16all returns required to be filed pursuant to this Act shall be
17filed electronically. Retailers who demonstrate that they do
18not have access to the Internet or demonstrate hardship in
19filing electronically may petition the Department to waive the
20electronic filing requirement.
21    If a taxpayer fails to sign a return within 30 days after
22the proper notice and demand for signature by the Department,
23the return shall be considered valid and any amount shown to be
24due on the return shall be deemed assessed.
25    Each return shall be accompanied by the statement of
26prepaid tax issued pursuant to Section 2e for which credit is

 

 

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1claimed.
2    Prior to October 1, 2003, and on and after September 1,
32004 a retailer may accept a Manufacturer's Purchase Credit
4certification from a purchaser in satisfaction of Use Tax as
5provided in Section 3-85 of the Use Tax Act if the purchaser
6provides the appropriate documentation as required by Section
73-85 of the Use Tax Act. A Manufacturer's Purchase Credit
8certification, accepted by a retailer prior to October 1, 2003
9and on and after September 1, 2004 as provided in Section 3-85
10of the Use Tax Act, may be used by that retailer to satisfy
11Retailers' Occupation Tax liability in the amount claimed in
12the certification, not to exceed 6.25% of the receipts subject
13to tax 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
17Purchaser Credit reported on annual returns due on or after
18January 1, 2005 will be disallowed for periods prior to
19September 1, 2004. No Manufacturer's Purchase Credit may be
20used after September 30, 2003 through August 31, 2004 to
21satisfy any tax liability imposed under this Act, including any
22audit liability.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by him
9    during the preceding calendar month from sales of tangible
10    personal property by him during such preceding calendar
11    month, including receipts from charge and time sales, but
12    less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due; and
16        6. Such other reasonable information as the Department
17    may require.
18    Beginning on October 1, 2003, any person who is not a
19licensed distributor, importing distributor, or manufacturer,
20as defined in the Liquor Control Act of 1934, but is engaged in
21the business of selling, at retail, alcoholic liquor shall file
22a statement with the Department of Revenue, in a format and at
23a time prescribed by the Department, showing the total amount
24paid for alcoholic liquor purchased during the preceding month
25and such other information as is reasonably required by the
26Department. The Department may adopt rules to require that this

 

 

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

 

 

SB1556- 92 -LRB101 10446 HLH 55552 b

1information. If the retailer is unable to receive the sales
2information by electronic means, the distributor, importing
3distributor, or manufacturer shall furnish the sales
4information by personal delivery or by mail. For purposes of
5this paragraph, the term "electronic means" includes, but is
6not limited to, the use of a secure Internet website, e-mail,
7or facsimile.
8    If a total amount of less than $1 is payable, refundable or
9creditable, such amount shall be disregarded if it is less than
1050 cents and shall be increased to $1 if it is 50 cents or more.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

 

 

SB1556- 93 -LRB101 10446 HLH 55552 b

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

 

 

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1is not a whole-dollar amount, be increased to the nearest
2whole-dollar amount in any case where the fractional part of a
3dollar is 50 cents or more, and decreased to the nearest
4whole-dollar amount where the fractional part of a dollar is
5less than 50 cents.
6    If the retailer is otherwise required to file a monthly
7return and if the retailer's average monthly tax liability to
8the Department does not exceed $200, the Department may
9authorize his returns to be filed on a quarter annual basis,
10with the return for January, February and March of a given year
11being due by April 20 of such year; with the return for April,
12May and June of a given year being due by July 20 of such year;
13with the return for July, August and September of a given year
14being due by October 20 of such year, and with the return for
15October, November and December of a given year being due by
16January 20 of the following year.
17    If the retailer is otherwise required to file a monthly or
18quarterly return and if the retailer's average monthly tax
19liability with the Department does not exceed $50, the
20Department may authorize his returns to be filed on an annual
21basis, with the return for a given year being due by January 20
22of the following year.
23    Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as monthly
25returns.
26    Notwithstanding any other provision in this Act concerning

 

 

