Rep. Michael J. Zalewski

Filed: 5/21/2012

 

 


 

 


 
09700HB5192ham001LRB097 18915 HLH 69637 a

1
AMENDMENT TO HOUSE BILL 5192

2    AMENDMENT NO. ______. Amend House Bill 5192 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1fundamental fairness.
2    (b) The Illinois Independent Tax Tribunal shall provide
3administrative hearings in all tax matters except those matters
4reserved to the Department of Revenue or another entity by
5statute, and shall render decisions and orders relating to
6matters under its jurisdiction. A Tax Tribunal administrative
7hearing shall be commenced by the filing of a petition with the
8Tribunal protesting a tax determination made by the Department
9of Revenue.
10    (c) It is the intent of the General Assembly that this Act
11foster the settlement or other resolution of tax disputes to
12the extent possible and, in cases in which litigation is
13necessary, to provide the people of this State with a fair,
14independent, and tax-expert forum to determine tax disputes
15with the Department of Revenue. The Act shall be liberally
16construed to further this intent.
 
17    Section 1-10. Definitions. For the purposes of this Act:
18    "Department" means the Department of Revenue.
19    "Taxpayer" means a person who has received a protestable
20notice of assessment, a claim denial, or a protestable notice
21of penalty liability within the Tax Tribunal's jurisdiction
22pursuant to Section 1-45 of this Act.
23    "Tax Tribunal" means the Illinois Independent Tax Tribunal
24established pursuant to Section 1-15 of this Act.
 

 

 

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1    Section 1-15. Independent Tax Tribunal; establishment.
2    (a) For the purpose of effectuating the policy declared in
3Section 1-5 of this Act, a State agency known as the Illinois
4Independent Tax Tribunal is created. The Tax Tribunal shall
5have the powers and duties enumerated in this Act, together
6with such others conferred upon it by law. The Tax Tribunal
7shall operate as an independent agency, and shall be separate
8from the authority of the Director of Revenue and the
9Department of Revenue.
10    (b) Except as otherwise limited by this Act, the Tax
11Tribunal has all of the powers necessary or convenient to carry
12out the purposes and provisions of this Act, including without
13limitation, each of the following:
14        (1) To have a seal, and to alter that seal at pleasure,
15    and to use it by causing it or a facsimile to be affixed or
16    impressed or reproduced in any other manner.
17        (2) To accept and expend appropriations.
18        (3) To obtain and employ personnel as required in this
19    Act, including any additional personnel necessary to
20    fulfill the Tax Tribunal's purposes, and to make
21    expenditures for personnel within the appropriations for
22    that purpose.
23        (4) To maintain offices at such places as required
24    under this Act, and elsewhere as the Tax Tribunal may
25    determine.
26        (5) To engage in any activity or operation that is

 

 

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1    incidental to and in furtherance of efficient operation to
2    accomplish the Tax Tribunal's purposes.
3    (c) Unless otherwise stated, the Tax Tribunal is subject to
4the provisions of all applicable laws, including but not
5limited to, each of the following:
6        (1) The State Records Act.
7        (2) The Illinois Procurement Code, except that the
8    Illinois Procurement Code does not apply to the hiring of
9    the chief administrative law judge or other administrative
10    law judges pursuant to Section 1-25 of this Act.
11        (3) The Freedom of Information Act, except as otherwise
12    provided in Section 7 of that Act.
13        (4) The State Property Control Act.
14        (5) The State Officials and Employees Ethics Act.
15        (6) The Administrative Procedure Act, to the extent not
16    inconsistent with the provisions of this Act.
17        (7) The Illinois State Auditing Act. For purposes of
18    the Illinois State Auditing Act, the Tax Tribunal is a
19    "State agency" within the meaning of the Act and is subject
20    to the jurisdiction of the Auditor General.
21    (d) The Tax Tribunal shall exercise its jurisdiction on and
22after July 1, 2013, but the administrative law judges of the
23Tribunal may be appointed prior to that date and may take any
24action prior to that date that is necessary to enable the Tax
25Tribunal to properly exercise its jurisdiction on or after that
26date. Any administrative proceeding commenced prior to July 1,

 

 

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12013, that would otherwise be subject to the jurisdiction of
2the Illinois Independent Tax Tribunal may be conducted
3according to the procedures set forth in this Act if the
4taxpayer so elects. Such an election shall be irrevocable and
5may be made on or after July 1, 2013, but no later than 30 days
6after the date on which the taxpayer's protest was filed.
 
7    Section 1-20. Transfer of administrative record. If the
8taxpayer makes an election pursuant to Section 1-15 of this Act
9to remove a proceeding to the Tax Tribunal, any document,
10including pleadings and orders, that would constitute part of
11the administrative record within the meaning of Section 3-108
12of the Administrative Review Law shall be transferred to the
13Tax Tribunal.
 
14    Section 1-25. Judges; number; term of office; removal.
15    (a) The Governor shall, with the advice and consent of the
16Senate, appoint a Chief Administrative Law Judge to be the
17executive of the Tax Tribunal. The Chief Administrative Law
18Judge shall serve a 5-year term. The Governor may appoint
19additional administrative law judges, with the advice and
20consent of the Senate, as necessary to carry out the provisions
21of this Act, provided that no more than 4 administrative law
22judges, including the Chief Administrative Law Judge, shall
23serve at the same time. The administrative law judges, other
24than the Chief Administrative Law Judge, shall initially be

 

 

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1appointed to staggered terms of no greater than 4 years. After
2the initial terms of office, all administrative law judges,
3other than the Chief Administrative Law Judge, shall be
4appointed for terms of 4 years. Each administrative law judge
5is eligible for reappointment.
6    (b) Once appointed and confirmed, each administrative law
7judge shall continue in office until his or her term expires
8and until a successor has been appointed and confirmed.
9    (c) The office of an administrative law judge under this
10Section shall be vacant upon the administrative law judge's
11death, resignation, retirement, or removal, or upon the
12conclusion of his or her term without reappointment. Within 30
13days after such a vacancy occurs, a successor administrative
14law judge shall be appointed by the Governor, with the advice
15and consent of the Senate, for the remainder of the current
16unexpired term for that vacancy. In case of vacancies during
17the recess of the Senate, the Governor shall make a temporary
18appointment until the next meeting of the Senate, when the
19Governor shall nominate some person to fill the office, and any
20person so nominated who is confirmed by the Senate shall hold
21office during the remainder of the term and until his or her
22successor is appointed and qualified. No person rejected by the
23Senate for the office of an administrative law judge under this
24Section shall, except at the Senate's request, be nominated
25again for that office at the same session or be appointed to
26that office during a recess of that Senate.

 

 

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1    (d) The Governor may remove an administrative law judge of
2the Tax Tribunal, after notice and an opportunity to be heard,
3for incompetency, neglect of duty, inability to perform duties,
4malfeasance in office, or other good cause.
5    (e) Each administrative law judge of the Tax Tribunal,
6including the Chief Administrative Law Judge, shall receive an
7annual salary equal to that of the Director of the Department
8of Revenue. The Chief Administrative Law Judge shall receive an
9additional $15,000 annual stipend.
10    (f) The Chief Administrative Law Judge shall have sole
11charge of the administration of the Tax Tribunal and shall
12apportion among the judges all causes, matters, and proceedings
13coming before the Tax Tribunal. Each administrative law judge
14shall exercise the power of the Tax Tribunal.
15    (g) An administrative law judge may disqualify himself or
16herself on his or her own motion in any matter, and may be
17disqualified for any of the causes specified in the Illinois
18Code of Judicial Conduct.
 
19    Section 1-30. Judges; qualifications; prohibition against
20other gainful employment.
21    (a) Each administrative law judge of the Tax Tribunal shall
22be a citizen of the United States and, during the period of his
23or her service, a resident of this State. No person may be
24appointed as an administrative law judge unless, at the time of
25the appointment, the individual has been licensed to practice

 

 

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1law in Illinois for a minimum of 8 years and has substantial
2knowledge of State tax laws and the making of a record in a tax
3case suitable for judicial review.
4    (b) Before entering upon the duties of office, each
5administrative law judge shall take and subscribe to an oath or
6affirmation that he or she will faithfully discharge the duties
7of the office, and such oath shall be filed in the office of
8the Secretary of State.
9    (c) Each administrative law judge shall devote his or her
10full time during business hours to the duties of his or her
11office. An administrative law judge shall not engage in any
12other gainful employment or business, nor hold another office
13or position of profit in a government of this State, any other
14State, or the United States. Notwithstanding the foregoing
15provisions, an administrative law judge may own passive
16interests in business entities and may earn income from
17incidental teaching, publishing, or scholarly activities.
 
18    Section 1-35. Principal office; locations; facilities.
19    (a) The Tax Tribunal shall maintain its principal offices
20in both Sangamon County and Cook County, Illinois.
21    (b) The Tax Tribunal shall conduct hearings at any of its
22offices. If the taxpayer does not have his or her place of
23business in this State, such hearing shall be held at the
24office designated by the Tax Tribunal in either Cook or
25Sangamon County. Taxpayers whose residence or place of business

 

 

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1is more than 100 miles from either the Sangamon County or Cook
2County Tax Tribunal office may petition the Tax Tribunal for an
3alternate hearing location, with a view toward securing to
4taxpayers a reasonable opportunity to appear before the Tax
5Tribunal with as little inconvenience and expense as possible.
6    (c) The State shall provide hearing rooms, chambers, and
7offices for the Tax Tribunal in both Sangamon County and Cook
8County and shall arrange for hearing rooms, chambers, and
9offices or other appropriate facilities when hearings are held
10elsewhere.
11    (d) The offices of the Tax Tribunal shall be separate and
12distinct from the offices of the Department.
 
13    Section 1-40. Appointment of clerk and reporter;
14expenditures of the Tax Tribunal.
15    (a) The Tax Tribunal shall appoint a clerk and a reporter,
16and may appoint such other employees and make such other
17expenditures, including expenditures for libraries,
18publications, and equipment, as are necessary to permit it to
19efficiently execute its functions.
20    (b) The reporter shall be subject to the provisions of the
21Court Reporters Act as if appointed by a judge of the circuit
22court, except where such provisions are in conflict with this
23Act.
24    (c) No employee of the Tax Tribunal shall act as attorney,
25representative, or accountant for others in a matter involving

 

 

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1any tax imposed or levied by this State or any other state or
2local jurisdiction.
3    (d) An employee of the Tax Tribunal, other than an
4Administrative Law Judge, may be removed by the Chief
5Administrative Law Judge in accordance with the Personnel Code.
6    (e) In addition to the services of the official reporter,
7the Tax Tribunal may contract the reporting of its proceedings
8and, in the contract, fix the terms and conditions under which
9transcripts will be supplied by the contractor to the Tax
10Tribunal and to other persons and agencies.
 
11    Section 1-45. Jurisdiction of the Tax Tribunal.
12    (a) Except as provided by the Constitution of the United
13States, the Constitution of the State of Illinois, or any
14statutes of this State, including, but not limited to, the
15State Officers and Employees Money Disposition Act, the Tax
16Tribunal shall have original jurisdiction over all
17determinations of the Department reflected on a Notice of
18Deficiency, Notice of Tax Liability, Notice of Claim Denial, or
19Notice of Penalty Liability issued under the Illinois Income
20Tax Act, the Use Tax Act, the Service Use Tax Act, the Service
21Occupation Tax Act, the Retailers' Occupation Tax Act, the
22Cigarette Tax Act, the Cigarette Use Tax Act, the Tobacco
23Products Tax Act of 1995, the Hotel Operators' Occupation Tax
24Act, the Motor Fuel Tax Law, the Automobile Renting Occupation
25and Use Tax Act, the Coin-Operated Amusement Device and

 

 

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1Redemption Machine Tax Act, the Gas Revenue Tax Act, the Water
2Company Invested Capital Tax Act, the Telecommunications
3Excise Tax Act, the Telecommunications Infrastructure
4Maintenance Fee Act, the Public Utilities Revenue Act, the
5Electricity Excise Tax Law, the Aircraft Use Tax Law, the
6Watercraft Use Tax Law, the Gas Use Tax Law, or the Uniform
7Penalty and Interest Act. Jurisdiction of the Tax Tribunal is
8limited to Notices of Tax Liability, Notices of Deficiency,
9Notices of Claim Denial, and Notices of Penalty Liability where
10the amount at issue in a notice, or the aggregate amount at
11issue in multiple notices issued for the same tax year or audit
12period, exceeds $15,000, exclusive of penalties and interest.
13In notices solely asserting either an interest or penalty
14assessment, or both, the Tax Tribunal shall have jurisdiction
15over cases where the combined total of all penalties or
16interest assessed exceeds $15,000.
17    (b) Except as otherwise permitted by this Act and by the
18Constitution of the State of Illinois or otherwise by State
19law, including, but not limited to, the State Officers and
20Employees Money Disposition Act, no person shall contest any
21matter within the jurisdiction of the Tax Tribunal in any
22action, suit, or proceeding in the circuit court or any other
23court of the State. If a person attempts to do so, then such
24action, suit, or proceeding shall be dismissed without
25prejudice. The improper commencement of any action, suit, or
26proceeding does not extend the time period for commencing a

 

 

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1proceeding in the Tax Tribunal.
2    (c) The Tax Tribunal may require the taxpayer to post a
3bond equal to 25% of the liability at issue (1) upon motion of
4the Department and a showing that (A) the taxpayer's action is
5frivolous or legally insufficient or (B) the taxpayer is acting
6primarily for the purpose of delaying the collection of tax or
7prejudicing the ability ultimately to collect the tax, or (2)
8if, at any time during the proceedings, it is determined by the
9Tax Tribunal that the taxpayer is not pursuing the resolution
10of the case with due diligence. If the Tax Tribunal finds in a
11particular case that the taxpayer cannot procure and furnish a
12satisfactory surety or sureties for the kind of bond required
13herein, the Tax Tribunal may relieve the taxpayer of the
14obligation of filing such bond, if, upon the timely application
15for a lien in lieu thereof and accompanying proof therein
16submitted, the Tax Tribunal is satisfied that any such lien
17imposed would operate to secure the assessment in the manner
18and to the degree as would a bond. The Tax Tribunal shall adopt
19rules for the procedures to be used in securing a bond or lien
20under this Section.
21    (d) If, with or after the filing of a timely petition, the
22taxpayer pays all or part of the tax or other amount in issue
23before the Tax Tribunal has rendered a decision, the Tax
24Tribunal shall treat the taxpayer's petition as a protest of a
25denial of claim for refund of the amount so paid upon a written
26motion filed by the taxpayer.

