103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2507

 

Introduced 2/15/2023___________, by

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/4  from Ch. 120, par. 443
35 ILCS 128/1-45
35 ILCS 130/9a  from Ch. 120, par. 453.9a
35 ILCS 135/13  from Ch. 120, par. 453.43
235 ILCS 5/8-5  from Ch. 43, par. 163a

    Amends the Retailers' Occupation Tax Act, the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Liquor Control Act of 1934. Provides that amounts paid as taxes under those Acts shall be deemed assessed upon the date of receipt of payment. Effective January 1, 2024.


LRB103 29028 HLH 55414 b

 

 

A BILL FOR

 

HB2507LRB103 29028 HLH 55414 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 4 as follows:
 
6    (35 ILCS 120/4)  (from Ch. 120, par. 443)
7    Sec. 4. As soon as practicable after any return is filed,
8the Department shall examine such return and shall, if
9necessary, correct such return according to its best judgment
10and information. If the correction of a return results in an
11amount of tax that is understated on the taxpayer's return due
12to a mathematical error, the Department shall notify the
13taxpayer that the amount of tax in excess of that shown on the
14return is due and has been assessed. The term "mathematical
15error" means arithmetic errors or incorrect computations on
16the return or supporting schedules. No such notice of
17additional tax due shall be issued on and after each July 1 and
18January 1 covering gross receipts received during any month or
19period of time more than 3 years prior to such July 1 and
20January 1, respectively. Such notice of additional tax due
21shall not be considered a notice of tax liability nor shall the
22taxpayer have any right of protest. In the event that the
23return is corrected for any reason other than a mathematical

 

 

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1error, any return so corrected by the Department shall be
2prima facie correct and shall be prima facie evidence of the
3correctness of the amount of tax due, as shown therein. In
4correcting transaction by transaction reporting returns
5provided for in Section 3 of this Act, it shall be permissible
6for the Department to show a single corrected return figure
7for any given period of a calendar month instead of having to
8correct each transaction by transaction return form
9individually and having to show a corrected return figure for
10each of such transaction by transaction return forms. In
11making a correction of transaction by transaction, monthly or
12quarterly returns covering a period of 6 months or more, it
13shall be permissible for the Department to show a single
14corrected return figure for any given 6-month period.
15    Instead of requiring the person filing such return to file
16an amended return, the Department may simply notify him of the
17correction or corrections it has made.
18    Proof of such correction by the Department may be made at
19any hearing before the Department or the Illinois Independent
20Tax Tribunal or in any legal proceeding by a reproduced copy or
21computer print-out of the Department's record relating thereto
22in the name of the Department under the certificate of the
23Director of Revenue. If reproduced copies of the Department's
24records are offered as proof of such correction, the Director
25must certify that those copies are true and exact copies of
26records on file with the Department. If computer print-outs of

 

 

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1the Department's records are offered as proof of such
2correction, the Director must certify that those computer
3print-outs are true and exact representations of records
4properly entered into standard electronic computing equipment,
5in the regular course of the Department's business, at or
6reasonably near the time of the occurrence of the facts
7recorded, from trustworthy and reliable information. Such
8certified reproduced copy or certified computer print-out
9shall without further proof, be admitted into evidence before
10the Department or in any legal proceeding and shall be prima
11facie proof of the correctness of the amount of tax due, as
12shown therein.
13    If the tax computed upon the basis of the gross receipts as
14fixed by the Department is greater than the amount of tax due
15under the return or returns as filed, the Department shall (or
16if the tax or any part thereof that is admitted to be due by a
17return or returns, whether filed on time or not, is not paid,
18the Department may) issue the taxpayer a notice of tax
19liability for the amount of tax claimed by the Department to be
20due, together with a penalty in an amount determined in
21accordance with Section 3-3 of the Uniform Penalty and
22Interest Act. Provided, that if the incorrectness of any
23return or returns as determined by the Department is due to
24negligence or fraud, said penalty shall be in an amount
25determined in accordance with Section 3-5 or Section 3-6 of
26the Uniform Penalty and Interest Act, as the case may be. If

 

 

