HB5192 EnrolledLRB097 18915 HLH 64153 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1. ILLINOIS TAX TRIBUNAL ACT OF 2012

 
5    Section 1-1. Short title. This Act may be cited as the
6Illinois Independent Tax Tribunal Act of 2012.
 
7    Section 1-5. Statement of purpose.
8    (a) To increase public confidence in the fairness of the
9State tax system, the State shall provide an independent
10administrative tribunal with tax expertise to resolve tax
11disputes between the Department of Revenue and taxpayers prior
12to requiring the taxpayer to pay the amounts in issue. By
13establishing an independent tax tribunal, this Act provides
14taxpayers with a means of resolving controversies that ensures
15both the appearance and the reality of due process and
16fundamental fairness.
17    (b) The Illinois Independent Tax Tribunal shall provide
18administrative hearings in all tax matters except those matters
19reserved to the Department of Revenue or another entity by
20statute, and shall render decisions and orders relating to
21matters under its jurisdiction. A Tax Tribunal administrative
22hearing shall be commenced by the filing of a petition with the

 

 

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1Tribunal protesting a tax determination made by the Department
2of Revenue.
3    (c) It is the intent of the General Assembly that this Act
4foster the settlement or other resolution of tax disputes to
5the extent possible and, in cases in which litigation is
6necessary, to provide the people of this State with a fair,
7independent, and tax-expert forum to determine tax disputes
8with the Department of Revenue. The Act shall be liberally
9construed to further this intent.
 
10    Section 1-10. Definitions. For the purposes of this Act:
11    "Department" means the Department of Revenue.
12    "Taxpayer" means a person who has received a protestable
13notice of assessment, a claim denial, or a protestable notice
14of penalty liability within the Tax Tribunal's jurisdiction
15pursuant to Section 1-45 of this Act.
16    "Tax Tribunal" means the Illinois Independent Tax Tribunal
17established pursuant to Section 1-15 of this Act.
 
18    Section 1-15. Independent Tax Tribunal; establishment.
19    (a) For the purpose of effectuating the policy declared in
20Section 1-5 of this Act, a State agency known as the Illinois
21Independent Tax Tribunal is created. The Tax Tribunal shall
22have the powers and duties enumerated in this Act, together
23with such others conferred upon it by law. The Tax Tribunal
24shall operate as an independent agency, and shall be separate

 

 

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1from the authority of the Director of Revenue and the
2Department of Revenue.
3    (b) Except as otherwise limited by this Act, the Tax
4Tribunal has all of the powers necessary or convenient to carry
5out the purposes and provisions of this Act, including without
6limitation, each of the following:
7        (1) To have a seal, and to alter that seal at pleasure,
8    and to use it by causing it or a facsimile to be affixed or
9    impressed or reproduced in any other manner.
10        (2) To accept and expend appropriations.
11        (3) To obtain and employ personnel as required in this
12    Act, including any additional personnel necessary to
13    fulfill the Tax Tribunal's purposes, and to make
14    expenditures for personnel within the appropriations for
15    that purpose.
16        (4) To maintain offices at such places as required
17    under this Act, and elsewhere as the Tax Tribunal may
18    determine.
19        (5) To engage in any activity or operation that is
20    incidental to and in furtherance of efficient operation to
21    accomplish the Tax Tribunal's purposes.
22    (c) Unless otherwise stated, the Tax Tribunal is subject to
23the provisions of all applicable laws, including but not
24limited to, each of the following:
25        (1) The State Records Act.
26        (2) The Illinois Procurement Code, except that the

 

 

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1    Illinois Procurement Code does not apply to the hiring of
2    the chief administrative law judge or other administrative
3    law judges pursuant to Section 1-25 of this Act.
4        (3) The Freedom of Information Act, except as otherwise
5    provided in Section 7 of that Act.
6        (4) The State Property Control Act.
7        (5) The State Officials and Employees Ethics Act.
8        (6) The Administrative Procedure Act, to the extent not
9    inconsistent with the provisions of this Act.
10        (7) The Illinois State Auditing Act. For purposes of
11    the Illinois State Auditing Act, the Tax Tribunal is a
12    "State agency" within the meaning of the Act and is subject
13    to the jurisdiction of the Auditor General.
14    (d) The Tax Tribunal shall exercise its jurisdiction on and
15after July 1, 2013, but the administrative law judges of the
16Tribunal may be appointed prior to that date and may take any
17action prior to that date that is necessary to enable the Tax
18Tribunal to properly exercise its jurisdiction on or after that
19date. Any administrative proceeding commenced prior to July 1,
202013, that would otherwise be subject to the jurisdiction of
21the Illinois Independent Tax Tribunal may be conducted
22according to the procedures set forth in this Act if the
23taxpayer so elects. Such an election shall be irrevocable and
24may be made on or after July 1, 2013, but no later than 30 days
25after the date on which the taxpayer's protest was filed.
 

 

 

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1    Section 1-20. Transfer of administrative record. If the
2taxpayer makes an election pursuant to Section 1-15 of this Act
3to remove a proceeding to the Tax Tribunal, any document,
4including pleadings and orders, that would constitute part of
5the administrative record within the meaning of Section 3-108
6of the Administrative Review Law shall be transferred to the
7Tax Tribunal.
 
8    Section 1-25. Judges; number; term of office; removal.
9    (a) The Governor shall, with the advice and consent of the
10Senate, appoint a Chief Administrative Law Judge to be the
11executive of the Tax Tribunal. The Chief Administrative Law
12Judge shall serve a 5-year term. The Governor may appoint
13additional administrative law judges, with the advice and
14consent of the Senate, as necessary to carry out the provisions
15of this Act, provided that no more than 4 administrative law
16judges, including the Chief Administrative Law Judge, shall
17serve at the same time. The administrative law judges, other
18than the Chief Administrative Law Judge, shall initially be
19appointed to staggered terms of no greater than 4 years. After
20the initial terms of office, all administrative law judges,
21other than the Chief Administrative Law Judge, shall be
22appointed for terms of 4 years. Each administrative law judge
23is eligible for reappointment.
24    (b) Once appointed and confirmed, each administrative law
25judge shall continue in office until his or her term expires

 

 

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1and until a successor has been appointed and confirmed.
2    (c) The office of an administrative law judge under this
3Section shall be vacant upon the administrative law judge's
4death, resignation, retirement, or removal, or upon the
5conclusion of his or her term without reappointment. Within 30
6days after such a vacancy occurs, a successor administrative
7law judge shall be appointed by the Governor, with the advice
8and consent of the Senate, for the remainder of the current
9unexpired term for that vacancy. In case of vacancies during
10the recess of the Senate, the Governor shall make a temporary
11appointment until the next meeting of the Senate, when the
12Governor shall nominate some person to fill the office, and any
13person so nominated who is confirmed by the Senate shall hold
14office during the remainder of the term and until his or her
15successor is appointed and qualified. No person rejected by the
16Senate for the office of an administrative law judge under this
17Section shall, except at the Senate's request, be nominated
18again for that office at the same session or be appointed to
19that office during a recess of that Senate.
20    (d) The Governor may remove an administrative law judge of
21the Tax Tribunal, after notice and an opportunity to be heard,
22for incompetency, neglect of duty, inability to perform duties,
23malfeasance in office, or other good cause.
24    (e) Each administrative law judge of the Tax Tribunal,
25including the Chief Administrative Law Judge, shall receive an
26annual salary equal to that of the Director of the Department

 

 

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1of Revenue. The Chief Administrative Law Judge shall receive an
2additional $15,000 annual stipend.
3    (f) The Chief Administrative Law Judge shall have sole
4charge of the administration of the Tax Tribunal and shall
5apportion among the judges all causes, matters, and proceedings
6coming before the Tax Tribunal. Each administrative law judge
7shall exercise the power of the Tax Tribunal.
8    (g) An administrative law judge may disqualify himself or
9herself on his or her own motion in any matter, and may be
10disqualified for any of the causes specified in the Illinois
11Code of Judicial Conduct.
 
12    Section 1-30. Judges; qualifications; prohibition against
13other gainful employment.
14    (a) Each administrative law judge of the Tax Tribunal shall
15be a citizen of the United States and, during the period of his
16or her service, a resident of this State. No person may be
17appointed as an administrative law judge unless, at the time of
18the appointment, the individual has been licensed to practice
19law in Illinois for a minimum of 8 years and has substantial
20knowledge of State tax laws and the making of a record in a tax
21case suitable for judicial review.
22    (b) Before entering upon the duties of office, each
23administrative law judge shall take and subscribe to an oath or
24affirmation that he or she will faithfully discharge the duties
25of the office, and such oath shall be filed in the office of

 

 

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1the Secretary of State.
2    (c) Each administrative law judge shall devote his or her
3full time during business hours to the duties of his or her
4office. An administrative law judge shall not engage in any
5other gainful employment or business, nor hold another office
6or position of profit in a government of this State, any other
7State, or the United States. Notwithstanding the foregoing
8provisions, an administrative law judge may own passive
9interests in business entities and may earn income from
10incidental teaching, publishing, or scholarly activities.
 
11    Section 1-35. Principal office; locations; facilities.
12    (a) The Tax Tribunal shall maintain its principal offices
13in both Sangamon County and Cook County, Illinois.
14    (b) The Tax Tribunal shall conduct hearings at any of its
15offices. If the taxpayer does not have his or her place of
16business in this State, such hearing shall be held at the
17office designated by the Tax Tribunal in either Cook or
18Sangamon County. Taxpayers whose residence or place of business
19is more than 100 miles from either the Sangamon County or Cook
20County Tax Tribunal office may petition the Tax Tribunal for an
21alternate hearing location, with a view toward securing to
22taxpayers a reasonable opportunity to appear before the Tax
23Tribunal with as little inconvenience and expense as possible.
24    (c) The State shall provide hearing rooms, chambers, and
25offices for the Tax Tribunal in both Sangamon County and Cook

 

 

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1County and shall arrange for hearing rooms, chambers, and
2offices or other appropriate facilities when hearings are held
3elsewhere.
4    (d) The offices of the Tax Tribunal shall be separate and
5distinct from the offices of the Department.
 
6    Section 1-40. Appointment of clerk and reporter;
7expenditures of the Tax Tribunal.
8    (a) The Tax Tribunal shall appoint a clerk and a reporter,
9and may appoint such other employees and make such other
10expenditures, including expenditures for libraries,
11publications, and equipment, as are necessary to permit it to
12efficiently execute its functions.
13    (b) The reporter shall be subject to the provisions of the
14Court Reporters Act as if appointed by a judge of the circuit
15court, except where such provisions are in conflict with this
16Act.
17    (c) No employee of the Tax Tribunal shall act as attorney,
18representative, or accountant for others in a matter involving
19any tax imposed or levied by this State or any other state or
20local jurisdiction.
21    (d) An employee of the Tax Tribunal, other than an
22Administrative Law Judge, may be removed by the Chief
23Administrative Law Judge in accordance with the Personnel Code.
24    (e) In addition to the services of the official reporter,
25the Tax Tribunal may contract the reporting of its proceedings

 

 

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1and, in the contract, fix the terms and conditions under which
2transcripts will be supplied by the contractor to the Tax
3Tribunal and to other persons and agencies.
 
4    Section 1-45. Jurisdiction of the Tax Tribunal.
5    (a) Except as provided by the Constitution of the United
6States, the Constitution of the State of Illinois, or any
7statutes of this State, including, but not limited to, the
8State Officers and Employees Money Disposition Act, the Tax
9Tribunal shall have original jurisdiction over all
10determinations of the Department reflected on a Notice of
11Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
12Notice of Penalty Liability issued under the Illinois Income
13Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
14Occupation Tax Act, the Retailers' Occupation Tax Act, the
15Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
16Products Tax Act of 1995, the Hotel Operators' Occupation Tax
17Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
18and Use Tax Act, the Coin-Operated Amusement Device and
19Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
20Company Invested Capital Tax Act, the Telecommunications
21Excise Tax Act, the Telecommunications Infrastructure
22Maintenance Fee Act, the Public Utilities Revenue Act, the
23Electricity Excise Tax Law, the Aircraft Use Tax Law, the
24Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
25Penalty and Interest Act. Jurisdiction of the Tax Tribunal is

 

 

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1limited to Notices of Tax Liability, Notices of Deficiency,
2Notices of Claim Denial, and Notices of Penalty Liability where
3the amount at issue in a notice, or the aggregate amount at
4issue in multiple notices issued for the same tax year or audit
5period, exceeds $15,000, exclusive of penalties and interest.
6In notices solely asserting either an interest or penalty
7assessment, or both, the Tax Tribunal shall have jurisdiction
8over cases where the combined total of all penalties or
9interest assessed exceeds $15,000.
10    (b) Except as otherwise permitted by this Act and by the
11Constitution of the State of Illinois or otherwise by State
12law, including, but not limited to, the State Officers and
13Employees Money Disposition Act, no person shall contest any
14matter within the jurisdiction of the Tax Tribunal in any
15action, suit, or proceeding in the circuit court or any other
16court of the State. If a person attempts to do so, then such
17action, suit, or proceeding shall be dismissed without
18prejudice. The improper commencement of any action, suit, or
19proceeding does not extend the time period for commencing a
20proceeding in the Tax Tribunal.
21    (c) The Tax Tribunal may require the taxpayer to post a
22bond equal to 25% of the liability at issue (1) upon motion of
23the Department and a showing that (A) the taxpayer's action is
24frivolous or legally insufficient or (B) the taxpayer is acting
25primarily for the purpose of delaying the collection of tax or
26prejudicing the ability ultimately to collect the tax, or (2)

 

 

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1if, at any time during the proceedings, it is determined by the
2Tax Tribunal that the taxpayer is not pursuing the resolution
3of the case with due diligence. If the Tax Tribunal finds in a
4particular case that the taxpayer cannot procure and furnish a
5satisfactory surety or sureties for the kind of bond required
6herein, the Tax Tribunal may relieve the taxpayer of the
7obligation of filing such bond, if, upon the timely application
8for a lien in lieu thereof and accompanying proof therein
9submitted, the Tax Tribunal is satisfied that any such lien
10imposed would operate to secure the assessment in the manner
11and to the degree as would a bond. The Tax Tribunal shall adopt
12rules for the procedures to be used in securing a bond or lien
13under this Section.
14    (d) If, with or after the filing of a timely petition, the
15taxpayer pays all or part of the tax or other amount in issue
16before the Tax Tribunal has rendered a decision, the Tax
17Tribunal shall treat the taxpayer's petition as a protest of a
18denial of claim for refund of the amount so paid upon a written
19motion filed by the taxpayer.
20    (e) The Tax Tribunal shall not have jurisdiction to review:
21        (1) any assessment made under the Property Tax Code;
22        (2) any decisions relating to the issuance or denial of
23    an exemption ruling for any entity claiming exemption from
24    any tax imposed under the Property Tax Code or any State
25    tax administered by the Department;
26        (3) a notice of proposed tax liability, notice of

 

 

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1    proposed deficiency, or any other notice of proposed
2    assessment or notice of intent to take some action;
3        (4) any action or determination of the Department
4    regarding tax liabilities that have become finalized by
5    law, including but not limited to the issuance of liens,
6    levies, and revocations, suspensions, or denials of
7    licenses or certificates of registration or any other
8    collection activities;
9        (5) any proceedings of the Department's informal
10    administrative appeals function; and
11        (6) any challenge to an administrative subpoena issued
12    by the Department.
13    (f) The Tax Tribunal shall decide questions regarding the
14constitutionality of statutes and rules adopted by the
15Department as applied to the taxpayer, but shall not have the
16power to declare a statute or rule unconstitutional or
17otherwise invalid on its face. A taxpayer challenging the
18constitutionality of a statute or rule on its face may present
19such challenge to the Tribunal for the sole purpose of making a
20record for review by the Illinois Appellate Court. Failure to
21raise a constitutional issue regarding the application of a
22statute or regulations to the taxpayer shall not preclude the
23taxpayer or the Department from raising those issues at the
24appellate court level.
 
25    Section 1-50. Pleadings.

 

 

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1    (a) A taxpayer may commence a proceeding in the Tax
2Tribunal by filing a petition protesting the Department's
3determination imposing a liability for tax, penalty, or
4interest, or denying a claim for refund or credit application.
5The petition shall be filed within the time permitted by
6statute for filing a protest.
7    (b) The Department shall file its answer in the Tax
8Tribunal no later than 30 days after its receipt of the Tax
9Tribunal's notification that the taxpayer has filed a petition
10in the proper form or within such additional time as the Tax
11Tribunal may specify. The Department shall serve a copy of its
12answer on the taxpayer's representative or, if the taxpayer is
13not represented, on the taxpayer, and shall file proof of such
14service with the answer. Material facts alleged in the
15petition, if not expressly admitted or denied in the answer,
16shall be deemed admitted.
17    (c) Either party may amend a pleading once without leave at
18any time before the period for responding to it expires. After
19such time, a pleading may be amended only with the written
20consent of the adverse party or with the permission of the Tax
21Tribunal. The Tax Tribunal shall freely grant consent to amend
22upon such terms as may be just. Except as otherwise ordered by
23the Tax Tribunal, there shall be an answer to an amended
24pleading if an answer is required to the pleading being
25amended. Filing of the answer, or, if the answer has already
26been filed, the amended answer shall be made no later than 30

 

 

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1days after the filing of the amended petition. The taxpayer may
2not amend a petition after expiration of the time for filing a
3petition, if such amendment would have the effect of conferring
4jurisdiction on the Tax Tribunal over a matter that would
5otherwise not come within its jurisdiction. An amendment of a
6pleading shall relate back to the time of filing of the
7original pleading only as prescribed by Section 2-616 of the
8Code of Civil Procedure.
 
9    Section 1-55. Fees.
10    (a) The Tax Tribunal shall impose a fee of $500 for the
11filing of petitions.
12    (b) The Tax Tribunal may fix a fee, not in excess of the
13fees charged and collected by the clerk of the circuit courts,
14for comparing, or for preparing and comparing, a transcript of
15the record, or for copying any record, entry, or other paper
16and the comparison and certification thereof.
17    (c) Fees collected under this Section shall be deposited
18into the Illinois Independent Tax Tribunal Fund, a special fund
19created in the State treasury. Moneys deposited into the Fund
20shall be appropriated to the Tribunal to reimburse the Tribunal
21for costs associated with administering and enforcing the
22provisions of this Act.
23    (d) The Tax Tribunal shall not assign any costs or
24attorney's fees incurred by one party against another party.
25Claims for expenses and attorney's fees under Section 10-55 of

 

 

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1the Administrative Procedure Act shall first be made to the
2Department of Revenue. If the claimant is dissatisfied because
3of the Department's failure to make any award or because of the
4insufficiency of the award, the claimant may petition the Court
5of Claims for the amount deemed owed.
 
6    Section 1-60. Discovery and stipulation.
7    (a) The parties to the proceeding shall comply with the
8Supreme Court Rules for Civil Proceedings in the Trial Court
9regarding Discovery, Requests for Admission, and Pre-Trial
10Procedure.
11    (b) A administrative law judge or the clerk of the Tax
12Tribunal, on the request of any party to the proceeding, shall
13issue subpoenas requiring the attendance of witnesses and
14giving of testimony and subpoenas duces tecum requiring the
15production of evidence or things.
16    (c) Any employee of the Tax Tribunal designated in writing
17for that purpose by the Chief Administrative Law Judge may
18administer oaths.
19    (d) The Tax Tribunal may enforce its order on discovery and
20other procedural issues, among other means, by deciding issues
21wholly or partly against the offending party.
 
22    Section 1-63. Mediation. At any point in the proceedings
23before the Tax Tribunal, but prior to the hearing under Section
241-65 of this Act, the parties may jointly petition the Tax

 

 

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1Tribunal for mediation. The purpose of the mediation shall be
2to attempt to settle any contested issues or the case in its
3entirety. An administrative law judge other than the one
4initially assigned to hear the case shall serve as the
5mediator.
 
6    Section 1-65. Hearings.
7    (a) Proceedings before the Tax Tribunal shall be tried de
8novo.
9    (b) Except as set forth in this Act or otherwise precluded
10by law, the Tax Tribunal shall take evidence, conduct hearings,
11rule on motions, and issue final decisions.
12    (c) Hearings shall be open to the public. Taxpayers may
13petition the Tax Tribunal to close portions of the hearing for
14good cause shown. Taxpayers may also petition the Tax Tribunal
15to require that certain pleadings or portions thereof be filed,
16or that certain evidence or portions thereof be admitted, under
17seal in order to prevent economic or other harm to the
18taxpayer. Original tax return documents, schedules, or other
19attachments and any copies thereof shall not be made available
20to the public for inspection or copying. Nothing in this
21Section shall operate to restrict the transmission of records
22to the appellate court.
23    (d) Hearings shall be conducted in accordance with such
24rules of practice and procedure as the Tax Tribunal shall
25promulgate.

 

 

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1    (e) The rules of evidence and privilege as applied in civil
2cases in the circuit courts of this State shall be followed.
3    (f) Subject to the evidentiary requirements of subsection
4(e) of this Section, a party may conduct cross examination
5required for a full and fair disclosure of the facts.
6    (g) Notice may be taken by the Tax Tribunal of matters of
7which the circuit courts of this State may take judicial
8notice. Parties shall be notified either before or during the
9hearing, or by reference in preliminary reports or otherwise,
10of the material noticed, including any staff memoranda or data,
11and they shall be afforded an opportunity to contest the
12material so noticed.
13    (h) Testimony may be given only on oath or affirmation.
14    (i) The petition and other pleadings in the proceeding
15shall be deemed to conform to the proof presented at the
16hearing, unless a party satisfies the Tax Tribunal that
17presentation of the evidence would unfairly prejudice the party
18in maintaining its position on the merits or unless deeming the
19taxpayer's petition to conform to the proof would confer
20jurisdiction on the Tax Tribunal over a matter that would not
21otherwise come within its jurisdiction.
22    (j) In the case of an issue of fact, the taxpayer shall
23have the burden of persuasion by a preponderance of the
24evidence.
 
25    Section 1-67. Temporary suspension of proceedings.

 

 

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1    (a) If any party to a proceeding pending in the Tax
2Tribunal is also a defendant in a criminal case pending in any
3court in this State involving the same conduct as the case
4before the Tax Tribunal, then, upon motion of any party or the
5Attorney General, or upon its own motion, the Tax Tribunal
6shall enter an order staying the proceeding.
7    (b) If the Attorney General or the Department determines
8that the interests of justice so require, either may file an ex
9parte motion with the Chief Administrative Law Judge requesting
10that any proceeding pending before the Tax Tribunal be stayed.
11If the Chief Administrative Law Judge finds that the motion
12reasonably shows that the proceeding may interfere with an
13ongoing criminal investigation, the Chief Administrative Law
14Judge shall enter an order staying the proceeding. The denial
15of a motion to enter an order staying the proceeding is a final
16administrative decision within the meaning of Section 3-101 of
17the Administrative Review Law and may be reviewed by the
18Circuit Court pursuant to the Administrative Review Law.
 
19    Section 1-70. Decisions.
20    (a) The Tax Tribunal shall render its decision in writing,
21including in that writing a concise statement of the facts
22found and the conclusions of law reached. The Tax Tribunal's
23decision shall, subject to law, grant such relief, invoke such
24remedies, and issue such orders as it deems appropriate to
25carry out its decisions. The Tax Tribunal shall promptly mail a

 

 

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1notice of its decision to the taxpayer and to the Department.
2    (b) The Tax Tribunal shall render its decision no later
3than 90 days after submission of the last brief filed
4subsequent to completion of the hearing or, if briefs are not
5submitted, then no later than 90 days after completion of the
6hearing. The Tax Tribunal may extend the 90 day period, for
7good cause, up to 30 additional days.
8    (c) If the Tax Tribunal fails to render a decision within
9the prescribed period, either party may institute a proceeding
10in the circuit court to compel issuance of a decision.
11    (d) The Tax Tribunal's decision shall finally decide the
12matters in controversy, unless any party to the matter timely
13appeals the decision as provided in Section 1-75 of this Act.
14    (e) A decision of the Tax Tribunal shall become final 35
15days after the issuance of a notice of decision.
 
16    Section 1-75. Appeals.
17    (a) The taxpayer and the Department are entitled to
18judicial review of a final decision of the Tribunal in the
19Illinois Appellate Court, in accordance with Section 3-113 of
20the Administrative Review Law.
21    (b) The record on judicial review shall include the
22decision of the Tax Tribunal, the stenographic transcript of
23the hearing before the Tax Tribunal, the pleadings and all
24exhibits and documents admitted into evidence.
 

 

 

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1    Section 1-80. Representation.
2    (a) Appearances in proceedings conducted by the Tax
3Tribunal may be by the taxpayer or by an attorney admitted to
4practice in this State. The Tax Tribunal may allow an attorney
5authorized to practice or licensed in any other jurisdiction of
6the United States to appear and represent a taxpayer in
7proceedings before the Tax Tribunal for a particular matter.
8    (b) The Department of Revenue shall be represented by the
9Attorney General in all proceedings before the Tax Tribunal.
 
10    Section 1-85. Publication of decisions and electronic
11submission of documents.
12    (a) The Tax Tribunal shall, within 180 days of the issuance
13of a decision, index and publish its final decision in such
14print or electronic form as it deems best adapted for public
15convenience. Such publications shall be made permanently
16available and constitute the official reports of the Tax
17Tribunal.
18    (b) All published decisions shall be edited by the Tax
19Tribunal so that the identification number of the taxpayer and
20any related entities or employees, and any trade secrets or
21other intellectual property, are not disclosed or identified.
22    (c) Within 30 days following the issuance of any hearing
23decision, the taxpayer affected by the decision may also
24request that the Tax Tribunal omit specifically identified
25trade secrets or other confidential or proprietary information

 

 

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1prior to publication of the decision. The Tax Tribunal shall
2approve those requests if it determines that the requests are
3reasonable and that the disclosure of such information would
4potentially cause economic or other injury to the taxpayer.
5    (d) The Tax Tribunal shall provide, by rule, reasonable
6requirements for the electronic submission of documents and
7records and the method and type of symbol or security procedure
8it will accept to authenticate electronic submissions or as a
9legal signature.
10    (e) Each year, no later than October 1, the Tax Tribunal
11shall report to the General Assembly regarding the Tribunal's
12operations during the prior fiscal year. Such report shall
13include the number of cases opened and closed, the size of its
14docket, the average age of cases, the dollar amount of cases by
15tax type, the number of cases decided in favor of the
16Department, the number of cases decided in favor of the
17taxpayer, the number of cases resolved through mediation or
18settlement, and such other statistics so as to apprise the
19General Assembly of whether the Tax Tribunal has successfully
20accomplished its mission to fairly and efficiently adjudicate
21tax disputes.
 
22    Section 1-90. Service of process and mailings.
23    (a) Mailings by first class or certified or registered
24mail, postage prepaid, to the address of the taxpayer given on
25the taxpayer's petition, or to the address of the taxpayer's

 

 

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1representative of record, if any, or to the usual place of
2business of the Department, shall constitute personal service
3on the other party. The Tax Tribunal may by rule prescribe that
4notice by other means shall constitute personal service and may
5in a particular case order that notice be given to additional
6persons or by other means.
7    (b) Mailing by registered or certified mail and delivery by
8a private delivery service approved by the Internal Revenue
9Service in accordance with Section 7502(f) of the Internal
10Revenue Code of 1986, as amended, shall be deemed to have
11occurred, respectively, on the date of mailing and the date of
12submission to the private delivery service.
 