 

 

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1    (e) The Tax Tribunal shall not have jurisdiction to review:
2        (1) any assessment made under the Property Tax Code;
3        (2) any decisions relating to the issuance or denial of
4    an exemption ruling for any entity claiming exemption from
5    any tax imposed under the Property Tax Code or any State
6    tax administered by the Department;
7        (3) a notice of proposed tax liability, notice of
8    proposed deficiency, or any other notice of proposed
9    assessment or notice of intent to take some action;
10        (4) any action or determination of the Department
11    regarding tax liabilities that have become finalized by
12    law, including but not limited to the issuance of liens,
13    levies, and revocations, suspensions, or denials of
14    licenses or certificates of registration or any other
15    collection activities;
16        (5) any proceedings of the Department's informal
17    administrative appeals function; and
18        (6) any challenge to an administrative subpoena issued
19    by the Department.
20    (f) The Tax Tribunal shall decide questions regarding the
21constitutionality of statutes and rules adopted by the
22Department as applied to the taxpayer, but shall not have the
23power to declare a statute or rule unconstitutional or
24otherwise invalid on its face. A taxpayer challenging the
25constitutionality of a statute or rule on its face may present
26such challenge to the Tribunal for the sole purpose of making a

 

 

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1record for review by the Illinois Appellate Court. Failure to
2raise a constitutional issue regarding the application of a
3statute or regulations to the taxpayer shall not preclude the
4taxpayer or the Department from raising those issues at the
5appellate court level.
 
6    Section 1-50. Pleadings.
7    (a) A taxpayer may commence a proceeding in the Tax
8Tribunal by filing a petition protesting the Department's
9determination imposing a liability for tax, penalty, or
10interest, or denying a claim for refund or credit application.
11The petition shall be filed within the time permitted by
12statute for filing a protest.
13    (b) The Department shall file its answer in the Tax
14Tribunal no later than 30 days after its receipt of the Tax
15Tribunal's notification that the taxpayer has filed a petition
16in the proper form or within such additional time as the Tax
17Tribunal may specify. The Department shall serve a copy of its
18answer on the taxpayer's representative or, if the taxpayer is
19not represented, on the taxpayer, and shall file proof of such
20service with the answer. Material facts alleged in the
21petition, if not expressly admitted or denied in the answer,
22shall be deemed admitted.
23    (c) Either party may amend a pleading once without leave at
24any time before the period for responding to it expires. After
25such time, a pleading may be amended only with the written

 

 

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1consent of the adverse party or with the permission of the Tax
2Tribunal. The Tax Tribunal shall freely grant consent to amend
3upon such terms as may be just. Except as otherwise ordered by
4the Tax Tribunal, there shall be an answer to an amended
5pleading if an answer is required to the pleading being
6amended. Filing of the answer, or, if the answer has already
7been filed, the amended answer shall be made no later than 30
8days after the filing of the amended petition. The taxpayer may
9not amend a petition after expiration of the time for filing a
10petition, if such amendment would have the effect of conferring
11jurisdiction on the Tax Tribunal over a matter that would
12otherwise not come within its jurisdiction. An amendment of a
13pleading shall relate back to the time of filing of the
14original pleading only as prescribed by Section 2-616 of the
15Code of Civil Procedure.
 
16    Section 1-55. Fees.
17    (a) The Tax Tribunal shall impose a fee of $500 for the
18filing of petitions.
19    (b) The Tax Tribunal may fix a fee, not in excess of the
20fees charged and collected by the clerk of the circuit courts,
21for comparing, or for preparing and comparing, a transcript of
22the record, or for copying any record, entry, or other paper
23and the comparison and certification thereof.
24    (c) Fees collected under this Section shall be deposited
25into the Illinois Independent Tax Tribunal Fund, a special fund

 

 

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1created in the State treasury. Moneys deposited into the Fund
2shall be appropriated to the Tribunal to reimburse the Tribunal
3for costs associated with administering and enforcing the
4provisions of this Act.
5    (d) The Tax Tribunal shall not assign any costs or
6attorney's fees incurred by one party against another party.
7Claims for expenses and attorney's fees under Section 10-55 of
8the Administrative Procedure Act shall first be made to the
9Department of Revenue. If the claimant is dissatisfied because
10of the Department's failure to make any award or because of the
11insufficiency of the award, the claimant may petition the Court
12of Claims for the amount deemed owed.
 
13    Section 1-60. Discovery and stipulation.
14    (a) The parties to the proceeding shall comply with the
15Supreme Court Rules for Civil Proceedings in the Trial Court
16regarding Discovery, Requests for Admission, and Pre-Trial
17Procedure.
18    (b) A administrative law judge or the clerk of the Tax
19Tribunal, on the request of any party to the proceeding, shall
20issue subpoenas requiring the attendance of witnesses and
21giving of testimony and subpoenas duces tecum requiring the
22production of evidence or things.
23    (c) Any employee of the Tax Tribunal designated in writing
24for that purpose by the Chief Administrative Law Judge may
25administer oaths.

 

 

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1    (d) The Tax Tribunal may enforce its order on discovery and
2other procedural issues, among other means, by deciding issues
3wholly or partly against the offending party.
 
4    Section 1-63. Mediation. At any point in the proceedings
5before the Tax Tribunal, but prior to the hearing under Section
61-65 of this Act, the parties may jointly petition the Tax
7Tribunal for mediation. The purpose of the mediation shall be
8to attempt to settle any contested issues or the case in its
9entirety. An administrative law judge other than the one
10initially assigned to hear the case shall serve as the
11mediator.
 
12    Section 1-65. Hearings.
13    (a) Proceedings before the Tax Tribunal shall be tried de
14novo.
15    (b) Except as set forth in this Act or otherwise precluded
16by law, the Tax Tribunal shall take evidence, conduct hearings,
17rule on motions, and issue final and interlocutory decisions.
18    (c) Hearings shall be open to the public. Taxpayers may
19petition the Tax Tribunal to close portions of the hearing for
20good cause shown. Taxpayers may also petition the Tax Tribunal
21to require that certain pleadings or portions thereof be filed,
22or that certain evidence or portions thereof be admitted, under
23seal in order to prevent economic or other harm to the
24taxpayer. Original tax return documents, schedules, or other

 

 

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1attachments and any copies thereof shall not be made available
2to the public for inspection or copying. Nothing in this
3Section shall operate to restrict the transmission of records
4to the appellate court.
5    (d) Hearings shall be conducted in accordance with such
6rules of practice and procedure as the Tax Tribunal shall
7promulgate.
8    (e) The rules of evidence and privilege as applied in civil
9cases in the circuit courts of this State shall be followed.
10    (f) Subject to the evidentiary requirements of subsection
11(e) of this Section, a party may conduct cross examination
12required for a full and fair disclosure of the facts.
13    (g) Notice may be taken by the Tax Tribunal of matters of
14which the circuit courts of this State may take judicial
15notice. Parties shall be notified either before or during the
16hearing, or by reference in preliminary reports or otherwise,
17of the material noticed, including any staff memoranda or data,
18and they shall be afforded an opportunity to contest the
19material so noticed.
20    (h) Testimony may be given only on oath or affirmation.
21    (i) The petition and other pleadings in the proceeding
22shall be deemed to conform to the proof presented at the
23hearing, unless a party satisfies the Tax Tribunal that
24presentation of the evidence would unfairly prejudice the party
25in maintaining its position on the merits or unless deeming the
26taxpayer's petition to conform to the proof would confer

 

 

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1jurisdiction on the Tax Tribunal over a matter that would not
2otherwise come within its jurisdiction.
3    (j) In the case of an issue of fact, the taxpayer shall
4have the burden of persuasion by a preponderance of the
5evidence.
 
6    Section 1-67. Temporary suspension of proceedings.
7    (a) If any party to a proceeding pending in the Tax
8Tribunal is also a defendant in a criminal case pending in any
9court in this State involving the same conduct as the case
10before the Tax Tribunal, then, upon motion of any party or the
11Attorney General, or upon its own motion, the Tax Tribunal
12shall enter an order staying the proceeding.
13    (b) If the Attorney General or the Department determines
14that the interests of justice so require, either may file an ex
15parte motion with the Chief Administrative Law Judge requesting
16that any proceeding pending before the Tax Tribunal be stayed.
17If the Chief Administrative Law Judge finds that the motion
18reasonably shows that the proceeding may interfere with an
19ongoing criminal investigation, the Chief Administrative Law
20Judge shall enter an order staying the proceeding. The denial
21of a motion to enter an order staying the proceeding is a final
22administrative decision within the meaning of Section 3-101 of
23the Administrative Review Law and may be reviewed by the
24Circuit Court pursuant to the Administrative Review Law.
 

 

 

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1    Section 1-70. Decisions.
2    (a) The Tax Tribunal shall render its decision in writing,
3including in that writing a concise statement of the facts
4found and the conclusions of law reached. The Tax Tribunal's
5decision shall, subject to law, grant such relief, invoke such
6remedies, and issue such orders as it deems appropriate to
7carry out its decisions. The Tax Tribunal shall promptly mail a
8notice of its decision to the taxpayer and to the Department.
9    (b) The Tax Tribunal shall render its decision no later
10than 90 days after submission of the last brief filed
11subsequent to completion of the hearing or, if briefs are not
12submitted, then no later than 90 days after completion of the
13hearing. The Tax Tribunal may extend the 90 day period, for
14good cause, up to 30 additional days.
15    (c) If the Tax Tribunal fails to render a decision within
16the prescribed period, either party may institute a proceeding
17in the circuit court to compel issuance of a decision.
18    (d) The Tax Tribunal's decision shall finally decide the
19matters in controversy, unless any party to the matter timely
20appeals the decision as provided in Section 1-75 of this Act.
21    (e) A decision of the Tax Tribunal shall become final 35
22days after the issuance of a notice of decision.
 
23    Section 1-75. Appeals.
24    (a) The taxpayer and the Department are entitled to
25judicial review of a final decision of the Tribunal in the

 

 

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1Illinois Appellate Court, in accordance with Section 3-113 of
2the Administrative Review Law.
3    (b) The record on judicial review shall include the
4decision of the Tax Tribunal, the stenographic transcript of
5the hearing before the Tax Tribunal, the pleadings and all
6exhibits and documents admitted into evidence.
 
7    Section 1-80. Representation.
8    (a) Appearances in proceedings conducted by the Tax
9Tribunal may be by the taxpayer or by an attorney admitted to
10practice in this State. The Tax Tribunal may allow an attorney
11authorized to practice or licensed in any other jurisdiction of
12the United States to appear and represent a taxpayer in
13proceedings before the Tax Tribunal for a particular matter.
14    (b) The Department of Revenue shall be represented by the
15Attorney General in all proceedings before the Tax Tribunal.
 
16    Section 1-85. Publication of decisions and electronic
17submission of documents.
18    (a) The Tax Tribunal shall, within 180 days of the issuance
19of a decision, index and publish its final decision in such
20print or electronic form as it deems best adapted for public
21convenience. Such publications shall be made permanently
22available and constitute the official reports of the Tax
23Tribunal.
24    (b) All published decisions shall be edited by the Tax

 

 

09700HB5192ham001- 22 -LRB097 18915 HLH 69637 a

1Tribunal so that the identification number of the taxpayer and
2any related entities or employees, and any trade secrets or
3other intellectual property, are not disclosed or identified.
4    (c) Within 30 days following the issuance of any hearing
5decision, the taxpayer affected by the decision may also
6request that the Tax Tribunal omit specifically identified
7trade secrets or other confidential or proprietary information
8prior to publication of the decision. The Tax Tribunal shall
9approve those requests if it determines that the requests are
10reasonable and that the disclosure of such information would
11potentially cause economic or other injury to the taxpayer.
12    (d) The Tax Tribunal shall provide, by rule, reasonable
13requirements for the electronic submission of documents and
14records and the method and type of symbol or security procedure
15it will accept to authenticate electronic submissions or as a
16legal signature.
17    (e) Each year, no later than October 1, the Tax Tribunal
18shall report to the General Assembly regarding the Tribunal's
19operations during the prior fiscal year. Such report shall
20include the number of cases opened and closed, the size of its
21docket, the average age of cases, the dollar amount of cases by
22tax type, the number of cases decided in favor of the
23Department, the number of cases decided in favor of the
24taxpayer, the number of cases resolved through mediation or
25settlement, and such other statistics so as to apprise the
26General Assembly of whether the Tax Tribunal has successfully

 

 

09700HB5192ham001- 23 -LRB097 18915 HLH 69637 a

1accomplished its mission to fairly and efficiently adjudicate
2tax disputes.
 