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1the notice of tax liability is not based on a correction of the
2taxpayer's return or returns, but is based on the taxpayer's
3failure to pay all or a part of the tax admitted by his return
4or returns (whether filed on time or not) to be due, such
5notice of tax liability shall be prima facie correct and shall
6be prima facie evidence of the correctness of the amount of tax
7due, as shown therein.
8    Proof of such notice of tax liability by the Department
9may be made at any hearing before the Department or the
10Illinois Independent Tax Tribunal or in any legal proceeding
11by a reproduced copy of the Department's record relating
12thereto in the name of the Department under the certificate of
13the Director of Revenue. Such reproduced copy shall without
14further proof, be admitted into evidence before the Department
15or in any legal proceeding and shall be prima facie proof of
16the correctness of the amount of tax due, as shown therein.
17    If the person filing any return dies or becomes a person
18under legal disability at any time before the Department
19issues its notice of tax liability, such notice shall be
20issued to the administrator, executor or other legal
21representative, as such, of such person.
22    Except in case of a fraudulent return, or in the case of an
23amended return (where a notice of tax liability may be issued
24on or after each January 1 and July 1 for an amended return
25filed not more than 3 years prior to such January 1 or July 1,
26respectively), no notice of tax liability shall be issued on

 

 

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1and after each January 1 and July 1 covering gross receipts
2received during any month or period of time more than 3 years
3prior to such January 1 and July 1, respectively. If, before
4the expiration of the time prescribed in this Section for the
5issuance of a notice of tax liability, both the Department and
6the taxpayer have consented in writing to its issuance after
7such time, such notice may be issued at any time prior to the
8expiration of the period agreed upon. The period so agreed
9upon may be extended by subsequent agreements in writing made
10before the expiration of the period previously agreed upon.
11The foregoing limitations upon the issuance of a notice of tax
12liability shall not apply to the issuance of a notice of tax
13liability with respect to any period of time prior thereto in
14cases where the Department has, within the period of
15limitation then provided, notified the person making the
16return of a notice of tax liability even though such return,
17with which the tax that was shown by such return to be due was
18paid when the return was filed, had not been corrected by the
19Department in the manner required herein prior to the issuance
20of such notice, but in no case shall the amount of any such
21notice of tax liability for any period otherwise barred by
22this Act exceed for such period the amount shown in the notice
23of tax liability theretofore issued.
24    If, when a tax or penalty under this Act becomes due and
25payable, the person alleged to be liable therefor is out of the
26State, the notice of tax liability may be issued within the

 

 

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1times herein limited after his coming into or return to the
2State; and if, after the tax or penalty under this Act becomes
3due and payable, the person alleged to be liable therefor
4departs from and remains out of the State, the time of his or
5her absence is no part of the time limited for the issuance of
6the notice of tax liability; but the foregoing provisions
7concerning absence from the State shall not apply to any case
8in which, at the time when a tax or penalty becomes due under
9this Act, the person allegedly liable therefor is not a
10resident of this State.
11    The time limitation period on the Department's right to
12issue a notice of tax liability shall not run during any period
13of time in which the Order of any Court has the effect of
14enjoining or restraining the Department from issuing the
15notice of tax liability.
16    If such person or legal representative shall within 60
17days after such notice of tax liability file a protest to said
18notice of tax liability with the Department and request a
19hearing thereon, the Department shall give notice to such
20person or legal representative of the time and place fixed for
21such hearing and shall hold a hearing in conformity with the
22provisions of this Act, and pursuant thereto shall issue to
23such person or legal representative a final assessment for the
24amount found to be due as a result of such hearing. On or after
25July 1, 2013, protests concerning matters that are subject to
26the jurisdiction of the Illinois Independent Tax Tribunal

 

 

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1shall be filed with the Illinois Independent Tax Tribunal in
2accordance with the Illinois Independent Tax Tribunal Act of
32012, and hearings concerning those matters shall be held
4before the Tribunal in accordance with that Act. The Tribunal
5shall give notice to such person of the time and place fixed
6for such hearing and shall hold a hearing. With respect to
7protests filed with the Department prior to July 1, 2013 that
8would otherwise be subject to the jurisdiction of the Illinois
9Independent Tax Tribunal, the taxpayer may elect to be subject
10to the provisions of the Illinois Independent Tax Tribunal Act
11of 2012 at any time on or after July 1, 2013, but not later
12than 30 days after the date on which the protest was filed. If
13made, the election shall be irrevocable.
14    If a protest to the notice of tax liability and a request
15for a hearing thereon is not filed within 60 days after such
16notice, such notice of tax liability shall become final
17without the necessity of a final assessment being issued and
18shall be deemed to be a final assessment.
19    Notwithstanding any other provisions of this Act, any
20amount paid as tax or in respect of tax paid under this Act,
21other than amounts paid as quarter-monthly payments, shall be
22deemed assessed upon the date of receipt of payment.
23    After the issuance of a final assessment, or a notice of
24tax liability which becomes final without the necessity of
25actually issuing a final assessment as hereinbefore provided,
26the Department, at any time before such assessment is reduced