SB1556- 95 -LRB101 10446 HLH 55552 b

1the time within which a retailer may file his return, in the
2case of any retailer who ceases to engage in a kind of business
3which makes him responsible for filing returns under this Act,
4such retailer shall file a final return under this Act with the
5Department not more than one month after discontinuing such
6business.
7    Where the same person has more than one business registered
8with the Department under separate registrations under this
9Act, such person may not file each return that is due as a
10single return covering all such registered businesses, but
11shall file separate returns for each such registered business.
12    In addition, with respect to motor vehicles, watercraft,
13aircraft, and trailers that are required to be registered with
14an agency of this State, except as otherwise provided in this
15Section, every retailer selling this kind of tangible personal
16property shall file, with the Department, upon a form to be
17prescribed and supplied by the Department, a separate return
18for each such item of tangible personal property which the
19retailer sells, except that if, in the same transaction, (i) a
20retailer of aircraft, watercraft, motor vehicles or trailers
21transfers more than one aircraft, watercraft, motor vehicle or
22trailer to another aircraft, watercraft, motor vehicle
23retailer or trailer retailer for the purpose of resale or (ii)
24a retailer of aircraft, watercraft, motor vehicles, or trailers
25transfers more than one aircraft, watercraft, motor vehicle, or
26trailer to a purchaser for use as a qualifying rolling stock as

 

 

SB1556- 96 -LRB101 10446 HLH 55552 b

1provided in Section 2-5 of this Act, then that seller may
2report the transfer of all aircraft, watercraft, motor vehicles
3or trailers involved in that transaction to the Department on
4the same uniform invoice-transaction reporting return form.
5For purposes of this Section, "watercraft" means a Class 2,
6Class 3, or Class 4 watercraft as defined in Section 3-2 of the
7Boat Registration and Safety Act, a personal watercraft, or any
8boat equipped with an inboard motor.
9    In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, every person who is engaged in the
12business of leasing or renting such items and who, in
13connection with such business, sells any such item to a
14retailer for the purpose of resale is, notwithstanding any
15other provision of this Section to the contrary, authorized to
16meet the return-filing requirement of this Act by reporting the
17transfer of all the aircraft, watercraft, motor vehicles, or
18trailers transferred for resale during a month to the
19Department on the same uniform invoice-transaction reporting
20return form on or before the 20th of the month following the
21month in which the transfer takes place. Notwithstanding any
22other provision of this Act to the contrary, all returns filed
23under this paragraph must be filed by electronic means in the
24manner and form as required by the Department.
25    Any retailer who sells only motor vehicles, watercraft,
26aircraft, or trailers that are required to be registered with

 

 

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1an agency of this State, so that all retailers' occupation tax
2liability is required to be reported, and is reported, on such
3transaction reporting returns and who is not otherwise required
4to file monthly or quarterly returns, need not file monthly or
5quarterly returns. However, those retailers shall be required
6to file returns on an annual basis.
7    The transaction reporting return, in the case of motor
8vehicles or trailers that are required to be registered with an
9agency of this State, shall be the same document as the Uniform
10Invoice referred to in Section 5-402 of the Illinois Vehicle
11Code and must show the name and address of the seller; the name
12and address of the purchaser; the amount of the selling price
13including the amount allowed by the retailer for traded-in
14property, if any; the amount allowed by the retailer for the
15traded-in tangible personal property, if any, to the extent to
16which Section 1 of this Act allows an exemption for the value
17of traded-in property; the balance payable after deducting such
18trade-in allowance from the total selling price; the amount of
19tax due from the retailer with respect to such transaction; the
20amount of tax collected from the purchaser by the retailer on
21such transaction (or satisfactory evidence that such tax is not
22due in that particular instance, if that is claimed to be the
23fact); the place and date of the sale; a sufficient
24identification of the property sold; such other information as
25is required in Section 5-402 of the Illinois Vehicle Code, and
26such other information as the Department may reasonably

 

 