13    Section 1-95. Rules and forms. The Tax Tribunal is
14authorized to promulgate and adopt all reasonable rules and
15forms as may be necessary or appropriate to carry out the
16intent and purposes of this Act. Rules shall be adopted in
17accordance with the rulemaking procedures of Article 5 of the
18Illinois Administrative Procedure Act.
 
19    Section 1-100. Confidentiality. All information received
20by the Tax Tribunal as a result of a hearing or investigation
21conducted under the provisions of this Act shall be public,
22except for tax returns and information received under seal
23pursuant to Section 1-65, and information received in relation
24to any mediation proceedings conducted under Section 1-63.
 

 

 

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1
Article 5. AMENDATORY PROVISIONS

 
2    Section 5-5. The Open Meetings Act is amended by changing
3Section 1.02 as follows:
 
4    (5 ILCS 120/1.02)  (from Ch. 102, par. 41.02)
5    Sec. 1.02. For the purposes of this Act:
6    "Meeting" means any gathering, whether in person or by
7video or audio conference, telephone call, electronic means
8(such as, without limitation, electronic mail, electronic
9chat, and instant messaging), or other means of contemporaneous
10interactive communication, of a majority of a quorum of the
11members of a public body held for the purpose of discussing
12public business or, for a 5-member public body, a quorum of the
13members of a public body held for the purpose of discussing
14public business.
15    Accordingly, for a 5-member public body, 3 members of the
16body constitute a quorum and the affirmative vote of 3 members
17is necessary to adopt any motion, resolution, or ordinance,
18unless a greater number is otherwise required.
19    "Public body" includes all legislative, executive,
20administrative or advisory bodies of the State, counties,
21townships, cities, villages, incorporated towns, school
22districts and all other municipal corporations, boards,
23bureaus, committees or commissions of this State, and any

 

 

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1subsidiary bodies of any of the foregoing including but not
2limited to committees and subcommittees which are supported in
3whole or in part by tax revenue, or which expend tax revenue,
4except the General Assembly and committees or commissions
5thereof. "Public body" includes tourism boards and convention
6or civic center boards located in counties that are contiguous
7to the Mississippi River with populations of more than 250,000
8but less than 300,000. "Public body" includes the Health
9Facilities and Services Review Board. "Public body" does not
10include a child death review team or the Illinois Child Death
11Review Teams Executive Council established under the Child
12Death Review Team Act, or an ethics commission acting under the
13State Officials and Employees Ethics Act, or the Illinois
14Independent Tax Tribunal.
15(Source: P.A. 95-245, eff. 8-17-07; 96-31, eff. 6-30-09.)
 
16    Section 5-10. The Freedom of Information Act is amended by
17changing Section 7 as follows:
 
18    (5 ILCS 140/7)  (from Ch. 116, par. 207)
19    Sec. 7. Exemptions.
20    (1) When a request is made to inspect or copy a public
21record that contains information that is exempt from disclosure
22under this Section, but also contains information that is not
23exempt from disclosure, the public body may elect to redact the
24information that is exempt. The public body shall make the

 

 

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1remaining information available for inspection and copying.
2Subject to this requirement, the following shall be exempt from
3inspection and copying:
4        (a) Information specifically prohibited from
5    disclosure by federal or State law or rules and regulations
6    implementing federal or State law.
7        (b) Private information, unless disclosure is required
8    by another provision of this Act, a State or federal law or
9    a court order.
10        (b-5) Files, documents, and other data or databases
11    maintained by one or more law enforcement agencies and
12    specifically designed to provide information to one or more
13    law enforcement agencies regarding the physical or mental
14    status of one or more individual subjects.
15        (c) Personal information contained within public
16    records, the disclosure of which would constitute a clearly
17    unwarranted invasion of personal privacy, unless the
18    disclosure is consented to in writing by the individual
19    subjects of the information. "Unwarranted invasion of
20    personal privacy" means the disclosure of information that
21    is highly personal or objectionable to a reasonable person
22    and in which the subject's right to privacy outweighs any
23    legitimate public interest in obtaining the information.
24    The disclosure of information that bears on the public
25    duties of public employees and officials shall not be
26    considered an invasion of personal privacy.

 

 

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1        (d) Records in the possession of any public body
2    created in the course of administrative enforcement
3    proceedings, and any law enforcement or correctional
4    agency for law enforcement purposes, but only to the extent
5    that disclosure would:
6            (i) interfere with pending or actually and
7        reasonably contemplated law enforcement proceedings
8        conducted by any law enforcement or correctional
9        agency that is the recipient of the request;
10            (ii) interfere with active administrative
11        enforcement proceedings conducted by the public body
12        that is the recipient of the request;
13            (iii) create a substantial likelihood that a
14        person will be deprived of a fair trial or an impartial
15        hearing;
16            (iv) unavoidably disclose the identity of a
17        confidential source, confidential information
18        furnished only by the confidential source, or persons
19        who file complaints with or provide information to
20        administrative, investigative, law enforcement, or
21        penal agencies; except that the identities of
22        witnesses to traffic accidents, traffic accident
23        reports, and rescue reports shall be provided by
24        agencies of local government, except when disclosure
25        would interfere with an active criminal investigation
26        conducted by the agency that is the recipient of the

 

 

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1        request;
2            (v) disclose unique or specialized investigative
3        techniques other than those generally used and known or
4        disclose internal documents of correctional agencies
5        related to detection, observation or investigation of
6        incidents of crime or misconduct, and disclosure would
7        result in demonstrable harm to the agency or public
8        body that is the recipient of the request;
9            (vi) endanger the life or physical safety of law
10        enforcement personnel or any other person; or
11            (vii) obstruct an ongoing criminal investigation
12        by the agency that is the recipient of the request.
13        (e) Records that relate to or affect the security of
14    correctional institutions and detention facilities.
15        (f) Preliminary drafts, notes, recommendations,
16    memoranda and other records in which opinions are
17    expressed, or policies or actions are formulated, except
18    that a specific record or relevant portion of a record
19    shall not be exempt when the record is publicly cited and
20    identified by the head of the public body. The exemption
21    provided in this paragraph (f) extends to all those records
22    of officers and agencies of the General Assembly that
23    pertain to the preparation of legislative documents.
24        (g) Trade secrets and commercial or financial
25    information obtained from a person or business where the
26    trade secrets or commercial or financial information are

 

 

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1    furnished under a claim that they are proprietary,
2    privileged or confidential, and that disclosure of the
3    trade secrets or commercial or financial information would
4    cause competitive harm to the person or business, and only
5    insofar as the claim directly applies to the records
6    requested.
7        The information included under this exemption includes
8    all trade secrets and commercial or financial information
9    obtained by a public body, including a public pension fund,
10    from a private equity fund or a privately held company
11    within the investment portfolio of a private equity fund as
12    a result of either investing or evaluating a potential
13    investment of public funds in a private equity fund. The
14    exemption contained in this item does not apply to the
15    aggregate financial performance information of a private
16    equity fund, nor to the identity of the fund's managers or
17    general partners. The exemption contained in this item does
18    not apply to the identity of a privately held company
19    within the investment portfolio of a private equity fund,
20    unless the disclosure of the identity of a privately held
21    company may cause competitive harm.
22        Nothing contained in this paragraph (g) shall be
23    construed to prevent a person or business from consenting
24    to disclosure.
25        (h) Proposals and bids for any contract, grant, or
26    agreement, including information which if it were

 

 

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1    disclosed would frustrate procurement or give an advantage
2    to any person proposing to enter into a contractor
3    agreement with the body, until an award or final selection
4    is made. Information prepared by or for the body in
5    preparation of a bid solicitation shall be exempt until an
6    award or final selection is made.
7        (i) Valuable formulae, computer geographic systems,
8    designs, drawings and research data obtained or produced by
9    any public body when disclosure could reasonably be
10    expected to produce private gain or public loss. The
11    exemption for "computer geographic systems" provided in
12    this paragraph (i) does not extend to requests made by news
13    media as defined in Section 2 of this Act when the
14    requested information is not otherwise exempt and the only
15    purpose of the request is to access and disseminate
16    information regarding the health, safety, welfare, or
17    legal rights of the general public.
18        (j) The following information pertaining to
19    educational matters:
20            (i) test questions, scoring keys and other
21        examination data used to administer an academic
22        examination;
23            (ii) information received by a primary or
24        secondary school, college, or university under its
25        procedures for the evaluation of faculty members by
26        their academic peers;

 

 

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1            (iii) information concerning a school or
2        university's adjudication of student disciplinary
3        cases, but only to the extent that disclosure would
4        unavoidably reveal the identity of the student; and
5            (iv) course materials or research materials used
6        by faculty members.
7        (k) Architects' plans, engineers' technical
8    submissions, and other construction related technical
9    documents for projects not constructed or developed in
10    whole or in part with public funds and the same for
11    projects constructed or developed with public funds,
12    including but not limited to power generating and
13    distribution stations and other transmission and
14    distribution facilities, water treatment facilities,
15    airport facilities, sport stadiums, convention centers,
16    and all government owned, operated, or occupied buildings,
17    but only to the extent that disclosure would compromise
18    security.
19        (l) Minutes of meetings of public bodies closed to the
20    public as provided in the Open Meetings Act until the
21    public body makes the minutes available to the public under
22    Section 2.06 of the Open Meetings Act.
23        (m) Communications between a public body and an
24    attorney or auditor representing the public body that would
25    not be subject to discovery in litigation, and materials
26    prepared or compiled by or for a public body in

 

 

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1    anticipation of a criminal, civil or administrative
2    proceeding upon the request of an attorney advising the
3    public body, and materials prepared or compiled with
4    respect to internal audits of public bodies.
5        (n) Records relating to a public body's adjudication of
6    employee grievances or disciplinary cases; however, this
7    exemption shall not extend to the final outcome of cases in
8    which discipline is imposed.
9        (o) Administrative or technical information associated
10    with automated data processing operations, including but
11    not limited to software, operating protocols, computer
12    program abstracts, file layouts, source listings, object
13    modules, load modules, user guides, documentation
14    pertaining to all logical and physical design of
15    computerized systems, employee manuals, and any other
16    information that, if disclosed, would jeopardize the
17    security of the system or its data or the security of
18    materials exempt under this Section.
19        (p) Records relating to collective negotiating matters
20    between public bodies and their employees or
21    representatives, except that any final contract or
22    agreement shall be subject to inspection and copying.
23        (q) Test questions, scoring keys, and other
24    examination data used to determine the qualifications of an
25    applicant for a license or employment.
26        (r) The records, documents, and information relating

 

 

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1    to real estate purchase negotiations until those
2    negotiations have been completed or otherwise terminated.
3    With regard to a parcel involved in a pending or actually
4    and reasonably contemplated eminent domain proceeding
5    under the Eminent Domain Act, records, documents and
6    information relating to that parcel shall be exempt except
7    as may be allowed under discovery rules adopted by the
8    Illinois Supreme Court. The records, documents and
9    information relating to a real estate sale shall be exempt
10    until a sale is consummated.
11        (s) Any and all proprietary information and records
12    related to the operation of an intergovernmental risk
13    management association or self-insurance pool or jointly
14    self-administered health and accident cooperative or pool.
15    Insurance or self insurance (including any
16    intergovernmental risk management association or self
17    insurance pool) claims, loss or risk management
18    information, records, data, advice or communications.
19        (t) Information contained in or related to
20    examination, operating, or condition reports prepared by,
21    on behalf of, or for the use of a public body responsible
22    for the regulation or supervision of financial
23    institutions or insurance companies, unless disclosure is
24    otherwise required by State law.
25        (u) Information that would disclose or might lead to
26    the disclosure of secret or confidential information,

 

 

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1    codes, algorithms, programs, or private keys intended to be
2    used to create electronic or digital signatures under the
3    Electronic Commerce Security Act.
4        (v) Vulnerability assessments, security measures, and
5    response policies or plans that are designed to identify,
6    prevent, or respond to potential attacks upon a community's
7    population or systems, facilities, or installations, the
8    destruction or contamination of which would constitute a
9    clear and present danger to the health or safety of the
10    community, but only to the extent that disclosure could
11    reasonably be expected to jeopardize the effectiveness of
12    the measures or the safety of the personnel who implement
13    them or the public. Information exempt under this item may
14    include such things as details pertaining to the
15    mobilization or deployment of personnel or equipment, to
16    the operation of communication systems or protocols, or to
17    tactical operations.
18        (w) (Blank).
19        (x) Maps and other records regarding the location or
20    security of generation, transmission, distribution,
21    storage, gathering, treatment, or switching facilities
22    owned by a utility, by a power generator, or by the
23    Illinois Power Agency.
24        (y) Information contained in or related to proposals,
25    bids, or negotiations related to electric power
26    procurement under Section 1-75 of the Illinois Power Agency

 

 

HB5192 Enrolled- 35 -LRB097 18915 HLH 64153 b

1    Act and Section 16-111.5 of the Public Utilities Act that
2    is determined to be confidential and proprietary by the
3    Illinois Power Agency or by the Illinois Commerce
4    Commission.
5        (z) Information about students exempted from
6    disclosure under Sections 10-20.38 or 34-18.29 of the
7    School Code, and information about undergraduate students
8    enrolled at an institution of higher education exempted
9    from disclosure under Section 25 of the Illinois Credit
10    Card Marketing Act of 2009.
11        (aa) Information the disclosure of which is exempted
12    under the Viatical Settlements Act of 2009.
13        (bb) Records and information provided to a mortality
14    review team and records maintained by a mortality review
15    team appointed under the Department of Juvenile Justice
16    Mortality Review Team Act.
17        (cc) Information regarding interments, entombments, or
18    inurnments of human remains that are submitted to the
19    Cemetery Oversight Database under the Cemetery Care Act or
20    the Cemetery Oversight Act, whichever is applicable.
21        (dd) Correspondence and records (i) that may not be
22    disclosed under Section 11-9 of the Public Aid Code or (ii)
23    that pertain to appeals under Section 11-8 of the Public
24    Aid Code.
25        (ee) (dd) The names, addresses, or other personal
26    information of persons who are minors and are also

 

 

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1    participants and registrants in programs of park
2    districts, forest preserve districts, conservation
3    districts, recreation agencies, and special recreation
4    associations.
5        (ff) (ee) The names, addresses, or other personal
6    information of participants and registrants in programs of
7    park districts, forest preserve districts, conservation
8    districts, recreation agencies, and special recreation
9    associations where such programs are targeted primarily to
10    minors.
11        (gg) Confidential information described in Section
12    1-100 of the Illinois Independent Tax Tribunal Act of 2012.
13    (2) A public record that is not in the possession of a
14public body but is in the possession of a party with whom the
15agency has contracted to perform a governmental function on
16behalf of the public body, and that directly relates to the
17governmental function and is not otherwise exempt under this
18Act, shall be considered a public record of the public body,
19for purposes of this Act.
20    (3) This Section does not authorize withholding of
21information or limit the availability of records to the public,
22except as stated in this Section or otherwise provided in this
23Act.
24(Source: P.A. 96-261, eff. 1-1-10; 96-328, eff. 8-11-09;
2596-542, eff. 1-1-10; 96-558, eff. 1-1-10; 96-736, eff. 7-1-10;
2696-863, eff. 3-1-10; 96-1378, eff. 7-29-10; 97-333, eff.

 

 

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18-12-11; 97-385, eff. 8-15-11; 97-452, eff. 8-19-11; revised
29-2-11.)
 
3    Section 5-15. The Department of Revenue Law of the Civil
4Administrative Code of Illinois is amended by changing Section
52505-510 as follows:
 
6    (20 ILCS 2505/2505-510)  (was 20 ILCS 2505/39b20.1)
7    Sec. 2505-510. Informal assessment review.
8    (a) The Department has the power to establish an informal
9assessment review process at which an impartial Department
10designee, who has the authority and knowledge to recommend an
11appropriate conclusion to the matter, shall review adjustments
12recommended by examiners and auditors. The Director shall
13provide by rule for the availability of an informal assessment
14review before the issuance of a notice of tax liability or
15notice of deficiency upon completion of an audit of the
16taxpayer or before a formal hearing. A taxpayer may be
17represented by a party of his or her choice during the informal
18assessment review procedure and need not be represented by an
19attorney.
20    (b) The exercise of this power to establish an informal
21assessment review procedure is mandatory, and the Director
22shall promulgate rules implementing this process within 180
23days after the effective date of this amendatory Act of 1988.
24    (c) Offers of disposition of a proposed audit adjustment

 

 

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1may be proposed during the informal assessment review process.
2The panel shall consider disposing of the matter in controversy
3in all instances where, having made a reasonable evaluation of
4such matters, the panel determines that there is uncertainty as
5to the correctness of the proposed audit adjustments, and it is
6not in the best interest of the Department to issue an
7assessment or claim denial with respect to the issue due to,
8among other factors, potential hazards of litigation.
9(Source: P.A. 91-239, eff. 1-1-00.)
 
10    Section 5-20. The Illinois Income Tax Act is amended by
11changing Sections 908, 909, 910, 914, 916, 918, 1201, 1202, and
121408 as follows:
 
13    (35 ILCS 5/908)  (from Ch. 120, par. 9-908)
14    Sec. 908. Procedure on protest.
15    (a) Time for protest. Within 60 days (150 days if the
16taxpayer is outside the United States) after the issuance of a
17notice of deficiency, the taxpayer may file (i) a protest
18against the proposed assessment with the Department or (ii) a
19petition with the Illinois Independent Tax Tribunal, as
20provided in this subsection (a). Prior to July 1, 2013, a
21written protest against the proposed assessment shall be filed
22with the Department in such form as the Department may by
23regulations prescribe, setting forth the grounds on which such
24protest is based. If such a protest is filed, the Department

 

 

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1shall reconsider the proposed assessment and, if the taxpayer
2has so requested, shall grant the taxpayer or his authorized
3representative a hearing.
4    On and after July 1, 2013, all protests of a notice of
5deficiency that are subject to the jurisdiction of the Illinois
6Independent Tax Tribunal shall be filed by petition pursuant to
7the Illinois Independent Tax Tribunal Act of 2012.
8    With respect to protests filed with the Department prior to
9July 1, 2013 that are otherwise subject to the jurisdiction of
10the Illinois Independent Tax Tribunal, the taxpayer may elect
11to be subject to the provisions of the Illinois Independent Tax
12Tribunal Act of 2012 at any time on or after July 1, 2013, but
13not later than 30 days after the date on which the protest was
14filed. If made, the election shall be irrevocable.
15    (b) Notice of decision. With respect to protests filed with
16the Department that are not subject to the provisions of the
17Illinois Independent Tax Tribunal Act of 2012, as As soon as
18practicable after such reconsideration and hearing, if any, the
19Department shall issue a notice of decision by mailing such
20notice by certified or registered mail. Such notice shall set
21forth briefly the Department's findings of fact and the basis
22of decision in each case decided in whole or in part adversely
23to the taxpayer.
24    (c) Request for rehearing. With respect to protests filed
25with the Department that are not subject to the provisions of
26the Illinois Independent Tax Tribunal Act of 2012, within

 

 

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1Within 30 days after the mailing of a notice of decision, the
2taxpayer may file with a Department a written request for
3rehearing in such form as the Department may by regulations
4prescribe, setting forth the grounds on which rehearing is
5requested. In any such case, the Department shall, in its
6discretion, grant either a rehearing or Departmental review
7unless, within 10 days of receipt of such request, it shall
8issue a denial of such request by mailing such denial to the
9taxpayer by certified or registered mail. If rehearing or
10Departmental review is granted, as soon as practicable after
11such rehearing or Departmental review, the Department shall
12issue a notice of final decision as provided in subsection (b).
13    (d) Finality of decision. If the taxpayer fails to file a
14timely protest or petition under subsection (a) of this
15Section, then the Department's notice of deficiency shall
16become a final assessment at the end of the 60th day after the
17date of issuance of the notice of deficiency (or the 150th day
18if the taxpayer is outside the United States). If the taxpayer
19files a protest with the Department, and the taxpayer does not
20elect to be subject to the provisions of the Illinois
21Independent Tax Tribunal Act of 2012, then the The action of
22the Department on the taxpayer's protest shall become final:
23        (1) 30 Days after issuance of a notice of decision as
24    provided in subsection (b); or
25        (2) if a timely request for rehearing was made, upon
26    the issuance of a denial of such request or the issuance of

 

 

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1    a notice of final decision as provided in subsection (c).
2    After the issuance of a final assessment, or a notice of
3deficiency which becomes final without the necessity of
4actually issuing a final assessment as provided in this
5Section, the Department, at any time before such assessment is
6reduced to judgment, may (subject to rules of the Department)
7grant a rehearing (or grant departmental review and hold an
8original hearing if no previous hearing in the matter has been
9held) upon the application of the person aggrieved. Pursuant to
10such hearing or rehearing, the Department shall issue a revised
11final assessment to such person or his legal representative for
12the amount found to be due as a result of such hearing or
13rehearing.
14    If the taxpayer files a petition with the Illinois
15Independent Tax Tribunal, or otherwise elects to be subject to
16the provisions of the Illinois Independent Tax Tribunal Act of
172012, then the Department's decision will become final as
18provided in that Act.
19(Source: P.A. 87-192; 87-205.)
 
20    (35 ILCS 5/909)  (from Ch. 120, par. 9-909)
21    Sec. 909. Credits and Refunds.
22    (a) In general. In the case of any overpayment, the
23Department, within the applicable period of limitations for a
24claim for refund, may credit the amount of such overpayment,
25including any interest allowed thereon, against any liability

 

 

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1in respect of the tax imposed by this Act, regardless of
2whether other collection remedies are closed to the Department
3on the part of the person who made the overpayment and shall
4refund any balance to such person.
5    (b) Credits against estimated tax. The Department may
6prescribe regulations providing for the crediting against the
7estimated tax for any taxable year of the amount determined by
8the taxpayer or the Department to be an overpayment of the tax
9imposed by this Act for a preceding taxable year.
10    (c) Interest on overpayment. Interest shall be allowed and
11paid at the rate and in the manner prescribed in Section 3-2 of
12the Uniform Penalty and Interest Act upon any overpayment in
13respect of the tax imposed by this Act. For purposes of this
14subsection, no amount of tax, for any taxable year, shall be
15treated as having been paid before the date on which the tax
16return for such year was due under Section 505, without regard
17to any extension of the time for filing such return.
18    (d) Refund claim. Every claim for refund shall be filed
19with the Department in writing in such form as the Department
20may by regulations prescribe, and shall state the specific
21grounds upon which it is founded.
22    (e) Notice of denial. As soon as practicable after a claim
23for refund is filed, the Department shall examine it and either
24issue a notice of refund, abatement or credit to the claimant
25or issue a notice of denial. If the Department has failed to
26approve or deny the claim before the expiration of 6 months

 

 

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1from the date the claim was filed, the claimant may
2nevertheless thereafter file with the Department a written
3protest in such form as the Department may by regulation
4prescribe, provided that, on or after July 1, 2013, protests
5concerning matters that are subject to the jurisdiction of the
6Illinois Independent Tax Tribunal shall be filed with the
7Illinois Independent Tax Tribunal and not with the Department.
8If the protest is subject to the jurisdiction of the Department
9a protest is filed, the Department shall consider the claim
10and, if the taxpayer has so requested, shall grant the taxpayer
11or the taxpayer's authorized representative a hearing within 6
12months after the date such request is filed.
13    On and after July 1, 2013, if the protest would otherwise
14be subject to the jurisdiction of the Illinois Independent Tax
15Tribunal, the claimant may elect to treat the Department's
16non-action as a denial of the claim by filing a petition to
17review the Department's administrative decision with the
18Illinois Tax Tribunal, as provided by Section 910.
19    (f) Effect of denial. A denial of a claim for refund
20becomes final 60 days after the date of issuance of the notice
21of such denial except for such amounts denied as to which the
22claimant has filed a protest with the Department or a petition
23with the Illinois Tax Tribunal, as provided by Section 910.
24    (g) An overpayment of tax shown on the face of an unsigned
25return shall be considered forfeited to the State if after
26notice and demand for signature by the Department the taxpayer

 

 

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1fails to provide a signature and 3 years have passed from the
2date the return was filed. An overpayment of tax refunded to a
3taxpayer whose return was filed electronically shall be
4considered an erroneous refund under Section 912 of this Act
5if, after proper notice and demand by the Department, the
6taxpayer fails to provide a required signature document. A
7notice and demand for signature in the case of a return
8reflecting an overpayment may be made by first class mail. This
9subsection (g) shall apply to all returns filed pursuant to
10this Act since 1969.
11    (h) This amendatory Act of 1983 applies to returns and
12claims for refunds filed with the Department on and after July
131, 1983.
14(Source: P.A. 97-507, eff. 8-23-11.)
 
15    (35 ILCS 5/910)  (from Ch. 120, par. 9-910)
16    Sec. 910. Procedure on Denial of Claim for Refund.
17    (a) Time for protest. Within 60 days after the denial of
18the claim, the claimant may file (i) a protest with the
19Department or (ii) a petition with the Illinois Independent Tax
20Tribunal, as provided in this subsection (a). A a written
21protest against such denial shall be filed with the Department
22in such form as the Department may by regulations prescribe,
23setting forth the grounds on which such protest is based. If
24such a protest is filed, the Department shall reconsider the
25denial and, if the taxpayer has so requested, shall grant the

 

 

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1taxpayer or his authorized representative a hearing. With
2respect to protests filed with the Department prior to July 1,
32013 that would otherwise be subject to the jurisdiction of the
4Illinois Independent Tax Tribunal, the taxpayer may elect to be
5subject to the provisions of the Illinois Independent Tax
6Tribunal Act of 2012 on or after July 1, 2013, but not later
7than 30 days after the date on which the protest was filed. If
8made, the election shall be irrevocable.
9    A claimant who, on or after July 1, 2013, wishes to protest
10a denial that is subject to the jurisdiction of the Illinois
11Independent Tax Tribunal shall do so by filing a petition with
12the Illinois Independent Tax Tribunal pursuant to the Illinois
13Independent Tax Tribunal Act of 2012.
14    (b) Notice of decision. With respect to protests that are
15subject to the jurisdiction of the Department, if the taxpayer
16has not made an election to be subject to the provisions of the
17Illinois Independent Tax Tribunal Act of 2012, then as As soon
18as practicable after such reconsideration and hearing, if any,
19the Department shall issue a notice of decision by mailing such
20notice by certified or registered mail. Such notice shall set
21forth briefly the Department's findings of fact and the basis
22of decision in each case decided in whole or in part adversely
23to the claimant.
24    (c) Request for rehearing. Within 30 days after the mailing
25of a notice of decision as provided in subsection (b), the
26claimant may file with the Department a written request for

 

 

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1rehearing in such form as the Department may by regulations
2prescribe, setting forth the grounds on which rehearing is
3requested. In any such case, the Department shall, in its
4discretion, grant either a rehearing or Departmental review
5unless, within 10 days of receipt of such request, it shall
6issue a denial of such request by mailing such denial to the
7claimant by certified or registered mail. If rehearing or
8Departmental review is granted, as soon as practicable after
9such rehearing or Departmental review, the Department shall
10issue a notice of final decision as provided in subsection (b).
11    (d) Finality of decision. If the taxpayer fails to file a
12timely protest or petition under subsection (a) of this
13Section, then the Department's notice of deficiency shall
14become a final assessment at the end of the 60th day after the
15date of issuance of the notice of deficiency. If the protest is
16subject to the jurisdiction of the Department, and the taxpayer
17does not elect to be subject to the provisions of the Illinois
18Independent Tax Tribunal Act of 2012, then the The action of
19the Department on the claimant's protest shall become final:
20        (1) 30 days after issuance of a notice of decision as
21    provided in subsection (b); or
22        (2) If a timely request for rehearing was made, upon
23    the issuance of a denial of such request or the issuance of
24    a notice of final decision as provided in subsection (c).
25    If the taxpayer files a petition with the Illinois
26Independent Tax Tribunal, or otherwise elects to be subject to

 

 

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1the provisions of the Illinois Independent Tax Tribunal Act of
22012, then the Department's decision will become final as
3provided in that Act.
4(Source: P.A. 89-399, eff. 8-20-95.)
 