3    Section 1-90. Service of process and mailings.
4    (a) Mailings by first class or certified or registered
5mail, postage prepaid, to the address of the taxpayer given on
6the taxpayer's petition, or to the address of the taxpayer's
7representative of record, if any, or to the usual place of
8business of the Department, shall constitute personal service
9on the other party. The Tax Tribunal may by rule prescribe that
10notice by other means shall constitute personal service and may
11in a particular case order that notice be given to additional
12persons or by other means.
13    (b) Mailing by registered or certified mail and delivery by
14a private delivery service approved by the Internal Revenue
15Service in accordance with Section 7502(f) of the Internal
16Revenue Code of 1986, as amended, shall be deemed to have
17occurred, respectively, on the date of mailing and the date of
18submission to the private delivery service.
 
19    Section 1-95. Rules and forms. The Tax Tribunal is
20authorized to promulgate and adopt all reasonable rules and
21forms as may be necessary or appropriate to carry out the
22intent and purposes of this Act. Rules shall be adopted in
23accordance with the rulemaking procedures of Article 5 of the
24Illinois Administrative Procedure Act.
 

 

 

09700HB5192ham001- 24 -LRB097 18915 HLH 69637 a

1    Section 1-100. Confidentiality. All information received
2by the Tax Tribunal as a result of a hearing or investigation
3conducted under the provisions of this Act shall be public,
4except for tax returns and information received under seal
5pursuant to Section 1-65, and information received in relation
6to any mediation proceedings conducted under Section 1-63.
 
7
Article 5. AMENDATORY PROVISIONS

 
8    Section 5-5. The Open Meetings Act is amended by changing
9Section 1.02 as follows:
 
10    (5 ILCS 120/1.02)  (from Ch. 102, par. 41.02)
11    Sec. 1.02. For the purposes of this Act:
12    "Meeting" means any gathering, whether in person or by
13video or audio conference, telephone call, electronic means
14(such as, without limitation, electronic mail, electronic
15chat, and instant messaging), or other means of contemporaneous
16interactive communication, of a majority of a quorum of the
17members of a public body held for the purpose of discussing
18public business or, for a 5-member public body, a quorum of the
19members of a public body held for the purpose of discussing
20public business.
21    Accordingly, for a 5-member public body, 3 members of the
22body constitute a quorum and the affirmative vote of 3 members

 

 

09700HB5192ham001- 25 -LRB097 18915 HLH 69637 a

1is necessary to adopt any motion, resolution, or ordinance,
2unless a greater number is otherwise required.
3    "Public body" includes all legislative, executive,
4administrative or advisory bodies of the State, counties,
5townships, cities, villages, incorporated towns, school
6districts and all other municipal corporations, boards,
7bureaus, committees or commissions of this State, and any
8subsidiary bodies of any of the foregoing including but not
9limited to committees and subcommittees which are supported in
10whole or in part by tax revenue, or which expend tax revenue,
11except the General Assembly and committees or commissions
12thereof. "Public body" includes tourism boards and convention
13or civic center boards located in counties that are contiguous
14to the Mississippi River with populations of more than 250,000
15but less than 300,000. "Public body" includes the Health
16Facilities and Services Review Board. "Public body" does not
17include a child death review team or the Illinois Child Death
18Review Teams Executive Council established under the Child
19Death Review Team Act, or an ethics commission acting under the
20State Officials and Employees Ethics Act, or the Illinois
21Independent Tax Tribunal.
22(Source: P.A. 95-245, eff. 8-17-07; 96-31, eff. 6-30-09.)
 
23    Section 5-10. The Freedom of Information Act is amended by
24changing Section 7 as follows:
 

 

 

09700HB5192ham001- 26 -LRB097 18915 HLH 69637 a

1    (5 ILCS 140/7)  (from Ch. 116, par. 207)
2    Sec. 7. Exemptions.
3    (1) When a request is made to inspect or copy a public
4record that contains information that is exempt from disclosure
5under this Section, but also contains information that is not
6exempt from disclosure, the public body may elect to redact the
7information that is exempt. The public body shall make the
8remaining information available for inspection and copying.
9Subject to this requirement, the following shall be exempt from
10inspection and copying:
11        (a) Information specifically prohibited from
12    disclosure by federal or State law or rules and regulations
13    implementing federal or State law.
14        (b) Private information, unless disclosure is required
15    by another provision of this Act, a State or federal law or
16    a court order.
17        (b-5) Files, documents, and other data or databases
18    maintained by one or more law enforcement agencies and
19    specifically designed to provide information to one or more
20    law enforcement agencies regarding the physical or mental
21    status of one or more individual subjects.
22        (c) Personal information contained within public
23    records, the disclosure of which would constitute a clearly
24    unwarranted invasion of personal privacy, unless the
25    disclosure is consented to in writing by the individual
26    subjects of the information. "Unwarranted invasion of

 

 

09700HB5192ham001- 27 -LRB097 18915 HLH 69637 a

1    personal privacy" means the disclosure of information that
2    is highly personal or objectionable to a reasonable person
3    and in which the subject's right to privacy outweighs any
4    legitimate public interest in obtaining the information.
5    The disclosure of information that bears on the public
6    duties of public employees and officials shall not be
7    considered an invasion of personal privacy.
8        (d) Records in the possession of any public body
9    created in the course of administrative enforcement
10    proceedings, and any law enforcement or correctional
11    agency for law enforcement purposes, but only to the extent
12    that disclosure would:
13            (i) interfere with pending or actually and
14        reasonably contemplated law enforcement proceedings
15        conducted by any law enforcement or correctional
16        agency that is the recipient of the request;
17            (ii) interfere with active administrative
18        enforcement proceedings conducted by the public body
19        that is the recipient of the request;
20            (iii) create a substantial likelihood that a
21        person will be deprived of a fair trial or an impartial
22        hearing;
23            (iv) unavoidably disclose the identity of a
24        confidential source, confidential information
25        furnished only by the confidential source, or persons
26        who file complaints with or provide information to

 

 

09700HB5192ham001- 28 -LRB097 18915 HLH 69637 a

1        administrative, investigative, law enforcement, or
2        penal agencies; except that the identities of
3        witnesses to traffic accidents, traffic accident
4        reports, and rescue reports shall be provided by
5        agencies of local government, except when disclosure
6        would interfere with an active criminal investigation
7        conducted by the agency that is the recipient of the
8        request;
9            (v) disclose unique or specialized investigative
10        techniques other than those generally used and known or
11        disclose internal documents of correctional agencies
12        related to detection, observation or investigation of
13        incidents of crime or misconduct, and disclosure would
14        result in demonstrable harm to the agency or public
15        body that is the recipient of the request;
16            (vi) endanger the life or physical safety of law
17        enforcement personnel or any other person; or
18            (vii) obstruct an ongoing criminal investigation
19        by the agency that is the recipient of the request.
20        (e) Records that relate to or affect the security of
21    correctional institutions and detention facilities.
22        (f) Preliminary drafts, notes, recommendations,
23    memoranda and other records in which opinions are
24    expressed, or policies or actions are formulated, except
25    that a specific record or relevant portion of a record
26    shall not be exempt when the record is publicly cited and

 

 

09700HB5192ham001- 29 -LRB097 18915 HLH 69637 a

1    identified by the head of the public body. The exemption
2    provided in this paragraph (f) extends to all those records
3    of officers and agencies of the General Assembly that
4    pertain to the preparation of legislative documents.
5        (g) Trade secrets and commercial or financial
6    information obtained from a person or business where the
7    trade secrets or commercial or financial information are
8    furnished under a claim that they are proprietary,
9    privileged or confidential, and that disclosure of the
10    trade secrets or commercial or financial information would
11    cause competitive harm to the person or business, and only
12    insofar as the claim directly applies to the records
13    requested.
14        The information included under this exemption includes
15    all trade secrets and commercial or financial information
16    obtained by a public body, including a public pension fund,
17    from a private equity fund or a privately held company
18    within the investment portfolio of a private equity fund as
19    a result of either investing or evaluating a potential
20    investment of public funds in a private equity fund. The
21    exemption contained in this item does not apply to the
22    aggregate financial performance information of a private
23    equity fund, nor to the identity of the fund's managers or
24    general partners. The exemption contained in this item does
25    not apply to the identity of a privately held company
26    within the investment portfolio of a private equity fund,

 

 

09700HB5192ham001- 30 -LRB097 18915 HLH 69637 a

1    unless the disclosure of the identity of a privately held
2    company may cause competitive harm.
3        Nothing contained in this paragraph (g) shall be
4    construed to prevent a person or business from consenting
5    to disclosure.
6        (h) Proposals and bids for any contract, grant, or
7    agreement, including information which if it were
8    disclosed would frustrate procurement or give an advantage
9    to any person proposing to enter into a contractor
10    agreement with the body, until an award or final selection
11    is made. Information prepared by or for the body in
12    preparation of a bid solicitation shall be exempt until an
13    award or final selection is made.
14        (i) Valuable formulae, computer geographic systems,
15    designs, drawings and research data obtained or produced by
16    any public body when disclosure could reasonably be
17    expected to produce private gain or public loss. The
18    exemption for "computer geographic systems" provided in
19    this paragraph (i) does not extend to requests made by news
20    media as defined in Section 2 of this Act when the
21    requested information is not otherwise exempt and the only
22    purpose of the request is to access and disseminate
23    information regarding the health, safety, welfare, or
24    legal rights of the general public.
25        (j) The following information pertaining to
26    educational matters:

 

 

09700HB5192ham001- 31 -LRB097 18915 HLH 69637 a

1            (i) test questions, scoring keys and other
2        examination data used to administer an academic
3        examination;
4            (ii) information received by a primary or
5        secondary school, college, or university under its
6        procedures for the evaluation of faculty members by
7        their academic peers;
8            (iii) information concerning a school or
9        university's adjudication of student disciplinary
10        cases, but only to the extent that disclosure would
11        unavoidably reveal the identity of the student; and
12            (iv) course materials or research materials used
13        by faculty members.
14        (k) Architects' plans, engineers' technical
15    submissions, and other construction related technical
16    documents for projects not constructed or developed in
17    whole or in part with public funds and the same for
18    projects constructed or developed with public funds,
19    including but not limited to power generating and
20    distribution stations and other transmission and
21    distribution facilities, water treatment facilities,
22    airport facilities, sport stadiums, convention centers,
23    and all government owned, operated, or occupied buildings,
24    but only to the extent that disclosure would compromise
25    security.
26        (l) Minutes of meetings of public bodies closed to the

 

 

09700HB5192ham001- 32 -LRB097 18915 HLH 69637 a

1    public as provided in the Open Meetings Act until the
2    public body makes the minutes available to the public under
3    Section 2.06 of the Open Meetings Act.
4        (m) Communications between a public body and an
5    attorney or auditor representing the public body that would
6    not be subject to discovery in litigation, and materials
7    prepared or compiled by or for a public body in
8    anticipation of a criminal, civil or administrative
9    proceeding upon the request of an attorney advising the
10    public body, and materials prepared or compiled with
11    respect to internal audits of public bodies.
12        (n) Records relating to a public body's adjudication of
13    employee grievances or disciplinary cases; however, this
14    exemption shall not extend to the final outcome of cases in
15    which discipline is imposed.
16        (o) Administrative or technical information associated
17    with automated data processing operations, including but
18    not limited to software, operating protocols, computer
19    program abstracts, file layouts, source listings, object
20    modules, load modules, user guides, documentation
21    pertaining to all logical and physical design of
22    computerized systems, employee manuals, and any other
23    information that, if disclosed, would jeopardize the
24    security of the system or its data or the security of
25    materials exempt under this Section.
26        (p) Records relating to collective negotiating matters

 

 

09700HB5192ham001- 33 -LRB097 18915 HLH 69637 a

1    between public bodies and their employees or
2    representatives, except that any final contract or
3    agreement shall be subject to inspection and copying.
4        (q) Test questions, scoring keys, and other
5    examination data used to determine the qualifications of an
6    applicant for a license or employment.
7        (r) The records, documents, and information relating
8    to real estate purchase negotiations until those
9    negotiations have been completed or otherwise terminated.
10    With regard to a parcel involved in a pending or actually
11    and reasonably contemplated eminent domain proceeding
12    under the Eminent Domain Act, records, documents and
13    information relating to that parcel shall be exempt except
14    as may be allowed under discovery rules adopted by the
15    Illinois Supreme Court. The records, documents and
16    information relating to a real estate sale shall be exempt
17    until a sale is consummated.
18        (s) Any and all proprietary information and records
19    related to the operation of an intergovernmental risk
20    management association or self-insurance pool or jointly
21    self-administered health and accident cooperative or pool.
22    Insurance or self insurance (including any
23    intergovernmental risk management association or self
24    insurance pool) claims, loss or risk management
25    information, records, data, advice or communications.
26        (t) Information contained in or related to

 

 

09700HB5192ham001- 34 -LRB097 18915 HLH 69637 a

1    examination, operating, or condition reports prepared by,
2    on behalf of, or for the use of a public body responsible
3    for the regulation or supervision of financial
4    institutions or insurance companies, unless disclosure is
5    otherwise required by State law.
6        (u) Information that would disclose or might lead to
7    the disclosure of secret or confidential information,
8    codes, algorithms, programs, or private keys intended to be
9    used to create electronic or digital signatures under the
10    Electronic Commerce Security Act.
11        (v) Vulnerability assessments, security measures, and
12    response policies or plans that are designed to identify,
13    prevent, or respond to potential attacks upon a community's
14    population or systems, facilities, or installations, the
15    destruction or contamination of which would constitute a
16    clear and present danger to the health or safety of the
17    community, but only to the extent that disclosure could
18    reasonably be expected to jeopardize the effectiveness of
19    the measures or the safety of the personnel who implement
20    them or the public. Information exempt under this item may
21    include such things as details pertaining to the
22    mobilization or deployment of personnel or equipment, to
23    the operation of communication systems or protocols, or to
24    tactical operations.
25        (w) (Blank).
26        (x) Maps and other records regarding the location or

