97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2851

 

Introduced 2/22/2011, by Rep. Timothy L. Schmitz

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/11  from Ch. 120, par. 450

    Amends the Retailers' Occupation Tax Act. Provides that the Director of Revenue may divulge information from a taxpayer's return or an investigation to the government of a municipality (now, any village that does not levy any real property taxes for village operations and receives 60% of its general corporate revenue from taxes under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act). Makes other changes.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 11 as follows:
 
6    (35 ILCS 120/11)  (from Ch. 120, par. 450)
7    Sec. 11. All information received by the Department from
8returns filed under this Act, or from any investigation
9conducted under this Act, shall be confidential, except for
10official purposes, and any person who divulges any such
11information in any manner, except in accordance with a proper
12judicial order or as otherwise provided by law, shall be guilty
13of a Class B misdemeanor.
14    Nothing in this Act prevents the Director of Revenue from
15publishing or making available to the public the names and
16addresses of persons filing returns under this Act, or
17reasonable statistics concerning the operation of the tax by
18grouping the contents of returns so the information in any
19individual return is not disclosed.
20    Nothing in this Act prevents the Director of Revenue from
21divulging to the United States Government or the government of
22any other state, or municipality any village that does not levy
23any real property taxes for village operations and that

 

 

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1receives more than 60% of its general corporate revenue from
2taxes under the Use Tax Act, the Service Use Tax Act, the
3Service Occupation Tax Act, and the Retailers' Occupation Tax
4Act, or any officer or agency thereof, for exclusively official
5purposes, information received by the Department in
6administering this Act, provided that such other governmental
7agency agrees to divulge requested tax information to the
8Department.
9    The Department's furnishing of information derived from a
10taxpayer's return or from an investigation conducted under this
11Act to the surety on a taxpayer's bond that has been furnished
12to the Department under this Act, either to provide notice to
13such surety of its potential liability under the bond or, in
14order to support the Department's demand for payment from such
15surety under the bond, is an official purpose within the
16meaning of this Section.
17    The furnishing upon request of information obtained by the
18Department from returns filed under this Act or investigations
19conducted under this Act to the Illinois Liquor Control
20Commission for official use is deemed to be an official purpose
21within the meaning of this Section.
22    Notice to a surety of potential liability shall not be
23given unless the taxpayer has first been notified, not less
24than 10 days prior thereto, of the Department's intent to so
25notify the surety.
26    The furnishing upon request of the Auditor General, or his

 

 

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1authorized agents, for official use, of returns filed and
2information related thereto under this Act is deemed to be an
3official purpose within the meaning of this Section.
4    Where an appeal or a protest has been filed on behalf of a
5taxpayer, the furnishing upon request of the attorney for the
6taxpayer of returns filed by the taxpayer and information
7related thereto under this Act is deemed to be an official
8purpose within the meaning of this Section.
9    The furnishing of financial information to a home rule unit
10or non-home rule unit that has imposed a tax similar to that
11imposed by this Act pursuant to its home rule powers or the
12successful passage of a public referendum by a majority of the
13registered voters of the community, or to any municipality
14village that does not levy any real property taxes for village
15operations and that receives more than 60% of its general
16corporate revenue from taxes under the Use Tax Act, the Service
17Use Tax Act, the Service Occupation Tax Act, and the Retailers'
18Occupation Tax Act, upon request of the Chief Executive
19thereof, is an official purpose within the meaning of this
20Section, provided the home rule unit, non-home rule unit with
21referendum approval, or municipality village that does not levy
22any real property taxes for village operations and that
23receives more than 60% of its general corporate revenue from
24taxes under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and the Retailers' Occupation Tax
26Act agrees in writing to the requirements of this Section.

 

 

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1    For a municipality village that does not levy any real
2property taxes for village operations and that receives more
3than 60% of its general corporate revenue from taxes under the
4Use Tax Act, Service Use Tax Act, Service Occupation Tax Act,
5and Retailers' Occupation Tax Act, the officers eligible to
6receive information from the Department of Revenue under this
7Section are the chief executive officer village manager and the
8chief financial officer of the municipality village.
9    Information so provided shall be subject to all
10confidentiality provisions of this Section. The written
11agreement shall provide for reciprocity, limitations on
12access, disclosure, and procedures for requesting information.
13    The Department may make available to the Board of Trustees
14of any Metro East Mass Transit District information contained
15on transaction reporting returns required to be filed under
16Section 3 of this Act that report sales made within the
17boundary of the taxing authority of that Metro East Mass
18Transit District, as provided in Section 5.01 of the Local Mass
19Transit District Act. The disclosure shall be made pursuant to
20a written agreement between the Department and the Board of
21Trustees of a Metro East Mass Transit District, which is an
22official purpose within the meaning of this Section. The
23written agreement between the Department and the Board of
24Trustees of a Metro East Mass Transit District shall provide
25for reciprocity, limitations on access, disclosure, and
26procedures for requesting information. Information so provided