SB1556- 98 -LRB101 10446 HLH 55552 b

1require.
2    The transaction reporting return in the case of watercraft
3or aircraft must show the name and address of the seller; the
4name and address of the purchaser; the amount of the selling
5price including the amount allowed by the retailer for
6traded-in property, if any; the amount allowed by the retailer
7for the traded-in tangible personal property, if any, to the
8extent to which Section 1 of this Act allows an exemption for
9the value of traded-in property; the balance payable after
10deducting such trade-in allowance from the total selling price;
11the amount of tax due from the retailer with respect to such
12transaction; the amount of tax collected from the purchaser by
13the retailer on such transaction (or satisfactory evidence that
14such tax is not due in that particular instance, if that is
15claimed to be the fact); the place and date of the sale, a
16sufficient identification of the property sold, and such other
17information as the Department may reasonably require.
18    Such transaction reporting return shall be filed not later
19than 20 days after the day of delivery of the item that is
20being sold, but may be filed by the retailer at any time sooner
21than that if he chooses to do so. The transaction reporting
22return and tax remittance or proof of exemption from the
23Illinois use tax may be transmitted to the Department by way of
24the State agency with which, or State officer with whom the
25tangible personal property must be titled or registered (if
26titling or registration is required) if the Department and such

 

 

SB1556- 99 -LRB101 10446 HLH 55552 b

1agency or State officer determine that this procedure will
2expedite the processing of applications for title or
3registration.
4    With each such transaction reporting return, the retailer
5shall remit the proper amount of tax due (or shall submit
6satisfactory evidence that the sale is not taxable if that is
7the case), to the Department or its agents, whereupon the
8Department shall issue, in the purchaser's name, a use tax
9receipt (or a certificate of exemption if the Department is
10satisfied that the particular sale is tax exempt) which such
11purchaser may submit to the agency with which, or State officer
12with whom, he must title or register the tangible personal
13property that is involved (if titling or registration is
14required) in support of such purchaser's application for an
15Illinois certificate or other evidence of title or registration
16to such tangible personal property.
17    No retailer's failure or refusal to remit tax under this
18Act precludes a user, who has paid the proper tax to the
19retailer, from obtaining his certificate of title or other
20evidence of title or registration (if titling or registration
21is required) upon satisfying the Department that such user has
22paid the proper tax (if tax is due) to the retailer. The
23Department shall adopt appropriate rules to carry out the
24mandate of this paragraph.
25    If the user who would otherwise pay tax to the retailer
26wants the transaction reporting return filed and the payment of

 

 

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1the tax or proof of exemption made to the Department before the
2retailer is willing to take these actions and such user has not
3paid the tax to the retailer, such user may certify to the fact
4of such delay by the retailer and may (upon the Department
5being satisfied of the truth of such certification) transmit
6the information required by the transaction reporting return
7and the remittance for tax or proof of exemption directly to
8the Department and obtain his tax receipt or exemption
9determination, in which event the transaction reporting return
10and tax remittance (if a tax payment was required) shall be
11credited by the Department to the proper retailer's account
12with the Department, but without the 2.1% or 1.75% discount
13provided for in this Section being allowed. When the user pays
14the tax directly to the Department, he shall pay the tax in the
15same amount and in the same form in which it would be remitted
16if the tax had been remitted to the Department by the retailer.
17    Refunds made by the seller during the preceding return
18period to purchasers, on account of tangible personal property
19returned to the seller, shall be allowed as a deduction under
20subdivision 5 of his monthly or quarterly return, as the case
21may be, in case the seller had theretofore included the
22receipts from the sale of such tangible personal property in a
23return filed by him and had paid the tax imposed by this Act
24with respect to such receipts.
25    Where the seller is a corporation, the return filed on
26behalf of such corporation shall be signed by the president,

 

 

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1vice-president, secretary or treasurer or by the properly
2accredited agent of such corporation.
3    Where the seller is a limited liability company, the return
4filed on behalf of the limited liability company shall be
5signed by a manager, member, or properly accredited agent of
6the limited liability company.
7    Except as provided in this Section, the retailer filing the
8return under this Section shall, at the time of filing such
9return, pay to the Department the amount of tax imposed by this
10Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
11on and after January 1, 1990, or $5 per calendar year,
12whichever is greater, which is allowed to reimburse the
13retailer for the expenses incurred in keeping records,
14preparing and filing returns, remitting the tax and supplying
15data to the Department on request. Any prepayment made pursuant
16to Section 2d of this Act shall be included in the amount on
17which such 2.1% or 1.75% discount is computed. In the case of
18retailers who report and pay the tax on a transaction by
19transaction basis, as provided in this Section, such discount
20shall be taken with each such tax remittance instead of when
21such retailer files his periodic return. The discount allowed
22under this Section is allowed only for returns that are filed
23in the manner required by this Act. The Department may disallow
24the discount for retailers whose certificate of registration is
25revoked at the time the return is filed, but only if the
26Department's decision to revoke the certificate of