 

 

09700HB5192ham001- 35 -LRB097 18915 HLH 69637 a

1    security of generation, transmission, distribution,
2    storage, gathering, treatment, or switching facilities
3    owned by a utility, by a power generator, or by the
4    Illinois Power Agency.
5        (y) Information contained in or related to proposals,
6    bids, or negotiations related to electric power
7    procurement under Section 1-75 of the Illinois Power Agency
8    Act and Section 16-111.5 of the Public Utilities Act that
9    is determined to be confidential and proprietary by the
10    Illinois Power Agency or by the Illinois Commerce
11    Commission.
12        (z) Information about students exempted from
13    disclosure under Sections 10-20.38 or 34-18.29 of the
14    School Code, and information about undergraduate students
15    enrolled at an institution of higher education exempted
16    from disclosure under Section 25 of the Illinois Credit
17    Card Marketing Act of 2009.
18        (aa) Information the disclosure of which is exempted
19    under the Viatical Settlements Act of 2009.
20        (bb) Records and information provided to a mortality
21    review team and records maintained by a mortality review
22    team appointed under the Department of Juvenile Justice
23    Mortality Review Team Act.
24        (cc) Information regarding interments, entombments, or
25    inurnments of human remains that are submitted to the
26    Cemetery Oversight Database under the Cemetery Care Act or

 

 

09700HB5192ham001- 36 -LRB097 18915 HLH 69637 a

1    the Cemetery Oversight Act, whichever is applicable.
2        (dd) Correspondence and records (i) that may not be
3    disclosed under Section 11-9 of the Public Aid Code or (ii)
4    that pertain to appeals under Section 11-8 of the Public
5    Aid Code.
6        (ee) (dd) The names, addresses, or other personal
7    information of persons who are minors and are also
8    participants and registrants in programs of park
9    districts, forest preserve districts, conservation
10    districts, recreation agencies, and special recreation
11    associations.
12        (ff) (ee) The names, addresses, or other personal
13    information of participants and registrants in programs of
14    park districts, forest preserve districts, conservation
15    districts, recreation agencies, and special recreation
16    associations where such programs are targeted primarily to
17    minors.
18        (gg) Confidential information described in Section
19    1-100 of the Illinois Independent Tax Tribunal Act of 2012.
20    (2) A public record that is not in the possession of a
21public body but is in the possession of a party with whom the
22agency has contracted to perform a governmental function on
23behalf of the public body, and that directly relates to the
24governmental function and is not otherwise exempt under this
25Act, shall be considered a public record of the public body,
26for purposes of this Act.

 

 

09700HB5192ham001- 37 -LRB097 18915 HLH 69637 a

1    (3) This Section does not authorize withholding of
2information or limit the availability of records to the public,
3except as stated in this Section or otherwise provided in this
4Act.
5(Source: P.A. 96-261, eff. 1-1-10; 96-328, eff. 8-11-09;
696-542, eff. 1-1-10; 96-558, eff. 1-1-10; 96-736, eff. 7-1-10;
796-863, eff. 3-1-10; 96-1378, eff. 7-29-10; 97-333, eff.
88-12-11; 97-385, eff. 8-15-11; 97-452, eff. 8-19-11; revised
99-2-11.)
 
10    Section 5-15. The Department of Revenue Law of the Civil
11Administrative Code of Illinois is amended by changing Section
122505-510 as follows:
 
13    (20 ILCS 2505/2505-510)  (was 20 ILCS 2505/39b20.1)
14    Sec. 2505-510. Informal assessment review.
15    (a) The Department has the power to establish an informal
16assessment review process at which an impartial Department
17designee, who has the authority and knowledge to recommend an
18appropriate conclusion to the matter, shall review adjustments
19recommended by examiners and auditors. The Director shall
20provide by rule for the availability of an informal assessment
21review before the issuance of a notice of tax liability or
22notice of deficiency upon completion of an audit of the
23taxpayer or before a formal hearing. A taxpayer may be
24represented by a party of his or her choice during the informal

 

 

09700HB5192ham001- 38 -LRB097 18915 HLH 69637 a

1assessment review procedure and need not be represented by an
2attorney.
3    (b) The exercise of this power to establish an informal
4assessment review procedure is mandatory, and the Director
5shall promulgate rules implementing this process within 180
6days after the effective date of this amendatory Act of 1988.
7    (c) Offers of disposition of a proposed audit adjustment
8may be proposed during the informal assessment review process.
9The panel shall consider disposing of the matter in controversy
10in all instances where, having made a reasonable evaluation of
11such matters, the panel determines that there is uncertainty as
12to the correctness of the proposed audit adjustments, and it is
13not in the best interest of the Department to issue an
14assessment or claim denial with respect to the issue due to,
15among other factors, potential hazards of litigation.
16(Source: P.A. 91-239, eff. 1-1-00.)
 
17    Section 5-20. The Illinois Income Tax Act is amended by
18changing Sections 908, 909, 910, 914, 916, 918, 1201, 1202, and
191408 as follows:
 
20    (35 ILCS 5/908)  (from Ch. 120, par. 9-908)
21    Sec. 908. Procedure on protest.
22    (a) Time for protest. Within 60 days (150 days if the
23taxpayer is outside the United States) after the issuance of a
24notice of deficiency, the taxpayer may file (i) a protest

 

 

09700HB5192ham001- 39 -LRB097 18915 HLH 69637 a

1against the proposed assessment with with the Department or
2(ii) a petition with the Illinois Independent Tax Tribunal, as
3provided in this subsection (a). Prior to July 1, 2013, a
4written protest against the proposed assessment shall be filed
5with the Department in such form as the Department may by
6regulations prescribe, setting forth the grounds on which such
7protest is based. If such a protest is filed, the Department
8shall reconsider the proposed assessment and, if the taxpayer
9has so requested, shall grant the taxpayer or his authorized
10representative a hearing.
11    On and after July 1, 2013, all protests of a notice of
12deficiency that are subject to the jurisdiction of the Illinois
13Independent Tax Tribunal shall be filed by petition pursuant to
14the Illinois Independent Tax Tribunal Act of 2012.
15    With respect to protests filed with the Department prior to
16July 1, 2013 that are otherwise subject to the jurisdiction of
17the Illinois Independent Tax Tribunal, the taxpayer may elect
18to be subject to the provisions of the Illinois Independent Tax
19Tribunal Act of 2012 at any time on or after July 1, 2013, but
20not later than 30 days after the date on which the protest was
21filed. If made, the election shall be irrevocable.
22    (b) Notice of decision. With respect to protests filed with
23the Department before July 1, 2013 that are not subject to the
24provisions of the Illinois Independent Tax Tribunal Act of
252012, as As soon as practicable after such reconsideration and
26hearing, if any, the Department shall issue a notice of

 

 

09700HB5192ham001- 40 -LRB097 18915 HLH 69637 a

1decision by mailing such notice by certified or registered
2mail. Such notice shall set forth briefly the Department's
3findings of fact and the basis of decision in each case decided
4in whole or in part adversely to the taxpayer.
5    (c) Request for rehearing. With respect to protests filed
6with the Department that are not subject to the provisions of
7the Illinois Independent Tax Tribunal Act of 2012, within
8Within 30 days after the mailing of a notice of decision, the
9taxpayer may file with a Department a written request for
10rehearing in such form as the Department may by regulations
11prescribe, setting forth the grounds on which rehearing is
12requested. In any such case, the Department shall, in its
13discretion, grant either a rehearing or Departmental review
14unless, within 10 days of receipt of such request, it shall
15issue a denial of such request by mailing such denial to the
16taxpayer by certified or registered mail. If rehearing or
17Departmental review is granted, as soon as practicable after
18such rehearing or Departmental review, the Department shall
19issue a notice of final decision as provided in subsection (b).
20    (d) Finality of decision. If the taxpayer fails to file a
21timely petition under subsection (a) of this Section, then the
22Department's notice of deficiency shall become a final
23assessment at the end of the 60th day after the date of
24issuance of the notice of deficiency (or the 150th day if the
25taxpayer is outside the United States). If the taxpayer files a
26protest with the Department prior to July 1, 2013, and the

 

 

09700HB5192ham001- 41 -LRB097 18915 HLH 69637 a

1taxpayer does not elect to be subject to the provisions of the
2Illinois Independent Tax Tribunal Act of 2012, then the The
3action of the Department on the taxpayer's protest shall become
4final:
5        (1) 30 Days after issuance of a notice of decision as
6    provided in subsection (b); or
7        (2) if a timely request for rehearing was made, upon
8    the issuance of a denial of such request or the issuance of
9    a notice of final decision as provided in subsection (c).
10    After the issuance of a final assessment, or a notice of
11deficiency which becomes final without the necessity of
12actually issuing a final assessment as provided in this
13Section, the Department, at any time before such assessment is
14reduced to judgment, may (subject to rules of the Department)
15grant a rehearing (or grant departmental review and hold an
16original hearing if no previous hearing in the matter has been
17held) upon the application of the person aggrieved. Pursuant to
18such hearing or rehearing, the Department shall issue a revised
19final assessment to such person or his legal representative for
20the amount found to be due as a result of such hearing or
21rehearing.
22    If the taxpayer files a petition with the Illinois
23Independent Tax Tribunal, or otherwise elects to be subject to
24the provisions of the Illinois Independent Tax Tribunal Act of
252012, then the Department's decision will become final as
26provided in that Act.

 

 

09700HB5192ham001- 42 -LRB097 18915 HLH 69637 a

1(Source: P.A. 87-192; 87-205.)
 
2    (35 ILCS 5/909)  (from Ch. 120, par. 9-909)
3    Sec. 909. Credits and Refunds.
4    (a) In general. In the case of any overpayment, the
5Department, within the applicable period of limitations for a
6claim for refund, may credit the amount of such overpayment,
7including any interest allowed thereon, against any liability
8in respect of the tax imposed by this Act, regardless of
9whether other collection remedies are closed to the Department
10on the part of the person who made the overpayment and shall
11refund any balance to such person.
12    (b) Credits against estimated tax. The Department may
13prescribe regulations providing for the crediting against the
14estimated tax for any taxable year of the amount determined by
15the taxpayer or the Department to be an overpayment of the tax
16imposed by this Act for a preceding taxable year.
17    (c) Interest on overpayment. Interest shall be allowed and
18paid at the rate and in the manner prescribed in Section 3-2 of
19the Uniform Penalty and Interest Act upon any overpayment in
20respect of the tax imposed by this Act. For purposes of this
21subsection, no amount of tax, for any taxable year, shall be
22treated as having been paid before the date on which the tax
23return for such year was due under Section 505, without regard
24to any extension of the time for filing such return.
25    (d) Refund claim. Every claim for refund shall be filed

 

 

09700HB5192ham001- 43 -LRB097 18915 HLH 69637 a

1with the Department in writing in such form as the Department
2may by regulations prescribe, and shall state the specific
3grounds upon which it is founded.
4    (e) Notice of denial. As soon as practicable after a claim
5for refund is filed, the Department shall examine it and either
6issue a notice of refund, abatement or credit to the claimant
7or issue a notice of denial. If the Department has failed to
8approve or deny the claim before the expiration of 6 months
9from the date the claim was filed, the claimant may
10nevertheless thereafter file with the Department a written
11protest in such form as the Department may by regulation
12prescribe, provided that, on or after July 1, 2013, protests
13concerning matters that are subject to the jurisdiction of the
14Illinois Independent Tax Tribunal shall be filed with the
15Illinois Independent Tax Tribunal and not with the Department.
16If the protest is subject to the jurisdiction of the Department
17a protest is filed, the Department shall consider the claim
18and, if the taxpayer has so requested, shall grant the taxpayer
19or the taxpayer's authorized representative a hearing within 6
20months after the date such request is filed.
21    On and after July 1, 2013, if the protest would otherwise
22be subject to the jurisdiction of the Illinois Independent Tax
23Tribunal, the claimant may elect to treat the Department's
24non-action as a denial of the claim by filing a petition to
25review the Department's administrative decision with the
26Illinois Tax Tribunal, as provided by Section 910.

 

 

09700HB5192ham001- 44 -LRB097 18915 HLH 69637 a

1    (f) Effect of denial. A denial of a claim for refund
2becomes final 60 days after the date of issuance of the notice
3of such denial except for such amounts denied as to which the
4claimant has filed a protest with the Department or a petition
5with the Illinois Tax Tribunal, as provided by Section 910.
6    (g) An overpayment of tax shown on the face of an unsigned
7return shall be considered forfeited to the State if after
8notice and demand for signature by the Department the taxpayer
9fails to provide a signature and 3 years have passed from the
10date the return was filed. An overpayment of tax refunded to a
11taxpayer whose return was filed electronically shall be
12considered an erroneous refund under Section 912 of this Act
13if, after proper notice and demand by the Department, the
14taxpayer fails to provide a required signature document. A
15notice and demand for signature in the case of a return
16reflecting an overpayment may be made by first class mail. This
17subsection (g) shall apply to all returns filed pursuant to
18this Act since 1969.
19    (h) This amendatory Act of 1983 applies to returns and
20claims for refunds filed with the Department on and after July
211, 1983.
22(Source: P.A. 97-507, eff. 8-23-11.)
 