 

 

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1to judgment, may (subject to rules of the Department) grant a
2rehearing (or grant departmental review and hold an original
3hearing if no previous hearing in the matter has been held)
4upon the application of the person aggrieved. Pursuant to such
5hearing or rehearing, the Department shall issue a revised
6final assessment to such person or his legal representative
7for the amount found to be due as a result of such hearing or
8rehearing.
9(Source: P.A. 97-1129, eff. 8-28-12.)
 
10    Section 10. The Cigarette Machine Operators' Occupation
11Tax Act is amended by changing Section 1-45 as follows:
 
12    (35 ILCS 128/1-45)
13    Sec. 1-45. Examination and correction of returns.
14    (a) As soon as practicable after any return is filed, the
15Department shall examine that return and shall correct the
16return according to its best judgment and information, which
17return so corrected by the Department shall be prima facie
18correct and shall be prima facie evidence of the correctness
19of the amount of tax due, as shown on the corrected return.
20Instead of requiring the cigarette machine operator to file an
21amended return, the Department may simply notify the cigarette
22machine operator of the correction or corrections it has made.
23Proof of the correction by the Department may be made at any
24hearing before the Department or in any legal proceeding by a

 

 

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1reproduced copy of the Department's record relating thereto in
2the name of the Department under the certificate of the
3Director of Revenue. Such reproduced copy shall, without
4further proof, be admitted into evidence before the Department
5or in any legal proceeding and shall be prima facie proof of
6the correctness of the amount of tax due, as shown on the
7reproduced copy. If the Department finds that any amount of
8tax is due from the cigarette machine operator, the Department
9shall issue the cigarette machine operator a notice of tax
10liability for the amount of tax claimed by the Department to be
11due, together with a penalty in an amount determined in
12accordance with Sections 3-3, 3-5 and 3-6 of the Uniform
13Penalty and Interest Act. If, in administering the provisions
14of this Act, comparison of a return or returns of a cigarette
15machine operator with the books, records, and inventories of
16such cigarette machine operator discloses a deficiency that
17cannot be allocated by the Department to a particular month or
18months, the Department shall issue the cigarette machine
19operator a notice of tax liability for the amount of tax
20claimed by the Department to be due for a given period, but
21without any obligation upon the Department to allocate that
22deficiency to any particular month or months, together with a
23penalty in an amount determined in accordance with Sections
243-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act,
25under which circumstances the aforesaid notice of tax
26liability shall be prima facie correct and shall be prima

 

 

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1facie evidence of the correctness of the amount of tax due, as
2shown therein; and proof of such correctness may be made in
3accordance with, and the admissibility of a reproduced copy of
4such notice of tax liability shall be governed by, all the
5provisions of this Act applicable to corrected returns. If any
6cigarette machine operator filing any return dies or becomes a
7person under legal disability at any time before the
8Department issues its notice of tax liability, such notice
9shall be issued to the administrator, executor, or other legal
10representative of the cigarette machine operator.
11    (b) If, within 60 days after such notice of tax liability,
12the cigarette machine operator or his or her legal
13representative files a written protest to such notice of tax
14liability and requests a hearing thereon, the Department shall
15give notice to such cigarette machine operator or legal
16representative of the time and place fixed for such hearing,
17and shall hold a hearing in conformity with the provisions of
18this Act, and pursuant thereto shall issue a final assessment
19to such cigarette machine operator or legal representative for
20the amount found to be due as a result of such hearing. If a
21written protest to the notice of tax liability and a request
22for a hearing thereon is not filed within 60 days after such
23notice of tax liability, such notice of tax liability shall
24become final without the necessity of a final assessment being
25issued and shall be deemed to be a final assessment.
26    (c) In case of failure to pay the tax, or any portion

 

 