5    (35 ILCS 5/914)  (from Ch. 120, par. 9-914)
6    Sec. 914. Conduct of Investigations and Hearings. For the
7purpose of administering and enforcing the provisions of this
8Act, the Department, or any officer or employee of the
9Department designated, in writing, by the Director may hold
10investigations and hearings concerning any matters covered by
11this Act that are not otherwise delegated to the Illinois
12Independent Tax Tribunal, and may examine any books, papers,
13records or memoranda bearing upon such matters, and may require
14the attendance of any person, or any officer or employee of
15such person, having knowledge of such matters, and may take
16testimony and require proof for its information. In the conduct
17of any investigation or hearing, neither the Department nor any
18officer or employee thereof shall be bound by the technical
19rules of evidence, and no informality in any proceeding, or in
20the manner of taking testimony, shall invalidate any order,
21decision, rule or regulation made or approved or confirmed by
22the Department. The Director, or any officer or employee of the
23Department authorized by the Director shall have power to
24administer oaths to such persons. The books, papers, records
25and memoranda of the Department, or parts thereof, may be

 

 

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1proved in any hearing, investigation, or legal proceeding by a
2reproduced copy thereof or by a computer print-out of
3Department records, under the certificate of the Director. If
4reproduced copies of the Department's books, papers, records or
5memoranda are offered as proof, the Director must certify that
6those copies are true and exact copies of such records on file
7with the Department. If computer print-outs of records of the
8Department are offered as proof, the Director must certify that
9those computer print-outs are true and exact representations of
10records properly entered into standard electronic computing
11equipment, in the regular course of the Department's business,
12at or reasonably near the time of the occurrence of the facts
13recorded, from trustworthy and reliable information. Such
14reproduced copy shall, without further proof, be admitted into
15evidence before the Department or in any legal proceeding.
16(Source: P.A. 85-299.)
 
17    (35 ILCS 5/916)  (from Ch. 120, par. 9-916)
18    Sec. 916. Production of Witnesses and Records. (a)
19Subpoenas. The Department or any officer or employee of the
20Department designated in writing by the Director, shall at its
21or his or her own instance, or on the written request of any
22other party to the proceeding, issue subpoenas requiring the
23attendance of and the giving of testimony by witnesses, and
24subpoenas duces tecum requiring the production of books,
25papers, records or memoranda. All subpoenas and subpoenas duces

 

 

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1tecum issued under this Act may be served by any person of full
2age.
3    (b) Fees. The fees of witnesses for attendance and travel
4shall be the same as the fees of witnesses before a Circuit
5Court of this State, such fees to be paid when the witness is
6excused from further attendance. When the witness is subpoenaed
7at the instance of the Department or any officer or employee
8thereof, such fees shall be paid in the same manner as other
9expenses of the Department, and when the witness is subpoenaed
10at the instance of any other party to any such proceeding the
11Department may require that the cost of service of the subpoena
12or subpoenas duces tecum and the fee of the witness be borne by
13the party at whose instance the witness is summoned. In such
14case, the Department, in its discretion, may require a deposit
15to cover the cost of such service and witness fees. A subpoena
16or subpoena duces tecum so issued shall be served in the same
17manner as a subpoena issued out of a court.
18    (c) Judicial enforcement. Any Circuit Court of this State,
19upon the application of the Department or any officer or
20employee thereof, or upon the application of any other party to
21the proceeding may, in its discretion, compel the attendance of
22witnesses, the production of books, papers, records or
23memoranda and the giving of testimony before the Department or
24any officer or employee thereof conducting an investigation or
25holding a hearing not otherwise delegated to the Illinois
26Independent Tax Tribunal authorized by this Act, by an

 

 

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1attachment for contempt, or otherwise, in the same manner as
2production of evidence may be compelled before the Court.
3(Source: P.A. 83-334.)
 
4    (35 ILCS 5/918)  (from Ch. 120, par. 9-918)
5    Sec. 918. Place of Hearings.
6    All hearings provided for in this Act and not otherwise
7delegated to the Illinois Independent Tax Tribunal with respect
8to or concerning a taxpayer having his residence or commercial
9domicile in this State shall be held at the Department's office
10nearest to the location of such residence or domicile, except
11that if the taxpayer has his residence or commercial domicile
12in Cook County, such hearing shall be held in Cook County. If
13the taxpayer does not have his residence or commercial domicile
14in this State, such hearing shall be held in Cook County.
15(Source: P.A. 76-261.)
 
16    (35 ILCS 5/1201)  (from Ch. 120, par. 12-1201)
17    Sec. 1201. Administrative Review Law; Illinois Independent
18Tax Tribunal Act of 2012. The provisions of the Administrative
19Review Law, and the rules adopted pursuant thereto, shall apply
20to and govern all proceedings for the judicial review of final
21actions of the Department referred to in Sections 908 (d) and
22910 (d). Such final actions shall constitute "administrative
23decisions" as defined in Section 3-101 of the Code of Civil
24Procedure.

 

 

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1    Notwithstanding any other provision of law, on and after
2July 1, 2013, the provisions of the Illinois Independent Tax
3Tribunal Act, and the rules adopted pursuant thereto, shall
4apply to and govern all proceedings for the judicial review of
5final administrative decisions of the Department that are
6subject to that Act, as defined in Section 1-70 of the Illinois
7Independent Tax Tribunal Act of 2012.
8(Source: P.A. 82-783.)
 
9    (35 ILCS 5/1202)  (from Ch. 120, par. 12-1202)
10    Sec. 1202. Venue.
11    Except as otherwise provided in the Illinois Tax Tribunal
12Act, the The Circuit Court of the county wherein the taxpayer
13has his residence or commercial domicile, or of Cook County in
14those cases where the taxpayer does not have his residence or
15commercial domicile in this State, shall have power to review
16all final administrative decisions of the Department in
17administering the provisions of this Act.
18(Source: P.A. 76-261.)
 
19    (35 ILCS 5/1408)  (from Ch. 120, par. 14-1408)
20    Sec. 1408. Except as otherwise provided in the Illinois Tax
21Tribunal Act, the The Illinois Administrative Procedure Act is
22hereby expressly adopted and shall apply to all administrative
23rules and procedures of the Department of Revenue under this
24Act, except that (1) paragraph (b) of Section 5-10 of the

 

 

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1Illinois Administrative Procedure Act does not apply to final
2orders, decisions and opinions of the Department, (2)
3subparagraph (a)2 of Section 5-10 of the Illinois
4Administrative Procedure Act does not apply to forms
5established by the Department for use under this Act, and (3)
6the provisions of Section 10-45 of the Illinois Administrative
7Procedure Act regarding proposals for decision are excluded and
8not applicable to the Department under this Act.
9(Source: P.A. 88-45.)
 
10    Section 5-25. The Use Tax Act is amended by changing
11Sections 12b and 20 as follows:
 
12    (35 ILCS 105/12b)  (from Ch. 120, par. 439.12b)
13    Sec. 12b. The Illinois Administrative Procedure Act is
14hereby expressly adopted and shall apply to all administrative
15rules and procedures of the Department of Revenue under this
16Act, except that (1) paragraph (b) of Section 5-10 of the
17Illinois Administrative Procedure Act does not apply to final
18orders, decisions and opinions of the Department, (2)
19subparagraph (a)2 of Section 5-10 of the Illinois
20Administrative Procedure Act does not apply to forms
21established by the Department for use under this Act, and (3)
22the provisions of Section 10-45 of the Illinois Administrative
23Procedure Act regarding proposals for decision are excluded and
24not applicable to the Department under this Act to the extent

 

 

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1Section 10-45 applies to hearings not otherwise delegated to
2the Illinois Independent Tax Tribunal.
3(Source: P.A. 88-45.)
 
4    (35 ILCS 105/20)  (from Ch. 120, par. 439.20)
5    Sec. 20. As soon as practicable after a claim for credit or
6refund is filed, the Department shall examine the same and
7determine the amount of credit or refund to which the claimant
8or the claimant's legal representative, in the event that the
9claimant shall have died or become a person under legal
10disability, is entitled and shall, by its Notice of Tentative
11Determination of Claim, notify the claimant or his or her legal
12representative of such determination, which determination
13shall be prima facie correct. Proof of such determination by
14the Department may be made at any hearing before the Department
15or in any legal proceeding by a reproduced copy of the
16Department's record relating thereto, in the name of the
17Department under the certificate of the Director of Revenue.
18Such reproduced copy shall, without further proof, be admitted
19into evidence before the Department or in any legal proceeding
20and shall be prima facie proof of the correctness of the
21Department's determination, as shown therein. If such
22claimant, or the legal representative of a deceased claimant or
23a claimant who is a person under legal disability shall, within
2460 days after the Department's Notice of Tentative
25Determination of Claim, file a protest thereto and request a

 

 

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1hearing thereon, the Department shall give notice to such
2claimant, or the legal representative of a deceased claimant,
3or a claimant who is a person under legal disability of the
4time and place fixed for such hearing, and shall hold a hearing
5in conformity with the provisions of this Act. On and after
6July 1, 2013, protests concerning matters that are subject to
7the jurisdiction of the Illinois Independent Tax Tribunal shall
8be filed with the Tax Tribunal in accordance with the Illinois
9Independent Tax Tribunal Act of 2012, and hearings concerning
10those matters shall be held before the Tribunal in accordance
11with that Act. With respect to protests filed with the
12Department prior to July 1, 2013 that would otherwise be
13subject to the jurisdiction of the Illinois Independent Tax
14Tribunal, the taxpayer may elect to be subject to the
15provisions of the Illinois Independent Tax Tribunal Act of 2012
16at any time on or after July 1, 2013, but not later than 30 days
17after the date on which the protest was filed. If made, the
18election shall be irrevocable. The Department , and pursuant
19thereto shall issue its Final Determination of the amount, if
20any, found to be due as a result of a such hearing before the
21Department or the Tribunal, to such claimant, or the legal
22representative of a deceased claimant or a claimant who is a
23person under legal disability.
24    If a protest to the Department's Notice of Tentative
25Determination of Claim is not filed within 60 days and a
26request for a hearing thereon is not made as provided herein,

 

 

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1the said Notice shall thereupon become and operate as a Final
2Determination; and, if the Department's Notice of Tentative
3Determination, upon becoming a Final Determination, indicates
4no amount due to the claimant, or, upon issuance of a credit or
5refund for the amount, if any, found by the Department to be
6due, the claim in all its aspects shall be closed and no longer
7open to protest, hearing, judicial review, or by any other
8proceeding or action whatever, either before the Department or
9in any court of this State. Claims for credit or refund
10hereunder must be filed with and initially determined by the
11Department, the remedy herein provided being exclusive; and no
12court shall have jurisdiction to determine the merits of any
13claim except upon review as provided in this Act.
14(Source: P.A. 90-491, eff. 1-1-98.)
 
15    Section 5-30. The Service Use Tax Act is amended by
16changing Sections 11, 18, and 20a as follows:
 
17    (35 ILCS 110/11)  (from Ch. 120, par. 439.41)
18    Sec. 11. Every serviceman required or authorized to collect
19taxes hereunder and every user who is subject to the tax
20imposed by this Act shall keep such records, receipts, invoices
21and other pertinent books, documents, memoranda and papers as
22the Department shall require, in such form as the Department
23shall require. The Department may adopt rules that establish
24requirements, including record forms and formats, for records

 

 

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1required to be kept and maintained by taxpayers. For purposes
2of this Section, "records" means all data maintained by the
3taxpayer, including data on paper, microfilm, microfiche or any
4type of machine-sensible data compilation. For the purpose of
5administering and enforcing the provisions hereof, the
6Department, or any officer or employee of the Department
7designated, in writing, by the Director thereof, may hold
8investigations and hearings concerning any matters covered
9herein and not otherwise delegated to the Illinois Independent
10Tax Tribunal and may examine any relevant books, papers,
11records, documents or memoranda of any serviceman or any
12taxable purchaser for use hereunder, and may require the
13attendance of such person or any officer or employee of such
14person, or of any person having knowledge of the facts, and may
15take testimony and require proof for its information.
16(Source: P.A. 88-480.)
 
17    (35 ILCS 110/18)  (from Ch. 120, par. 439.48)
18    Sec. 18. As soon as practicable after a claim for credit or
19refund is filed, the Department shall examine the same and
20determine the amount of credit or refund to which the claimant
21or the claimant's legal representative, in the event that the
22claimant shall have died or become a person under legal
23disability, is entitled and shall, by its Notice of Tentative
24Determination of Claim, notify the claimant or his legal
25representative of such determination, which determination

 

 

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1shall be prima facie correct. Proof of such determination by
2the Department may be made at any hearing before the Department
3or the Illinois Independent Tax Tribunal, as applicable, or in
4any legal proceeding by a reproduced copy of the Department's
5record relating thereto, in the name of the Department under
6the certificate of the Director of Revenue. Such reproduced
7copy shall, without further proof, be admitted into evidence
8before the Department or in any legal proceeding and shall be
9prima facie proof of the correctness of the Department's
10determination, as shown therein. If such claimant, or the legal
11representative of a deceased claimant or a claimant who is a
12person under legal disability, shall, within 60 days after the
13Department's Notice of Tentative Determination of Claim, file a
14protest thereto and request a hearing thereon, the Department
15shall give notice to such claimant, or the legal representative
16of a deceased claimant or claimant who is a person under legal
17disability, of the time and place fixed for such hearing, and
18shall hold a hearing in conformity with the provisions of this
19Act, and pursuant thereto shall issue its Final Determination
20of the amount, if any, found to be due as a result of such
21hearing, to such claimant, or the legal representative of a
22deceased or incompetent claimant.
23    If a protest to the Department's Notice of Tentative
24Determination of Claim is not filed within 60 days and a
25request for a hearing thereon is not made as provided herein,
26the Notice shall thereupon become and operate as a Final

 

 

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1Determination; and, if the Department's Notice of Tentative
2Determination upon becoming a Final Determination, indicates
3no amount due to the claimant, or, upon issuance of a credit or
4refund for the amount, if any, found by the Department to be
5due, the claim in all its aspects shall be closed and no longer
6open to protest, hearing, judicial review, or by any other
7proceeding or action whatever, either before the Department or
8in any court of this State. Claims for credit or refund
9hereunder must be filed with and initially determined by the
10Department, the remedy herein provided being exclusive; and no
11court shall have jurisdiction to determine the merits of any
12claim except upon review as provided in this Act.
13(Source: P.A. 90-491, eff. 1-1-98.)
 
14    (35 ILCS 110/20a)  (from Ch. 120, par. 439.50a)
15    Sec. 20a. The Illinois Administrative Procedure Act is
16hereby expressly adopted and shall apply to all administrative
17rules and procedures of the Department of Revenue under this
18Act, except that (1) paragraph (b) of Section 5-10 of the
19Illinois Administrative Procedure Act does not apply to final
20orders, decisions and opinions of the Department, (2)
21subparagraph (a)2 of Section 5-10 of the Illinois
22Administrative Procedure Act does not apply to forms
23established by the Department for use under this Act, and (3)
24the provisions of Section 10-45 of the Illinois Administrative
25Procedure Act regarding proposals for decision are excluded and

 

 

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1not applicable to the Department under this Act to the extent
2Section 10-45 applies to hearings not otherwise delegated to
3the Illinois Independent Tax Tribunal.
4(Source: P.A. 88-45.)
 
5    Section 5-35. The Service Occupation Tax Act is amended by
6changing Sections 11, 18, and 20a as follows:
 
7    (35 ILCS 115/11)  (from Ch. 120, par. 439.111)
8    Sec. 11. Every supplier required or authorized to collect
9taxes hereunder and every serviceman making sales of service in
10this State on or after the effective date hereof shall keep
11such records, receipts, invoices and other pertinent books,
12documents, memoranda and papers as the Department shall
13require, in such form as the Department shall require. The
14Department may adopt rules that establish requirements,
15including record forms and formats, for records required to be
16kept and maintained by taxpayers. For purposes of this Section,
17"records" means all data maintained by the taxpayer, including
18data on paper, microfilm, microfiche or any type of
19machine-sensible data compilation. For the purpose of
20administering and enforcing the provisions hereof, the
21Department, or any officer or employee of the Department
22designated, in writing, by the Director thereof, may hold
23investigations and hearings not otherwise delegated to the
24Illinois Independent Tax Tribunal concerning any matters

 

 

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1covered herein and may examine any books, papers, records,
2documents or memoranda of any supplier or serviceman bearing
3upon the sales of services or the sales of tangible personal
4property to servicemen, and may require the attendance of such
5person or any officer or employee of such person, or of any
6person having knowledge of the facts, and may take testimony
7and require proof for its information.
8(Source: P.A. 88-480.)
 
9    (35 ILCS 115/18)  (from Ch. 120, par. 439.118)
10    Sec. 18. As soon as practicable after a claim for credit or
11refund is filed, the Department shall examine the same and
12determine the amount of credit or refund to which the claimant
13or the claimant's legal representative, in the event that the
14claimant shall have died or become a person under legal
15disability, is entitled and shall, by its Notice of Tentative
16Determination of Claim, notify the claimant or his or her legal
17representative of such determination, which determination
18shall be prima facie correct. Proof of such determination by
19the Department may be made at any hearing before the Department
20or the Illinois Independent Tax Tribunal, as applicable, or in
21any legal proceeding by a reproduced copy of the Department's
22record relating thereto, in the name of the Department under
23the certificate of the Director of Revenue. Such reproduced
24copy shall, without further proof, be admitted into evidence
25before the Department or in any legal proceeding and shall be

 

 

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1prima facie proof of the correctness of the Department's
2determination, as shown therein. If such claimant, or the legal
3representative of a deceased claimant or a claimant who is
4under legal disability shall, within 60 days after the
5Department's Notice of Tentative Determination of Claim, file a
6protest thereto and request a hearing thereon, the Department
7shall give notice to such claimant, or the legal representative
8of a deceased claimant or a claimant who is under legal
9disability, of the time and place fixed for such hearing, and
10shall hold a hearing in conformity with the provisions of this
11Act, and pursuant thereto shall issue its Final Determination
12of the amount, if any, found to be due as a result of such
13hearing, to such claimant, or the legal representative of a
14deceased claimant or a claimant who is under legal disability.
15    If a protest to the Department's Notice of Tentative
16Determination of Claim is not filed within 60 days and a
17request for a hearing thereon is not made as provided herein,
18the Notice shall thereupon become and operate as a Final
19Determination; and, if the Department's Notice of Tentative
20Determination, upon becoming a Final Determination, indicates
21no amount due to the claimant, or, upon issuance of a credit or
22refund for the amount, if any, found by the Department to be
23due, the claim in all its aspects shall be closed and no longer
24open to protest, hearing, judicial review, or by any other
25proceeding or action whatever, either before the Department or
26in any court of this State. Claims for credit or refund

 

 

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1hereunder must be filed with and initially determined by the
2Department, the remedy herein provided being exclusive; and no
3court shall have jurisdiction to determine the merits of any
4claim except upon review as provided in this Act.
5(Source: P.A. 90-491, eff. 1-1-98.)
 
6    (35 ILCS 115/20a)  (from Ch. 120, par. 439.120a)
7    Sec. 20a. The Illinois Administrative Procedure Act is
8hereby expressly adopted and shall apply to all administrative
9rules and procedures of the Department of Revenue under this
10Act, except that (1) paragraph (b) of Section 5-10 of the
11Illinois Administrative Procedure Act does not apply to final
12orders, decisions and opinions of the Department, (2)
13subparagraph (a)2 of Section 5-10 of the Illinois
14Administrative Procedure Act does not apply to forms
15established by the Department for use under this Act, and (3)
16the provisions of Section 10-45 of the Illinois Administrative
17Procedure Act regarding proposals for decision are excluded and
18not applicable to the Department under this Act to the extent
19Section 10-45 applies to hearings not otherwise delegated to
20the Illinois Independent Tax Tribunal.
21(Source: P.A. 88-45.)
 
22    Section 5-40. The Retailers' Occupation Tax Act is amended
23by changing Sections 4, 5, 5a, 8, 9, 11a, and 12 as follows:
 

 

 

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1    (35 ILCS 120/4)  (from Ch. 120, par. 443)
2    Sec. 4. As soon as practicable after any return is filed,
3the Department shall examine such return and shall, if
4necessary, correct such return according to its best judgment
5and information. If the correction of a return results in an
6amount of tax that is understated on the taxpayer's return due
7to a mathematical error, the Department shall notify the
8taxpayer that the amount of tax in excess of that shown on the
9return is due and has been assessed. The term "mathematical
10error" means arithmetic errors or incorrect computations on the
11return or supporting schedules. No such notice of additional
12tax due shall be issued on and after each July 1 and January 1
13covering gross receipts received during any month or period of
14time more than 3 years prior to such July 1 and January 1,
15respectively. Such notice of additional tax due shall not be
16considered a notice of tax liability nor shall the taxpayer
17have any right of protest. In the event that the return is
18corrected for any reason other than a mathematical error, any
19return so corrected by the Department shall be prima facie
20correct and shall be prima facie evidence of the correctness of
21the amount of tax due, as shown therein. In correcting
22transaction by transaction reporting returns provided for in
23Section 3 of this Act, it shall be permissible for the
24Department to show a single corrected return figure for any
25given period of a calendar month instead of having to correct
26each transaction by transaction return form individually and

 

 

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1having to show a corrected return figure for each of such
2transaction by transaction return forms. In making a correction
3of transaction by transaction, monthly or quarterly returns
4covering a period of 6 months or more, it shall be permissible
5for the Department to show a single corrected return figure for
6any given 6-month period.
7    Instead of requiring the person filing such return to file
8an amended return, the Department may simply notify him of the
9correction or corrections it has made.
10    Proof of such correction by the Department may be made at
11any hearing before the Department or the Illinois Independent
12Tax Tribunal or in any legal proceeding by a reproduced copy or
13computer print-out of the Department's record relating thereto
14in the name of the Department under the certificate of the
15Director of Revenue. If reproduced copies of the Department's
16records are offered as proof of such correction, the Director
17must certify that those copies are true and exact copies of
18records on file with the Department. If computer print-outs of
19the Department's records are offered as proof of such
20correction, the Director must certify that those computer
21print-outs are true and exact representations of records
22properly entered into standard electronic computing equipment,
23in the regular course of the Department's business, at or
24reasonably near the time of the occurrence of the facts
25recorded, from trustworthy and reliable information. Such
26certified reproduced copy or certified computer print-out

 

 

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1shall without further proof, be admitted into evidence before
2the Department or in any legal proceeding and shall be prima
3facie proof of the correctness of the amount of tax due, as
4shown therein.
5    If the tax computed upon the basis of the gross receipts as
6fixed by the Department is greater than the amount of tax due
7under the return or returns as filed, the Department shall (or
8if the tax or any part thereof that is admitted to be due by a
9return or returns, whether filed on time or not, is not paid,
10the Department may) issue the taxpayer a notice of tax
11liability for the amount of tax claimed by the Department to be
12due, together with a penalty in an amount determined in
13accordance with Section 3-3 of the Uniform Penalty and Interest
14Act. Provided, that if the incorrectness of any return or
15returns as determined by the Department is due to negligence or
16fraud, said penalty shall be in an amount determined in
17accordance with Section 3-5 or Section 3-6 of the Uniform
18Penalty and Interest Act, as the case may be. If the notice of
19tax liability is not based on a correction of the taxpayer's
20return or returns, but is based on the taxpayer's failure to
21pay all or a part of the tax admitted by his return or returns
22(whether filed on time or not) to be due, such notice of tax
23liability shall be prima facie correct and shall be prima facie
24evidence of the correctness of the amount of tax due, as shown
25therein.
26    Proof of such notice of tax liability by the Department may

 

 

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1be made at any hearing before the Department or the Illinois
2Independent Tax Tribunal or in any legal proceeding by a
3reproduced copy of the Department's record relating thereto in
4the name of the Department under the certificate of the
5Director of Revenue. Such reproduced copy shall without further
6proof, be admitted into evidence before the Department or in
7any legal proceeding and shall be prima facie proof of the
8correctness of the amount of tax due, as shown therein.
9    If the person filing any return dies or becomes a person
10under legal disability at any time before the Department issues
11its notice of tax liability, such notice shall be issued to the
12administrator, executor or other legal representative, as
13such, of such person.
14    Except in case of a fraudulent return, or in the case of an
15amended return (where a notice of tax liability may be issued
16on or after each January 1 and July 1 for an amended return
17filed not more than 3 years prior to such January 1 or July 1,
18respectively), no notice of tax liability shall be issued on
19and after each January 1 and July 1 covering gross receipts
20received during any month or period of time more than 3 years
21prior to such January 1 and July 1, respectively. If, before
22the expiration of the time prescribed in this Section for the
23issuance of a notice of tax liability, both the Department and
24the taxpayer have consented in writing to its issuance after
25such time, such notice may be issued at any time prior to the
26expiration of the period agreed upon. The period so agreed upon

 

 

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1may be extended by subsequent agreements in writing made before
2the expiration of the period previously agreed upon. The
3foregoing limitations upon the issuance of a notice of tax
4liability shall not apply to the issuance of a notice of tax
5liability with respect to any period of time prior thereto in
6cases where the Department has, within the period of limitation
7then provided, notified the person making the return of a
8notice of tax liability even though such return, with which the
9tax that was shown by such return to be due was paid when the
10return was filed, had not been corrected by the Department in
11the manner required herein prior to the issuance of such
12notice, but in no case shall the amount of any such notice of
13tax liability for any period otherwise barred by this Act
14exceed for such period the amount shown in the notice of tax
15liability theretofore issued.
16    If, when a tax or penalty under this Act becomes due and
17payable, the person alleged to be liable therefor is out of the
18State, the notice of tax liability may be issued within the
19times herein limited after his coming into or return to the
20State; and if, after the tax or penalty under this Act becomes
21due and payable, the person alleged to be liable therefor
22departs from and remains out of the State, the time of his or
23her absence is no part of the time limited for the issuance of
24the notice of tax liability; but the foregoing provisions
25concerning absence from the State shall not apply to any case
26in which, at the time when a tax or penalty becomes due under

 

 

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1this Act, the person allegedly liable therefor is not a
2resident of this State.
3    The time limitation period on the Department's right to
4issue a notice of tax liability shall not run during any period
5of time in which the Order of any Court has the effect of
6enjoining or restraining the Department from issuing the notice
7of tax liability.
8    If such person or legal representative shall within 60 days
9after such notice of tax liability file a protest to said
10notice of tax liability with the Department and request a
11hearing thereon, the Department shall give notice to such
12person or legal representative of the time and place fixed for
13such hearing and shall hold a hearing in conformity with the
14provisions of this Act, and pursuant thereto shall issue to
15such person or legal representative a final assessment for the
16amount found to be due as a result of such hearing. On or after
17July 1, 2013, protests concerning matters that are subject to
18the jurisdiction of the Illinois Independent Tax Tribunal shall
19be filed with the Illinois Independent Tax Tribunal in
20accordance with the Illinois Independent Tax Tribunal Act of
212012, and hearings concerning those matters shall be held
22before the Tribunal in accordance with that Act. The Tribunal
23shall give notice to such person of the time and place fixed
24for such hearing and shall hold a hearing. With respect to
25protests filed with the Department prior to July 1, 2013 that
26would otherwise be subject to the jurisdiction of the Illinois

 

 

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1Independent Tax Tribunal, the taxpayer may elect to be subject
2to the provisions of the Illinois Independent Tax Tribunal Act
3of 2012 at any time on or after July 1, 2013, but not later than
430 days after the date on which the protest was filed. If made,
5the election shall be irrevocable.
6    If a protest to the notice of tax liability and a request
7for a hearing thereon is not filed within 60 days after such
8notice, such notice of tax liability shall become final without
9the necessity of a final assessment being issued and shall be
10deemed to be a final assessment.
11    After the issuance of a final assessment, or a notice of
12tax liability which becomes final without the necessity of
13actually issuing a final assessment as hereinbefore provided,
14the Department, at any time before such assessment is reduced
15to judgment, may (subject to rules of the Department) grant a
16rehearing (or grant departmental review and hold an original
17hearing if no previous hearing in the matter has been held)
18upon the application of the person aggrieved. Pursuant to such
19hearing or rehearing, the Department shall issue a revised
20final assessment to such person or his legal representative for
21the amount found to be due as a result of such hearing or
22rehearing.
23(Source: P.A. 89-379, eff. 1-1-96.)
 