23    (35 ILCS 5/910)  (from Ch. 120, par. 9-910)
24    Sec. 910. Procedure on Denial of Claim for Refund.
25    (a) Time for protest. Within 60 days after the denial of

 

 

09700HB5192ham001- 45 -LRB097 18915 HLH 69637 a

1the claim, the claimant may file (i) a protest with the
2Department or (ii) a petition with the Illinois Independent Tax
3Tribunal, as provided in this subsection (a). Prior to July 1,
42013, a written protest against such denial shall be filed with
5the Department in such form as the Department may by
6regulations prescribe, setting forth the grounds on which such
7protest is based. If such a protest is filed, the Department
8shall reconsider the denial and, if the taxpayer has so
9requested, shall grant the taxpayer or his authorized
10representative a hearing. With respect to protests filed with
11the Department prior to July 1, 2013 that would otherwise be
12subject to the jurisdiction of the Illinois Independent Tax
13Tribunal, the taxpayer may elect to be subject to the
14provisions of the Illinois Independent Tax Tribunal Act of 2012
15on or after July 1, 2013, but not later than 30 days after the
16date on which the protest was filed. If made, the election
17shall be irrevocable.
18    A claimant who, on or after July 1, 2013, wishes to protest
19a denial that is subject to the jurisdiction of the Illinois
20Independent Tax Tribunal shall do so by filing a petition with
21the Illinois Independent Tax Tribunal pursuant to the Illinois
22Independent Tax Tribunal Act of 2012.
23    (b) Notice of decision. With respect to protests that are
24subject to the jurisdiction of the Department, if the taxpayer
25has not made an election to be subject to the provisions of the
26Illinois Independent Tax Tribunal Act of 2012, then as As soon

 

 

09700HB5192ham001- 46 -LRB097 18915 HLH 69637 a

1as practicable after such reconsideration and hearing, if any,
2the Department shall issue a notice of decision by mailing such
3notice by certified or registered mail. Such notice shall set
4forth briefly the Department's findings of fact and the basis
5of decision in each case decided in whole or in part adversely
6to the claimant.
7    (c) Request for rehearing. Within 30 days after the mailing
8of a notice of decision as provided in subsection (b), the
9claimant may file with the Department a written request for
10rehearing in such form as the Department may by regulations
11prescribe, setting forth the grounds on which rehearing is
12requested. In any such case, the Department shall, in its
13discretion, grant either a rehearing or Departmental review
14unless, within 10 days of receipt of such request, it shall
15issue a denial of such request by mailing such denial to the
16claimant by certified or registered mail. If rehearing or
17Departmental review is granted, as soon as practicable after
18such rehearing or Departmental review, the Department shall
19issue a notice of final decision as provided in subsection (b).
20    (d) Finality of decision. If the taxpayer fails to file a
21timely petition under subsection (a) of this Section, then the
22Department's notice of deficiency shall become a final
23assessment at the end of the 60th day after the date of
24issuance of the notice of deficiency. If the protest is subject
25to the jurisdiction of the Department, and the taxpayer does
26not elect to be subject to the provisions of the Illinois

 

 

09700HB5192ham001- 47 -LRB097 18915 HLH 69637 a

1Independent Tax Tribunal Act of 2012, then the The action of
2the Department on the claimant's protest shall become final:
3        (1) 30 days after issuance of a notice of decision as
4    provided in subsection (b); or
5        (2) If a timely request for rehearing was made, upon
6    the issuance of a denial of such request or the issuance of
7    a notice of final decision as provided in subsection (c).
8    If the taxpayer files a petition with the Illinois
9Independent Tax Tribunal, or otherwise elects to be subject to
10the provisions of the Illinois Independent Tax Tribunal Act of
112012, then the Department's decision will become final as
12provided in that Act.
13(Source: P.A. 89-399, eff. 8-20-95.)
 
14    (35 ILCS 5/914)  (from Ch. 120, par. 9-914)
15    Sec. 914. Conduct of Investigations and Hearings. For the
16purpose of administering and enforcing the provisions of this
17Act, the Department, or any officer or employee of the
18Department designated, in writing, by the Director may hold
19investigations and hearings concerning any matters covered by
20this Act that are not otherwise delegated to the Illinois
21Independent Tax Tribunal, and may examine any books, papers,
22records or memoranda bearing upon such matters, and may require
23the attendance of any person, or any officer or employee of
24such person, having knowledge of such matters, and may take
25testimony and require proof for its information. In the conduct

 

 

09700HB5192ham001- 48 -LRB097 18915 HLH 69637 a

1of any investigation or hearing, neither the Department nor any
2officer or employee thereof shall be bound by the technical
3rules of evidence, and no informality in any proceeding, or in
4the manner of taking testimony, shall invalidate any order,
5decision, rule or regulation made or approved or confirmed by
6the Department. The Director, or any officer or employee of the
7Department authorized by the Director shall have power to
8administer oaths to such persons. The books, papers, records
9and memoranda of the Department, or parts thereof, may be
10proved in any hearing, investigation, or legal proceeding by a
11reproduced copy thereof or by a computer print-out of
12Department records, under the certificate of the Director. If
13reproduced copies of the Department's books, papers, records or
14memoranda are offered as proof, the Director must certify that
15those copies are true and exact copies of such records on file
16with the Department. If computer print-outs of records of the
17Department are offered as proof, the Director must certify that
18those computer print-outs are true and exact representations of
19records properly entered into standard electronic computing
20equipment, in the regular course of the Department's business,
21at or reasonably near the time of the occurrence of the facts
22recorded, from trustworthy and reliable information. Such
23reproduced copy shall, without further proof, be admitted into
24evidence before the Department or in any legal proceeding.
25(Source: P.A. 85-299.)
 

 

 

09700HB5192ham001- 49 -LRB097 18915 HLH 69637 a

1    (35 ILCS 5/916)  (from Ch. 120, par. 9-916)
2    Sec. 916. Production of Witnesses and Records. (a)
3Subpoenas. The Department or any officer or employee of the
4Department designated in writing by the Director, shall at its
5or his or her own instance, or on the written request of any
6other party to the proceeding, issue subpoenas requiring the
7attendance of and the giving of testimony by witnesses, and
8subpoenas duces tecum requiring the production of books,
9papers, records or memoranda. All subpoenas and subpoenas duces
10tecum issued under this Act may be served by any person of full
11age.
12    (b) Fees. The fees of witnesses for attendance and travel
13shall be the same as the fees of witnesses before a Circuit
14Court of this State, such fees to be paid when the witness is
15excused from further attendance. When the witness is subpoenaed
16at the instance of the Department or any officer or employee
17thereof, such fees shall be paid in the same manner as other
18expenses of the Department, and when the witness is subpoenaed
19at the instance of any other party to any such proceeding the
20Department may require that the cost of service of the subpoena
21or subpoenas duces tecum and the fee of the witness be borne by
22the party at whose instance the witness is summoned. In such
23case, the Department, in its discretion, may require a deposit
24to cover the cost of such service and witness fees. A subpoena
25or subpoena duces tecum so issued shall be served in the same
26manner as a subpoena issued out of a court.

 

 

09700HB5192ham001- 50 -LRB097 18915 HLH 69637 a

1    (c) Judicial enforcement. Any Circuit Court of this State,
2upon the application of the Department or any officer or
3employee thereof, or upon the application of any other party to
4the proceeding may, in its discretion, compel the attendance of
5witnesses, the production of books, papers, records or
6memoranda and the giving of testimony before the Department or
7any officer or employee thereof conducting an investigation or
8holding a hearing not otherwise delegated to the Illinois
9Independent Tax Tribunal authorized by this Act, by an
10attachment for contempt, or otherwise, in the same manner as
11production of evidence may be compelled before the Court.
12(Source: P.A. 83-334.)
 
13    (35 ILCS 5/918)  (from Ch. 120, par. 9-918)
14    Sec. 918. Place of Hearings.
15    All hearings provided for in this Act and not otherwise
16delegated to the Illinois Independent Tax Tribunal with respect
17to or concerning a taxpayer having his residence or commercial
18domicile in this State shall be held at the Department's office
19nearest to the location of such residence or domicile, except
20that if the taxpayer has his residence or commercial domicile
21in Cook County, such hearing shall be held in Cook County. If
22the taxpayer does not have his residence or commercial domicile
23in this State, such hearing shall be held in Cook County.
24(Source: P.A. 76-261.)
 

 

 

09700HB5192ham001- 51 -LRB097 18915 HLH 69637 a

1    (35 ILCS 5/1201)  (from Ch. 120, par. 12-1201)
2    Sec. 1201. Administrative Review Law; Illinois Independent
3Tax Tribunal Act of 2012. The provisions of the Administrative
4Review Law, and the rules adopted pursuant thereto, shall apply
5to and govern all proceedings for the judicial review of final
6actions of the Department referred to in Sections 908 (d) and
7910 (d). Such final actions shall constitute "administrative
8decisions" as defined in Section 3-101 of the Code of Civil
9Procedure.
10    Notwithstanding any other provision of law, on and after
11July 1, 2013, the provisions of the Illinois Independent Tax
12Tribunal Act, and the rules adopted pursuant thereto, shall
13apply to and govern all proceedings for the judicial review of
14final administrative decisions of the Department that are
15subject to that Act, as defined in Section 1-70 of the Illinois
16Independent Tax Tribunal Act of 2012.
17(Source: P.A. 82-783.)
 
18    (35 ILCS 5/1202)  (from Ch. 120, par. 12-1202)
19    Sec. 1202. Venue.
20    Except as otherwise provided in the Illinois Tax Tribunal
21Act, the The Circuit Court of the county wherein the taxpayer
22has his residence or commercial domicile, or of Cook County in
23those cases where the taxpayer does not have his residence or
24commercial domicile in this State, shall have power to review
25all final administrative decisions of the Department in

 

 

09700HB5192ham001- 52 -LRB097 18915 HLH 69637 a

1administering the provisions of this Act.
2(Source: P.A. 76-261.)
 
3    (35 ILCS 5/1408)  (from Ch. 120, par. 14-1408)
4    Sec. 1408. Except as otherwise provided in the Illinois Tax
5Tribunal Act, the The Illinois Administrative Procedure Act is
6hereby expressly adopted and shall apply to all administrative
7rules and procedures of the Department of Revenue under this
8Act, except that (1) paragraph (b) of Section 5-10 of the
9Illinois Administrative Procedure Act does not apply to final
10orders, decisions and opinions of the Department, (2)
11subparagraph (a)2 of Section 5-10 of the Illinois
12Administrative Procedure Act does not apply to forms
13established by the Department for use under this Act, and (3)
14the provisions of Section 10-45 of the Illinois Administrative
15Procedure Act regarding proposals for decision are excluded and
16not applicable to the Department under this Act.
17(Source: P.A. 88-45.)
 
18    Section 5-25. The Use Tax Act is amended by changing
19Sections 12b and 20 as follows:
 
20    (35 ILCS 105/12b)  (from Ch. 120, par. 439.12b)
21    Sec. 12b. 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

 

 

09700HB5192ham001- 53 -LRB097 18915 HLH 69637 a

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 delegated to
11the Illinois Independent Tax Tribunal.
12(Source: P.A. 88-45.)
 
13    (35 ILCS 105/20)  (from Ch. 120, par. 439.20)
14    Sec. 20. As soon as practicable after a claim for credit or
15refund is filed, the Department shall examine the same and
16determine the amount of credit or refund to which the claimant
17or the claimant's legal representative, in the event that the
18claimant shall have died or become a person under legal
19disability, is entitled and shall, by its Notice of Tentative
20Determination of Claim, notify the claimant or his or her legal
21representative of such determination, which determination
22shall be prima facie correct. Proof of such determination by
23the Department may be made at any hearing before the Department
24or in any legal proceeding by a reproduced copy of the
25Department's record relating thereto, in the name of the

 

 

09700HB5192ham001- 54 -LRB097 18915 HLH 69637 a

1Department under the certificate of the Director of Revenue.
2Such reproduced copy shall, without further proof, be admitted
3into evidence before the Department or in any legal proceeding
4and shall be prima facie proof of the correctness of the
5Department's determination, as shown therein. If such
6claimant, or the legal representative of a deceased claimant or
7a claimant who is a person under legal disability shall, within
860 days after the Department's Notice of Tentative
9Determination of Claim, file a protest thereto and request a
10hearing thereon, the Department shall give notice to such
11claimant, or the legal representative of a deceased claimant,
12or a claimant who is a person under legal disability of the
13time and place fixed for such hearing, and shall hold a hearing
14in conformity with the provisions of this Act. On and after
15July 1, 2013, protests concerning matters that are subject to
16the jurisdiction of the Illinois Independent Tax Tribunal shall
17be filed with the Tax Tribunal in accordance with the Illinois
18Independent Tax Tribunal Act of 2012, and hearings concerning
19those matters shall be held before the Tribunal in accordance
20with that Act. With respect to protests filed with the
21Department prior to July 1, 2013 that would otherwise be
22subject to the jurisdiction of the Illinois Independent Tax
23Tribunal, the taxpayer may elect to be subject to the
24provisions of the Illinois Independent Tax Tribunal Act of 2012
25at any time on or after July 1, 2013, but not later than 30 days
26after the date on which the protest was filed. If made, the

 

 

09700HB5192ham001- 55 -LRB097 18915 HLH 69637 a

1election shall be irrevocable. The Department , and pursuant
2thereto shall issue its Final Determination of the amount, if
3any, found to be due as a result of a such hearing before the
4Department or the Tribunal, to such claimant, or the legal
5representative of a deceased claimant or a claimant who is a
6person under legal disability.
7    If a protest to the Department's Notice of Tentative
8Determination of Claim is not filed within 60 days and a
9request for a hearing thereon is not made as provided herein,
10the said Notice shall thereupon become and operate as a Final
11Determination; and, if the Department's Notice of Tentative
12Determination, upon becoming a Final Determination, indicates
13no amount due to the claimant, or, upon issuance of a credit or
14refund for the amount, if any, found by the Department to be
15due, the claim in all its aspects shall be closed and no longer
16open to protest, hearing, judicial review, or by any other
17proceeding or action whatever, either before the Department or
18in any court of this State. Claims for credit or refund
19hereunder must be filed with and initially determined by the
20Department, the remedy herein provided being exclusive; and no
21court shall have jurisdiction to determine the merits of any
22claim except upon review as provided in this Act.
23(Source: P.A. 90-491, eff. 1-1-98.)
 