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1thereof, or any penalty provided for in this Act, when due, the
2Department may bring suit to recover the amount of such tax, or
3portion thereof, or penalty; or, if the taxpayer dies or
4becomes incompetent, by filing claim therefore against his or
5her estate; provided that no such action with respect to any
6tax, or portion thereof, or penalty, shall be instituted more
7than 2 years after the cause of action accrues, except with the
8consent of the person from whom such tax or penalty is due.
9    After the expiration of the period within which the person
10assessed may file an action for judicial review under the
11Administrative Review Law without such an action being filed,
12a certified copy of the final assessment or revised final
13assessment of the Department may be filed with the circuit
14court of the county in which the taxpayer has his or her
15principal place of business, or of Sangamon County in those
16cases in which the taxpayer does not have his or her principal
17place of business in this State. The certified copy of the
18final assessment or revised final assessment shall be
19accompanied by a certification which recites facts that are
20sufficient to show that the Department complied with the
21jurisdictional requirements of the law in arriving at its
22final assessment or its revised final assessment and that the
23taxpayer had his or her opportunity for an administrative
24hearing and for judicial review, whether he or she availed
25himself or herself of either or both of these opportunities or
26not. If the court is satisfied that the Department complied

 

 

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1with the jurisdictional requirements of the law in arriving at
2its final assessment or its revised final assessment and that
3the taxpayer had his or her opportunity for an administrative
4hearing and for judicial review, whether he or she availed
5himself or herself of either or both of these opportunities or
6not, the court shall enter judgment in favor of the Department
7and against the taxpayer for the amount shown to be due by the
8final assessment or the revised final assessment, and such
9judgment shall be filed of record in the court. Such judgment
10shall bear the rate of interest set in the Uniform Penalty and
11Interest Act, but otherwise shall have the same effect as
12other judgments. The judgment may be enforced, and all laws
13applicable to sales for the enforcement of a judgment shall be
14applicable to sales made under such judgments. The Department
15shall file the certified copy of its assessment, as herein
16provided, with the circuit court within 2 years after such
17assessment becomes final except when the taxpayer consents in
18writing to an extension of such filing period.
19    If, when the cause of action for a proceeding in court
20accrues against a person, he or she is out of the State, the
21action may be commenced within the times herein limited, after
22his or her coming into or returning to the State; and if, after
23the cause of action accrues, he or she departs from and remains
24out of the State, the time of his or her absence is no part of
25the time limited for the commencement of the action; but the
26foregoing provisions concerning absence from the State shall

 

 

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1not apply to any case in which, at the time the cause of action
2accrues, the party against whom the cause of action accrues is
3not a resident of this State. The time within which a court
4action is to be commenced by the Department hereunder shall
5not run while the taxpayer is a debtor in any proceeding under
6the federal Bankruptcy Code nor thereafter until 90 days after
7the Department is notified by such debtor of being discharged
8in bankruptcy.
9    No claim shall be filed against the estate of any deceased
10person or a person under legal disability for any tax or
11penalty or part of either except in the manner prescribed and
12within the time limited by the Probate Act of 1975.
13    The remedies provided for herein shall not be exclusive,
14but all remedies available to creditors for the collection of
15debts shall be available for the collection of any tax or
16penalty due hereunder.
17    The collection of tax or penalty by any means provided for
18herein shall not be a bar to any prosecution under this Act.
19    The certificate of the Director of the Department to the
20effect that a tax or amount required to be paid by this Act has
21not been paid, that a return has not been filed, or that
22information has not been supplied pursuant to the provisions
23of this Act, shall be prima facie evidence thereof.
24    Notwithstanding any other provisions of this Act, any
25amount paid as tax or in respect of tax paid under this Act
26shall be deemed assessed upon the date of receipt of payment.

 

 

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1    All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
25g, 5i and 5j of the Retailers' Occupation Tax Act, which are
3not inconsistent with this Act, shall apply, as far as
4practicable, to the subject matter of this Act to the same
5extent as if such provisions were included herein. References
6in such incorporated Sections of the Retailers' Occupation Tax
7Act to retailers, to sellers, or to persons engaged in the
8business of selling tangible personal property shall mean
9cigarette machine operator when used in this Act.
10(Source: P.A. 97-688, eff. 6-14-12.)
 