24    (35 ILCS 120/5)  (from Ch. 120, par. 444)
25    Sec. 5. In case any person engaged in the business of

 

 

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1selling tangible personal property at retail fails to file a
2return when and as herein required, but thereafter, prior to
3the Department's issuance of a notice of tax liability under
4this Section, files a return and pays the tax, he shall also
5pay a penalty in an amount determined in accordance with
6Section 3-3 of the Uniform Penalty and Interest Act.
7    In case any person engaged in the business of selling
8tangible personal property at retail files the return at the
9time required by this Act but fails to pay the tax, or any part
10thereof, when due, a penalty in an amount determined in
11accordance with Section 3-3 of the Uniform Penalty and Interest
12Act shall be added thereto.
13    In case any person engaged in the business of selling
14tangible personal property at retail fails to file a return
15when and as herein required, but thereafter, prior to the
16Department's issuance of a notice of tax liability under this
17Section, files a return but fails to pay the entire tax, a
18penalty in an amount determined in accordance with Section 3-3
19of the Uniform Penalty and Interest Act shall be added thereto.
20    In case any person engaged in the business of selling
21tangible personal property at retail fails to file a return,
22the Department shall determine the amount of tax due from him
23according to its best judgment and information, which amount so
24fixed by the Department shall be prima facie correct and shall
25be prima facie evidence of the correctness of the amount of tax
26due, as shown in such determination. In making any such

 

 

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1determination of tax due, it shall be permissible for the
2Department to show a figure that represents the tax due for any
3given period of 6 months instead of showing the amount of tax
4due for each month separately. Proof of such determination by
5the Department may be made at any hearing before the Department
6or in any legal proceeding by a reproduced copy or computer
7print-out of the Department's record relating thereto in the
8name of the Department under the certificate of the Director of
9Revenue. If reproduced copies of the Department's records are
10offered as proof of such determination, the Director must
11certify that those copies are true and exact copies of records
12on file with the Department. If computer print-outs of the
13Department's records are offered as proof of such
14determination, the Director must certify that those computer
15print-outs are true and exact representations of records
16properly entered into standard electronic computing equipment,
17in the regular course of the Department's business, at or
18reasonably near the time of the occurrence of the facts
19recorded, from trustworthy and reliable information. Such
20certified reproduced copy or certified computer print-out
21shall, without further proof, be admitted into evidence before
22the Department or in any legal proceeding and shall be prima
23facie proof of the correctness of the amount of tax due, as
24shown therein. The Department shall issue the taxpayer a notice
25of tax liability for the amount of tax claimed by the
26Department to be due, together with a penalty of 30% thereof.

 

 

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1    However, where the failure to file any tax return required
2under this Act on the date prescribed therefor (including any
3extensions thereof), is shown to be unintentional and
4nonfraudulent and has not occurred in the 2 years immediately
5preceding the failure to file on the prescribed date or is due
6to other reasonable cause the penalties imposed by this Act
7shall not apply.
8    The taxpayer or the taxpayer's legal representative may If
9such person or the legal representative of such person files,
10within 60 days after such notice, file a protest to such notice
11of tax liability with the Department and request requests a
12hearing thereon. The , the Department shall give notice to such
13person or the legal representative of such person of the time
14and place fixed for such hearing, and shall hold a hearing in
15conformity with the provisions of this Act, and pursuant
16thereto shall issue a final assessment to such person or to the
17legal representative of such person for the amount found to be
18due as a result of such hearing. On and after July 1, 2013,
19protests concerning matters that are under the jurisdiction of
20the Illinois Independent Tax Tribunal shall be filed with the
21Illinois Independent Tax Tribunal in accordance with the
22Illinois Independent Tax Tribunal Act of 2012, and hearings
23concerning those matters shall be held before the Tribunal in
24accordance with that Act. With respect to protests filed with
25the Illinois Independent Tax Tribunal, the Tribunal shall give
26notice to that person or the legal representative of that

 

 

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1person of the time and place fixed for a hearing, and shall
2hold a hearing in conformity with the provisions of this Act
3and the Illinois Independent Tax Tribunal Act; and pursuant
4thereto the Department shall issue a final assessment to such
5person or to the legal representative of such person for the
6amount found to be due as a result of the hearing. With respect
7to protests filed with the Department prior to July 1, 2013
8that would otherwise be subject to the jurisdiction of the
9Illinois Independent Tax Tribunal, the taxpayer may elect to be
10subject to the provisions of the Illinois Independent Tax
11Tribunal Act of 2012 at any time on or after July 1, 2013, but
12not later than 30 days after the date on which the protest was
13filed. If made, 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 without
17the necessity of a final assessment being issued and shall be
18deemed to be a final assessment.
19    After the issuance of a final assessment, or a notice of
20tax liability which becomes final without the necessity of
21actually issuing a final assessment as hereinbefore provided,
22the Department, at any time before such assessment is reduced
23to judgment, may (subject to rules of the Department) grant a
24rehearing (or grant departmental review and hold an original
25hearing if no previous hearing in the matter has been held)
26upon the application of the person aggrieved. Pursuant to such

 

 

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1hearing or rehearing, the Department shall issue a revised
2final assessment to such person or his legal representative for
3the amount found to be due as a result of such hearing or
4rehearing.
5    Except in case of failure to file a return, or with the
6consent of the person to whom the notice of tax liability is to
7be issued, no notice of tax liability shall be issued on and
8after each July 1 and January 1 covering gross receipts
9received during any month or period of time more than 3 years
10prior to such July 1 and January 1, respectively, except that
11if a return is not filed at the required time, a notice of tax
12liability may be issued not later than 3 years after the time
13the return is filed. The foregoing limitations upon the
14issuance of a notice of tax liability shall not apply to the
15issuance of any such notice with respect to any period of time
16prior thereto in cases where the Department has, within the
17period of limitation then provided, notified a person of the
18amount of tax computed even though the Department had not
19determined the amount of tax due from such person in the manner
20required herein prior to the issuance of such notice, but in no
21case shall the amount of any such notice of tax liability for
22any period otherwise barred by this Act exceed for such period
23the amount shown in the notice 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 or her coming into or return to
2the State; and if, after the tax or penalty under this Act
3becomes due and payable, the person alleged to be liable
4therefor departs from and remains out of the State, the time of
5his or her absence is no part of the time limited for the
6issuance of the notice of tax liability; but the foregoing
7provisions concerning absence from the State shall not apply to
8any case in which, at the time when a tax or penalty becomes
9due under this Act, the person allegedly liable therefor is not
10a resident 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 notice
15of tax liability.
16    In case of failure to pay the tax, or any portion thereof,
17or any penalty provided for in this Act, or interest, when due,
18the Department may bring suit to recover the amount of such
19tax, or portion thereof, or penalty or interest; or, if the
20taxpayer has died or become a person under legal disability,
21may file a claim therefor against his estate; provided that no
22such suit with respect to any tax, or portion thereof, or
23penalty, or interest shall be instituted more than 6 years
24after the date any proceedings in court for review thereof have
25terminated or the time for the taking thereof has expired
26without such proceedings being instituted, except with the

 

 

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1consent of the person from whom such tax or penalty or interest
2is due; nor, except with such consent, shall such suit be
3instituted more than 6 years after the date any return is filed
4with the Department in cases where the return constitutes the
5basis for the suit for unpaid tax, or portion thereof, or
6penalty provided for in this Act, or interest: Provided that
7the time limitation period on the Department's right to bring
8any such suit shall not run during any period of time in which
9the order of any court has the effect of enjoining or
10restraining the Department from bringing such suit.
11    After the expiration of the period within which the person
12assessed may file an action for judicial review under the
13Administrative Review Law or the Illinois Independent Tax
14Tribunal Act, as applicable, without such an action being
15filed, a certified copy of the final assessment or revised
16final assessment of the Department may be filed with the
17Circuit Court of the county in which the taxpayer has his
18principal place of business, or of Sangamon County in those
19cases in which the taxpayer does not have his principal place
20of business in this State. The certified copy of the final
21assessment or revised final assessment shall be accompanied by
22a certification which recites facts that are sufficient to show
23that the Department complied with the jurisdictional
24requirements of the Act in arriving at its final assessment or
25its revised final assessment and that the taxpayer had his
26opportunity for an administrative hearing and for judicial

 

 

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1review, whether he availed himself or herself of either or both
2of these opportunities or not. If the court is satisfied that
3the Department complied with the jurisdictional requirements
4of the Act in arriving at its final assessment or its revised
5final assessment and that the taxpayer had his opportunity for
6an administrative hearing and for judicial review, whether he
7availed himself of either or both of these opportunities or
8not, the court shall render judgment in favor of the Department
9and against the taxpayer for the amount shown to be due by the
10final assessment or the revised final assessment, plus any
11interest which may be due, and such judgment shall be entered
12in the judgment docket of the court. Such judgment shall bear
13the rate of interest as set by the Uniform Penalty and Interest
14Act, but otherwise shall have the same effect as other
15judgments. The judgment may be enforced, and all laws
16applicable to sales for the enforcement of a judgment shall be
17applicable to sales made under such judgments. The Department
18shall file the certified copy of its assessment, as herein
19provided, with the Circuit Court within 6 years after such
20assessment becomes final except when the taxpayer consents in
21writing to an extension of such filing period, and except that
22the time limitation period on the Department's right to file
23the certified copy of its assessment with the Circuit Court
24shall not run during any period of time in which the order of
25any court has the effect of enjoining or restraining the
26Department from filing such certified copy of its assessment

 

 

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1with the Circuit Court.
2    If, when the cause of action for a proceeding in court
3accrues against a person, he or she is out of the State, the
4action may be commenced within the times herein limited, after
5his or her coming into or return to the State; and if, after
6the cause of action accrues, he or she departs from and remains
7out of the State, the time of his or her absence is no part of
8the time limited for the commencement of the action; but the
9foregoing provisions concerning absence from the State shall
10not apply to any case in which, at the time the cause of action
11accrues, the party against whom the cause of action accrues is
12not a resident of this State. The time within which a court
13action is to be commenced by the Department hereunder shall not
14run from the date the taxpayer files a petition in bankruptcy
15under the Federal Bankruptcy Act until 30 days after notice of
16termination or expiration of the automatic stay imposed by the
17Federal Bankruptcy Act.
18    No claim shall be filed against the estate of any deceased
19person or any person under legal disability for any tax or
20penalty or part of either, or interest, except in the manner
21prescribed and within the time limited by the Probate Act of
221975, as amended.
23    The collection of tax or penalty or interest by any means
24provided for herein shall not be a bar to any prosecution under
25this Act.
26    In addition to any penalty provided for in this Act, any

 

 

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1amount of tax which is not paid when due shall bear interest at
2the rate and in the manner specified in Sections 3-2 and 3-9 of
3the Uniform Penalty and Interest Act from the date when such
4tax becomes past due until such tax is paid or a judgment
5therefor is obtained by the Department. If the time for making
6or completing an audit of a taxpayer's books and records is
7extended with the taxpayer's consent, at the request of and for
8the convenience of the Department, beyond the date on which the
9statute of limitations upon the issuance of a notice of tax
10liability by the Department otherwise would run, no interest
11shall accrue during the period of such extension or until a
12Notice of Tax Liability is issued, whichever occurs first.
13    In addition to any other remedy provided by this Act, and
14regardless of whether the Department is making or intends to
15make use of such other remedy, where a corporation or limited
16liability company registered under this Act violates the
17provisions of this Act or of any rule or regulation promulgated
18thereunder, the Department may give notice to the Attorney
19General of the identity of such a corporation or limited
20liability company and of the violations committed by such a
21corporation or limited liability company, for such action as is
22not already provided for by this Act and as the Attorney
23General may deem appropriate.
24    If the Department determines that an amount of tax or
25penalty or interest was incorrectly assessed, whether as the
26result of a mistake of fact or an error of law, the Department

 

 

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1shall waive the amount of tax or penalty or interest that
2accrued due to the incorrect assessment.
3(Source: P.A. 96-1383, eff. 1-1-11.)
 
4    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
5    Sec. 5a. The Department shall have a lien for the tax
6herein imposed or any portion thereof, or for any penalty
7provided for in this Act, or for any amount of interest which
8may be due as provided for in Section 5 of this Act, upon all
9the real and personal property of any person to whom a final
10assessment or revised final assessment has been issued as
11provided in this Act, or whenever a return is filed without
12payment of the tax or penalty shown therein to be due,
13including all such property of such persons acquired after
14receipt of such assessment or filing of such return. The
15taxpayer is liable for the filing fee incurred by the
16Department for filing the lien and the filing fee incurred by
17the Department to file the release of that lien. The filing
18fees shall be paid to the Department in addition to payment of
19the tax, penalty, and interest included in the amount of the
20lien.
21    However, where the lien arises because of the issuance of a
22final assessment or revised final assessment by the Department,
23such lien shall not attach and the notice hereinafter referred
24to in this Section shall not be filed until all proceedings in
25court for review of such final assessment or revised final

 

 

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1assessment have terminated or the time for the taking thereof
2has expired without such proceedings being instituted.
3    Upon the granting of a rehearing or departmental review
4pursuant to Section 4 or Section 5 of this Act after a lien has
5attached, such lien shall remain in full force except to the
6extent to which the final assessment may be reduced by a
7revised final assessment following such rehearing or review.
8    The lien created by the issuance of a final assessment
9shall terminate unless a notice of lien is filed, as provided
10in Section 5b hereof, within 3 years from the date all
11proceedings in court for the review of such final assessment
12have terminated or the time for the taking thereof has expired
13without such proceedings being instituted, or (in the case of a
14revised final assessment issued pursuant to a rehearing or
15departmental review) within 3 years from the date all
16proceedings in court for the review of such revised final
17assessment have terminated or the time for the taking thereof
18has expired without such proceedings being instituted; and
19where the lien results from the filing of a return without
20payment of the tax or penalty shown therein to be due, the lien
21shall terminate unless a notice of lien is filed, as provided
22in Section 5b hereof, within 3 years from the date when such
23return is filed with the Department: Provided that the time
24limitation period on the Department's right to file a notice of
25lien shall not run during any period of time in which the order
26of any court has the effect of enjoining or restraining the

 

 

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1Department from filing such notice of lien.
2    If the Department finds that a taxpayer is about to depart
3from the State, or to conceal himself or his property, or to do
4any other act tending to prejudice or to render wholly or
5partly ineffectual proceedings to collect such tax unless such
6proceedings are brought without delay, or if the Department
7finds that the collection of the amount due from any taxpayer
8will be jeopardized by delay, the Department shall give the
9taxpayer notice of such findings and shall make demand for
10immediate return and payment of such tax, whereupon such tax
11shall become immediately due and payable. If the taxpayer,
12within 5 days after such notice (or within such extension of
13time as the Department may grant), does not comply with such
14notice or show to the Department that the findings in such
15notice are erroneous, the Department may file a notice of
16jeopardy assessment lien in the office of the recorder of the
17county in which any property of the taxpayer may be located and
18shall notify the taxpayer of such filing. Such jeopardy
19assessment lien shall have the same scope and effect as the
20statutory lien hereinbefore provided for in this Section.
21    If the taxpayer believes that he does not owe some or all
22of the tax for which the jeopardy assessment lien against him
23has been filed, or that no jeopardy to the revenue in fact
24exists, he may protest within 20 days after being notified by
25the Department of the filing of such jeopardy assessment lien
26and request a hearing, whereupon the Department shall hold a

 

 

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1hearing in conformity with the provisions of this Act and,
2pursuant thereto, shall notify the taxpayer of its findings as
3to whether or not such jeopardy assessment lien will be
4released. If not, and if the taxpayer is aggrieved by this
5decision, he may file an action for judicial review of such
6final determination of the Department in accordance with
7Section 12 of this Act and the Administrative Review Law.
8    On and after July 1, 2013, protests concerning matters that
9are subject to the jurisdiction of the Illinois Independent Tax
10Tribunal shall be filed with the Tribunal, and hearings on
11those matters shall be held before the Tribunal in accordance
12with the Illinois Independent Tax Tribunal Act of 2012. The
13Tribunal shall notify the taxpayer of its findings as to
14whether or not such jeopardy assessment lien will be released.
15If not, and if the taxpayer is aggrieved by this decision, he
16may file an action for judicial review of such final
17determination of the Department in accordance with Section 12
18of this Act and the Illinois Independent Tax Tribunal Act of
192012.
20    With respect to protests filed with the Department prior to
21July 1, 2013 that would otherwise be subject to the
22jurisdiction of the Illinois Independent Tax Tribunal, the
23taxpayer may elect to be subject to the provisions of the
24Illinois Independent Tax Tribunal Act of 2012 at any time on or
25after July 1, 2013, but not later than 30 days after the date
26on which the protest was filed. If made, the election shall be

 

 

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1irrevocable.
2    If, pursuant to such hearing (or after an independent
3determination of the facts by the Department without a
4hearing), the Department or the Tribunal determines that some
5or all of the tax covered by the jeopardy assessment lien is
6not owed by the taxpayer, or that no jeopardy to the revenue
7exists, or if on judicial review the final judgment of the
8court is that the taxpayer does not owe some or all of the tax
9covered by the jeopardy assessment lien against him, or that no
10jeopardy to the revenue exists, the Department shall release
11its jeopardy assessment lien to the extent of such finding of
12nonliability for the tax, or to the extent of such finding of
13no jeopardy to the revenue.
14    The Department shall also release its jeopardy assessment
15lien against the taxpayer whenever the tax and penalty covered
16by such lien, plus any interest which may be due, are paid and
17the taxpayer has paid the Department in cash or by guaranteed
18remittance an amount representing the filing fee for the lien
19and the filing fee for the release of that lien. The Department
20shall file that release of lien with the recorder of the county
21where that lien was filed.
22    Nothing in this Section shall be construed to give the
23Department a preference over the rights of any bona fide
24purchaser, holder of a security interest, mechanics
25lienholder, mortgagee, or judgment lien creditor arising prior
26to the filing of a regular notice of lien or a notice of

 

 

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1jeopardy assessment lien in the office of the recorder in the
2county in which the property subject to the lien is located:
3Provided, however, that the word "bona fide", as used in this
4Section shall not include any mortgage of real or personal
5property or any other credit transaction that results in the
6mortgagee or the holder of the security acting as trustee for
7unsecured creditors of the taxpayer mentioned in the notice of
8lien who executed such chattel or real property mortgage or the
9document evidencing such credit transaction. Such lien shall be
10inferior to the lien of general taxes, special assessments and
11special taxes heretofore or hereafter levied by any political
12subdivision of this State.
13    In case title to land to be affected by the notice of lien
14or notice of jeopardy assessment lien is registered under the
15provisions of "An Act concerning land titles", approved May 1,
161897, as amended, such notice shall be filed in the office of
17the Registrar of Titles of the county within which the property
18subject to the lien is situated and shall be entered upon the
19register of titles as a memorial or charge upon each folium of
20the register of titles affected by such notice, and the
21Department shall not have a preference over the rights of any
22bona fide purchaser, mortgagee, judgment creditor or other lien
23holder arising prior to the registration of such notice:
24Provided, however, that the word "bona fide" shall not include
25any mortgage of real or personal property or any other credit
26transaction that results in the mortgagee or the holder of the

 

 

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1security acting as trustee for unsecured creditors of the
2taxpayer mentioned in the notice of lien who executed such
3chattel or real property mortgage or the document evidencing
4such credit transaction.
5    Such regular lien or jeopardy assessment lien shall not be
6effective against any purchaser with respect to any item in a
7retailer's stock in trade purchased from the retailer in the
8usual course of such retailer's business.
9(Source: P.A. 92-826, eff. 1-1-03.)
 
10    (35 ILCS 120/8)  (from Ch. 120, par. 447)
11    Sec. 8. For the purpose of administering and enforcing the
12provisions of this Act, the Department, or any officer or
13employee of the Department designated, in writing, by the
14Director thereof, may hold investigations and hearings not
15otherwise delegated to the Illinois Independent Tax Tribunal
16concerning any matters covered by this Act and may examine any
17books, papers, records or memoranda bearing upon the sales of
18tangible personal property or services of any such person, and
19may require the attendance of such person or any officer or
20employee of such person, or of any person having knowledge of
21such business, and may take testimony and require proof for its
22information. In the conduct of any investigation or hearing,
23neither the Department nor any officer or employee thereof
24shall be bound by the technical rules of evidence, and no
25informality in any proceeding, or in the manner of taking

 

 

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1testimony, shall invalidate any order, decision, rule or
2regulation made or approved or confirmed by the Department. The
3Director of Revenue, or any officer or employee of the
4Department authorized by the Director thereof, shall have power
5to administer oaths to such persons. The books, papers, records
6and memoranda of the Department, or parts thereof, may be
7proved in any hearing, investigation, or legal proceeding by a
8reproduced copy thereof under the certificate of the Director
9of Revenue. Such reproduced copy shall, without further proof,
10be admitted into evidence before the Department or in any legal
11proceeding.
12(Source: Laws 1965, p. 200.)
 
13    (35 ILCS 120/9)  (from Ch. 120, par. 448)
14    Sec. 9. No person shall be excused from testifying or from
15producing any books, papers, records or memoranda in any
16investigation or upon any hearing not otherwise delegated to
17the Illinois Independent Tax Tribunal, when ordered to do so by
18the department or any officer or employee thereof, upon the
19ground that the testimony or evidence, documentary or
20otherwise, may tend to incriminate him or subject him to a
21criminal penalty, but no person shall be prosecuted or
22subjected to any criminal penalty for, or on account of, any
23transaction made or thing concerning which he may testify or
24produce evidence, documentary or otherwise, before the
25department or an officer or employee thereof; provided, that

 

 

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1such immunity shall extend only to a natural person who, in
2obedience to a subpoena, gives testimony under oath or produces
3evidence, documentary or otherwise, under oath. No person so
4testifying shall be exempt from prosecution and punishment for
5perjury committed in so testifying.
6(Source: Laws 1933, p. 924.)
 
7    (35 ILCS 120/11a)  (from Ch. 120, par. 450a)
8    Sec. 11a. The Illinois Administrative Procedure Act is
9hereby expressly adopted and shall apply to all administrative
10rules and procedures of the Department of Revenue under this
11Act, except that (1) paragraph (b) of Section 5-10 of the
12Illinois Administrative Procedure Act does not apply to final
13orders, decisions and opinions of the Department, (2)
14subparagraph (a)2 of Section 5-10 of the Illinois
15Administrative Procedure Act does not apply to forms
16established by the Department for use under this Act, and (3)
17the provisions of Section 10-45 of the Illinois Administrative
18Procedure Act regarding proposals for decision are excluded and
19not applicable to the Department under this Act to the extent
20Section 10-45 applies to hearings not otherwise delegated to
21the Illinois Independent Tax Tribunal.
22(Source: P.A. 88-45.)
 