24    Section 5-30. The Service Use Tax Act is amended by
25changing Sections 11, 18, and 20a as follows:
 

 

 

09700HB5192ham001- 56 -LRB097 18915 HLH 69637 a

1    (35 ILCS 110/11)  (from Ch. 120, par. 439.41)
2    Sec. 11. Every serviceman required or authorized to collect
3taxes hereunder and every user who is subject to the tax
4imposed by this Act shall keep such records, receipts, invoices
5and other pertinent books, documents, memoranda and papers as
6the Department shall require, in such form as the Department
7shall require. The Department may adopt rules that establish
8requirements, including record forms and formats, for records
9required to be kept and maintained by taxpayers. For purposes
10of this Section, "records" means all data maintained by the
11taxpayer, including data on paper, microfilm, microfiche or any
12type of machine-sensible data compilation. For the purpose of
13administering and enforcing the provisions hereof, the
14Department, or any officer or employee of the Department
15designated, in writing, by the Director thereof, may hold
16investigations and hearings concerning any matters covered
17herein and not otherwise delegated to the Illinois Independent
18Tax Tribunal and may examine any relevant books, papers,
19records, documents or memoranda of any serviceman or any
20taxable purchaser for use hereunder, and may require the
21attendance of such person or any officer or employee of such
22person, or of any person having knowledge of the facts, and may
23take testimony and require proof for its information.
24(Source: P.A. 88-480.)
 

 

 

09700HB5192ham001- 57 -LRB097 18915 HLH 69637 a

1    (35 ILCS 110/18)  (from Ch. 120, par. 439.48)
2    Sec. 18. As soon as practicable after a claim for credit or
3refund is filed, the Department shall examine the same and
4determine the amount of credit or refund to which the claimant
5or the claimant's legal representative, in the event that the
6claimant shall have died or become a person under legal
7disability, is entitled and shall, by its Notice of Tentative
8Determination of Claim, notify the claimant or his legal
9representative of such determination, which determination
10shall be prima facie correct. Proof of such determination by
11the Department may be made at any hearing before the Department
12or the Illinois Independent Tax Tribunal, as applicable, or in
13any legal proceeding by a reproduced copy of the Department's
14record relating thereto, in the name of the Department under
15the certificate of the Director of Revenue. Such reproduced
16copy shall, without further proof, be admitted into evidence
17before the Department or in any legal proceeding and shall be
18prima facie proof of the correctness of the Department's
19determination, as shown therein. If such claimant, or the legal
20representative of a deceased claimant or a claimant who is a
21person under legal disability, shall, within 60 days after the
22Department's Notice of Tentative Determination of Claim, file a
23protest thereto and request a hearing thereon, the Department
24shall give notice to such claimant, or the legal representative
25of a deceased claimant or claimant who is a person under legal
26disability, of the time and place fixed for such hearing, and

 

 

09700HB5192ham001- 58 -LRB097 18915 HLH 69637 a

1shall hold a hearing in conformity with the provisions of this
2Act, and pursuant thereto shall issue its Final Determination
3of the amount, if any, found to be due as a result of such
4hearing, to such claimant, or the legal representative of a
5deceased or incompetent claimant.
6    If a protest to the Department's Notice of Tentative
7Determination of Claim is not filed within 60 days and a
8request for a hearing thereon is not made as provided herein,
9the Notice shall thereupon become and operate as a Final
10Determination; and, if the Department's Notice of Tentative
11Determination upon becoming a Final Determination, indicates
12no amount due to the claimant, or, upon issuance of a credit or
13refund for the amount, if any, found by the Department to be
14due, the claim in all its aspects shall be closed and no longer
15open to protest, hearing, judicial review, or by any other
16proceeding or action whatever, either before the Department or
17in any court of this State. Claims for credit or refund
18hereunder must be filed with and initially determined by the
19Department, the remedy herein provided being exclusive; and no
20court shall have jurisdiction to determine the merits of any
21claim except upon review as provided in this Act.
22(Source: P.A. 90-491, eff. 1-1-98.)
 
23    (35 ILCS 110/20a)  (from Ch. 120, par. 439.50a)
24    Sec. 20a. The Illinois Administrative Procedure Act is
25hereby expressly adopted and shall apply to all administrative

 

 

09700HB5192ham001- 59 -LRB097 18915 HLH 69637 a

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 delegated to
12the Illinois Independent Tax Tribunal.
13(Source: P.A. 88-45.)
 
14    Section 5-35. The Service Occupation Tax Act is amended by
15changing Sections 11, 18, and 20a as follows:
 
16    (35 ILCS 115/11)  (from Ch. 120, par. 439.111)
17    Sec. 11. Every supplier required or authorized to collect
18taxes hereunder and every serviceman making sales of service in
19this State on or after the effective date hereof shall keep
20such records, receipts, invoices and other pertinent books,
21documents, memoranda and papers as the Department shall
22require, in such form as the Department shall require. The
23Department may adopt rules that establish requirements,
24including record forms and formats, for records required to be

 

 

09700HB5192ham001- 60 -LRB097 18915 HLH 69637 a

1kept and maintained by taxpayers. For purposes of this Section,
2"records" means all data maintained by the taxpayer, including
3data on paper, microfilm, microfiche or any type of
4machine-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 not otherwise delegated to the
9Illinois Independent Tax Tribunal concerning any matters
10covered herein and may examine any books, papers, records,
11documents or memoranda of any supplier or serviceman bearing
12upon the sales of services or the sales of tangible personal
13property to servicemen, and may require the attendance of such
14person or any officer or employee of such person, or of any
15person having knowledge of the facts, and may take testimony
16and require proof for its information.
17(Source: P.A. 88-480.)
 
18    (35 ILCS 115/18)  (from Ch. 120, par. 439.118)
19    Sec. 18. As soon as practicable after a claim for credit or
20refund is filed, the Department shall examine the same and
21determine the amount of credit or refund to which the claimant
22or the claimant's legal representative, in the event that the
23claimant shall have died or become a person under legal
24disability, is entitled and shall, by its Notice of Tentative
25Determination of Claim, notify the claimant or his or her legal

 

 

09700HB5192ham001- 61 -LRB097 18915 HLH 69637 a

1representative of such determination, which determination
2shall be prima facie correct. Proof of such determination by
3the Department may be made at any hearing before the Department
4or the Illinois Independent Tax Tribunal, as applicable, or in
5any legal proceeding by a reproduced copy of the Department's
6record relating thereto, in the name of the Department under
7the certificate of the Director of Revenue. Such reproduced
8copy shall, without further proof, be admitted into evidence
9before the Department or in any legal proceeding and shall be
10prima facie proof of the correctness of the Department's
11determination, as shown therein. If such claimant, or the legal
12representative of a deceased claimant or a claimant who is
13under legal disability shall, within 60 days after the
14Department's Notice of Tentative Determination of Claim, file a
15protest thereto and request a hearing thereon, the Department
16shall give notice to such claimant, or the legal representative
17of a deceased claimant or a claimant who is under legal
18disability, of the time and place fixed for such hearing, and
19shall hold a hearing in conformity with the provisions of this
20Act, and pursuant thereto shall issue its Final Determination
21of the amount, if any, found to be due as a result of such
22hearing, to such claimant, or the legal representative of a
23deceased claimant or a claimant who is 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 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    (35 ILCS 115/20a)  (from Ch. 120, par. 439.120a)
16    Sec. 20a. 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)
25the provisions of Section 10-45 of the Illinois Administrative

 

 

09700HB5192ham001- 63 -LRB097 18915 HLH 69637 a

1Procedure Act regarding proposals for decision are excluded and
2not applicable to the Department under this Act to the extent
3Section 10-45 applies to hearings not otherwise delegated to
4the Illinois Independent Tax Tribunal.
5(Source: P.A. 88-45.)
 
6    Section 5-40. The Retailers' Occupation Tax Act is amended
7by changing Sections 4, 5, 5a, 8, 9, 11a, and 12 as follows:
 
8    (35 ILCS 120/4)  (from Ch. 120, par. 443)
9    Sec. 4. As soon as practicable after any return is filed,
10the Department shall examine such return and shall, if
11necessary, correct such return according to its best judgment
12and information. If the correction of a return results in an
13amount of tax that is understated on the taxpayer's return due
14to a mathematical error, the Department shall notify the
15taxpayer that the amount of tax in excess of that shown on the
16return is due and has been assessed. The term "mathematical
17error" means arithmetic errors or incorrect computations on the
18return or supporting schedules. No such notice of additional
19tax due shall be issued on and after each July 1 and January 1
20covering gross receipts received during any month or period of
21time more than 3 years prior to such July 1 and January 1,
22respectively. Such notice of additional tax due shall not be
23considered a notice of tax liability nor shall the taxpayer
24have any right of protest. In the event that the return is

 

 

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

 

 

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

 

 

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1Penalty and Interest Act, as the case may be. If the notice of
2tax liability is not based on a correction of the taxpayer's
3return or returns, but is based on the taxpayer's failure to
4pay all or a part of the tax admitted by his return or returns
5(whether filed on time or not) to be due, such notice of tax
6liability shall be prima facie correct and shall be prima facie
7evidence of the correctness of the amount of tax due, as shown
8therein.
9    Proof of such notice of tax liability by the Department may
10be made at any hearing before the Department or the Illinois
11Independent Tax Tribunal or in any legal proceeding by a
12reproduced copy of the Department's record relating thereto in
13the name of the Department under the certificate of the
14Director of Revenue. Such reproduced copy shall without further
15proof, be admitted into evidence before the Department or in
16any legal proceeding and shall be prima facie proof of the
17correctness of the amount of tax due, as shown therein.
18    If the person filing any return dies or becomes a person
19under legal disability at any time before the Department issues
20its notice of tax liability, such notice shall be issued to the
21administrator, executor or other legal representative, as
22such, of such person.
23    Except in case of a fraudulent return, or in the case of an
24amended return (where a notice of tax liability may be issued
25on or after each January 1 and July 1 for an amended return
26filed not more than 3 years prior to such January 1 or July 1,

 

 

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

 

 

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

 

 

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1the jurisdiction of the Illinois Independent Tax Tribunal shall
2be filed with the Illinois Independent Tax 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. The Tribunal
6shall give notice to such person of the time and place fixed
7for such hearing and shall hold a hearing. With respect to
8protests filed with the Department prior to July 1, 2013 that
9would otherwise be subject to the jurisdiction of the Illinois
10Independent Tax Tribunal, the taxpayer 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.
15    If a protest to the notice of tax liability and a request
16for a hearing thereon is not filed within 60 days after such
17notice, such notice of tax liability shall become final without
18the necessity of a final assessment being issued and shall be
19deemed to be a final assessment.
20    After the issuance of a final assessment, or a notice of
21tax liability which becomes final without the necessity of
22actually issuing a final assessment as hereinbefore provided,
23the Department, at any time before such assessment is reduced
24to judgment, may (subject to rules of the Department) grant a
25rehearing (or grant departmental review and hold an original
26hearing if no previous hearing in the matter has been held)

 

 

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1upon the application of the person aggrieved. Pursuant to such
2hearing or rehearing, the Department shall issue a revised
3final assessment to such person or his legal representative for
4the amount found to be due as a result of such hearing or
5rehearing.
6(Source: P.A. 89-379, eff. 1-1-96.)
 