11    Section 15. The Cigarette Tax Act is amended by changing
12Section 9a as follows:
 
13    (35 ILCS 130/9a)  (from Ch. 120, par. 453.9a)
14    Sec. 9a. Examination and correction of returns.
15    (1) As soon as practicable after any return is filed, the
16Department shall examine such return and shall correct such
17return according to its best judgment and information, which
18return so corrected by the Department shall be prima facie
19correct and shall be prima facie evidence of the correctness
20of the amount of tax due, as shown therein. Instead of
21requiring the distributor to file an amended return, the
22Department may simply notify the distributor of the correction
23or corrections it has made. Proof of such correction by the
24Department may be made at any hearing before the Department or

 

 

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1in any legal proceeding by a reproduced copy of the
2Department's record relating thereto in the name of the
3Department under the certificate of the Director of Revenue.
4Such reproduced copy shall, without further proof, be admitted
5into evidence before the Department or in any legal proceeding
6and shall be prima facie proof of the correctness of the amount
7of tax due, as shown therein. If the Department finds that any
8amount of tax is due from the distributor, the Department
9shall issue the distributor a notice of tax liability for the
10amount of tax claimed by the Department to be due, together
11with a penalty in an amount determined in accordance with
12Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and Interest
13Act. If, in administering the provisions of this Act,
14comparison of a return or returns of a distributor with the
15books, records and inventories of such distributor discloses a
16deficiency which cannot be allocated by the Department to a
17particular month or months, the Department shall issue the
18distributor a notice of tax liability for the amount of tax
19claimed by the Department to be due for a given period, but
20without any obligation upon the Department to allocate such
21deficiency to any particular month or months, together with a
22penalty in an amount determined in accordance with Sections
233-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, under
24which circumstances the aforesaid notice of tax liability
25shall be prima facie correct and shall be prima facie evidence
26of the correctness of the amount of tax due, as shown therein;

 

 

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1and proof of such correctness may be made in accordance with,
2and the admissibility of a reproduced copy of such notice of
3tax liability shall be governed by, all the provisions of this
4Act applicable to corrected returns. If any distributor filing
5any return dies or becomes a person under legal disability at
6any time before the Department issues its notice of tax
7liability, such notice shall be issued to the administrator,
8executor or other legal representative, as such, of such
9distributor.
10    (2) Except as otherwise provided in this Section, if,
11within 60 days after such notice of tax liability, the
12distributor or his or her legal representative files a protest
13to such notice of tax liability and requests a hearing
14thereon, the Department shall give notice to such distributor
15or legal representative of the time and place fixed for such
16hearing, and shall hold a hearing in conformity with the
17provisions of this Act, and pursuant thereto shall issue a
18final assessment to such distributor or legal representative
19for the amount found to be due as a result of such hearing. On
20or after July 1, 2013, protests concerning matters that are
21subject to the jurisdiction of the Illinois Independent Tax
22Tribunal shall be filed in accordance with the Illinois
23Independent Tax Tribunal Act of 2012, and hearings concerning
24those matters shall be held before the Tribunal in accordance
25with that Act. With respect to protests filed with the
26Department prior to July 1, 2013 that would otherwise be

 

 

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1subject to the jurisdiction of the Illinois Independent Tax
2Tribunal, the taxpayer may elect to be subject to the
3provisions of the Illinois Independent Tax Tribunal Act of
42012 at any time on or after July 1, 2013, but not later than
530 days after the date on which the protest was filed. If made,
6the election shall be irrevocable. If a protest to the notice
7of tax liability and a request for a hearing thereon is not
8filed within the time allowed by law, such notice of tax
9liability shall become final without the necessity of a final
10assessment being issued and shall be deemed to be a final
11assessment.
12    (3) In case of failure to pay the tax, or any portion
13thereof, or any penalty provided for in this Act, when due, the
14Department may bring suit to recover the amount of such tax, or
15portion thereof, or penalty; or, if the taxpayer dies or
16becomes incompetent, by filing claim therefor against his
17estate; provided that no such action with respect to any tax,
18or portion thereof, or penalty, shall be instituted more than
192 years after the cause of action accrues, except with the
20consent of the person from whom such tax or penalty is due.
21    After the expiration of the period within which the person
22assessed may file an action for judicial review under the
23Administrative Review Law without such an action being filed,
24a certified copy of the final assessment or revised final
25assessment of the Department may be filed with the Circuit
26Court of the county in which the taxpayer has his or her

 

 