23    (35 ILCS 120/12)  (from Ch. 120, par. 451)
24    Sec. 12. The Department is authorized to make, promulgate

 

 

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1and enforce such reasonable rules and regulations relating to
2the administration and enforcement of the provisions of this
3Act as may be deemed expedient.
4    Whenever notice is required by this Act, such notice may be
5given by United States registered or certified mail, addressed
6to the person concerned at his last known address, and proof of
7such mailing shall be sufficient for the purposes of this Act.
8Notice of any hearing provided for by this Act shall be so
9given not less than 7 days prior to the day fixed for the
10hearing. Following the initial contact of a person represented
11by an attorney, the Department shall not contact the person
12concerned but shall only contact the attorney representing the
13person concerned.
14    All hearings provided for in this Act with respect to or
15concerning a taxpayer having his or her principal place of
16business in this State other than in Cook County shall be held
17at the Department's office nearest to the location of the
18taxpayer's principal place of business: Provided that if the
19taxpayer has his or her principal place of business in Cook
20County, such hearing shall be held in Cook County; and
21provided, further, that if the taxpayer does not have his or
22her principal place of business in this State, such hearing
23shall be held in Sangamon County.
24    The Circuit Court of the County wherein the taxpayer has
25his or her principal place of business, or of Sangamon County
26in those cases where the taxpayer does not have his or her

 

 

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1principal place of business in this State, shall have power to
2review all final administrative decisions of the Department in
3administering the provisions of this Act: Provided that if the
4administrative proceeding which is to be reviewed judicially is
5a claim for refund proceeding commenced in accordance with
6Section 6 of this Act and Section 2a of "An Act in relation to
7the payment and disposition of moneys received by officers and
8employees of the State of Illinois by virtue of their office or
9employment", approved June 9, 1911, as amended, the Circuit
10Court having jurisdiction of the action for judicial review
11under this Section and under the Administrative Review Law, as
12amended, shall be the same court that entered the temporary
13restraining order or preliminary injunction which is provided
14for in Section 2a of "An Act in relation to the payment and
15disposition of moneys received by officers and employees of the
16State of Illinois by virtue of their office or employment", and
17which enables such claim proceeding to be processed and
18disposed of as a claim for refund proceeding rather than as a
19claim for credit proceeding.
20    The provisions of the Administrative Review Law, and the
21rules adopted pursuant thereto, shall apply to and govern all
22proceedings for the judicial review of final administrative
23decisions of the Department hereunder, except with respect to
24protests and hearings held before the Illinois Independent Tax
25Tribunal. The provisions of the Illinois Independent Tax
26Tribunal Act, and the rules adopted pursuant thereto, shall

 

 

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1apply to and govern all proceedings for the judicial review of
2administrative decisions of the Department that are subject to
3the jurisdiction of the Illinois Independent Tax Tribunal. The
4term "administrative decision" is defined as in Section 3-101
5of the Code of Civil Procedure.
6    Except with respect to decisions that are subject to the
7jurisdiction of the Illinois Independent Tax Tribunal, any Any
8person filing an action under the Administrative Review Law to
9review a final assessment or revised final assessment issued by
10the Department under this Act shall, within 20 days after
11filing the complaint, file a bond with good and sufficient
12surety or sureties residing in this State or licensed to do
13business in this State or, instead of the bond, obtain an order
14from the court imposing a lien upon the plaintiff's property as
15hereinafter provided. If the person filing the complaint fails
16to comply with this bonding requirement within 20 days after
17filing the complaint, the Department shall file a motion to
18dismiss and the court shall dismiss the action unless the
19person filing the action complies with the bonding requirement
20set out in this provision within 30 days after the filing of
21the Department's motion to dismiss. Upon dismissal of any
22complaint for failure to comply with the jurisdictional
23prerequisites herein set forth, the court is empowered to and
24shall enter judgment against the taxpayer and in favor of the
25Department in the amount of the final assessment or revised
26final assessment, together with any interest which may have

 

 

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1accrued since the Department issued the final assessment or
2revised final assessment, and for costs, which judgment is
3enforceable as other judgments for the payment of money. The
4lien provided for in this Section shall not be applicable to
5the real property of a corporate surety duly licensed to do
6business in this State. The amount of such bond shall be fixed
7and approved by the court, but shall not be less than the
8amount of the tax and penalty claimed to be due by the
9Department in its final assessment or revised final assessment
10to the person filing such bond, plus the amount of interest due
11from such person to the Department at the time when the
12Department issued its final assessment to such person. Such
13bond shall be executed to the Department of Revenue and shall
14be conditioned on the taxpayer's payment within 30 days after
15termination of the proceedings for judicial review of the
16amount of tax and penalty and interest found by the court to be
17due in such proceedings for judicial review. Such bond, when
18filed and approved, shall, from such time until 2 years after
19termination of the proceedings for judicial review in which the
20bond is filed, be a lien against the real estate situated in
21the county in which the bond is filed, of the person filing
22such bond, and of the surety or sureties on such bond, until
23the condition of the bond has been complied with or until the
24bond has been canceled as hereinafter provided. If the person
25filing any such bond fails to keep the condition thereof, such
26bond shall thereupon be forfeited, and the Department may

 

 

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1institute an action upon such bond in its own name for the
2entire amount of the bond and costs. Such action upon the bond
3shall be in addition to any other remedy provided for herein.
4If the person filing such bond complies with the condition
5thereof, or if, in the proceedings for judicial review in which
6such bond is filed, the court determines that no amount of tax
7or penalty or interest is due, such bond shall be canceled.
8    If the court finds in a particular case that the plaintiff
9cannot procure and furnish a satisfactory surety or sureties
10for the kind of bond required herein, the court may relieve the
11plaintiff of the obligation of filing such bond, if, upon the
12timely application for a lien in lieu thereof and accompanying
13proof therein submitted, the court is satisfied that any such
14lien imposed would operate to secure the assessment in the
15manner and to the degree as would a bond. Upon a finding that
16such lien applied for would secure the assessment at issue, the
17court shall enter an order, in lieu of such bond, subjecting
18the plaintiff's real and personal property (including
19subsequently acquired property), situated in the county in
20which such order is entered, to a lien in favor of the
21Department. Such lien shall be for the amount of the tax and
22penalty claimed to be due by the Department in its final
23assessment or revised final assessment, plus the amount of
24interest due from such person to the Department at the time
25when the Department issued its final assessment to such person,
26and shall continue in full force and effect until the

 

 

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1termination of the proceedings for judicial review, or until
2the plaintiff pays, to the Department, the tax and penalty and
3interest to secure which the lien is given, whichever happens
4first. In the exercise of its discretion, the court may impose
5a lien regardless of the ratio of the taxpayer's assets to the
6final assessment or revised final assessment plus the amount of
7the interest and penalty. Nothing in this Section shall be
8construed to give the Department a preference over the rights
9of any bona fide purchaser, mortgagee, judgment creditor or
10other lien holder arising prior to the entry of the order
11creating such lien in favor of the Department: Provided,
12however, that the word "bona fide", as used in this Section,
13shall not include any mortgage of real or personal property or
14any other credit transaction that results in the mortgagee or
15the holder of the security acting as trustee for unsecured
16creditors of the taxpayer mentioned in the order for lien who
17executed such chattel or real property mortgage or the document
18evidencing such credit transaction. Such lien shall be inferior
19to the lien of general taxes, special assessments and special
20taxes heretofore or hereafter levied by any political
21subdivision of this State. Such lien shall not be effective
22against any purchaser with respect to any item in a retailer's
23stock in trade purchased from the retailer in the usual course
24of such retailer's business, and such lien shall not be
25enforced against the household effects, wearing apparel, or the
26books, tools or implements of a trade or profession kept for

 

 

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1use by any person. Such lien shall not be effective against
2real property whose title is registered under the provisions of
3"An Act concerning land titles", approved May 1, 1897, as
4amended, until the provisions of Section 85 of that Act are
5complied with.
6    Service upon the Director of Revenue or the Assistant
7Director of Revenue of the Department of Revenue of summons
8issued in an action to review a final administrative decision
9of the Department shall be service upon the Department. The
10Department shall certify the record of its proceedings if the
11taxpayer pays to it the sum of 75 per page of testimony taken
12before the Department and 25 per page of all other matters
13contained in such record, except that these charges may be
14waived where the Department is satisfied that the aggrieved
15party is a poor person who cannot afford to pay such charges.
16If payment for such record is not made by the taxpayer within
1730 days after notice from the Department or the Attorney
18General of the cost thereof, the court in which the proceeding
19is pending, on motion of the Department, shall dismiss the
20complaint and (where the administrative decision as to which
21the action for judicial review was filed is a final assessment
22or revised final assessment) shall enter judgment against the
23taxpayer and in favor of the Department for the amount of tax
24and penalty shown by the Department's final assessment or
25revised final assessment to be due, plus interest as provided
26for in Section 5 of this Act from the date when the liability

 

 

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1upon which such interest accrued became delinquent until the
2entry of the judgment in the action for judicial review under
3the Administrative Review Law, and also for costs.
4    Whenever any proceeding provided by this Act is begun
5before the Department, either by the Department or by a person
6subject to this Act, and such person thereafter dies or becomes
7a person under legal disability before such proceeding is
8concluded, the legal representative of the deceased or person
9under legal disability shall notify the Department of such
10death or legal disability. Such legal representative, as such,
11shall then be substituted by the Department for such person. If
12the legal representative fails to notify the Department of his
13or her appointment as such legal representative, the Department
14may, upon its own motion, substitute such legal representative
15in the proceeding pending before the Department for the person
16who died or became a person under legal disability.
17    The changes made by this amendatory Act of 1995 apply to
18all actions pending on and after the effective date of this
19amendatory Act of 1995 to review a final assessment or revised
20final assessment issued by the Department.
21(Source: P.A. 89-60, eff. 6-30-95.)
 
22    Section 5-45. The Cigarette Tax Act is amended by changing
23Sections 3, 8, 8a, 9a, 9b, and 10 as follows:
 
24    (35 ILCS 130/3)  (from Ch. 120, par. 453.3)

 

 

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1    Sec. 3. Affixing tax stamp; remitting tax to the
2Department. Payment of the taxes imposed by Section 2 of this
3Act shall (except as hereinafter provided) be evidenced by
4revenue tax stamps affixed to each original package of
5cigarettes. Each distributor of cigarettes, before delivering
6or causing to be delivered any original package of cigarettes
7in this State to a purchaser, shall firmly affix a proper stamp
8or stamps to each such package, or (in case of manufacturers of
9cigarettes in original packages which are contained inside a
10sealed transparent wrapper) shall imprint the required
11language on the original package of cigarettes beneath such
12outside wrapper, as hereinafter provided.
13    No stamp or imprint may be affixed to, or made upon, any
14package of cigarettes unless that package complies with all
15requirements of the federal Cigarette Labeling and Advertising
16Act, 15 U.S.C. 1331 and following, for the placement of labels,
17warnings, or any other information upon a package of cigarettes
18that is sold within the United States. Under the authority of
19Section 6, the Department shall revoke the license of any
20distributor that is determined to have violated this paragraph.
21A person may not affix a stamp on a package of cigarettes,
22cigarette papers, wrappers, or tubes if that individual package
23has been marked for export outside the United States with a
24label or notice in compliance with Section 290.185 of Title 27
25of the Code of Federal Regulations. It is not a defense to a
26proceeding for violation of this paragraph that the label or

 

 

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1notice has been removed, mutilated, obliterated, or altered in
2any manner.
3    Only distributors licensed under this Act and
4transporters, as defined in Section 9c of this Act, may possess
5unstamped original packages of cigarettes. Prior to shipment to
6a secondary distributor or an Illinois retailer, a stamp shall
7be applied to each original package of cigarettes sold to the
8secondary distributor or retailer. A distributor may apply tax
9stamps only to original packages of cigarettes purchased or
10obtained directly from an in-state maker, manufacturer, or
11fabricator licensed as a distributor under Section 4 of this
12Act or an out-of-state maker, manufacturer, or fabricator
13holding a permit under Section 4b of this Act. A licensed
14distributor may ship or otherwise cause to be delivered
15unstamped original packages of cigarettes in, into, or from
16this State. A licensed distributor may transport unstamped
17original packages of cigarettes to a facility, wherever
18located, owned or controlled by such distributor; however, a
19distributor may not transport unstamped original packages of
20cigarettes to a facility where retail sales of cigarettes take
21place or to a facility where a secondary distributor makes
22sales for resale. Any licensed distributor that ships or
23otherwise causes to be delivered unstamped original packages of
24cigarettes into, within, or from this State shall ensure that
25the invoice or equivalent documentation and the bill of lading
26or freight bill for the shipment identifies the true name and

 

 

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1address of the consignor or seller, the true name and address
2of the consignee or purchaser, and the quantity by brand style
3of the cigarettes so transported, provided that this Section
4shall not be construed as to impose any requirement or
5liability upon any common or contract carrier.
6    The Department, or any person authorized by the Department,
7shall sell such stamps only to persons holding valid licenses
8as distributors under this Act. On and after July 1, 2003,
9payment for such stamps must be made by means of electronic
10funds transfer. The Department may refuse to sell stamps to any
11person who does not comply with the provisions of this Act.
12Beginning on the effective date of this amendatory Act of the
1392nd General Assembly and through June 30, 2002, persons
14holding valid licenses as distributors may purchase cigarette
15tax stamps up to an amount equal to 115% of the distributor's
16average monthly cigarette tax stamp purchases over the 12
17calendar months prior to the effective date of this amendatory
18Act of the 92nd General Assembly.
19    Prior to December 1, 1985, the Department shall allow a
20distributor 21 days in which to make final payment of the
21amount to be paid for such stamps, by allowing the distributor
22to make payment for the stamps at the time of purchasing them
23with a draft which shall be in such form as the Department
24prescribes, and which shall be payable within 21 days
25thereafter: Provided that such distributor has filed with the
26Department, and has received the Department's approval of, a

 

 

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1bond, which is in addition to the bond required under Section 4
2of this Act, payable to the Department in an amount equal to
380% of such distributor's average monthly tax liability to the
4Department under this Act during the preceding calendar year or
5$500,000, whichever is less. The Bond shall be joint and
6several and shall be in the form of a surety company bond in
7such form as the Department prescribes, or it may be in the
8form of a bank certificate of deposit or bank letter of credit.
9The bond shall be conditioned upon the distributor's payment of
10amount of any 21-day draft which the Department accepts from
11that distributor for the delivery of stamps to that distributor
12under this Act. The distributor's failure to pay any such
13draft, when due, shall also make such distributor automatically
14liable to the Department for a penalty equal to 25% of the
15amount of such draft.
16    On and after December 1, 1985 and until July 1, 2003, the
17Department shall allow a distributor 30 days in which to make
18final payment of the amount to be paid for such stamps, by
19allowing the distributor to make payment for the stamps at the
20time of purchasing them with a draft which shall be in such
21form as the Department prescribes, and which shall be payable
22within 30 days thereafter, and beginning on January 1, 2003 and
23thereafter, the draft shall be payable by means of electronic
24funds transfer: Provided that such distributor has filed with
25the Department, and has received the Department's approval of,
26a bond, which is in addition to the bond required under Section

 

 

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14 of this Act, payable to the Department in an amount equal to
2150% of such distributor's average monthly tax liability to the
3Department under this Act during the preceding calendar year or
4$750,000, whichever is less, except that as to bonds filed on
5or after January 1, 1987, such additional bond shall be in an
6amount equal to 100% of such distributor's average monthly tax
7liability under this Act during the preceding calendar year or
8$750,000, whichever is less. The bond shall be joint and
9several and shall be in the form of a surety company bond in
10such form as the Department prescribes, or it may be in the
11form of a bank certificate of deposit or bank letter of credit.
12The bond shall be conditioned upon the distributor's payment of
13the amount of any 30-day draft which the Department accepts
14from that distributor for the delivery of stamps to that
15distributor under this Act. The distributor's failure to pay
16any such draft, when due, shall also make such distributor
17automatically liable to the Department for a penalty equal to
1825% of the amount of such draft.
19    Every prior continuous compliance taxpayer shall be exempt
20from all requirements under this Section concerning the
21furnishing of such bond, as defined in this Section, as a
22condition precedent to his being authorized to engage in the
23business licensed under this Act. This exemption shall continue
24for each such taxpayer until such time as he may be determined
25by the Department to be delinquent in the filing of any
26returns, or is determined by the Department (either through the

 

 

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1Department's issuance of a final assessment which has become
2final under the Act, or by the taxpayer's filing of a return
3which admits tax to be due that is not paid) to be delinquent
4or deficient in the paying of any tax under this Act, at which
5time that taxpayer shall become subject to the bond
6requirements of this Section and, as a condition of being
7allowed to continue to engage in the business licensed under
8this Act, shall be required to furnish bond to the Department
9in such form as provided in this Section. Such taxpayer shall
10furnish such bond for a period of 2 years, after which, if the
11taxpayer has not been delinquent in the filing of any returns,
12or delinquent or deficient in the paying of any tax under this
13Act, the Department may reinstate such person as a prior
14continuance compliance taxpayer. Any taxpayer who fails to pay
15an admitted or established liability under this Act may also be
16required to post bond or other acceptable security with the
17Department guaranteeing the payment of such admitted or
18established liability.
19    Except as otherwise provided in this Section, any Any
20person aggrieved by any decision of the Department under this
21Section may, within the time allowed by law, protest and
22request a hearing, whereupon the Department shall give notice
23and shall hold a hearing in conformity with the provisions of
24this Act and then issue its final administrative decision in
25the matter to such person. On and after July 1, 2013, protests
26concerning matters that are subject to the jurisdiction of the

 

 

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1Illinois Independent Tax Tribunal shall be filed with the
2Tribunal in accordance with the Illinois Independent Tax
3Tribunal Act of 2012, and hearings on those matters shall be
4held before the Tribunal in accordance with that Act. With
5respect to protests filed with the Department prior to July 1,
62013 that would otherwise be subject to the jurisdiction of the
7Illinois Independent Tax Tribunal, the taxpayer may elect to be
8subject to the provisions of the Illinois Independent Tax
9Tribunal Act at any time on or after July 1, 2013, but not
10later than 30 days after the date on which the protest was
11filed. If made, the election shall be irrevocable. In the
12absence of such a protest filed within the time allowed by law,
13the Department's decision shall become final without any
14further determination being made or notice given.
15    The Department shall discharge any surety and shall release
16and return any bond or security deposited, assigned, pledged,
17or otherwise provided to it by a taxpayer under this Section
18within 30 days after:
19    (1) Such taxpayer becomes a prior continuous compliance
20taxpayer; or
21    (2) Such taxpayer has ceased to collect receipts on which
22he is required to remit tax to the Department, has filed a
23final tax return, and has paid to the Department an amount
24sufficient to discharge his remaining tax liability as
25determined by the Department under this Act. The Department
26shall make a final determination of the taxpayer's outstanding

 

 

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1tax liability as expeditiously as possible after his final tax
2return has been filed. If the Department cannot make such final
3determination within 45 days after receiving the final tax
4return, within such period it shall so notify the taxpayer,
5stating its reasons therefor.
6    The Department may authorize distributors to affix revenue
7tax stamps by imprinting tax meter stamps upon original
8packages of cigarettes. The Department shall adopt rules and
9regulations relating to the imprinting of such tax meter stamps
10as will result in payment of the proper taxes as herein
11imposed. No distributor may affix revenue tax stamps to
12original packages of cigarettes by imprinting tax meter stamps
13thereon unless such distributor has first obtained permission
14from the Department to employ this method of affixation. The
15Department shall regulate the use of tax meters and may, to
16assure the proper collection of the taxes imposed by this Act,
17revoke or suspend the privilege, theretofore granted by the
18Department to any distributor, to imprint tax meter stamps upon
19original packages of cigarettes.
20    Illinois cigarette manufacturers who place their
21cigarettes in original packages which are contained inside a
22sealed transparent wrapper, and similar out-of-State cigarette
23manufacturers who elect to qualify and are accepted by the
24Department as distributors under Section 4b(a) of this Act,
25shall pay the taxes imposed by this Act by remitting the amount
26thereof to the Department by the 5th day of each month covering

 

 

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1cigarettes shipped or otherwise delivered in Illinois to
2purchasers during the preceding calendar month. Such
3manufacturers of cigarettes in original packages which are
4contained inside a sealed transparent wrapper, before
5delivering such cigarettes or causing such cigarettes to be
6delivered in this State to purchasers, shall evidence their
7obligation to remit the taxes due with respect to such
8cigarettes by imprinting language to be prescribed by the
9Department on each original package of such cigarettes
10underneath the sealed transparent outside wrapper of such
11original package, in such place thereon and in such manner as
12the Department may designate. Such imprinted language shall
13acknowledge the manufacturer's payment of or liability for the
14tax imposed by this Act with respect to the distribution of
15such cigarettes.
16    A distributor shall not affix, or cause to be affixed, any
17stamp or imprint to a package of cigarettes, as provided for in
18this Section, if the tobacco product manufacturer, as defined
19in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
20that made or sold the cigarettes has failed to become a
21participating manufacturer, as defined in subdivision (a)(1)
22of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
23or has failed to create a qualified escrow fund for any
24cigarettes manufactured by the tobacco product manufacturer
25and sold in this State or otherwise failed to bring itself into
26compliance with subdivision (a)(2) of Section 15 of the Tobacco

 

 

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1Product Manufacturers' Escrow Act.
2(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
396-1027, eff. 7-12-10.)
 
4    (35 ILCS 130/8)  (from Ch. 120, par. 453.8)
5    Sec. 8. The Department may make, promulgate and enforce
6such reasonable rules and regulations relating to the
7administration and enforcement of this Act as may be deemed
8expedient.
9    Whenever notice is required by this Act, such notice may be
10given by United States certified or registered mail, addressed
11to the person concerned at his last known address, and proof of
12such mailing shall be sufficient for the purposes of this Act.
13Notice of any hearing provided for by this Act and held before
14the Department shall be so given not less than 7 days prior to
15the day fixed for the hearing.
16    Hearings provided for in this Act, other than hearings
17before the Illinois Independent Tax Tribunal, shall be held:
18        (1) In Cook County, if the taxpayer's or licensee's
19    principal place of business is in that county;
20        (2) At the Department's office nearest the taxpayer's
21    or licensee's principal place of business, if the
22    taxpayer's or licensee's principal place of business is in
23    Illinois but outside Cook County;
24        (3) In Sangamon County, if the taxpayer's or licensee's
25    principal place of business is outside Illinois.

 

 

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1    The Circuit Court of the County wherein the hearing is held
2has power to review all final administrative decisions of the
3Department in administering this Act. The provisions of the
4Administrative Review Law, and all amendments and
5modifications thereof, and the rules adopted pursuant thereto,
6shall apply to and govern all proceedings for the judicial
7review of final administrative decisions of the Department
8under this Act. The term "administrative decision" is defined
9as in Section 3-101 of the Code of Civil Procedure.
10    Service upon the Director of Revenue or Assistant Director
11of Revenue of summons issued in any action to review a final
12administrative decision shall be service upon the Department.
13The Department shall certify the record of its proceedings if
14the distributor, secondary distributor, or manufacturer with
15authority to maintain manufacturer representatives pays to it
16the sum of 75 per page of testimony taken before the
17Department and 25 per page of all other matters contained in
18such record, except that these charges may be waived where the
19Department is satisfied that the aggrieved party is a poor
20person who cannot afford to pay such charges. Before the
21delivery of such record to the person applying for it, payment
22of these charges must be made, and if the record is not paid
23for within 30 days after notice that such record is available,
24the complaint may be dismissed by the court upon motion of the
25Department.
26    No stay order shall be entered by the Circuit Court unless

 

 

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1the distributor, secondary distributor, or manufacturer with
2authority to maintain manufacturer representatives files with
3the court a bond in an amount fixed and approved by the court,
4to indemnify the State against all loss and injury which may be
5sustained by it on account of the review proceedings and to
6secure all costs which may be occasioned by such proceedings.
7    Whenever any proceeding provided by this Act is begun
8before the Department, either by the Department or by a person
9subject to this Act, and such person thereafter dies or becomes
10a person under legal disability before such proceeding is
11concluded, the legal representative of the deceased person or
12of the person under legal disability shall notify the
13Department of such death or legal disability. Such legal
14representative, as such, shall then be substituted by the
15Department for such person. If the legal representative fails
16to notify the Department of his or her appointment as such
17legal representative, the Department may, upon its own motion,
18substitute such legal representative in the proceeding pending
19before the Department for the person who died or became a
20person under legal disability.
21    Hearings to contest an administrative decision under this
22Act conducted as a result of a protest filed with the Illinois
23Independent Tax Tribunal on or after July 1, 2013 shall be
24conducted pursuant to the provisions of the Illinois
25Independent Tax Tribunal Act of 2012.
26(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 

 

 

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1    (35 ILCS 130/8a)  (from Ch. 120, par. 453.8a)
2    Sec. 8a. The Illinois Administrative Procedure Act is
3hereby expressly adopted and shall apply to all administrative
4rules and procedures of the Department of Revenue under this
5Act, except that (1) paragraph (b) of Section 5-10 of the
6Illinois Administrative Procedure Act does not apply to final
7orders, decisions and opinions of the Department, (2)
8subparagraph (a)2 of Section 5-10 of the Illinois
9Administrative Procedure Act does not apply to forms
10established by the Department for use under this Act, and (3)
11the provisions of Section 10-45 of the Illinois Administrative
12Procedure Act regarding proposals for decision are excluded and
13not applicable to the Department under this Act to the extent
14Section 10-45 applies to hearings not otherwise subject to the
15Illinois Independent Tax Tribunal Act of 2012.
16(Source: P.A. 88-45.)
 
17    (35 ILCS 130/9a)  (from Ch. 120, par. 453.9a)
18    Sec. 9a. Examination and correction of returns.
19    (1) As soon as practicable after any return is filed, the
20Department shall examine such return and shall correct such
21return according to its best judgment and information, which
22return so corrected by the Department shall be prima facie
23correct and shall be prima facie evidence of the correctness of
24the amount of tax due, as shown therein. Instead of requiring

 

 

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1the distributor to file an amended return, the Department may
2simply notify the distributor of the correction or corrections
3it has made. Proof of such correction by the Department may be
4made at any hearing before the Department or in any legal
5proceeding by a reproduced copy of the Department's record
6relating thereto in the name of the Department under the
7certificate of the Director of Revenue. Such reproduced copy
8shall, without further proof, be admitted into evidence before
9the Department or in any legal proceeding and shall be prima
10facie proof of the correctness of the amount of tax due, as
11shown therein. If the Department finds that any amount of tax
12is due from the distributor, the Department shall issue the
13distributor a notice of tax liability for the amount of tax
14claimed by the Department to be due, together with a penalty in
15an amount determined in accordance with Sections 3-3, 3-5 and
163-6 of the Uniform Penalty and Interest Act. If, in
17administering the provisions of this Act, comparison of a
18return or returns of a distributor with the books, records and
19inventories of such distributor discloses a deficiency which
20cannot be allocated by the Department to a particular month or
21months, the Department shall issue the distributor a notice of
22tax liability for the amount of tax claimed by the Department
23to be due for a given period, but without any obligation upon
24the Department to allocate such deficiency to any particular
25month or months, together with a penalty in an amount
26determined in accordance with Sections 3-3, 3-5 and 3-6 of the

 

 

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1Uniform Penalty and Interest Act, under which circumstances the
2aforesaid notice of tax liability shall be prima facie correct
3and shall be prima facie evidence of the correctness of the
4amount of tax due, as shown therein; and proof of such
5correctness may be made in accordance with, and the
6admissibility of a reproduced copy of such notice of tax
7liability shall be governed by, all the provisions of this Act
8applicable to corrected returns. If any distributor filing any
9return dies or becomes a person under legal disability at any
10time before the Department issues its notice of tax liability,
11such notice shall be issued to the administrator, executor or
12other legal representative, as such, of such distributor.
13    (2) Except as otherwise provided in this Section, if If,
14within 60 days after such notice of tax liability, the
15distributor or his or her legal representative files a protest
16to such notice of tax liability and requests a hearing thereon,
17the Department shall give notice to such distributor or legal
18representative of the time and place fixed for such hearing,
19and shall hold a hearing in conformity with the provisions of
20this Act, and pursuant thereto shall issue a final assessment
21to such distributor or legal representative for the amount
22found to be due as a result of such hearing. On or after July 1,
232013, protests concerning matters that are subject to the
24jurisdiction of the Illinois Independent Tax Tribunal shall be
25filed in accordance with the Illinois Independent Tax Tribunal
26Act of 2012, and hearings concerning those matters shall be

 

 

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1held before the Tribunal in accordance with that Act. With
2respect to protests filed with the Department prior to July 1,
32013 that would otherwise be subject to the jurisdiction of the
4Illinois Independent Tax Tribunal, the taxpayer may elect to be
5subject to the provisions of the Illinois Independent Tax
6Tribunal Act at any time on or after July 1, 2013, but not
7later than 30 days after the date on which the protest was
8filed. If made, the election shall be irrevocable. If a protest
9to the notice of tax liability and a request for a hearing
10thereon is not filed within the time allowed by law 60 days
11after such notice of tax liability, such notice of tax
12liability shall become final without the necessity of a final
13assessment being issued and shall be deemed to be a final
14assessment.
15    (3) In case of failure to pay the tax, or any portion
16thereof, or any penalty provided for in this Act, when due, the
17Department may bring suit to recover the amount of such tax, or
18portion thereof, or penalty; or, if the taxpayer dies or
19becomes incompetent, by filing claim therefor against his
20estate; provided that no such action with respect to any tax,
21or portion thereof, or penalty, shall be instituted more than 2
22years after the cause of action accrues, except with the
23consent of the person from whom such tax or penalty is due.
24    After the expiration of the period within which the person
25assessed may file an action for judicial review under the
26Administrative Review Law without such an action being filed, a

 

 

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

 

 

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

 

 

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1within the time limited by the Probate Act of 1975, as amended.
2    The remedies provided for herein shall not be exclusive,
3but all remedies available to creditors for the collection of
4debts shall be available for the collection of any tax or
5penalty due hereunder.
6    The collection of tax or penalty by any means provided for
7herein shall not be a bar to any prosecution under this Act.
8    The certificate of the Director of the Department to the
9effect that a tax or amount required to be paid by this Act has
10not been paid, that a return has not been filed, or that
11information has not been supplied pursuant to the provisions of
12this Act, shall be prima facie evidence thereof.
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, to
17the 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" to
20retailers, to sellers or to persons engaged in the business of
21selling tangible personal property shall mean distributors
22when used in this Act.
23(Source: P.A. 92-322, eff. 1-1-02.)
 