7    (35 ILCS 120/5)  (from Ch. 120, par. 444)
8    Sec. 5. In case any person engaged in the business of
9selling tangible personal property at retail fails to file a
10return when and as herein required, but thereafter, prior to
11the Department's issuance of a notice of tax liability under
12this Section, files a return and pays the tax, he shall also
13pay a penalty in an amount determined in accordance with
14Section 3-3 of the Uniform Penalty and Interest Act.
15    In case any person engaged in the business of selling
16tangible personal property at retail files the return at the
17time required by this Act but fails to pay the tax, or any part
18thereof, when due, a penalty in an amount determined in
19accordance with Section 3-3 of the Uniform Penalty and Interest
20Act shall be added thereto.
21    In case any person engaged in the business of selling
22tangible personal property at retail fails to file a return
23when and as herein required, but thereafter, prior to the
24Department's issuance of a notice of tax liability under this
25Section, files a return but fails to pay the entire tax, a

 

 

09700HB5192ham001- 71 -LRB097 18915 HLH 69637 a

1penalty in an amount determined in accordance with Section 3-3
2of the Uniform Penalty and Interest Act shall be added thereto.
3    In case any person engaged in the business of selling
4tangible personal property at retail fails to file a return,
5the Department shall determine the amount of tax due from him
6according to its best judgment and information, which amount so
7fixed by the Department shall be prima facie correct and shall
8be prima facie evidence of the correctness of the amount of tax
9due, as shown in such determination. In making any such
10determination of tax due, it shall be permissible for the
11Department to show a figure that represents the tax due for any
12given period of 6 months instead of showing the amount of tax
13due for each month separately. 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 or computer
16print-out of the Department's record relating thereto in the
17name of the Department under the certificate of the Director of
18Revenue. If reproduced copies of the Department's records are
19offered as proof of such determination, the Director must
20certify that those copies are true and exact copies of records
21on file with the Department. If computer print-outs of the
22Department's records are offered as proof of such
23determination, the Director must certify that those computer
24print-outs are true and exact representations of records
25properly entered into standard electronic computing equipment,
26in the regular course of the Department's business, at or

 

 

09700HB5192ham001- 72 -LRB097 18915 HLH 69637 a

1reasonably near the time of the occurrence of the facts
2recorded, from trustworthy and reliable information. Such
3certified reproduced copy or certified computer print-out
4shall, without further proof, be admitted into evidence before
5the Department or in any legal proceeding and shall be prima
6facie proof of the correctness of the amount of tax due, as
7shown therein. The Department shall issue the taxpayer a notice
8of tax liability for the amount of tax claimed by the
9Department to be due, together with a penalty of 30% thereof.
10    However, where the failure to file any tax return required
11under this Act on the date prescribed therefor (including any
12extensions thereof), is shown to be unintentional and
13nonfraudulent and has not occurred in the 2 years immediately
14preceding the failure to file on the prescribed date or is due
15to other reasonable cause the penalties imposed by this Act
16shall not apply.
17    The taxpayer or the taxpayer's legal representative may If
18such person or the legal representative of such person files,
19within 60 days after such notice, file a protest to such notice
20of tax liability with the Department and request requests a
21hearing thereon. The , the Department shall give notice to such
22person or the legal representative of such person of the time
23and place fixed for such hearing, and shall hold a hearing in
24conformity with the provisions of this Act, and pursuant
25thereto shall issue a final assessment to such person or to the
26legal representative of such person for the amount found to be

 

 

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1due as a result of such hearing. On and after July 1, 2013,
2protests concerning matters that are under the jurisdiction of
3the Illinois Independent Tax Tribunal shall be filed with the
4Illinois Independent Tax Tribunal in accordance with the
5Illinois Independent Tax Tribunal Act of 2012, and hearings
6concerning those matters shall be held before the Tribunal in
7accordance with that Act. With respect to protests filed with
8the Illinois Independent Tax Tribunal, the Tribunal shall give
9notice to that person or the legal representative of that
10person of the time and place fixed for a hearing, and shall
11hold a hearing in conformity with the provisions of this Act
12and the Illinois Independent Tax Tribunal Act; and pursuant
13thereto the Department shall issue a final assessment to such
14person or to the legal representative of such person for the
15amount found to be due as a result of the hearing. With respect
16to protests filed with the Department prior to July 1, 2013
17that would otherwise be subject to the jurisdiction of the
18Illinois Independent Tax Tribunal, the taxpayer may elect to be
19subject to the provisions of the Illinois Independent Tax
20Tribunal Act of 2012 at any time on or after July 1, 2013, but
21not later than 30 days after the date on which the protest was
22filed. If made, the election shall be irrevocable.
23    If a protest to the notice of tax liability and a request
24for a hearing thereon is not filed within 60 days after such
25notice, such notice of tax liability shall become final without
26the necessity of a final assessment being issued and shall be

 

 

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1deemed to be a final assessment.
2    After the issuance of a final assessment, or a notice of
3tax liability which becomes final without the necessity of
4actually issuing a final assessment as hereinbefore provided,
5the Department, at any time before such assessment is reduced
6to judgment, may (subject to rules of the Department) grant a
7rehearing (or grant departmental review and hold an original
8hearing if no previous hearing in the matter has been held)
9upon the application of the person aggrieved. Pursuant to such
10hearing 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    Except in case of failure to file a return, or with the
15consent of the person to whom the notice of tax liability is to
16be issued, no notice of tax liability shall be issued on and
17after each July 1 and January 1 covering gross receipts
18received during any month or period of time more than 3 years
19prior to such July 1 and January 1, respectively, except that
20if a return is not filed at the required time, a notice of tax
21liability may be issued not later than 3 years after the time
22the return is filed. The foregoing limitations upon the
23issuance of a notice of tax liability shall not apply to the
24issuance of any such notice with respect to any period of time
25prior thereto in cases where the Department has, within the
26period of limitation then provided, notified a person of the

 

 

09700HB5192ham001- 75 -LRB097 18915 HLH 69637 a

1amount of tax computed even though the Department had not
2determined the amount of tax due from such person in the manner
3required herein prior to the issuance of such notice, but in no
4case shall the amount of any such notice of tax liability for
5any period otherwise barred by this Act exceed for such period
6the amount shown in the notice theretofore issued.
7    If, when a tax or penalty under this Act becomes due and
8payable, the person alleged to be liable therefor is out of the
9State, the notice of tax liability may be issued within the
10times herein limited after his or her coming into or return to
11the State; and if, after the tax or penalty under this Act
12becomes due and payable, the person alleged to be liable
13therefor departs from and remains out of the State, the time of
14his or her absence is no part of the time limited for the
15issuance of the notice of tax liability; but the foregoing
16provisions concerning absence from the State shall not apply to
17any case in which, at the time when a tax or penalty becomes
18due under this Act, the person allegedly liable therefor is not
19a resident of this State.
20    The time limitation period on the Department's right to
21issue a notice of tax liability shall not run during any period
22of time in which the order of any court has the effect of
23enjoining or restraining the Department from issuing the notice
24of tax liability.
25    In case of failure to pay the tax, or any portion thereof,
26or any penalty provided for in this Act, or interest, when due,

 

 

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1the Department may bring suit to recover the amount of such
2tax, or portion thereof, or penalty or interest; or, if the
3taxpayer has died or become a person under legal disability,
4may file a claim therefor against his estate; provided that no
5such suit with respect to any tax, or portion thereof, or
6penalty, or interest shall be instituted more than 6 years
7after the date any proceedings in court for review thereof have
8terminated or the time for the taking thereof has expired
9without such proceedings being instituted, except with the
10consent of the person from whom such tax or penalty or interest
11is due; nor, except with such consent, shall such suit be
12instituted more than 6 years after the date any return is filed
13with the Department in cases where the return constitutes the
14basis for the suit for unpaid tax, or portion thereof, or
15penalty provided for in this Act, or interest: Provided that
16the time limitation period on the Department's right to bring
17any such suit shall not run during any period of time in which
18the order of any court has the effect of enjoining or
19restraining the Department from bringing such suit.
20    After the expiration of the period within which the person
21assessed may file an action for judicial review under the
22Administrative Review Law or the Illinois Independent Tax
23Tribunal Act, as applicable, without such an action being
24filed, a certified copy of the final assessment or revised
25final assessment of the Department may be filed with the
26Circuit Court of the county in which the taxpayer has his

 

 

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

 

 

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1shall file the certified copy of its assessment, as herein
2provided, with the Circuit Court within 6 years after such
3assessment becomes final except when the taxpayer consents in
4writing to an extension of such filing period, and except that
5the time limitation period on the Department's right to file
6the certified copy of its assessment with the Circuit Court
7shall not run during any period of time in which the order of
8any court has the effect of enjoining or restraining the
9Department from filing such certified copy of its assessment
10with the Circuit Court.
11    If, when the cause of action for a proceeding in court
12accrues against a person, he or she is out of the State, the
13action may be commenced within the times herein limited, after
14his or her coming into or return to the State; and if, after
15the cause of action accrues, he or she departs from and remains
16out of the State, the time of his or her absence is no part of
17the time limited for the commencement of the action; but the
18foregoing provisions concerning absence from the State shall
19not apply to any case in which, at the time the cause of action
20accrues, the party against whom the cause of action accrues is
21not a resident of this State. The time within which a court
22action is to be commenced by the Department hereunder shall not
23run from the date the taxpayer files a petition in bankruptcy
24under the Federal Bankruptcy Act until 30 days after notice of
25termination or expiration of the automatic stay imposed by the
26Federal Bankruptcy Act.

 

 

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1    No claim shall be filed against the estate of any deceased
2person or any person under legal disability for any tax or
3penalty or part of either, or interest, except in the manner
4prescribed and within the time limited by the Probate Act of
51975, as amended.
6    The collection of tax or penalty or interest by any means
7provided for herein shall not be a bar to any prosecution under
8this Act.
9    In addition to any penalty provided for in this Act, any
10amount of tax which is not paid when due shall bear interest at
11the rate and in the manner specified in Sections 3-2 and 3-9 of
12the Uniform Penalty and Interest Act from the date when such
13tax becomes past due until such tax is paid or a judgment
14therefor is obtained by the Department. If the time for making
15or completing an audit of a taxpayer's books and records is
16extended with the taxpayer's consent, at the request of and for
17the convenience of the Department, beyond the date on which the
18statute of limitations upon the issuance of a notice of tax
19liability by the Department otherwise would run, no interest
20shall accrue during the period of such extension or until a
21Notice of Tax Liability is issued, whichever occurs first.
22    In addition to any other remedy provided by this Act, and
23regardless of whether the Department is making or intends to
24make use of such other remedy, where a corporation or limited
25liability company registered under this Act violates the
26provisions of this Act or of any rule or regulation promulgated

 

 

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1thereunder, the Department may give notice to the Attorney
2General of the identity of such a corporation or limited
3liability company and of the violations committed by such a
4corporation or limited liability company, for such action as is
5not already provided for by this Act and as the Attorney
6General may deem appropriate.
7    If the Department determines that an amount of tax or
8penalty or interest was incorrectly assessed, whether as the
9result of a mistake of fact or an error of law, the Department
10shall waive the amount of tax or penalty or interest that
11accrued due to the incorrect assessment.
12(Source: P.A. 96-1383, eff. 1-1-11.)
 
13    (35 ILCS 120/5a)  (from Ch. 120, par. 444a)
14    Sec. 5a. The Department shall have a lien for the tax
15herein imposed or any portion thereof, or for any penalty
16provided for in this Act, or for any amount of interest which
17may be due as provided for in Section 5 of this Act, upon all
18the real and personal property of any person to whom a final
19assessment or revised final assessment has been issued as
20provided in this Act, or whenever a return is filed without
21payment of the tax or penalty shown therein to be due,
22including all such property of such persons acquired after
23receipt of such assessment or filing of such return. The
24taxpayer is liable for the filing fee incurred by the
25Department for filing the lien and the filing fee incurred by

 

 

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1the Department to file the release of that lien. The filing
2fees shall be paid to the Department in addition to payment of
3the tax, penalty, and interest included in the amount of the
4lien.
5    However, where the lien arises because of the issuance of a
6final assessment or revised final assessment by the Department,
7such lien shall not attach and the notice hereinafter referred
8to in this Section shall not be filed until all proceedings in
9court for review of such final assessment or revised final
10assessment have terminated or the time for the taking thereof
11has expired without such proceedings being instituted.
12    Upon the granting of a rehearing or departmental review
13pursuant to Section 4 or Section 5 of this Act after a lien has
14attached, such lien shall remain in full force except to the
15extent to which the final assessment may be reduced by a
16revised final assessment following such rehearing or review.
17    The lien created by the issuance of a final assessment
18shall terminate unless a notice of lien is filed, as provided
19in Section 5b hereof, within 3 years from the date all
20proceedings in court for the review of such final assessment
21have terminated or the time for the taking thereof has expired
22without such proceedings being instituted, or (in the case of a
23revised final assessment issued pursuant to a rehearing or
24departmental review) within 3 years from the date all
25proceedings in court for the review of such revised final
26assessment have terminated or the time for the taking thereof

 

 

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1has expired without such proceedings being instituted; and
2where the lien results from the filing of a return without
3payment of the tax or penalty shown therein to be due, the lien
4shall terminate unless a notice of lien is filed, as provided
5in Section 5b hereof, within 3 years from the date when such
6return is filed with the Department: Provided that the time
7limitation period on the Department's right to file a notice of
8lien shall not run during any period of time in which the order
9of any court has the effect of enjoining or restraining the
10Department from filing such notice of lien.
11    If the Department finds that a taxpayer is about to depart
12from the State, or to conceal himself or his property, or to do
13any other act tending to prejudice or to render wholly or
14partly ineffectual proceedings to collect such tax unless such
15proceedings are brought without delay, or if the Department
16finds that the collection of the amount due from any taxpayer
17will be jeopardized by delay, the Department shall give the
18taxpayer notice of such findings and shall make demand for
19immediate return and payment of such tax, whereupon such tax
20shall become immediately due and payable. If the taxpayer,
21within 5 days after such notice (or within such extension of
22time as the Department may grant), does not comply with such
23notice or show to the Department that the findings in such
24notice are erroneous, the Department may file a notice of
25jeopardy assessment lien in the office of the recorder of the
26county in which any property of the taxpayer may be located and

 

 

09700HB5192ham001- 83 -LRB097 18915 HLH 69637 a

1shall notify the taxpayer of such filing. Such jeopardy
2assessment lien shall have the same scope and effect as the
3statutory lien hereinbefore provided for in this Section.
4    If the taxpayer believes that he does not owe some or all
5of the tax for which the jeopardy assessment lien against him
6has been filed, or that no jeopardy to the revenue in fact
7exists, he may protest within 20 days after being notified by
8the Department of the filing of such jeopardy assessment lien
9and request a hearing, whereupon the Department shall hold a
10hearing in conformity with the provisions of this Act and,
11pursuant thereto, shall notify the taxpayer of its findings as
12to whether or not such jeopardy assessment lien will be
13released. If not, and if the taxpayer is aggrieved by this
14decision, he may file an action for judicial review of such
15final determination of the Department in accordance with
16Section 12 of this Act and the Administrative Review Law.
17    On and after July 1, 2013, protests concerning matters that
18are subject to the jurisdiction of the Illinois Independent Tax
19Tribunal shall be filed with the Tribunal, and hearings on
20those matters shall be held before the Tribunal in accordance
21with the Illinois Independent Tax Tribunal Act of 2012. The
22Tribunal shall notify the taxpayer of its findings as to
23whether or not such jeopardy assessment lien will be released.
24If not, and if the taxpayer is aggrieved by this decision, he
25may file an action for judicial review of such final
26determination of the Department in accordance with Section 12