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1principal place of business, or of Sangamon County in those
2cases in which the taxpayer does not have his principal place
3of business in this State. The certified copy of the final
4assessment or revised final assessment shall be accompanied by
5a certification which recites facts that are sufficient to
6show that the Department complied with the jurisdictional
7requirements of the Law in arriving at its final assessment or
8its revised final assessment and that the taxpayer had his or
9her opportunity for an administrative hearing and for judicial
10review, whether he availed himself or herself of either or
11both of these opportunities or not. If the court is satisfied
12that the Department complied with the jurisdictional
13requirements of the Law in arriving at its final assessment or
14its revised final assessment and that the taxpayer had his or
15her opportunity for an administrative hearing and for judicial
16review, whether he or she availed himself or herself of either
17or both of these opportunities or not, the court shall enter
18judgment in favor of the Department and against the taxpayer
19for the amount shown to be due by the final assessment or the
20revised final assessment, and such judgment shall be filed of
21record in the court. Such judgment shall bear the rate of
22interest set in the Uniform Penalty and Interest Act, but
23otherwise shall have the same effect as other judgments. The
24judgment may be enforced, and all laws applicable to sales for
25the enforcement of a judgment shall be applicable to sales
26made under such judgments. The Department shall file the

 

 

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1certified copy of its assessment, as herein provided, with the
2Circuit Court within 2 years after such assessment becomes
3final except when the taxpayer consents in writing to an
4extension of such filing period.
5    If, when the cause of action for a proceeding in court
6accrues against a person, he or she is out of the State, the
7action may be commenced within the times herein limited, after
8his or her coming into or return to the State; and if, after
9the cause of action accrues, he or she departs from and remains
10out of the State, the time of his or her absence is no part of
11the time limited for the commencement of the action; but the
12foregoing provisions concerning absence from the State shall
13not apply to any case in which, at the time the cause of action
14accrues, the party against whom the cause of action accrues is
15not a resident of this State. The time within which a court
16action is to be commenced by the Department hereunder shall
17not run while the taxpayer is a debtor in any proceeding under
18the Federal Bankruptcy Act nor thereafter until 90 days after
19the Department is notified by such debtor of being discharged
20in bankruptcy.
21    No claim shall be filed against the estate of any deceased
22person or a person under legal disability for any tax or
23penalty or part of either except in the manner prescribed and
24within the time limited by the Probate Act of 1975, as amended.
25    The remedies provided for herein shall not be exclusive,
26but all remedies available to creditors for the collection of

 

 

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1debts shall be available for the collection of any tax or
2penalty due hereunder.
3    The collection of tax or penalty by any means provided for
4herein shall not be a bar to any prosecution under this Act.
5    The certificate of the Director of the Department to the
6effect that a tax or amount required to be paid by this Act has
7not been paid, that a return has not been filed, or that
8information has not been supplied pursuant to the provisions
9of this Act, shall be prima facie evidence thereof.
10    Notwithstanding any other provisions of this Act, any
11amount paid as tax or in respect of tax paid under this Act
12shall be deemed assessed upon the date of receipt of payment.
13    All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
145g, 5i and 5j of the Retailers' Occupation Tax Act, which are
15not inconsistent with this Act, and Section 3-7 of the Uniform
16Penalty and Interest Act shall apply, as far as practicable,
17to the subject matter of this Act to the same extent as if such
18provisions were included herein. References in such
19incorporated Sections of the "Retailers' Occupation Tax Act"
20to retailers, to sellers or to persons engaged in the business
21of selling tangible personal property shall mean distributors
22when used in this Act.
23(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
 
24    Section 20. The Cigarette Use Tax Act is amended by
25changing Section 13 as follows:
 

 

 

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1    (35 ILCS 135/13)  (from Ch. 120, par. 453.43)
2    Sec. 13. Examination and correction of return. As soon as
3practicable after any return is filed, the Department shall
4examine such return and shall correct such return according to
5its best judgment and information, which return so corrected
6by the Department shall be prima facie correct and shall be
7prima facie evidence of the correctness of the amount of tax
8due, as shown therein. Proof of such correction by the
9Department may be made at any hearing before the Department or
10in any legal proceeding by a reproduced copy of the
11Department's record relating thereto in the name of the
12Department under the certificate of the Director of Revenue.
13Such reproduced copy shall, without further proof, be admitted
14into evidence before the Department or in any legal proceeding
15and shall be prima facie proof of the correctness of the amount
16of tax due, as shown therein. If the tax as fixed by the
17Department is greater than the amount of the tax due under the
18return as filed, the Department shall issue the person filing
19such return a notice of tax liability for the amount of tax
20claimed by the Department to be due, together with a penalty in
21an amount determined in accordance with Sections 3-3, 3-5 and
223-6 of the Uniform Penalty and Interest Act. If, in
23administering the provisions of this Act, comparison of a
24return or returns of a distributor with the books, records and
25inventories of such distributor discloses a deficiency which

 

 