24    (35 ILCS 130/9b)  (from Ch. 120, par. 453.9b)
25    Sec. 9b. Failure to file return; penalty; protest. In case

 

 

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1any person who is required to file a return under this Act
2fails to file such return, the Department shall determine the
3amount of tax due from him according to its best judgment and
4information, which amount so fixed by the Department shall be
5prima facie correct and shall be prima facie evidence of the
6correctness of the amount of tax due, as shown in such
7determination. Proof of such determination by the Department
8may be made at any hearing before the Department or in any
9legal proceeding by a reproduced copy of the Department's
10record relating thereto in the name of the Department under the
11certificate of the Director of Revenue. Such reproduced copy
12shall, without further proof, be admitted into evidence before
13the Department or in any legal proceeding and shall be prima
14facie proof of the correctness of the amount of tax due, as
15shown therein. The Department shall issue such person a notice
16of tax liability for the amount of tax claimed by the
17Department to be due, together with a penalty in an amount
18determined in accordance with Sections 3-3, 3-5 and 3-6 of the
19Uniform Penalty and Interest Act. If such person or the legal
20representative of such person, within 60 days after such
21notice, files a protest to such notice of tax liability and
22requests a hearing thereon, the Department shall give notice to
23such person or the legal representative of such person of the
24time and place fixed for such hearing and shall hold a hearing
25in conformity with the provisions of this Act, and pursuant
26thereto shall issue a final assessment to such person or to the

 

 

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1legal representative of such person for the amount found to be
2due as a result of such hearing. Hearings to protest a notice
3of tax liability issued pursuant to this Section that are
4conducted as a result of a protest filed with the Illinois
5Independent Tax Tribunal on or after July 1, 2013 shall be
6conducted pursuant to the Illinois Independent Tax Tribunal
7Act. If a protest to the notice of tax liability and a request
8for a hearing thereon is not filed within 60 days after such
9notice of tax liability, such notice of tax liability shall
10become final without the necessity of a final assessment being
11issued and shall be deemed to be a final assessment.
12(Source: P.A. 92-322, eff. 1-1-02.)
 
13    (35 ILCS 130/10)  (from Ch. 120, par. 453.10)
14    Sec. 10. The Department, or any officer or employee
15designated in writing by the Director thereof, for the purpose
16of administering and enforcing the provisions of this Act, may
17hold investigations and, except as otherwise provided in the
18Illinois Independent Tax Tribunal Act of 2012, may hold
19hearings concerning any matters covered by this Act, and may
20examine books, papers, records or memoranda bearing upon the
21sale or other disposition of cigarettes by a distributor,
22secondary distributor, manufacturer with authority to maintain
23manufacturer representatives under Section 4f of this Act, or
24manufacturer representative, and may issue subpoenas requiring
25the attendance of a distributor, secondary distributor,

 

 

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1manufacturer with authority to maintain manufacturer
2representatives under Section 4f of this Act, or manufacturer
3representative, or any officer or employee of a distributor,
4secondary distributor, manufacturer with authority to maintain
5manufacturer representatives under Section 4f of this Act, or
6any person having knowledge of the facts, and may take
7testimony and require proof, and may issue subpoenas duces
8tecum to compel the production of relevant books, papers,
9records and memoranda, for the information of the Department.
10    All hearings to contest administrative decisions of the
11Department conducted as a result of a protest filed with the
12Illinois Independent Tax Tribunal on or after July 1, 2013
13shall be subject to the provisions of the Illinois Independent
14Tax Tribunal Act of 2012.
15    In the conduct of any investigation or hearing provided for
16by this Act, neither the Department, nor any officer or
17employee thereof, shall be bound by the technical rules of
18evidence, and no informality in the proceedings nor in the
19manner of taking testimony shall invalidate any rule, order,
20decision or regulation made, approved or confirmed by the
21Department.
22    The Director of Revenue, or any duly authorized officer or
23employee of the Department, shall have the power to administer
24oaths to such persons required by this Act to give testimony
25before the said Department.
26    The books, papers, records and memoranda of the Department,

 

 

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1or parts thereof, may be proved in any hearing, investigation
2or legal proceeding by a reproduced copy thereof under the
3certificate of the Director of Revenue. Such reproduced copy
4shall, without further proof, be admitted into evidence before
5the Department or in any legal proceeding.
6(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
7    Section 5-50. The Cigarette Use Tax Act is amended by
8changing Sections 3, 13, 13a, 21, and 21a as follows:
 
9    (35 ILCS 135/3)  (from Ch. 120, par. 453.33)
10    Sec. 3. Stamp payment. The tax hereby imposed shall be
11collected by a distributor maintaining a place of business in
12this State or a distributor authorized by the Department
13pursuant to Section 7 hereof to collect the tax, and the amount
14of the tax shall be added to the price of the cigarettes sold
15by such distributor. Collection of the tax shall be evidenced
16by a stamp or stamps affixed to each original package of
17cigarettes or by an authorized substitute for such stamp
18imprinted on each original package of such cigarettes
19underneath the sealed transparent outside wrapper of such
20original package, except as hereinafter provided. Each
21distributor who is required or authorized to collect the tax
22herein imposed, before delivering or causing to be delivered
23any original packages of cigarettes in this State to any
24purchaser, shall firmly affix a proper stamp or stamps to each

 

 

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1such package, or (in the case of manufacturers of cigarettes in
2original packages which are contained inside a sealed
3transparent wrapper) shall imprint the required language on the
4original package of cigarettes beneath such outside wrapper as
5hereinafter provided. Such stamp or stamps need not be affixed
6to the original package of any cigarettes with respect to which
7the distributor is required to affix a like stamp or stamps by
8virtue of the Cigarette Tax Act, however, and no tax imprint
9need be placed underneath the sealed transparent wrapper of an
10original package of cigarettes with respect to which the
11distributor is required or authorized to employ a like tax
12imprint by virtue of the Cigarette Tax Act.
13    No stamp or imprint may be affixed to, or made upon, any
14package of cigarettes unless that package complies with all
15requirements of the federal Cigarette Labeling and Advertising
16Act, 15 U.S.C. 1331 and following, for the placement of labels,
17warnings, or any other information upon a package of cigarettes
18that is sold within the United States. Under the authority of
19Section 6, the Department shall revoke the license of any
20distributor that is determined to have violated this paragraph.
21A person may not affix a stamp on a package of cigarettes,
22cigarette papers, wrappers, or tubes if that individual package
23has been marked for export outside the United States with a
24label or notice in compliance with Section 290.185 of Title 27
25of the Code of Federal Regulations. It is not a defense to a
26proceeding for violation of this paragraph that the label or

 

 

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1notice has been removed, mutilated, obliterated, or altered in
2any manner.
3    Only distributors licensed under this Act and
4transporters, as defined in Section 9c of the Cigarette Tax
5Act, may possess unstamped original packages of cigarettes.
6Prior to shipment to an Illinois retailer or secondary
7distributor, a stamp shall be applied to each original package
8of cigarettes sold to the retailer or secondary distributor. A
9distributor may apply a tax stamp only to an original package
10of cigarettes purchased or obtained directly from an in-state
11maker, manufacturer, or fabricator licensed as a distributor
12under Section 4 of this Act or an out-of-state maker,
13manufacturer, or fabricator holding a permit under Section 7 of
14this Act. A licensed distributor may ship or otherwise cause to
15be delivered unstamped original packages of cigarettes in,
16into, or from this State. A licensed distributor may transport
17unstamped original packages of cigarettes to a facility,
18wherever located, owned or controlled by such distributor;
19however, a distributor may not transport unstamped original
20packages of cigarettes to a facility where retail sales of
21cigarettes take place or to a facility where a secondary
22distributor makes sales for resale. Any licensed distributor
23that ships or otherwise causes to be delivered unstamped
24original packages of cigarettes into, within, or from this
25State shall ensure that the invoice or equivalent documentation
26and the bill of lading or freight bill for the shipment

 

 

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1identifies the true name and address of the consignor or
2seller, the true name and address of the consignee or
3purchaser, and the quantity by brand style of the cigarettes so
4transported, provided that this Section shall not be construed
5as to impose any requirement or liability upon any common or
6contract carrier.
7    Distributors making sales of cigarettes to secondary
8distributors shall add the amount of the tax to the price of
9the cigarettes sold by the distributors. Secondary
10distributors making sales of cigarettes to retailers shall
11include the amount of the tax in the price of the cigarettes
12sold to retailers. The amount of tax shall not be less than the
13amount of taxes imposed by the State and all local
14jurisdictions. The amount of local taxes shall be calculated
15based on the location of the retailer's place of business shown
16on the retailer's certificate of registration or
17sub-registration issued to the retailer pursuant to Section 2a
18of the Retailers' Occupation Tax Act. The original packages of
19cigarettes sold by the retailer shall bear all the required
20stamps, or other indicia, for the taxes included in the price
21of cigarettes.
22    Stamps, when required hereunder, shall be purchased from
23the Department, or any person authorized by the Department, by
24distributors. On and after July 1, 2003, payment for such
25stamps must be made by means of electronic funds transfer. The
26Department may refuse to sell stamps to any person who does not

 

 

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1comply with the provisions of this Act. Beginning on June 6,
22002 and through June 30, 2002, persons holding valid licenses
3as distributors may purchase cigarette tax stamps up to an
4amount equal to 115% of the distributor's average monthly
5cigarette tax stamp purchases over the 12 calendar months prior
6to June 6, 2002.
7    Prior to December 1, 1985, the Department shall allow a
8distributor 21 days in which to make final payment of the
9amount to be paid for such stamps, by allowing the distributor
10to make payment for the stamps at the time of purchasing them
11with a draft which shall be in such form as the Department
12prescribes, and which shall be payable within 21 days
13thereafter: Provided that such distributor has filed with the
14Department, and has received the Department's approval of, a
15bond, which is in addition to the bond required under Section 4
16of this Act, payable to the Department in an amount equal to
1780% of such distributor's average monthly tax liability to the
18Department under this Act during the preceding calendar year or
19$500,000, whichever is less. The bond shall be joint and
20several and shall be in the form of a surety company bond in
21such form as the Department prescribes, or it may be in the
22form of a bank certificate of deposit or bank letter of credit.
23The bond shall be conditioned upon the distributor's payment of
24the amount of any 21-day draft which the Department accepts
25from that distributor for the delivery of stamps to that
26distributor under this Act. The distributor's failure to pay

 

 

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1any such draft, when due, shall also make such distributor
2automatically liable to the Department for a penalty equal to
325% of the amount of such draft.
4    On and after December 1, 1985 and until July 1, 2003, the
5Department shall allow a distributor 30 days in which to make
6final payment of the amount to be paid for such stamps, by
7allowing the distributor to make payment for the stamps at the
8time of purchasing them with a draft which shall be in such
9form as the Department prescribes, and which shall be payable
10within 30 days thereafter, and beginning on January 1, 2003 and
11thereafter, the draft shall be payable by means of electronic
12funds transfer: Provided that such distributor has filed with
13the Department, and has received the Department's approval of,
14a bond, which is in addition to the bond required under Section
154 of this Act, payable to the Department in an amount equal to
16150% of such distributor's average monthly tax liability to the
17Department under this Act during the preceding calendar year or
18$750,000, whichever is less, except that as to bonds filed on
19or after January 1, 1987, such additional bond shall be in an
20amount equal to 100% of such distributor's average monthly tax
21liability under this Act during the preceding calendar year or
22$750,000, whichever is less. The bond shall be joint and
23several and shall be in the form of a surety company bond in
24such form as the Department prescribes, or it may be in the
25form of a bank certificate of deposit or bank letter of credit.
26The bond shall be conditioned upon the distributor's payment of

 

 

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1the amount of any 30-day draft which the Department accepts
2from that distributor for the delivery of stamps to that
3distributor under this Act. The distributor's failure to pay
4any such draft, when due, shall also make such distributor
5automatically liable to the Department for a penalty equal to
625% of the amount of such draft.
7    Every prior continuous compliance taxpayer shall be exempt
8from all requirements under this Section concerning the
9furnishing of such bond, as defined in this Section, as a
10condition precedent to his being authorized to engage in the
11business licensed under this Act. This exemption shall continue
12for each such taxpayer until such time as he may be determined
13by the Department to be delinquent in the filing of any
14returns, or is determined by the Department (either through the
15Department's issuance of a final assessment which has become
16final under the Act, or by the taxpayer's filing of a return
17which admits tax to be due that is not paid) to be delinquent
18or deficient in the paying of any tax under this Act, at which
19time that taxpayer shall become subject to the bond
20requirements of this Section and, as a condition of being
21allowed to continue to engage in the business licensed under
22this Act, shall be required to furnish bond to the Department
23in such form as provided in this Section. Such taxpayer shall
24furnish such bond for a period of 2 years, after which, if the
25taxpayer has not been delinquent in the filing of any returns,
26or delinquent or deficient in the paying of any tax under this

 

 

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1Act, the Department may reinstate such person as a prior
2continuance compliance taxpayer. Any taxpayer who fails to pay
3an admitted or established liability under this Act may also be
4required to post bond or other acceptable security with the
5Department guaranteeing the payment of such admitted or
6established liability.
7    Except as otherwise provided in this Section, any Any
8person aggrieved by any decision of the Department under this
9Section may, within the time allowed by law, protest and
10request a hearing before the Department, whereupon the
11Department shall give notice and shall hold a hearing in
12conformity with the provisions of this Act and then issue its
13final administrative decision in the matter to such person.
14Effective July 1, 2013, protests concerning matters that are
15subject to the jurisdiction of the Illinois Independent Tax
16Tribunal shall be filed in accordance with the Illinois
17Independent Tax Tribunal Act of 2012, and hearings concerning
18those matters shall be held before the Tribunal in accordance
19with that Act. With respect to protests filed with the
20Department prior to July 1, 2013 that would otherwise be
21subject to the jurisdiction of the Illinois Independent Tax
22Tribunal, the person filing the protest may elect to be subject
23to the provisions of the Illinois Independent Tax Tribunal Act
24of 2012 at any time on or after July 1, 2013, but not later than
2530 days after the date on which the protest was filed. If made,
26the election shall be irrevocable. In the absence of such a

 

 

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1protest filed within the time allowed by law, the Department's
2decision shall become final without any further determination
3being made or notice given.
4    The Department shall discharge any surety and shall release
5and return any bond or security deposited, assigned, pledged,
6or otherwise provided to it by a taxpayer under this Section
7within 30 days after:
8        (1) such Taxpayer becomes a prior continuous
9    compliance taxpayer; or
10        (2) such taxpayer has ceased to collect receipts on
11    which he is required to remit tax to the Department, has
12    filed a final tax return, and has paid to the Department an
13    amount sufficient to discharge his remaining tax liability
14    as determined by the Department under this Act. The
15    Department shall make a final determination of the
16    taxpayer's outstanding tax liability as expeditiously as
17    possible after his final tax return has been filed. If the
18    Department cannot make such final determination within 45
19    days after receiving the final tax return, within such
20    period it shall so notify the taxpayer, stating its reasons
21    therefor.
22    At the time of purchasing such stamps from the Department
23when purchase is required by this Act, or at the time when the
24tax which he has collected is remitted by a distributor to the
25Department without the purchase of stamps from the Department
26when that method of remitting the tax that has been collected

 

 

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1is required or authorized by this Act, the distributor shall be
2allowed a discount during any year commencing July 1 and ending
3the following June 30 in accordance with the schedule set out
4hereinbelow, from the amount to be paid by him to the
5Department for such stamps, or to be paid by him to the
6Department on the basis of monthly remittances (as the case may
7be), to cover the cost, to such distributor, of collecting the
8tax herein imposed by affixing such stamps to the original
9packages of cigarettes sold by such distributor or by placing
10tax imprints underneath the sealed transparent wrapper of
11original packages of cigarettes sold by such distributor (as
12the case may be): (1) Prior to December 1, 1985, a discount
13equal to 1-2/3% of the amount of the tax up to and including
14the first $700,000 paid hereunder by such distributor to the
15Department during any such year; 1-1/3% of the next $700,000 of
16tax or any part thereof, paid hereunder by such distributor to
17the Department during any such year; 1% of the next $700,000 of
18tax, or any part thereof, paid hereunder by such distributor to
19the Department during any such year; and 2/3 of 1% of the
20amount of any additional tax paid hereunder by such distributor
21to the Department during any such year or (2) On and after
22December 1, 1985, a discount equal to 1.75% of the amount of
23the tax payable under this Act up to and including the first
24$3,000,000 paid hereunder by such distributor to the Department
25during any such year and 1.5% of the amount of any additional
26tax paid hereunder by such distributor to the Department during

 

 

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1any such year.
2    Two or more distributors that use a common means of
3affixing revenue tax stamps or that are owned or controlled by
4the same interests shall be treated as a single distributor for
5the purpose of computing the discount.
6    Cigarette manufacturers who are distributors under Section
77(a) of this Act, and who place their cigarettes in original
8packages which are contained inside a sealed transparent
9wrapper, shall be required to remit the tax which they are
10required to collect under this Act to the Department by
11remitting the amount thereof to the Department by the 5th day
12of each month, covering cigarettes shipped or otherwise
13delivered to points in Illinois to purchasers during the
14preceding calendar month, but a distributor need not remit to
15the Department the tax so collected by him from purchasers
16under this Act to the extent to which such distributor is
17required to remit the tax imposed by the Cigarette Tax Act to
18the Department with respect to the same cigarettes. All taxes
19upon cigarettes under this Act are a direct tax upon the retail
20consumer and shall conclusively be presumed to be precollected
21for the purpose of convenience and facility only. Cigarette
22manufacturers that are distributors licensed under Section
237(a) of this Act and who place their cigarettes in original
24packages which are contained inside a sealed transparent
25wrapper, before delivering such cigarettes or causing such
26cigarettes to be delivered in this State to purchasers, shall

 

 

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1evidence their obligation to collect and remit the tax due with
2respect to such cigarettes by imprinting language to be
3prescribed by the Department on each original package of such
4cigarettes underneath the sealed transparent outside wrapper
5of such original package, in such place thereon and in such
6manner as the Department may prescribe; provided (as stated
7hereinbefore) that this requirement does not apply when such
8distributor is required or authorized by the Cigarette Tax Act
9to place the tax imprint provided for in the last paragraph of
10Section 3 of that Act underneath the sealed transparent wrapper
11of such original package of cigarettes. Such imprinted language
12shall acknowledge the manufacturer's collection and payment of
13or liability for the tax imposed by this Act with respect to
14such cigarettes.
15    The Department shall adopt the design or designs of the tax
16stamps and shall procure the printing of such stamps in such
17amounts and denominations as it deems necessary to provide for
18the affixation of the proper amount of tax stamps to each
19original package of cigarettes.
20    Where tax stamps are required, the Department may authorize
21distributors to affix revenue tax stamps by imprinting tax
22meter stamps upon original packages of cigarettes. The
23Department shall adopt rules and regulations relating to the
24imprinting of such tax meter stamps as will result in payment
25of the proper taxes as herein imposed. No distributor may affix
26revenue tax stamps to original packages of cigarettes by

 

 

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1imprinting meter stamps thereon unless such distributor has
2first obtained permission from the Department to employ this
3method of affixation. The Department shall regulate the use of
4tax meters and may, to assure the proper collection of the
5taxes imposed by this Act, revoke or suspend the privilege,
6theretofore granted by the Department to any distributor, to
7imprint tax meter stamps upon original packages of cigarettes.
8    The tax hereby imposed and not paid pursuant to this
9Section shall be paid to the Department directly by any person
10using such cigarettes within this State, pursuant to Section 12
11hereof.
12    A distributor shall not affix, or cause to be affixed, any
13stamp or imprint to a package of cigarettes, as provided for in
14this Section, if the tobacco product manufacturer, as defined
15in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
16that made or sold the cigarettes has failed to become a
17participating manufacturer, as defined in subdivision (a)(1)
18of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
19or has failed to create a qualified escrow fund for any
20cigarettes manufactured by the tobacco product manufacturer
21and sold in this State or otherwise failed to bring itself into
22compliance with subdivision (a)(2) of Section 15 of the Tobacco
23Product Manufacturers' Escrow Act.
24(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 
25    (35 ILCS 135/13)  (from Ch. 120, par. 453.43)

 

 

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1    Sec. 13. Examination and correction of return. As soon as
2practicable after any return is filed, the Department shall
3examine such return and shall correct such return according to
4its best judgment and information, which return so corrected by
5the Department shall be prima facie correct and shall be prima
6facie evidence of the correctness of the amount of tax due, as
7shown therein. Proof of such correction by the Department may
8be made at any hearing before the Department or in any legal
9proceeding by a reproduced copy of the Department's record
10relating thereto in the name of the Department under the
11certificate of the Director of Revenue. Such reproduced copy
12shall, without further proof, be admitted into evidence before
13the Department or in any legal proceeding and shall be prima
14facie proof of the correctness of the amount of tax due, as
15shown therein. If the tax as fixed by the Department is greater
16than the amount of the tax due under the return as filed, the
17Department shall issue the person filing such return a notice
18of tax liability for the amount of tax claimed by the
19Department to be due, together with a penalty in an amount
20determined in accordance with Sections 3-3, 3-5 and 3-6 of the
21Uniform Penalty and Interest Act. If, in administering the
22provisions of this Act, comparison of a return or returns of a
23distributor with the books, records and inventories of such
24distributor discloses a deficiency which cannot be allocated by
25the Department to a particular month or months, the Department
26shall issue the distributor a notice of tax liability for the

 

 

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1amount of tax claimed by the Department to be due for a given
2period, but without any obligation upon the Department to
3allocate such deficiency to any particular month or months,
4together with a penalty in an amount determined in accordance
5with Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and
6Interest Act, under which circumstances the aforesaid notice of
7tax liability shall be prima facie correct and shall be prima
8facie evidence of the correctness of the amount of tax due, as
9shown therein; and proof of such correctness may be made in
10accordance with, and the admissibility of a reproduced copy of
11such notice of tax liability shall be governed by, all the
12provisions of this Act applicable to corrected returns.
13    If any person filing any return dies or becomes a person
14under legal disability at any time before the Department issues
15its notice of tax liability, such notice shall be issued to the
16administrator, executor or other legal representative, as
17such, of such person.
18    Except as otherwise provided in this Section, if If within
1960 days after such notice of tax liability, the person to whom
20such notice is issued or his legal representative files a
21protest to such notice of tax liability and requests a hearing
22thereon, the Department shall give notice to such person or
23legal representative of the time and place fixed for such
24hearing, and shall hold a hearing in conformity with the
25provisions of this Act, and pursuant thereto shall issue a
26final assessment to such person or legal representative for the

 

 

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1amount found to be due as a result of such hearing. Effective
2July 1, 2013, protests concerning matters that are subject to
3the jurisdiction of the Illinois Independent Tax Tribunal shall
4be filed with the Tribunal in accordance with the Illinois
5Independent Tax Tribunal Act of 2012, and hearings concerning
6those matters shall be held before the Tribunal in accordance
7with that Act. With respect to protests filed with the
8Department prior to July 1, 2013 that would otherwise be
9subject to the jurisdiction of the Illinois Independent Tax
10Tribunal, the person filing the protest may elect to be subject
11to the provisions of the Illinois Independent Tax Tribunal Act
12of 2012 at any time on or after July 1, 2013, but not later than
1330 days after the date on which the protest was filed. If made,
14the election shall be irrevocable. If a protest to the notice
15of tax liability and a request for a hearing thereon is not
16filed within the time allowed by law 60 days after such notice
17of tax liability, such notice of tax liability shall become
18final without the necessity of a final assessment being issued
19and shall be deemed to be a final assessment.
20(Source: P.A. 92-322, eff. 1-1-02.)
 
21    (35 ILCS 135/13a)  (from Ch. 120, par. 453.43a)
22    Sec. 13a. Failure to file return. In case any person who is
23required to file a return under this Act fails to file such
24return, the Department shall determine the amount of tax due
25from him according to its best judgment and information, which

 

 

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1amount so fixed by the Department shall be prima facie correct
2and shall be prima facie evidence of the correctness of the
3amount of tax due, as shown in such determination. Proof of
4such determination by the Department may be made at any hearing
5before the Department or in any legal proceeding by a
6reproduced copy of the Department's record relating thereto in
7the name of the Department under the certificate of the
8Director of Revenue. Such reproduced copy shall, without
9further proof, be admitted into evidence before the Department
10or in any legal proceeding and shall be prima facie proof of
11the correctness of the amount of tax due, as shown therein. The
12Department shall issue such person a notice of tax liability
13for the amount of tax claimed by the Department to be due,
14together with a penalty in an amount determined in accordance
15with Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and
16Interest Act. Except as otherwise provided in this Section, if
17If such person or the legal representative of such person,
18within 60 days after such notice, files a protest to such
19notice of tax liability and requests a hearing thereon, the
20Department shall give notice to such person or the legal
21representative of such person of the time and place fixed for
22such hearing, and shall hold a hearing in conformity with the
23provisions of this Act, and pursuant thereto shall issue a
24final assessment to such person or to the legal representative
25of such person for the amount found to be due as a result of
26such hearing. Effective July 1, 2013, protests concerning

 

 

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1matters that are subject to the jurisdiction of the Illinois
2Independent Tax Tribunal shall be filed with the Tribunal in
3accordance with the Illinois Independent Tax Tribunal Act of
42012, and hearings concerning those matters shall be held
5before the Tribunal in accordance with that Act. With respect
6to protests filed with the Department prior to July 1, 2013
7that would otherwise be subject to the jurisdiction of the
8Illinois Independent Tax Tribunal, the person filing the
9protest may elect to be subject to the provisions of the
10Illinois Independent Tax Tribunal Act of 2012 at any time on or
11after July 1, 2013, but not later than 30 days after the date
12on which the protest was filed. If made, the election shall be
13irrevocable. If a protest to the notice of tax liability and a
14request for a hearing thereon is not filed within the time
15allowed by law 60 days after such notice of tax liability, such
16notice of tax liability shall become final without the
17necessity of a final assessment being issued and shall be
18deemed to be a final assessment.
19(Source: P.A. 92-322, eff. 1-1-02.)
 