 

 

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1registration has become final.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Use Tax
4Act, the Service Occupation Tax Act, and the Service Use Tax
5Act, excluding any liability for prepaid sales tax to be
6remitted in accordance with Section 2d of this Act, was $10,000
7or more during the preceding 4 complete calendar quarters, he
8shall file a return with the Department each month by the 20th
9day of the month next following the month during which such tax
10liability is incurred and shall make payments to the Department
11on or before the 7th, 15th, 22nd and last day of the month
12during which such liability is incurred. On and after October
131, 2000, if the taxpayer's average monthly tax liability to the
14Department under this Act, the Use Tax Act, the Service
15Occupation Tax Act, and the Service Use Tax Act, excluding any
16liability for prepaid sales tax to be remitted in accordance
17with Section 2d of this Act, was $20,000 or more during the
18preceding 4 complete calendar quarters, he shall file a return
19with the Department each month by the 20th day of the month
20next following the month during which such tax liability is
21incurred and shall make payment to the Department on or before
22the 7th, 15th, 22nd and last day of the month during which such
23liability is incurred. If the month during which such tax
24liability is incurred began prior to January 1, 1985, each
25payment shall be in an amount equal to 1/4 of the taxpayer's
26actual liability for the month or an amount set by the

 

 

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1Department not to exceed 1/4 of the average monthly liability
2of the taxpayer to the Department for the preceding 4 complete
3calendar quarters (excluding the month of highest liability and
4the month of lowest liability in such 4 quarter period). If the
5month during which such tax liability is incurred begins on or
6after January 1, 1985 and prior to January 1, 1987, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 27.5% of the taxpayer's
9liability for the same calendar month of the preceding year. If
10the month during which such tax liability is incurred begins on
11or after January 1, 1987 and prior to January 1, 1988, each
12payment shall be in an amount equal to 22.5% of the taxpayer's
13actual liability for the month or 26.25% of the taxpayer's
14liability for the same calendar month of the preceding year. If
15the month during which such tax liability is incurred begins on
16or after January 1, 1988, and prior to January 1, 1989, or
17begins on or after January 1, 1996, each payment shall be in an
18amount equal to 22.5% of the taxpayer's actual liability for
19the month or 25% of the taxpayer's liability for the same
20calendar month of the preceding year. If the month during which
21such tax liability is incurred begins on or after January 1,
221989, and prior to January 1, 1996, each payment shall be in an
23amount equal to 22.5% of the taxpayer's actual liability for
24the month or 25% of the taxpayer's liability for the same
25calendar month of the preceding year or 100% of the taxpayer's
26actual liability for the quarter monthly reporting period. The

 

 

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

 

 

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1lowest liability) is less than $19,000 or until such taxpayer's
2average monthly liability to the Department as computed for
3each calendar quarter of the 4 preceding complete calendar
4quarter period is less than $20,000. However, if a taxpayer can
5show the Department that a substantial change in the taxpayer's
6business has occurred which causes the taxpayer to anticipate
7that his average monthly tax liability for the reasonably
8foreseeable future will fall below the $20,000 threshold stated
9above, then such taxpayer may petition the Department for a
10change in such taxpayer's reporting status. The Department
11shall change such taxpayer's reporting status unless it finds
12that such change is seasonal in nature and not likely to be
13long term. If any such quarter monthly payment is not paid at
14the time or in the amount required by this Section, then the
15taxpayer shall be liable for penalties and interest on the
16difference between the minimum amount due as a payment and the
17amount of such quarter monthly payment actually and timely
18paid, except insofar as the taxpayer has previously made
19payments for that month to the Department in excess of the
20minimum payments previously due as provided in this Section.
21The Department shall make reasonable rules and regulations to
22govern the quarter monthly payment amount and quarter monthly
23payment dates for taxpayers who file on other than a calendar
24monthly basis.
25    The provisions of this paragraph apply before October 1,
262001. Without regard to whether a taxpayer is required to make

 

 