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1cannot be allocated by the Department to a particular month or
2months, the Department shall issue the distributor a notice of
3tax liability for the amount of tax claimed by the Department
4to be due for a given period, but without any obligation upon
5the Department to allocate such deficiency to any particular
6month or months, together with a penalty in an amount
7determined in accordance with Sections 3-3, 3-5 and 3-6 of the
8Uniform Penalty and Interest Act, under which circumstances
9the aforesaid notice of tax liability shall be prima facie
10correct and shall be prima facie evidence of the correctness
11of the amount of tax due, as shown therein; and proof of such
12correctness may be made in accordance with, and the
13admissibility of a reproduced copy of such notice of tax
14liability shall be governed by, all the provisions of this Act
15applicable to corrected returns.
16    If any person filing any return dies or becomes a person
17under legal disability at any time before the Department
18issues its notice of tax liability, such notice shall be
19issued to the administrator, executor or other legal
20representative, as such, of such person.
21    Except as otherwise provided in this Section, if within 60
22days after such notice of tax liability, the person to whom
23such notice is issued or his legal representative files a
24protest to such notice of tax liability and requests a hearing
25thereon, the Department shall give notice to such person or
26legal representative of the time and place fixed for such

 

 

HB2507- 23 -LRB103 29028 HLH 55414 b

1hearing, and shall hold a hearing in conformity with the
2provisions of this Act, and pursuant thereto shall issue a
3final assessment to such person or legal representative for
4the amount found to be due as a result of such hearing.
5Effective July 1, 2013, protests concerning matters that are
6subject to the jurisdiction of the Illinois Independent Tax
7Tribunal shall be filed with the Tribunal in accordance with
8the Illinois Independent Tax Tribunal Act of 2012, and
9hearings concerning those matters shall be held before the
10Tribunal in accordance with that Act. With respect to protests
11filed with the Department prior to July 1, 2013 that would
12otherwise be subject to the jurisdiction of the Illinois
13Independent Tax Tribunal, the person filing the protest may
14elect to be subject to the provisions of the Illinois
15Independent Tax Tribunal Act of 2012 at any time on or after
16July 1, 2013, but not later than 30 days after the date on
17which the protest was filed. If made, the election shall be
18irrevocable. If a protest to the notice of tax liability and a
19request for a hearing thereon is not filed within the time
20allowed by law, such notice of tax liability shall become
21final without the necessity of a final assessment being issued
22and shall be deemed to be a final assessment.
23    Notwithstanding any other provisions of this Act, any
24amount paid as tax or in respect of tax paid under this Act
25shall be deemed assessed upon the date of receipt of payment.
26(Source: P.A. 97-1129, eff. 8-28-12.)
 

 

 

HB2507- 24 -LRB103 29028 HLH 55414 b

1    Section 25. The Liquor Control Act of 1934 is amended by
2changing Section 8-5 as follows:
 
3    (235 ILCS 5/8-5)  (from Ch. 43, par. 163a)
4    Sec. 8-5. As soon as practicable after any return is
5filed, the Department shall examine such return or amended
6return and shall correct such return according to its best
7judgment and information, which return so corrected by the
8Department shall be prima facie correct and shall be prima
9facie evidence of the correctness of the amount of tax due, as
10shown therein. Instead of requiring the licensee to file an
11amended return, the Department may simply notify the licensee
12of the correction or corrections it has made. Proof of such
13correction by the Department, or of the determination of the
14amount of tax due as provided in Sections 8-4 and 8-10, may be
15made at any hearing before the Department or in any legal
16proceeding by a reproduced copy of the Department's record
17relating thereto in the name of the Department under the
18certificate of the Director of Revenue. Such reproduced copy
19shall, without further proof, be admitted into evidence before
20the Department or in any legal proceeding and shall be prima
21facie proof of the correctness of the amount of tax due, as
22shown therein. If the return so corrected by the Department
23discloses the sale or use, by a licensed manufacturer or
24importing distributor, of alcoholic liquors as to which the

 

 