20    (35 ILCS 135/21)  (from Ch. 120, par. 453.51)
21    Sec. 21. The Department may make, promulgate and enforce
22such reasonable rules and regulations relating to the
23administration and enforcement of this Act as may be deemed
24expedient.
25    Whenever notice is required by this Act, such notice may be

 

 

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1given by United States certified or registered mail, addressed
2to the person concerned at his or her last known address, and
3proof of such mailing shall be sufficient for the purposes of
4this Act. Notice of any hearing provided for by this Act and
5held before the Department shall be so given not less than 7
6days prior to the day fixed for the hearing.
7    Hearings provided for in this Act, other than hearings
8before the Illinois Independent Tax Tribunal, shall be held:
9        (1) In Cook County, if the taxpayer's or licensee's
10    principal place of business is in that county;
11        (2) At the Department's office nearest the taxpayer's
12    or licensee's principal place of business, if the
13    taxpayer's or licensee's principal place of business is in
14    Illinois but outside Cook County;
15        (3) In Sangamon County, if the taxpayer's or licensee's
16    principal place of business is outside Illinois.
17    The Circuit Court of the County wherein the hearing is held
18shall have power to review all final administrative decisions
19of the Department in administering this Act. The provisions of
20the Administrative Review Law, as amended, and the rules
21adopted pursuant thereto, shall apply to and govern all
22proceedings for the judicial review of final administrative
23decisions of the Department under this Act. The term
24"administrative decision" is defined as in Section 3-101 of the
25Code of Civil Procedure.
26    Service upon the Director of Revenue or Assistant Director

 

 

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1of Revenue of the Department of Revenue of summons issued in
2any action to review a final administrative decision shall be
3service upon the Department. The Department shall certify the
4record of its proceedings if the plaintiff in the action for
5judicial review shall pay to it the sum of 75 per page of
6testimony taken before the Department and 25 per page of all
7other matters contained in such record, except that these
8charges may be waived where the Department is satisfied that
9the aggrieved party is a poor person who cannot afford to pay
10such charges. However, before the delivery of such record to
11the person applying for it payment of these charges must be
12made, and if the record is not paid for within 30 days after
13notice that such record is available, the complaint may be
14dismissed by the court upon motion of the Department.
15    No stay order shall be entered by the Circuit Court unless
16the plaintiff in the action for judicial review files with the
17court a bond in an amount fixed and approved by the court, to
18indemnify the State against all loss and injury which may be
19sustained by it on account of the review proceedings and to
20secure all costs which may be occasioned by such proceedings.
21    Whenever any proceeding provided by this Act is commenced
22before the Department, either by the Department or by a person
23subject to this Act, and such person thereafter dies or becomes
24a person under legal disability before such proceeding is
25concluded, the legal representative of the deceased or a person
26under legal disability shall notify the Department of such

 

 

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1death or legal disability. Such legal representative, as such,
2shall then be substituted by the Department for such person. If
3the legal representative fails to notify the Department of his
4or her appointment as such legal representative, the Department
5may, upon its own motion, substitute such legal representative
6in the proceeding pending before the Department for the person
7who died or became a person under legal disability.
8    Hearings to protest an administrative decision of the
9Department conducted as a result of a protest filed with the
10Illinois Independent Tax Tribunal on or after July 1, 2013
11shall be conducted pursuant to the provisions of the Illinois
12Independent Tax Tribunal Act of 2012.
13(Source: P.A. 96-1027, eff. 7-12-10.)
 
14    (35 ILCS 135/21a)  (from Ch. 120, par. 453.51a)
15    Sec. 21a. The Illinois Administrative Procedure Act is
16hereby expressly adopted and shall apply to all administrative
17rules and procedures of the Department of Revenue under this
18Act, except that (1) paragraph (b) of Section 5-10 of the
19Illinois Administrative Procedure Act does not apply to final
20orders, decisions and opinions of the Department, (2)
21subparagraph (a)2 of Section 5-10 of the Illinois
22Administrative Procedure Act does not apply to forms
23established by the Department for use under this Act, and (3)
24the provisions of Section 10-45 of the Illinois Administrative
25Procedure Act regarding proposals for decision are excluded and

 

 

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1not applicable to the Department under this Act to the extent
2Section 10-45 applies to hearings not otherwise subject to the
3Illinois Independent Tax Tribunal Act of 2012.
4(Source: P.A. 88-45.)
 
5    Section 5-55. The Tobacco Products Tax Act of 1995 is
6amended by changing Section 10-58 as follows:
 
7    (35 ILCS 143/10-58)
8    Sec. 10-58. Sale of forfeited tobacco products or vending
9devices.
10    (a) When any tobacco products or any vending devices are
11declared forfeited to the State by the Department, as provided
12in Section 10-55, and when all proceedings for the judicial
13review of the Department's decision have terminated, the
14Department shall, to the extent that its decision is sustained
15on review, sell the property for the best price obtainable and
16shall forthwith pay over the proceeds of the sale to the State
17Treasurer. If the value of the property to be sold at any one
18time is $500 or more, however, the property shall be sold only
19to the highest and best bidder on terms and conditions, and on
20open competitive bidding after public advertisement, in a
21manner and for terms as the Department, by rule, may prescribe.
22    (b) If no complaint for review, as provided in Section 12
23of the Retailers' Occupation Tax Act, has been filed within the
24time required by the Administrative Review Law, and if no stay

 

 

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1order has been entered under that Law, the Department shall
2proceed to destroy, maintain and use in an undercover capacity,
3or sell the property for the best price obtainable and shall
4forthwith pay over the proceeds of the sale to the State
5Treasurer. If the value of the property to be sold at any one
6time is $500 or more, however, the property shall be sold only
7to the highest and best bidder on terms and conditions, and on
8open competitive bidding after public advertisement, in a
9manner and for terms as the Department, by rule, may prescribe.
10    (c) Upon making a sale of tobacco products as provided in
11this Section, the Department shall affix a distinctive stamp to
12each of the tobacco products so sold indicating that they are
13sold under this Section.
14    (d) Notwithstanding the foregoing, any tobacco products
15seized under this Act may, at the discretion of the Director of
16Revenue, be distributed to any eleemosynary institution within
17the State of Illinois.
18(Source: P.A. 94-776, eff. 5-19-06.)
 
19    Section 5-60. The Hotel Operators' Occupation Tax Act is
20amended by changing Section 10 as follows:
 
21    (35 ILCS 145/10)  (from Ch. 120, par. 481b.40)
22    Sec. 10. The Illinois Administrative Procedure Act is
23hereby expressly adopted and shall apply to all administrative
24rules and procedures of the Department of Revenue under this

 

 

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1Act, except that (1) paragraph (b) of Section 5-10 of the
2Illinois Administrative Procedure Act does not apply to final
3orders, decisions and opinions of the Department, (2)
4subparagraph (a)2 of Section 5-10 of the Illinois
5Administrative Procedure Act does not apply to forms
6established by the Department for use under this Act, and (3)
7the provisions of Section 10-45 of the Illinois Administrative
8Procedure Act regarding proposals for decision are excluded and
9not applicable to the Department under this Act to the extent
10Section 10-45 applies to hearings not otherwise subject to the
11Illinois Independent Tax Tribunal Act of 2012.
12(Source: P.A. 88-45.)
 
13    Section 5-65. The Motor Fuel Tax Law is amended by changing
14Section 18 as follows:
 
15    (35 ILCS 505/18)  (from Ch. 120, par. 433.1)
16    Sec. 18. The Illinois Administrative Procedure Act is
17hereby expressly adopted and shall apply to all administrative
18rules and procedures of the Department of Revenue under this
19Act, except that (1) paragraph (b) of Section 5-10 of the
20Illinois Administrative Procedure Act does not apply to final
21orders, decisions and opinions of the Department, (2)
22subparagraph (a)2 of Section 5-10 of the Illinois
23Administrative Procedure Act does not apply to forms
24established by the Department for use under this Act, and (3)

 

 

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1the provisions of Section 10-45 of the Illinois Administrative
2Procedure Act regarding proposals for decision are excluded and
3not applicable to the Department under this Act to the extent
4Section 10-45 applies to hearings not otherwise subject to the
5Illinois Independent Tax Tribunal Act of 2012.
6(Source: P.A. 88-45.)
 
7    Section 5-70. The Coin-Operated Amusement Device and
8Redemption Machine Tax Act is amended by changing Sections 4a,
910, and 14 as follows:
 
10    (35 ILCS 510/4a)  (from Ch. 120, par. 481b.4a)
11    Sec. 4a. The Illinois Administrative Procedure Act is
12hereby expressly adopted and shall apply to all administrative
13rules and procedures of the Department of Revenue under this
14Act, except that (1) paragraph (b) of Section 5-10 of the
15Illinois Administrative Procedure Act does not apply to final
16orders, decisions and opinions of the Department, (2)
17subparagraph (a)2 of Section 5-10 of the Illinois
18Administrative Procedure Act does not apply to forms
19established by the Department for use under this Act, and (3)
20the provisions of Section 10-45 of the Illinois Administrative
21Procedure Act regarding proposals for decision are excluded and
22not applicable to the Department under this Act to the extent
23Section 10-45 applies to hearings not otherwise subject to the
24Illinois Independent Tax Tribunal Act of 2012.

 

 

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1(Source: P.A. 88-45.)
 
2    (35 ILCS 510/10)  (from Ch. 120, par. 481b.10)
3    Sec. 10. All final administrative decisions of the
4Department of Revenue under any of the provisions of this Act
5shall be subject to judicial review pursuant to the provisions
6of the Administrative Review Law or the Illinois Independent
7Tax Tribunal Act of 2012, as applicable, and any amendment and
8modifications thereof, and the rules adopted relative thereto.
9(Source: P.A. 82-783.)
 
10    (35 ILCS 510/14)  (from Ch. 120, par. 481b.14)
11    Sec. 14. After seizing any coin-in-the-slot-operated
12amusement device, as provided in Section 13 of this Act, the
13Department shall hold a hearing in the county where such
14amusement device was seized and shall determine whether such
15amusement device was being displayed in a manner which violates
16any provision of this Act.
17    The Department shall give not less than 7 days' notice of
18the time and place of such hearing to the owner of such
19amusement device if he is known, and also to the person in
20whose possession the amusement device so taken was found, if
21such person is known and if such person in possession is not
22the owner of said amusement device.
23    In case neither the owner nor the person in possession of
24such amusement device is known, the Department shall cause

 

 

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1publication of the time and place of such hearing to be made at
2least once in each week for 3 weeks successively in a newspaper
3of general circulation in the county where such hearing is to
4be held.
5    If, as the result of such hearing, the Department shall
6determine that the amusement device seized was, at the time of
7seizure, being displayed in a manner which violates this Act,
8the Department shall enter an order declaring such amusement
9device confiscated and forfeited to the State, and to be sold
10by the Department in the manner provided for hereinafter in
11this Section. The Department shall give notice of such order to
12the owner of such amusement device if he is known, and also to
13the person in whose possession the amusement device so taken
14was found, if such person is known and if such person in
15possession is not the owner of such amusement device. In case
16neither the owner nor the person in possession of such
17amusement device is known, the Department shall cause
18publication of such order to be made at least once in each week
19for 3 weeks successively in a newspaper of general circulation
20in the county where such hearing was held.
21    The person from whom such amusement device has been seized
22(or the owner of such device if that is a different person) may
23redeem and reclaim such device by paying, to the Department,
24within 30 days after the Department's order of confiscation and
25forfeiture becomes final, an amount equal to twice the annual
26tax applicable to such amusement device, plus a penalty of 10%.

 

 

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1    When any amusement device shall have been declared
2forfeited to the State by the Department, as provided in this
3Section, and when all proceedings for the judicial review of
4the Department's decision have terminated, the Department
5shall (if such amusement device is not redeemed and reclaimed
6within the time and in the manner provided for in this
7Section), to the extent that its decision is sustained on
8review, sell such amusement device for the best price
9obtainable and shall forthwith pay over the proceeds of such
10sale to the State Treasurer; provided, however, that if the
11value of the property to be sold at any one time shall be
12$500.00 or more, such property shall be sold only to the
13highest and best bidder on such terms and conditions and on
14open competitive bidding after public advertisement, in such
15manner and for such terms as the Department, by rule, may
16prescribe.
17    If no complaint for review, as provided in Section 10 of
18this Act, has been filed within the time required by law the
19Administrative Review Law, and if such amusement device is not
20redeemed and reclaimed within the time and in the manner
21provided for in this Section, the Department shall proceed to
22sell said property for the best price obtainable and shall
23forthwith pay over the proceeds of such sale to the State
24Treasurer; provided, however, that if the value of the property
25to be sold at any one time shall be $500.00 or more, such
26property shall be sold only to the highest and best bidder on

 

 

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1such terms and conditions and on open competitive bidding after
2public advertisement, in such manner and for such terms as the
3Department, by rule, may prescribe.
4(Source: P.A. 82-783.)
 
5    Section 5-75. The Cannabis and Controlled Substances Tax
6Act is amended by changing Sections 16, 25, and 26 as follows:
 
7    (35 ILCS 520/16)  (from Ch. 120, par. 2166)
8    Sec. 16. All assessments are Jeopardy Assessments - lien.
9    (a) Assessment. An assessment for a dealer not possessing
10valid stamps or other official indicia showing that the tax has
11been paid shall be considered a jeopardy assessment or
12collection, as provided by Section 1102 of the Illinois Income
13Tax Act. The Department shall determine and assess a tax and
14applicable penalties and interest according to the best
15judgment and information available to the Department, which
16amount so fixed by the Department shall be prima facie correct
17and shall be prima facie evidence of the correctness of the
18amount of tax due, as shown in such determination. When,
19according to the best judgment and information available to the
20Department with regard to all real and personal property and
21rights to property of the dealer, there is no reasonable
22expectation of collection of the amount of tax and penalty to
23be assessed, the Department may issue an assessment under this
24Section for the amount of tax without penalty.

 

 

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1    (b) Filing of Lien. Upon issuance of a jeopardy assessment
2as provided by subsection (a) of this Section, the Department
3may file a notice of jeopardy assessment lien in the office of
4the recorder of the county in which any property of the
5taxpayer may be located and shall notify the taxpayer of such
6filing.
7    (c) Protest. If the taxpayer believes that he does not owe
8some or all of the amount for which the jeopardy assessment
9lien against him has been filed, he may protest within 20 days
10after being notified by the Department of the filing of such
11jeopardy assessment lien and request a hearing, whereupon the
12Department shall hold a hearing in conformity with the
13provisions of Section 908 of the Illinois Income Tax Act and,
14pursuant thereto, shall notify the taxpayer of its decision as
15to whether or not such jeopardy assessment lien will be
16released.
17    After the expiration of the period within which the person
18assessed may file an action for judicial review under the
19Administrative Review Law without such action being filed, a
20certified copy of the final assessment or revised final
21assessment of the Department may be filed with the Circuit
22Court of the county in which the dealer resides, or of Cook
23County in the case of a dealer who does not reside in this
24State, or in the county where the violation of this Act took
25place. The certified copy of the final assessment or revised
26final assessment shall be accompanied by a certification which

 

 

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1recites facts that are sufficient to show that the Department
2complied with the jurisdictional requirements of the Act in
3arriving at its final assessment or its revised final
4assessment and that the dealer had this opportunity for an
5administrative hearing and for judicial review, whether he
6availed himself or herself of either or both of these
7opportunities or not. If the court is satisfied that the
8Department complied with the jurisdictional requirements of
9the Act in arriving at its final assessment or its revised
10final assessment and that the taxpayer had his opportunity for
11an administrative hearing and for judicial review, whether he
12availed himself of either or both of these opportunities or
13not, the court shall render judgment in favor of the Department
14and against the taxpayer for the amount shown to be due by the
15final assessment or the revised final assessment, plus any
16interest which may be due, and such judgment shall be entered
17in the judgment docket of the court. Such judgment shall bear
18the same rate of interest and shall have the same effect as
19other judgments. The judgment may be enforced, and all laws
20applicable to sales for the enforcement of a judgment shall be
21applicable to sales made under such judgments. The Department
22shall file the certified copy of its assessment, as herein
23provided, with the Circuit Court within 2 years after such
24assessment becomes final except when the taxpayer consents in
25writing to an extension of such filing period, and except that
26the time limitation period on the Department's right to file

 

 

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1the certified copy of its assessment with the Circuit Court
2shall not run during any period of time in which the order of
3any court has the effect of enjoining or restraining the
4Department from filing such certified copy of its assessment
5with the Circuit Court.
6    If, when the cause of action for a proceeding in court
7accrues against a person, he or she is out of the State, the
8action may be commenced within the times herein limited, after
9his or her coming into or returning to the State; and if, after
10the cause of action accrues, he or she departs from and remains
11out of the State, the time of his or her absence from the
12State, the time of his or her absence is no part of the time
13limited for the commencement of the action; but the foregoing
14provisions concerning absence from the State shall not apply to
15any case in which, at the time the cause of action accrues, the
16party against whom the cause of action accrues is not a
17resident of this State. The time within which a court action is
18to be commenced by the Department hereunder shall not run from
19the date the taxpayer files a petition in bankruptcy under the
20Federal Bankruptcy Act until 30 days after notice of
21termination or expiration of the automatic stay imposed by the
22Federal Bankruptcy Act.
23    No claim shall be filed against the estate of any deceased
24person or any person under legal disability for any tax or
25penalty or part of either, or interest, except in the manner
26prescribed and within the time limited by the Probate Act of

 

 

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11975, as amended.
2    The collection of tax or penalty or interest by any means
3provided for herein shall not be a bar to any prosecution under
4this Act.
5    In addition to any penalty provided for in this Act, any
6amount of tax which is not paid when due shall bear interest at
7the rate determined in accordance with the Uniform Penalty and
8Interest Act, per month or fraction thereof from the date when
9such tax becomes past due until such tax is paid or a judgment
10therefor is obtained by the Department. If the time for making
11or completing an audit of a taxpayer's books and records is
12extended with the taxpayer's consent, at the request of and for
13the convenience of the Department, beyond the date on which the
14statute of limitations upon the issuance of a notice of tax
15liability by the Department otherwise run, no interest shall
16accrue during the period of such extension. Interest shall be
17collected in the same manner and as part of the tax.
18    If the Department determines that an amount of tax or
19penalty or interest was incorrectly assessed, whether as the
20result of a mistake of fact or an error of law, the Department
21shall waive the amount of tax or penalty or interest that
22accrued due to the incorrect assessment.
23(Source: P.A. 90-655, eff. 7-30-98.)
 
24    (35 ILCS 520/25)  (from Ch. 120, par. 2175)
25    Sec. 25. Administrative Procedure Act - Application. The

 

 

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1Illinois Administrative Procedure Act is hereby expressly
2adopted and shall apply to all administrative rules and
3procedures of the Department of Revenue under this Act, except
4that: (1) subsection (b) of Section 5-10 of the Illinois
5Administrative Procedure Act does not apply to final orders,
6decisions and opinions of the Department; (2) paragraph 2 of
7subsection (a) of Section 5-10 of the Illinois Administrative
8Procedure Act does not apply to forms established by the
9Department for use under this Act; and (3) the provisions of
10Section 10-45 of the Illinois Administrative Procedure Act
11regarding proposals for decision are excluded and not
12applicable to the Department under this Act to the extent
13Section 10-45 applies to hearings not otherwise subject to the
14Illinois Independent Tax Tribunal Act of 2012.
15(Source: P.A. 88-45.)
 
16    (35 ILCS 520/26)  (from Ch. 120, par. 2176)
17    Sec. 26. Administrative Review. Except as otherwise
18provided in this Section, the The provisions of the
19Administrative Review Law, and the rules adopted pursuant
20thereto, shall apply to and govern all proceedings for the
21judicial review of final administrative decisions of the
22Department under this Act. The term "administrative decision"
23is defined as in Section 3-101 of the Code of Civil Procedure.
24The provisions of Section 12 of the Retailers' Occupation Tax
25Act shall apply to dealers subject to this Act to the same

 

 

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1extent as if such provisions were included herein.
2    Notwithstanding any other provision of law, the provisions
3of the Illinois Independent Tax Tribunal Act of 2012, and the
4rules adopted pursuant thereto, shall apply to and govern
5judicial review of final administrative decisions that are
6subject to the Illinois Independent Tax Tribunal Act of 2012.
7(Source: P.A. 86-380.)
 
8    Section 5-80. The Gas Revenue Tax Act is amended by
9changing Sections 8, 10, 12, and 12c as follows:
 
10    (35 ILCS 615/8)  (from Ch. 120, par. 467.23)
11    Sec. 8. For the purpose of administering and enforcing the
12provisions of this Act, the Department or any officer or
13employee of the Department designated, in writing, by the
14Director thereof, may hold investigations and, except for those
15matters reserved to the Illinois Independent Tax Tribunal, may
16hold hearings concerning any matters covered by this Act and
17may examine any books, papers, records or memoranda bearing
18upon the business transacted by any such taxpayer and may
19require the attendance of such taxpayer or any officer or
20employee of such taxpayer, or of any person having knowledge of
21such business, and may take testimony and require proof for its
22information. In the conduct of any investigation or hearing,
23neither the Department nor any officer or employee thereof
24shall be bound by the technical rules of evidence, and no

 

 

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1informality in any proceeding, or in the manner of taking
2testimony, shall invalidate any order, decision, rule or
3regulation made or approved or confirmed by the Department. The
4Director or any officer or employee thereof shall have power to
5administer oaths to any such persons. The books, papers,
6records, and memoranda of the Department, or parts thereof, may
7be proved in any hearing, investigation or legal proceeding by
8a reproduced copy thereof under the certificate of the
9Director. Such reproduced copy shall, without further proof, be
10admitted into evidence before the Department or in any legal
11proceeding.
12(Source: Laws 1965, p. 198.)
 
13    (35 ILCS 615/10)  (from Ch. 120, par. 467.25)
14    Sec. 10. The Department or any officer or employee of the
15Department designated, in writing, by the Director thereof,
16shall at its or his or her own instance, or on the written
17request of any party to the proceeding, issue subpoenas
18requiring the attendance of and the giving of testimony by
19witnesses, and subpoenas duces tecum requiring the production
20of books, papers, records or memoranda. All subpoenas issued
21under this Act may be served by any person of full age. The
22fees of witnesses for attendance and travel shall be the same
23as the fees of witnesses before the circuit court of this
24State; such fees to be paid when the witness is excused from
25further attendance. When the witness is subpoenaed at the

 

 

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1instance of the Department or any officer or employee thereof,
2such fees shall be paid in the same manner as other expenses of
3the Department, and when the witness is subpoenaed at the
4instance of any taxpayer to any such proceeding the Department
5may require that the cost of service of the subpoena and the
6fee of the witness be borne by the taxpayer at whose instance
7the witness is summoned. In such case, the Department, in its
8discretion, may require a deposit to cover the cost of such
9service and witness fees. A subpoena issued as aforesaid shall
10be served in the same manner as a subpoena issued out of a
11court.
12    Any circuit court of this State, upon the application of
13the Department or any officer or employee thereof may, in its
14discretion, compel the attendance of witnesses, the production
15of books, papers, records or memoranda and the giving of
16testimony before the Department or any officer or employee
17thereof conducting an investigation or holding a hearing
18authorized by this Act, by an attachment for contempt, or
19otherwise, in the same manner as production of evidence may be
20compelled before the court.
21    The Department or any officer or employee thereof, or any
22party in an investigation or hearing before the Department, may
23cause the depositions of witnesses residing within or without
24the State to be taken in the manner prescribed by law for like
25depositions in civil actions in courts of this State, and, to
26that end, compel the attendance of witnesses and the production

 

 

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1of books, papers, records or memoranda.
2    Notwithstanding any other provision of law, the provisions
3of the Illinois Independent Tax Tribunal Act of 2012, and the
4rules adopted pursuant thereto, shall apply to and govern
5judicial review of final administrative decisions that are
6subject to the Illinois Independent Tax Tribunal Act of 2012.
7(Source: P.A. 83-334.)
 
8    (35 ILCS 615/12)  (from Ch. 120, par. 467.27)
9    Sec. 12. The Circuit Court of the county wherein a hearing
10is held shall have power to review all final administrative
11decisions of the Department in administering the provisions of
12this Act: Provided that if the administrative proceeding which
13is to be reviewed judicially is a claim for refund proceeding
14commenced in accordance with Section 6 of this Act and Section
152a of "An Act in relation to the payment and disposition of
16moneys received by officers and employees of the State of
17Illinois by virtue of their office or employment", approved
18June 9, 1911, as amended, the Circuit Court having jurisdiction
19of the action for judicial review under this Section and under
20the Administrative Review Law, as amended, shall be the same
21court that entered the temporary restraining order or
22preliminary injunction which is provided for in Section 2a of
23"An Act in relation to the payment and disposition of moneys
24received by officers and employees of the State of Illinois by
25virtue of their office or employment", and which enables such

 

 

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1claim proceeding to be processed and disposed of as a claim for
2refund proceeding rather than as a claim for credit proceeding.
3    Except as otherwise provided in this Section, the The
4provisions of the Administrative Review Law, and the rules
5adopted pursuant thereto, shall apply to and govern all
6proceedings for the judicial review of final administrative
7decisions of the Department hereunder. The term
8"administrative decision" is defined as in Section 3-101 of the
9Code of Civil Procedure.
10    Notwithstanding any other provision of law, the provisions
11of the Illinois Independent Tax Tribunal Act of 2012, and the
12rules adopted pursuant thereto, shall apply to and govern
13judicial review of final administrative decisions that are
14subject to the Illinois Independent Tax Tribunal Act of 2012.
15    Service upon the Director or Assistant Director of the
16Department of Revenue of summons issued in any action to review
17a final administrative decision shall be service upon the
18Department. The Department shall certify the record of its
19proceedings if the taxpayer shall pay to it the sum of 75 per
20page of testimony taken before the Department and 25 per page
21of all other matters contained in such record, except that
22these charges may be waived where the Department is satisfied
23that the aggrieved party is a poor person who cannot afford to
24pay such charges.
25(Source: P.A. 83-342.)
 

 

 

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1    (35 ILCS 615/12c)  (from Ch. 120, par. 467.27c)
2    Sec. 12c. The Illinois Administrative Procedure Act is
3hereby expressly adopted and shall apply to all administrative
4rules and procedures of the Department of Revenue under this
5Act, except that (1) paragraph (b) of Section 5-10 of the
6Illinois Administrative Procedure Act does not apply to final
7orders, decisions and opinions of the Department, (2)
8subparagraph (a)2 of Section 5-10 of the Illinois
9Administrative Procedure Act does not apply to forms
10established by the Department for use under this Act, and (3)
11the provisions of Section 10-45 of the Illinois Administrative
12Procedure Act regarding proposals for decision are excluded and
13not applicable to the Department under this Act to the extent
14Section 10-45 applies to hearings not otherwise subject to the
15Illinois Independent Tax Tribunal Act of 2012.
16(Source: P.A. 88-45.)
 