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1quarter monthly payments as specified above, any taxpayer who
2is required by Section 2d of this Act to collect and remit
3prepaid taxes and has collected prepaid taxes which average in
4excess of $25,000 per month during the preceding 2 complete
5calendar quarters, shall file a return with the Department as
6required by Section 2f and shall make payments to the
7Department on or before the 7th, 15th, 22nd and last day of the
8month during which such liability is incurred. If the month
9during which such tax liability is incurred began prior to
10September 1, 1985 (the effective date of Public Act 84-221),
11each payment shall be in an amount not less than 22.5% of the
12taxpayer's actual liability under Section 2d. If the month
13during which such tax liability is incurred begins on or after
14January 1, 1986, each payment shall be in an amount equal to
1522.5% of the taxpayer's actual liability for the month or 27.5%
16of the taxpayer's liability for the same calendar month of the
17preceding calendar year. If the month during which such tax
18liability is incurred begins on or after January 1, 1987, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 26.25% of the taxpayer's
21liability for the same calendar month of the preceding year.
22The amount of such quarter monthly payments shall be credited
23against the final tax liability of the taxpayer's return for
24that month filed under this Section or Section 2f, as the case
25may be. Once applicable, the requirement of the making of
26quarter monthly payments to the Department pursuant to this

 

 

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1paragraph shall continue until such taxpayer's average monthly
2prepaid tax collections during the preceding 2 complete
3calendar quarters is $25,000 or less. If any such quarter
4monthly payment is not paid at the time or in the amount
5required, the taxpayer shall be liable for penalties and
6interest on such difference, except insofar as the taxpayer has
7previously made payments for that month in excess of the
8minimum payments previously due.
9    The provisions of this paragraph apply on and after October
101, 2001. Without regard to whether a taxpayer is required to
11make quarter monthly payments as specified above, any taxpayer
12who is required by Section 2d of this Act to collect and remit
13prepaid taxes and has collected prepaid taxes that average in
14excess of $20,000 per month during the preceding 4 complete
15calendar quarters shall file a return with the Department as
16required by Section 2f and shall make payments to the
17Department on or before the 7th, 15th, 22nd and last day of the
18month during which the liability is incurred. Each payment
19shall be in an amount equal to 22.5% of the taxpayer's actual
20liability for the month or 25% of the taxpayer's liability for
21the same calendar month of the preceding year. The amount of
22the quarter monthly payments shall be credited against the
23final tax liability of the taxpayer's return for that month
24filed under this Section or Section 2f, as the case may be.
25Once applicable, the requirement of the making of quarter
26monthly payments to the Department pursuant to this paragraph

 

 

SB1556- 108 -LRB101 10446 HLH 55552 b

1shall continue until the taxpayer's average monthly prepaid tax
2collections during the preceding 4 complete calendar quarters
3(excluding the month of highest liability and the month of
4lowest liability) is less than $19,000 or until such taxpayer's
5average monthly liability to the Department as computed for
6each calendar quarter of the 4 preceding complete calendar
7quarters is less than $20,000. If any such quarter monthly
8payment is not paid at the time or in the amount required, the
9taxpayer shall be liable for penalties and interest on such
10difference, except insofar as the taxpayer has previously made
11payments for that month in excess of the minimum payments
12previously due.
13    If any payment provided for in this Section exceeds the
14taxpayer's liabilities under this Act, the Use Tax Act, the
15Service Occupation Tax Act and the Service Use Tax Act, as
16shown on an original monthly return, the Department shall, if
17requested by the taxpayer, issue to the taxpayer a credit
18memorandum no later than 30 days after the date of payment. The
19credit evidenced by such credit memorandum may be assigned by
20the taxpayer to a similar taxpayer under this Act, the Use Tax
21Act, the Service Occupation Tax Act or the Service Use Tax Act,
22in accordance with reasonable rules and regulations to be
23prescribed by the Department. If no such request is made, the
24taxpayer may credit such excess payment against tax liability
25subsequently to be remitted to the Department under this Act,
26the Use Tax Act, the Service Occupation Tax Act or the Service

 

 