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1tax provided for in this Article should have been paid, but has
2not been paid, in excess of the alcoholic liquors reported as
3being taxable by the licensee, and as to which the proper tax
4was paid the Department shall notify the licensee that it
5shall issue the taxpayer a notice of tax liability for the
6amount of tax claimed by the Department to be due, together
7with penalties at the rates prescribed by Sections 3-3, 3-5
8and 3-6 of the Uniform Penalty and Interest Act, which amount
9of tax shall be equivalent to the amount of tax which, at the
10prescribed rate per gallon, should have been paid with respect
11to the alcoholic liquors disposed of in excess of those
12reported as being taxable. No earlier than 90 days after the
13due date of the return, the Department may compare filed
14returns, or any amendments thereto, against reports of sales
15of alcoholic liquor submitted to the Department by other
16manufacturers and distributors. If a return or amended return
17is corrected by the Department because the return or amended
18return failed to disclose the purchase of alcoholic liquor
19from manufacturers or distributors on which the tax provided
20for in this Article should have been paid, but has not been
21paid, the Department shall issue the taxpayer a notice of tax
22liability for the amount of tax claimed by the Department to be
23due, together with penalties at the rates prescribed by
24Sections 3-3, 3-5, and 3-6 of the Uniform Penalty and Interest
25Act. In a case where no return has been filed, the Department
26shall determine the amount of tax due according to its best

 

 

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1judgment and information and shall issue the taxpayer a notice
2of tax liability for the amount of tax claimed by the
3Department to be due as herein provided together with
4penalties at the rates prescribed by Sections 3-3, 3-5 and 3-6
5of the Uniform Penalty and Interest Act. If, in administering
6the provisions of this Act, a comparison of a licensee's
7return or returns with the books, records and physical
8inventories of such licensee discloses a deficiency which
9cannot be allocated by the Department to a particular month or
10months, the Department shall issue the taxpayer a notice of
11tax liability for the amount of tax claimed by the Department
12to be due for a given period, but without any obligation upon
13the Department to allocate such deficiency to any particular
14month or months, together with penalties at the rates
15prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
16and Interest Act, which amount of tax shall be equivalent to
17the amount of tax which, at the prescribed rate per gallon,
18should have been paid with respect to the alcoholic liquors
19disposed of in excess of those reported being taxable, with
20the tax thereon having been paid under which circumstances the
21aforesaid notice of tax liability shall be prima facie correct
22and shall be prima facie evidence of the correctness of the
23amount of tax due as shown therein; and proof of such
24correctness may be made in accordance with, and the
25admissibility of a reproduced copy of such notice of the
26Department's notice of tax liability shall be governed by, all

 

 

HB2507- 27 -LRB103 29028 HLH 55414 b

1the provisions of this Act applicable to corrected returns.
2    If the licensee dies or becomes a person under legal
3disability at any time before the Department issues its notice
4of tax liability, such notice shall be issued to the
5administrator, executor or other legal representative, as
6such, of the deceased or licensee who is under legal
7disability.
8    If such licensee or legal representative, within 60 days
9after such notice of tax liability, files a protest to such
10notice of tax liability and requests a hearing thereon, the
11Department shall give at least 7 days' notice to such licensee
12or legal representative, as the case may be, of the time and
13place fixed for such hearing and shall hold a hearing in
14conformity with the provisions of this Act, and pursuant
15thereto shall issue a final assessment to such licensee or
16legal representative for the amount found to be due as a result
17of such hearing.
18    If a protest to the notice of tax liability and a request
19for a hearing thereon is not filed within 60 days after such
20notice of tax liability, such notice of tax liability shall
21become final without the necessity of a final assessment being
22issued and shall be deemed to be a final assessment.
23    Notwithstanding any other provisions of this Act, any
24amount paid as tax or in respect of tax paid under this Act
25shall be deemed assessed upon the date of receipt of payment.
26    In case of failure to pay the tax, or any portion thereof,

 

 

HB2507- 28 -LRB103 29028 HLH 55414 b

1or any penalty provided for herein, when due, the Department
2may recover the amount of such tax, or portion thereof, or
3penalty in a civil action; or if the licensee dies or becomes a
4person under legal disability, by filing a claim therefor
5against his or her estate; provided that no such claim shall be
6filed against the estate of any deceased or of the licensee who
7is under legal disability for any tax or penalty or portion
8thereof except in the manner prescribed and within the time
9limited by the Probate Act of 1975, as amended.
10    The collection of any such tax and penalty, or either, by
11any means provided for herein, shall not be a bar to any
12prosecution under this Act.
13    In addition to any other penalty provided for in this
14Article, all provisions of the Uniform Penalty and Interest
15Act that are not inconsistent with this Act apply.
16(Source: P.A. 100-1050, eff. 7-1-19; 101-16, eff. 6-14-19.)
 
17    Section 99. Effective date. This Act takes effect January
181, 2024.