17    Section 5-85. The Public Utilities Revenue Act is amended
18by changing Sections 8, 12, and 12a as follows:
 
19    (35 ILCS 620/8)  (from Ch. 120, par. 475)
20    Sec. 8. For the purpose of administering and enforcing the
21provisions of this Act, the Department or any officer or
22employee of the Department designated, in writing, by the
23Director thereof, may hold investigations and, except for those
24matters reserved to the Illinois Independent Tax Tribunal, may

 

 

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1hold hearings concerning any matters covered by this Act and
2may examine any books, papers, records or memoranda bearing
3upon the business transacted by any such taxpayer and may
4require the attendance of such taxpayer or any officer or
5employee of such taxpayer, or of any person having knowledge of
6such business, and may take testimony and require proof for its
7information. In the conduct of any investigation or hearing,
8neither the Department nor any officer or employee thereof
9shall be bound by the technical rules of evidence, and no
10informality in any proceeding, or in the manner of taking
11testimony, shall invalidate any order, decision, rule or
12regulation made or approved or confirmed by the Department. The
13Director or any officer or employee thereof shall have power to
14administer oaths to any such persons. The books, papers,
15records and memoranda of the Department, or parts thereof, may
16be proved in any hearing, investigation, or legal proceeding by
17a reproduced copy thereof under the certificate of the
18Director. Such reproduced copy shall, without further proof, be
19admitted into evidence before the Department or in any legal
20proceeding.
21(Source: Laws 1965, p. 199.)
 
22    (35 ILCS 620/12)  (from Ch. 120, par. 479)
23    Sec. 12. The Department may make, promulgate and enforce
24such reasonable rules and regulations relating to the
25administration and enforcement of this Act as may be deemed

 

 

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1expedient.
2    Whenever notice to a taxpayer is required by this Act, such
3notice may be given by United States certified or registered
4mail, addressed to the taxpayer concerned at his or her last
5known address, and proof of such mailing shall be sufficient
6for the purposes of this Act. In the case of a notice of
7hearing, such notice shall be mailed not less than 7 days prior
8to the day fixed for the hearing.
9    All hearings provided for in this Act with respect to a
10taxpayer having his or her principal place of business in any
11of the several counties of this State shall be held in the
12county wherein the taxpayer has his or her principal place of
13business. If the taxpayer does not have his or her principal
14place of business in this State, such hearings shall be held in
15Sangamon County.
16    Notwithstanding any other provision of law, all hearings
17held before the Illinois Independent Tax Tribunal shall be held
18in accordance with the Illinois Independent Tax Tribunal Act of
192012.
20    Except with respect to matters under the jurisdiction of
21the Illinois Independent Tax Tribunal, the The Circuit Court of
22the county wherein a hearing is held shall have power to review
23all final administrative decisions of the Department in
24administering this Act. If, however, the administrative
25proceeding which is to be reviewed judicially is a claim for
26refund proceeding commenced in accordance with Section 6 of

 

 

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1this Act and Section 2a of "An Act in relation to the payment
2and disposition of moneys received by officers and employees of
3the State of Illinois by virtue of their office or employment",
4approved June 9, 1911, as amended, the Circuit Court having
5jurisdiction of the action for judicial review under this
6Section and under the Administrative Review Law, as amended,
7shall be the same court that entered the temporary restraining
8order or preliminary injunction which is provided for in
9Section 2a of "An Act in relation to the payment and
10disposition of moneys received by officers and employees of the
11State of Illinois by virtue of their office or employment", and
12which enables such claim proceeding to be processed and
13disposed of as a claim for refund proceeding rather than as a
14claim for credit proceeding.
15    Except as otherwise provided in this Section, the The
16provisions of the Administrative Review Law, and the rules
17adopted pursuant thereto, shall apply to and govern all
18proceedings for the judicial review of final administrative
19decisions of the Department under this Act. The term
20"administrative decision" is defined as in Section 3-101 of the
21Code of Civil Procedure.
22    Notwithstanding any other provision of law, the provisions
23of the Illinois Independent Tax Tribunal Act of 2012, and the
24rules adopted pursuant thereto, shall apply to and govern
25judicial review of final administrative decisions that are
26subject to the Illinois Independent Tax Tribunal Act of 2012.

 

 

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1    Service upon the Director or Assistant Director of the
2Department of Revenue of summons issued in any action to review
3a final administrative decision is service upon the Department.
4The Department shall certify the record of its proceedings if
5the taxpayer pays to it the sum of 75 per page of testimony
6taken before the Department and 25 per page of all other
7matters contained in such record, except that these charges may
8be waived where the Department is satisfied that the aggrieved
9party is a poor person who cannot afford to pay such charges.
10    Whenever any proceeding provided by this Act is begun by
11the Department or by a person subject thereto and such person
12thereafter dies or becomes a person under legal disability
13before such proceeding is concluded, the legal representative
14of the deceased or the person under legal disability shall
15notify the Department of such death or legal disability. Such
16legal representative, as such, shall then be substituted by the
17Department for such person. Within 20 days after notice to the
18legal representative of the time fixed for that purpose, the
19proceeding may go forward in all respects and with like effect
20as though the person had not died or become a person under
21legal disability.
22(Source: P.A. 83-342.)
 
23    (35 ILCS 620/12a)  (from Ch. 120, par. 479a)
24    Sec. 12a. The Illinois Administrative Procedure Act is
25hereby expressly adopted and shall apply to all administrative

 

 

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1rules and procedures of the Department of Revenue under this
2Act, except that (1) paragraph (b) of Section 5-10 of the
3Illinois Administrative Procedure Act does not apply to final
4orders, decisions and opinions of the Department, (2)
5subparagraph (a)2 of Section 5-10 of the Illinois
6Administrative Procedure Act does not apply to forms
7established by the Department for use under this Act, and (3)
8the provisions of Section 10-45 of the Illinois Administrative
9Procedure Act regarding proposals for decision are excluded and
10not applicable to the Department under this Act to the extent
11Section 10-45 applies to hearings not otherwise subject to the
12Illinois Independent Tax Tribunal Act of 2012.
13(Source: P.A. 88-45.)
 
14    Section 5-90. The Water Company Invested Capital Tax Act is
15amended by changing Sections 8, 10, 12, and 14 as follows:
 
16    (35 ILCS 625/8)  (from Ch. 120, par. 1418)
17    Sec. 8. For the purpose of administering and enforcing the
18provisions of this Act, the Department or any officer or
19employee of the Department designated, in writing, by the
20Director thereof, may hold investigations and, except for those
21matters reserved to the Illinois Independent Tax Tribunal, may
22hold hearings concerning any matters covered by this Act and
23may examine any books, papers, records or memoranda bearing
24upon the business transacted by any such taxpayer and may

 

 

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1require the attendance of such taxpayer or any officer or
2employee of such taxpayer, or of any person having knowledge of
3such business, and may take testimony and require proof for its
4information. In the conduct of any investigation or hearing,
5neither the Department nor any officer or employee thereof
6shall be bound by the technical rules of evidence, and no
7informality in any proceeding, or in the manner of taking
8testimony, shall invalidate any order, decision, rule or
9regulation made or approved or confirmed by the Department. The
10Director or any officer or employee thereof shall have power to
11administer oaths to any such persons. The books, papers,
12records and memoranda of the Department, or parts thereof, may
13be proved in any hearing, investigation, or legal proceeding by
14a reproduced copy thereof under the certificate of the
15Director. Such reproduced copy shall, without further proof, be
16admitted into evidence before the Department or in any legal
17proceeding.
18(Source: P.A. 82-274.)
 
19    (35 ILCS 625/10)  (from Ch. 120, par. 1420)
20    Sec. 10. The Department or any officer or employee of the
21Department designated, in writing, by the Director thereof,
22shall at its or his own instance, or on the written request of
23any party to the proceeding, issue subpoenas requiring the
24attendance of and the giving of testimony by witnesses, and
25subpoenas duces tecum requiring the production of books,

 

 

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1papers, records or memoranda. All subpoenas issued under this
2Act may be served by any person of full age. The fees of
3witnesses for attendance and travel shall be the same as the
4fees of witnesses before the Circuit Court of this State; such
5fees are to be paid when the witness is excused from further
6attendance. When the witness is subpoenaed at the instance of
7the Department or any officer or employee thereof, such fees
8shall be paid in the same manner as other expenses of the
9Department, and when the witness is subpoenaed at the instance
10of any taxpayer to any such proceeding the Department may
11require that the cost of service of the subpoena and the fee of
12the witness be borne by the taxpayer at whose instance the
13witness is summoned. In such case, the Department, in its
14discretion, may require a deposit to cover the cost of such
15service and witness fees. A subpoena issued as aforesaid shall
16be served in the same manner as a subpoena issued out of a
17court.
18    Any Circuit Court of this State, or any judge thereof, upon
19the application of the Department or any officer or employee
20thereof may, in its or his discretion, compel the attendance of
21witnesses, the production of books, papers, records or
22memoranda and the giving of testimony before the Department or
23any officer or employee thereof conducting an investigation or
24holding a hearing authorized by this Act, by an attachment for
25contempt, or otherwise, in the same manner as production of
26evidence may be compelled before the court.

 

 

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1    The Department or any officer or employee thereof, or any
2party in an investigation or hearing before the Department, may
3cause the depositions of witnesses residing within or without
4the State to be taken in the manner prescribed by law for like
5depositions in civil actions in courts of this State, and, to
6that end, compel the attendance of witnesses and the production
7of books, papers, records or memoranda.
8    Hearings before the Illinois Independent Tax Tribunal
9shall be conducted pursuant to the provisions of the Illinois
10Independent Tax Tribunal Act of 2012.
11(Source: P.A. 82-274.)
 
12    (35 ILCS 625/12)  (from Ch. 120, par. 1422)
13    Sec. 12. Except as otherwise provided in this Section with
14respect to the Illinois Independent Tax Tribunal, the The
15Circuit Court of the county wherein a hearing is held shall
16have power to review all final administrative decisions of the
17Department in administering this Act. If, however, the
18administrative proceeding which is to be reviewed judicially is
19a claim for refund proceeding commenced in accordance with
20Section 6 of this Act and Section 2a of "An Act in relation to
21the payment and disposition of moneys received by officers and
22employees of the State of Illinois by virtue of their office or
23employment", approved June 9, 1911, as amended, the Circuit
24Court having jurisdiction of the action for judicial review
25under this Section and under the Administrative Review Law

 

 

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1shall be the same court that entered the injunctive order which
2is provided for in Section 2a of "An Act in relation to the
3payment and disposition of moneys received by officers and
4employees of the State of Illinois by virtue of their office or
5employment", and which enables such claim proceeding to be
6processed and disposed of as a claim for refund proceeding
7rather than as a claim for credit proceeding.
8    Except as otherwise provided in this Section with respect
9to the Illinois Independent Tax Tribunal, the The provisions of
10the Administrative Review Law, as amended, and the rules
11adopted pursuant thereto, shall apply to and govern all
12proceedings for the judicial review of final administrative
13decisions of the Department under this Act. The term
14"administrative decision" is defined as in Section 3-101 of the
15Code of Civil Procedure, approved August 19, 1981, as amended.
16    The provisions of the Illinois Independent Tax Tribunal Act
17of 2012, and the rules adopted pursuant thereto, shall apply to
18and govern all proceedings for the judicial review of final
19administrative decisions of the Department that are subject to
20the jurisdiction of the Illinois Independent Tax Tribunal.
21    Service upon the Director or Assistant Director of the
22Department of Revenue of summons issued in any action to review
23a final administrative decision is service upon the Department.
24The Department shall certify the record of its proceedings if
25the taxpayer pays to it the sum of 75 per page of testimony
26taken before the Department and 25 per page of all other

 

 

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1matters contained in such record, except that these charges may
2be waived where the Department is satisfied that the aggrieved
3party is a poor person who cannot afford to pay such charges.
4(Source: P.A. 84-548.)
 
5    (35 ILCS 625/14)  (from Ch. 120, par. 1424)
6    Sec. 14. The Illinois Administrative Procedure Act, as now
7or hereafter amended, is hereby expressly adopted and shall
8apply to all administrative rules and procedures of the
9Department of Revenue under this Act, except that (1) paragraph
10(b) of Section 5-10 of the that Act does not apply to final
11orders, decisions and opinions of the Department; (2)
12subparagraph 2 of paragraph (a) of Section 5-10 of that Act
13does not apply to forms established by the Department for use
14under this Act; and (3) the provisions of Section 10-45 of that
15Act regarding proposals for decision are excluded and not
16applicable to the Department under this Act to the extent
17Section 10-45 applies to hearings not otherwise subject to the
18Illinois Independent Tax Tribunal Act of 2012.
19(Source: P.A. 88-45.)
 
20    Section 5-100. The Telecommunications Excise Tax Act is
21amended by changing Sections 12, 16, and 18 as follows:
 
22    (35 ILCS 630/12)  (from Ch. 120, par. 2012)
23    Sec. 12. For the purpose of administering and enforcing the

 

 

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1provisions of this Article, the Department or any officer or
2employee of the Department designated, in writing, by the
3Director thereof, may hold investigations and, except for
4matters otherwise reserved to the Illinois Independent Tax
5Tribunal, may hold hearings concerning any matters covered by
6this Article and may examine any books, papers, records or
7memoranda bearing upon the business transacted or purchased by
8any such retailer or taxpayer and may require the attendance of
9such retailer or taxpayer or any officer or employee of such,
10or of any person having knowledge of such business, and may
11take testimony and require proof of its information. In the
12conduct of any investigation or hearing, neither the Department
13nor any officer or employee thereof shall be bound by the
14technical rules of evidence, and no informality in any
15proceeding, or in the manner of taking testimony, shall
16invalidate any order, decision, rule or regulation made or
17approved or confirmed by the Department. The Director or any
18officer or employee thereof shall have power to administer
19oaths to any such persons. The books, papers, records and
20memoranda of the Department, or parts thereof, may be provided
21in any hearing, investigation or legal proceeding by a
22reproduced copy thereof under the certificate of the Director.
23Such reproduced copy shall, without further proof, be admitted
24into evidence before the Department or in any legal proceeding.
25(Source: P.A. 84-126.)
 

 

 

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1    (35 ILCS 630/16)  (from Ch. 120, par. 2016)
2    Sec. 16. Except as otherwise provided in this Section with
3respect to the Illinois Independent Tax Tribunal, the The
4circuit court of any county wherein a hearing is held shall
5have power to review all final administrative decisions of the
6Department in administering the provision of this Article:
7Provided that if the administrative proceeding which is to be
8reviewed judicially is a claim for refund proceeding commenced
9under this Article and Section 2a of "An Act in relation to the
10payment and disposition of moneys received by officers and
11employees of the State of Illinois by virtue of their office or
12employment", approved June 9, 1911, as amended, the circuit
13court having jurisdiction of the action for judicial review
14under this Section and under the Administrative Review Law
15shall be the same court that entered the temporary restraining
16order or preliminary injunction which is provided for in
17Section 2a of "An Act in relation to the payment and
18disposition of moneys received by officers and employees of the
19State of Illinois by virtue of their office or employment", and
20which enables such claim proceeding to be processed and
21disposed of as a claim for refund proceeding rather than as a
22claim for credit proceeding.
23    Except as otherwise provided in this Section with respect
24to the Illinois Independent Tax Tribunal, the The provisions of
25the Administrative Review Law, and the rules adopted pursuant
26thereto, shall apply to and govern all proceedings for the

 

 

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1judicial review of final administrative decisions of the
2Department hereunder. The term "administrative decision" is
3defined as in Section 3-101 of the Code of Civil Procedure.
4    The provisions of the Illinois Independent Tax Tribunal Act
5of 2012, and the rules adopted pursuant thereto, shall apply to
6and govern all proceedings for the judicial review of final
7administrative decisions of the Department that are subject to
8the jurisdiction of the Illinois Independent Tax Tribunal.
9    Service upon the Director or Assistant Director of the
10Department of Revenue of summons issued in any action to review
11a final administrative decision shall be service upon the
12Department. The Department shall certify the record of its
13proceedings if the taxpayer shall pay to it the sum of 75 per
14page of testimony taken before the Department and 25 per page
15of all other matters contained in such record, except that
16these charges may be waived where the Department is satisfied
17that the aggrieved party is a poor person who cannot afford to
18pay such charges.
19(Source: P.A. 84-126.)
 
20    (35 ILCS 630/18)  (from Ch. 120, par. 2018)
21    Sec. 18. The Illinois Administrative Procedure Act is
22hereby expressly adopted and shall apply to all administrative
23rules and procedures of the Department of Revenue under this
24Article, except that: (1) paragraph (b) of Section 5-10 of the
25Illinois Administrative Procedure Act does not apply to final

 

 

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1orders, decisions and opinions of the Department; (2)
2subparagraph (a)(2) of Section 5-10 of the Illinois
3Administrative Procedure Act does not apply to forms
4established by the Department for use under this Article; and
5(3) the provisions of Section 10-45 of the Illinois
6Administrative Procedure Act regarding proposals for decision
7are excluded and not applicable to the Department under this
8Article to the extent Section 10-45 applies to hearings not
9otherwise subject to the Illinois Independent Tax Tribunal Act
10of 2012.
11(Source: P.A. 88-45.)
 
12    Section 5-105. The Telecommunications Infrastructure
13Maintenance Fee Act is amended by changing Sections 27.10,
1427.30, and 27.40 as follows:
 
15    (35 ILCS 635/27.10)
16    Sec. 27.10. Investigations and hearings. For the purpose of
17administering and enforcing the provisions of this Act, the
18Department or any officer or employee of the Department
19designated, in writing, by the Director thereof, may hold
20investigations and, except for matters otherwise reserved to
21the Illinois Independent Tax Tribunal, may hold hearings
22concerning any matters covered by this Act and may examine any
23books, papers, records, or memoranda bearing upon the business
24transacted by any such telecommunications retailer and may

 

 

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1require the attendance of such telecommunications retailer or
2any officer or employee of such telecommunications retailer, or
3of any person having knowledge of such business, and may take
4testimony and require proof for its information. In the conduct
5of any investigation or hearing, neither the Department nor any
6officer or employee thereof shall be bound by the technical
7rules of evidence, and no informality in any proceeding, or in
8the manner of taking testimony, shall invalidate any order,
9decision, rule, or regulation made, approved, or confirmed by
10the Department. The Director or any officer or employee thereof
11shall have power to administer oaths to any such persons. The
12books, papers, records, and memoranda of the Department, or
13parts thereof, may be proved in any hearing, investigation, or
14legal proceeding by a reproduced copy thereof under the
15certificate of the Director. Such reproduced copy shall without
16further proof, be admitted into evidence before the Department
17or in any legal proceeding.
18(Source: P.A. 90-562, eff. 12-16-97.)
 
19    (35 ILCS 635/27.30)
20    Sec. 27.30. Review under Administrative Review Law. The
21Circuit Court of the county wherein a hearing is held shall
22have power to review all final administrative decisions of the
23Department in administering the provisions of this Act:
24Provided that if the administrative proceeding that is to be
25reviewed judicially is a claim for refund proceeding commenced

 

 

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1in accordance with this Act and Section 2a of the State
2Officers and Employees Money Disposition Act, the Circuit Court
3having jurisdiction of the action for judicial review under
4this Section and under the Administrative Review Law shall be
5the same court that entered the temporary restraining order or
6preliminary injunction that is provided for in Section 2a of
7the State Officers and Employees Money Disposition Act and that
8enables such claim proceeding to be processed and disposed of
9as a claim for refund proceeding rather than as a claim for
10credit proceeding.
11    Except as otherwise provided in this Section with respect
12to the Illinois Independent Tax Tribunal, the The provisions of
13the Administrative Review Law, and the rules adopted pursuant
14thereto, shall apply to and govern all proceedings for the
15judicial review of final administrative decisions of the
16Department hereunder. The term "administrative decision" is
17defined as in Section 3-101 of the Code of Civil Procedure.
18    The provisions of the Illinois Independent Tax Tribunal
19Act, and the rules adopted pursuant thereto, shall apply to and
20govern all proceedings for the judicial review of final
21administrative decisions of the Department that are subject to
22the jurisdiction of the Illinois Independent Tax Tribunal.
23    Service upon the Director or Assistant Director of the
24Department of Revenue of summons issued in any action to review
25a final administrative decision shall be service upon the
26Department. The Department shall certify the record of its

 

 

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1proceedings if the telecommunications retailer shall pay to it
2the sum of 75 per page of testimony taken before the
3Department and 25 per page of all other matters contained in
4such record, except that these charges may be waived where the
5Department is satisfied that the aggrieved party is a poor
6person who cannot afford to pay such charges.
7(Source: P.A. 90-562, eff. 12-16-97.)
 
8    (35 ILCS 635/27.40)
9    Sec. 27.40. Application of Illinois Administrative
10Procedure Act. The Illinois Administrative Procedure Act is
11hereby expressly adopted and shall apply to all administrative
12rules and procedures of the Department of Revenue under this
13Act, except that (i) paragraph (b) of Section 5-10 of the
14Administrative Procedure Act does not apply to final orders,
15decisions, and opinions of the Department, (ii) subparagraph
16(a)(ii) of Section 5-10 of the Administrative Procedure Act
17does not apply to forms established by the Department for use
18under this Act, and (iii) the provisions of Section 10-45 of
19the Administrative Procedure Act regarding proposals for
20decision are excluded and not applicable to the Department
21under this Act to the extent Section 10-45 applies to hearings
22not otherwise subject to the Illinois Independent Tax Tribunal
23Act.
24(Source: P.A. 90-562, eff. 12-16-97.)
 

 

 

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1    Section 5-110. The Electricity Excise Tax Law is amended by
2changing Sections 2-14 and 2-15 as follows:
 
3    (35 ILCS 640/2-14)
4    Sec. 2-14. Rules and regulations; hearing; review under
5Administrative Review Law; death or incompetency of party. The
6Department may make, promulgate and enforce such reasonable
7rules and regulations relating to the administration and
8enforcement of this Law as may be deemed expedient.
9    Whenever notice to a purchaser or to a delivering supplier
10is required by this Law, such notice may be personally served
11or given by United States certified or registered mail,
12addressed to the purchaser or delivering supplier concerned at
13his or her last known address, and proof of such mailing shall
14be sufficient for the purposes of this Law. In the case of a
15notice of hearing, the notice shall be mailed not less than 21
16days prior to the date fixed for the hearing.
17    All hearings provided for in this Law with respect to a
18purchaser or to a delivering supplier having its principal
19address or principal place of business in any of the several
20counties of this State shall be held in the county wherein the
21purchaser or delivering supplier has its principal address or
22principal place of business. If the purchaser or delivering
23supplier does not have its principal address or principal place
24of business in this State, such hearings shall be held in
25Sangamon County. Except as otherwise provided in this Section

 

 

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1with respect to the Illinois Independent Tax Tribunal, the The
2Circuit Court of any county wherein a hearing is held shall
3have power to review all final administrative decisions of the
4Department in administering the provisions of this Law. If,
5however, the administrative proceeding which is to be reviewed
6judicially is a claim for refund proceeding commenced in
7accordance with this Law and Section 2a of the State Officers
8and Employees Money Disposition Act, the Circuit Court having
9jurisdiction of the action for judicial review under this
10Section and under the Administrative Review Law shall be the
11same court that entered the temporary restraining order or
12preliminary injunction which is provided for in Section 2a of
13the State Officers and Employees Money Disposition Act and
14which enables such claim proceeding to be processed and
15disposed of as a claim for refund proceeding rather than as a
16claim for credit proceeding.
17    Except as otherwise provided with respect to the Illinois
18Independent Tax Tribunal, the The provisions of the
19Administrative Review Law, and the rules adopted pursuant
20thereto, shall apply to and govern all proceedings for the
21judicial review of final administrative decisions of the
22Department hereunder. The term "administrative decision" is
23defined as in Section 3-101 of the Code of Civil Procedure.
24    The provisions of the Illinois Independent Tax Tribunal
25Act, and the rules adopted pursuant thereto, shall apply to and
26govern all proceedings for the judicial review of final

 

 

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1administrative decisions of the Department that are subject to
2the jurisdiction of the Illinois Independent Tax Tribunal.
3    Service upon the Director or Assistant Director of the
4Department of Revenue of summons issued in any action to review
5a final administrative decision is service upon the Department.
6The Department shall certify the record of its proceedings if
7the person commencing such action shall pay to it the sum of 75
8cents per page of testimony taken before the Department and 25
9cents per page of all other matters contained in such record,
10except that these charges may be waived where the Department is
11satisfied that the aggrieved party is a poor person who cannot
12afford to pay such charges.
13    Whenever any proceeding provided by this Law has been begun
14by the Department or by a person subject thereto and such
15person thereafter dies or becomes a person under legal
16disability before the proceeding has been concluded, the legal
17representative of the deceased person or a person under legal
18disability shall notify the Department of such death or legal
19disability. The legal representative, as such, shall then be
20substituted by the Department in place of and for the person.
21    Within 20 days after notice to the legal representative of
22the time fixed for that purpose, the proceeding may proceed in
23all respects and with like effect as though the person had not
24died or become a person under legal disability.
25(Source: P.A. 90-561, eff. 8-1-98.)
 

 

 

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1    (35 ILCS 640/2-15)
2    Sec. 2-15. Illinois Administrative Procedure Act;
3application. The Illinois Administrative Procedure Act is
4hereby expressly adopted and shall apply to all administrative
5rules and procedures of the Department under this Law, except
6that: (1) paragraph (b) of Section 5-10 of the Illinois
7Administrative Procedure Act does not apply to final orders,
8decisions and opinions of the Department, (2) subparagraph
9(a)(ii) of Section 5-10 of the Illinois Administrative
10Procedure Act does not apply to forms established by the
11Department for use under this Law, and (3) the provisions of
12Section 10-45 of the Illinois Administrative Procedure Act
13regarding proposals for decision are excluded and not
14applicable to the Department under this Law to the extent
15Section 10-45 applies to hearings not otherwise subject to the
16Illinois Independent Tax Tribunal Act of 2012.
17(Source: P.A. 90-561, eff. 8-1-98.)
 
18    Section 5-115. The Uniform Penalty and Interest Act is
19amended by changing Section 3-12 as follows:
 
20    (35 ILCS 735/3-12)
21    Sec. 3-12. Appeal options. The Department of Revenue shall
22include a statement of the appeal options available to the
23taxpayer, either by law or by departmental rule, for each
24penalty for late payment, penalty for failure to file a tax

 

 

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1return on or before the due date for filing, and penalty for
2failure to file correct information returns. This Act is
3subject to the provisions of the Illinois Independent Tax
4Tribunal Act of 2012.
5(Source: P.A. 89-597, eff. 1-1-97.)
 
6    Section 5-120. The State Finance Act is amended by adding
7Section 5.811 as follows:
 
8    (30 ILCS 105/5.811 new)
9    Sec. 5.811. The Illinois Independent Tax Tribunal Fund.
 
10    (35 ILCS 1005/Act rep.)
11    Section 5-125. The Illinois Independent Tax Tribunal Act is
12repealed.
 
13
Article 97. INSEVERABILITY

 
14    Section 97-997. Inseverability. The provisions of this Act
15are mutually dependent and inseverable. If any provision is
16held invalid, then the entire Act, including all new and
17amendatory provisions, is invalid.
 
18
Article 99. EFFECTIVE DATE

 
19    Section 99-999. Effective date. This Act takes effect upon
20becoming law.