 

 

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1shall be subject to all confidentiality provisions of this
2Section.
3    The Director may make available to any State agency,
4including the Illinois Supreme Court, which licenses persons to
5engage in any occupation, information that a person licensed by
6such agency has failed to file returns under this Act or pay
7the tax, penalty and interest shown therein, or has failed to
8pay any final assessment of tax, penalty or interest due under
9this Act. The Director may make available to any State agency,
10including the Illinois Supreme Court, information regarding
11whether a bidder, contractor, or an affiliate of a bidder or
12contractor has failed to collect and remit Illinois Use tax on
13sales into Illinois, or any tax under this Act or pay the tax,
14penalty, and interest shown therein, or has failed to pay any
15final assessment of tax, penalty, or interest due under this
16Act, for the limited purpose of enforcing bidder and contractor
17certifications. The Director may make available to units of
18local government and school districts that require bidder and
19contractor certifications, as set forth in Sections 50-11 and
2050-12 of the Illinois Procurement Code, information regarding
21whether a bidder, contractor, or an affiliate of a bidder or
22contractor has failed to collect and remit Illinois Use tax on
23sales into Illinois, file returns under this Act, or pay the
24tax, penalty, and interest shown therein, or has failed to pay
25any final assessment of tax, penalty, or interest due under
26this Act, for the limited purpose of enforcing bidder and

 

 

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1contractor certifications. For purposes of this Section, the
2term "affiliate" means any entity that (1) directly,
3indirectly, or constructively controls another entity, (2) is
4directly, indirectly, or constructively controlled by another
5entity, or (3) is subject to the control of a common entity.
6For purposes of this Section, an entity controls another entity
7if it owns, directly or individually, more than 10% of the
8voting securities of that entity. As used in this Section, the
9term "voting security" means a security that (1) confers upon
10the holder the right to vote for the election of members of the
11board of directors or similar governing body of the business or
12(2) is convertible into, or entitles the holder to receive upon
13its exercise, a security that confers such a right to vote. A
14general partnership interest is a voting security.
15    The Director may make available to any State agency,
16including the Illinois Supreme Court, units of local
17government, and school districts, information regarding
18whether a bidder or contractor is an affiliate of a person who
19is not collecting and remitting Illinois Use taxes for the
20limited purpose of enforcing bidder and contractor
21certifications.
22    The Director may also make available to the Secretary of
23State information that a limited liability company, which has
24filed articles of organization with the Secretary of State, or
25corporation which has been issued a certificate of
26incorporation by the Secretary of State has failed to file

 

 

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1returns under this Act or pay the tax, penalty and interest
2shown therein, or has failed to pay any final assessment of
3tax, penalty or interest due under this Act. An assessment is
4final when all proceedings in court for review of such
5assessment have terminated or the time for the taking thereof
6has expired without such proceedings being instituted.
7    The Director shall make available for public inspection in
8the Department's principal office and for publication, at cost,
9administrative decisions issued on or after January 1, 1995.
10These decisions are to be made available in a manner so that
11the following taxpayer information is not disclosed:
12        (1) The names, addresses, and identification numbers
13    of the taxpayer, related entities, and employees.
14        (2) At the sole discretion of the Director, trade
15    secrets or other confidential information identified as
16    such by the taxpayer, no later than 30 days after receipt
17    of an administrative decision, by such means as the
18    Department shall provide by rule.
19    The Director shall determine the appropriate extent of the
20deletions allowed in paragraph (2). In the event the taxpayer
21does not submit deletions, the Director shall make only the
22deletions specified in paragraph (1).
23    The Director shall make available for public inspection and
24publication an administrative decision within 180 days after
25the issuance of the administrative decision. The term
26"administrative decision" has the same meaning as defined in

 

 

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1Section 3-101 of Article III of the Code of Civil Procedure.
2Costs collected under this Section shall be paid into the Tax
3Compliance and Administration Fund.
4    Nothing contained in this Act shall prevent the Director
5from divulging information to any person pursuant to a request
6or authorization made by the taxpayer or by an authorized
7representative of the taxpayer.
8(Source: P.A. 93-25, eff. 6-20-03; 93-939, eff. 8-13-04;
994-1074, eff. 12-26-06.)