SB1556- 109 -LRB101 10446 HLH 55552 b

1Use Tax Act, in accordance with reasonable rules and
2regulations prescribed by the Department. If the Department
3subsequently determined that all or any part of the credit
4taken was not actually due to the taxpayer, the taxpayer's 2.1%
5and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
6of the difference between the credit taken and that actually
7due, and that taxpayer shall be liable for penalties and
8interest on such difference.
9    If a retailer of motor fuel is entitled to a credit under
10Section 2d of this Act which exceeds the taxpayer's liability
11to the Department under this Act for the month which the
12taxpayer is filing a return, the Department shall issue the
13taxpayer a credit memorandum for the excess.
14    Beginning January 1, 1990, each month the Department shall
15pay into the Local Government Tax Fund, a special fund in the
16State treasury which is hereby created, the net revenue
17realized for the preceding month from the 1% tax imposed under
18this Act.
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%

 

 

SB1556- 110 -LRB101 10446 HLH 55552 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

 

 

SB1556- 111 -LRB101 10446 HLH 55552 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.

 

 

SB1556- 112 -LRB101 10446 HLH 55552 b

1    Beginning on January 1, 2020, each month the Department
2shall pay into the Fire Prevention Fund 50% of the net revenue
3realized for the preceding month from the 3.75% tax on the
4selling price of D.O.T. Class C common fireworks.
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

 

 

SB1556- 113 -LRB101 10446 HLH 55552 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

 

 

SB1556- 114 -LRB101 10446 HLH 55552 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

 

 

SB1556- 115 -LRB101 10446 HLH 55552 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

 

 

SB1556- 116 -LRB101 10446 HLH 55552 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

 

 

SB1556- 117 -LRB101 10446 HLH 55552 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",

 

 

SB1556- 118 -LRB101 10446 HLH 55552 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

 

 

SB1556- 119 -LRB101 10446 HLH 55552 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; 100-1171, eff. 1-4-19.)
 
6    Section 25. The Pyrotechnic Use Act is amended by changing
7Sections 2 and 2.2 as follows:
 
8    (425 ILCS 35/2)  (from Ch. 127 1/2, par. 128)
9    Sec. 2. Possession, sale, and use of fireworks. Except for
10D.O.T. Class C common fireworks and as otherwise as hereinafter
11provided in this Act it shall be unlawful for any person, firm,
12co-partnership, or corporation to knowingly possess, offer for
13sale, expose for sale, sell at retail, or use or explode any
14display fireworks, flame effects, or consumer fireworks;
15provided that city councils in cities, the president and board
16of trustees in villages and incorporated towns, and outside the
17corporate limits of cities, villages and incorporated towns,
18the county board, shall have power to adopt reasonable rules
19and regulations for the granting of permits for pyrotechnic and
20consumer displays. D.O.T. Class C common fireworks may only be
21purchased by individuals over the age of 18.
22    "D.O.T. Class C common fireworks" means all articles of
23fireworks as are now or hereafter classified as D.O.T. Class C
24common fireworks in the regulations of the United States

 

 

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1Department of Transportation for transportation of explosive
2and other dangerous articles.
3(Source: P.A. 93-263, eff. 7-22-03; 94-658, eff. 1-1-06.)
 
4    (425 ILCS 35/2.2)
5    Sec. 2.2. Private use. Consumer displays.     Fireworks
6may only be discharged by individuals over the age of 18.
7Each consumer display shall be handled by a competent
8individual who has received training from a consumer fireworks
9training class approved by the Office of the State Fire
10Marshal. Applications for consumer display permits shall be
11made in writing at least 15 days in advance of the date of the
12display, unless agreed to otherwise by the local jurisdiction
13issuing the permit and the fire chief of the jurisdiction in
14which the display will occur. After a permit has been granted,
15sales, possession, use, and distribution of consumer fireworks
16for display shall be lawful for that purpose only. No permit
17granted hereunder shall be transferable.
18    Permits may be granted hereunder to any adult individual
19applying for a permit who provides proof that he or she has
20received the requisite training. The local jurisdiction
21issuing the permit is authorized to conduct a criminal
22background check of the applicant as a condition of issuing a
23permit.
24    A permit shall be issued only after inspection of the
25display site by the fire chief providing fire protection

 

 

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1coverage to the area of display, or his or her designee, to
2determine that the display is in full compliance with the rules
3adopted by the State Fire Marshal. Nothing in this Section
4shall prohibit the issuer of a permit from adopting more
5stringent rules.
6(Source: P.A. 94-658, eff. 1-1-06.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.