 

 

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1of this Act and the Illinois Independent Tax Tribunal Act of
22012.
3    With respect to protests filed with the Department prior to
4July 1, 2013 that would otherwise be subject to the
5jurisdiction of the Illinois Independent Tax Tribunal, the
6taxpayer may elect to be subject to the provisions of the
7Illinois Independent Tax Tribunal Act of 2012 at any time on or
8after July 1, 2013, but not later than 30 days after the date
9on which the protest was filed. If made, the election shall be
10irrevocable.
11    If, pursuant to such hearing (or after an independent
12determination of the facts by the Department without a
13hearing), the Department or the Tribunal determines that some
14or all of the tax covered by the jeopardy assessment lien is
15not owed by the taxpayer, or that no jeopardy to the revenue
16exists, or if on judicial review the final judgment of the
17court is that the taxpayer does not owe some or all of the tax
18covered by the jeopardy assessment lien against him, or that no
19jeopardy to the revenue exists, the Department shall release
20its jeopardy assessment lien to the extent of such finding of
21nonliability for the tax, or to the extent of such finding of
22no jeopardy to the revenue.
23    The Department shall also release its jeopardy assessment
24lien against the taxpayer whenever the tax and penalty covered
25by such lien, plus any interest which may be due, are paid and
26the taxpayer has paid the Department in cash or by guaranteed

 

 

09700HB5192ham001- 85 -LRB097 18915 HLH 69637 a

1remittance an amount representing the filing fee for the lien
2and the filing fee for the release of that lien. The Department
3shall file that release of lien with the recorder of the county
4where that lien was filed.
5    Nothing in this Section shall be construed to give the
6Department a preference over the rights of any bona fide
7purchaser, holder of a security interest, mechanics
8lienholder, mortgagee, or judgment lien creditor arising prior
9to the filing of a regular notice of lien or a notice of
10jeopardy assessment lien in the office of the recorder in the
11county in which the property subject to the lien is located:
12Provided, however, that the word "bona fide", as used in this
13Section shall not include any mortgage of real or personal
14property or any other credit transaction that results in the
15mortgagee or the holder of the security acting as trustee for
16unsecured creditors of the taxpayer mentioned in the notice of
17lien who executed such chattel or real property mortgage or the
18document evidencing such credit transaction. Such lien shall be
19inferior to the lien of general taxes, special assessments and
20special taxes heretofore or hereafter levied by any political
21subdivision of this State.
22    In case title to land to be affected by the notice of lien
23or notice of jeopardy assessment lien is registered under the
24provisions of "An Act concerning land titles", approved May 1,
251897, as amended, such notice shall be filed in the office of
26the Registrar of Titles of the county within which the property

 

 

09700HB5192ham001- 86 -LRB097 18915 HLH 69637 a

1subject to the lien is situated and shall be entered upon the
2register of titles as a memorial or charge upon each folium of
3the register of titles affected by such notice, and the
4Department shall not have a preference over the rights of any
5bona fide purchaser, mortgagee, judgment creditor or other lien
6holder arising prior to the registration of such notice:
7Provided, however, that the word "bona fide" shall not include
8any mortgage of real or personal property or any other credit
9transaction that results in the mortgagee or the holder of the
10security acting as trustee for unsecured creditors of the
11taxpayer mentioned in the notice of lien who executed such
12chattel or real property mortgage or the document evidencing
13such credit transaction.
14    Such regular lien or jeopardy assessment lien shall not be
15effective against any purchaser with respect to any item in a
16retailer's stock in trade purchased from the retailer in the
17usual course of such retailer's business.
18(Source: P.A. 92-826, eff. 1-1-03.)
 
19    (35 ILCS 120/8)  (from Ch. 120, par. 447)
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 hearings not
24otherwise delegated to the Illinois Independent Tax Tribunal
25concerning any matters covered by this Act and may examine any

 

 

09700HB5192ham001- 87 -LRB097 18915 HLH 69637 a

1books, papers, records or memoranda bearing upon the sales of
2tangible personal property or services of any such person, and
3may require the attendance of such person or any officer or
4employee of such person, or of any person having knowledge of
5such business, and may take testimony and require proof for its
6information. In the conduct of any investigation or hearing,
7neither the Department nor any officer or employee thereof
8shall be bound by the technical rules of evidence, and no
9informality in any proceeding, or in the manner of taking
10testimony, shall invalidate any order, decision, rule or
11regulation made or approved or confirmed by the Department. The
12Director of Revenue, or any officer or employee of the
13Department authorized by the Director thereof, shall have power
14to administer oaths to such persons. The books, papers, records
15and memoranda of the Department, or parts thereof, may be
16proved in any hearing, investigation, or legal proceeding by a
17reproduced copy thereof under the certificate of the Director
18of Revenue. Such reproduced copy shall, without further proof,
19be admitted into evidence before the Department or in any legal
20proceeding.
21(Source: Laws 1965, p. 200.)
 
22    (35 ILCS 120/9)  (from Ch. 120, par. 448)
23    Sec. 9. No person shall be excused from testifying or from
24producing any books, papers, records or memoranda in any
25investigation or upon any hearing not otherwise delegated to

 

 

09700HB5192ham001- 88 -LRB097 18915 HLH 69637 a

1the Illinois Independent Tax Tribunal, when ordered to do so by
2the department or any officer or employee thereof, upon the
3ground that the testimony or evidence, documentary or
4otherwise, may tend to incriminate him or subject him to a
5criminal penalty, but no person shall be prosecuted or
6subjected to any criminal penalty for, or on account of, any
7transaction made or thing concerning which he may testify or
8produce evidence, documentary or otherwise, before the
9department or an officer or employee thereof; provided, that
10such immunity shall extend only to a natural person who, in
11obedience to a subpoena, gives testimony under oath or produces
12evidence, documentary or otherwise, under oath. No person so
13testifying shall be exempt from prosecution and punishment for
14perjury committed in so testifying.
15(Source: Laws 1933, p. 924.)
 
16    (35 ILCS 120/11a)  (from Ch. 120, par. 450a)
17    Sec. 11a. The Illinois Administrative Procedure Act is
18hereby expressly adopted and shall apply to all administrative
19rules and procedures of the Department of Revenue under this
20Act, except that (1) paragraph (b) of Section 5-10 of the
21Illinois Administrative Procedure Act does not apply to final
22orders, decisions and opinions of the Department, (2)
23subparagraph (a)2 of Section 5-10 of the Illinois
24Administrative Procedure Act does not apply to forms
25established by the Department for use under this Act, and (3)

 

 

09700HB5192ham001- 89 -LRB097 18915 HLH 69637 a

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 delegated to
5the Illinois Independent Tax Tribunal.
6(Source: P.A. 88-45.)
 
7    (35 ILCS 120/12)  (from Ch. 120, par. 451)
8    Sec. 12. The Department is authorized to make, promulgate
9and enforce such reasonable rules and regulations relating to
10the administration and enforcement of the provisions of this
11Act as may be deemed expedient.
12    Whenever notice is required by this Act, such notice may be
13given by United States registered or certified mail, addressed
14to the person concerned at his last known address, and proof of
15such mailing shall be sufficient for the purposes of this Act.
16Notice of any hearing provided for by this Act shall be so
17given not less than 7 days prior to the day fixed for the
18hearing. Following the initial contact of a person represented
19by an attorney, the Department shall not contact the person
20concerned but shall only contact the attorney representing the
21person concerned.
22    All hearings provided for in this Act with respect to or
23concerning a taxpayer having his or her principal place of
24business in this State other than in Cook County shall be held
25at the Department's office nearest to the location of the

 

 

09700HB5192ham001- 90 -LRB097 18915 HLH 69637 a

1taxpayer's principal place of business: Provided that if the
2taxpayer has his or her principal place of business in Cook
3County, such hearing shall be held in Cook County; and
4provided, further, that if the taxpayer does not have his or
5her principal place of business in this State, such hearing
6shall be held in Sangamon County.
7    The Circuit Court of the County wherein the taxpayer has
8his or her principal place of business, or of Sangamon County
9in those cases where the taxpayer does not have his or her
10principal place of business in this State, shall have power to
11review all final administrative decisions of the Department in
12administering the provisions of this Act: Provided that if the
13administrative proceeding which is to be reviewed judicially is
14a claim for refund proceeding commenced in accordance with
15Section 6 of this Act and Section 2a of "An Act in relation to
16the payment and disposition of moneys received by officers and
17employees of the State of Illinois by virtue of their office or
18employment", approved June 9, 1911, as amended, the Circuit
19Court having jurisdiction of the action for judicial review
20under this Section and under the Administrative Review Law, as
21amended, shall be the same court that entered the temporary
22restraining order or preliminary injunction which is provided
23for in Section 2a of "An Act in relation to the payment and
24disposition of moneys received by officers and employees of the
25State of Illinois by virtue of their office or employment", and
26which enables such claim proceeding to be processed and

 

 

09700HB5192ham001- 91 -LRB097 18915 HLH 69637 a

1disposed of as a claim for refund proceeding rather than as a
2claim for credit proceeding.
3    The provisions of the Administrative Review Law, and the
4rules adopted pursuant thereto, shall apply to and govern all
5proceedings for the judicial review of final administrative
6decisions of the Department hereunder, except with respect to
7protests and hearings held before the Illinois Independent Tax
8Tribunal. The provisions of the Illinois Independent Tax
9Tribunal Act, and the rules adopted pursuant thereto, shall
10apply to and govern all proceedings for the judicial review of
11administrative decisions of the Department that are subject to
12the jurisdiction of the Illinois Independent Tax Tribunal. The
13term "administrative decision" is defined as in Section 3-101
14of the Code of Civil Procedure.
15    Except with respect to decisions that are subject to the
16jurisdiction of the Illinois Independent Tax Tribunal, any Any
17person filing an action under the Administrative Review Law to
18review a final assessment or revised final assessment issued by
19the Department under this Act shall, within 20 days after
20filing the complaint, file a bond with good and sufficient
21surety or sureties residing in this State or licensed to do
22business in this State or, instead of the bond, obtain an order
23from the court imposing a lien upon the plaintiff's property as
24hereinafter provided. If the person filing the complaint fails
25to comply with this bonding requirement within 20 days after
26filing the complaint, the Department shall file a motion to

 

 

09700HB5192ham001- 92 -LRB097 18915 HLH 69637 a

1dismiss and the court shall dismiss the action unless the
2person filing the action complies with the bonding requirement
3set out in this provision within 30 days after the filing of
4the Department's motion to dismiss. Upon dismissal of any
5complaint for failure to comply with the jurisdictional
6prerequisites herein set forth, the court is empowered to and
7shall enter judgment against the taxpayer and in favor of the
8Department in the amount of the final assessment or revised
9final assessment, together with any interest which may have
10accrued since the Department issued the final assessment or
11revised final assessment, and for costs, which judgment is
12enforceable as other judgments for the payment of money. The
13lien provided for in this Section shall not be applicable to
14the real property of a corporate surety duly licensed to do
15business in this State. The amount of such bond shall be fixed
16and approved by the court, but shall not be less than the
17amount of the tax and penalty claimed to be due by the
18Department in its final assessment or revised final assessment
19to the person filing such bond, plus the amount of interest due
20from such person to the Department at the time when the
21Department issued its final assessment to such person. Such
22bond shall be executed to the Department of Revenue and shall
23be conditioned on the taxpayer's payment within 30 days after
24termination of the proceedings for judicial review of the
25amount of tax and penalty and interest found by the court to be
26due in such proceedings for judicial review. Such bond, when

 

 

09700HB5192ham001- 93 -LRB097 18915 HLH 69637 a

1filed and approved, shall, from such time until 2 years after
2termination of the proceedings for judicial review in which the
3bond is filed, be a lien against the real estate situated in
4the county in which the bond is filed, of the person filing
5such bond, and of the surety or sureties on such bond, until
6the condition of the bond has been complied with or until the
7bond has been canceled as hereinafter provided. If the person
8filing any such bond fails to keep the condition thereof, such
9bond shall thereupon be forfeited, and the Department may
10institute an action upon such bond in its own name for the
11entire amount of the bond and costs. Such action upon the bond
12shall be in addition to any other remedy provided for herein.
13If the person filing such bond complies with the condition
14thereof, or if, in the proceedings for judicial review in which
15such bond is filed, the court determines that no amount of tax
16or penalty or interest is due, such bond shall be canceled.
17    If the court finds in a particular case that the plaintiff
18cannot procure and furnish a satisfactory surety or sureties
19for the kind of bond required herein, the court may relieve the
20plaintiff of the obligation of filing such bond, if, upon the
21timely application for a lien in lieu thereof and accompanying
22proof therein submitted, the court is satisfied that any such
23lien imposed would operate to secure the assessment in the
24manner and to the degree as would a bond. Upon a finding that
25such lien applied for would secure the assessment at issue, the
26court shall enter an order, in lieu of such bond, subjecting

 

 

09700HB5192ham001- 94 -LRB097 18915 HLH 69637 a

1the plaintiff's real and personal property (including
2subsequently acquired property), situated in the county in
3which such order is entered, to a lien in favor of the
4Department. Such lien shall be for the amount of the tax and
5penalty claimed to be due by the Department in its final
6assessment or revised final assessment, plus the amount of
7interest due from such person to the Department at the time
8when the Department issued its final assessment to such person,
9and shall continue in full force and effect until the
10termination of the proceedings for judicial review, or until
11the plaintiff pays, to the Department, the tax and penalty and
12interest to secure which the lien is given, whichever happens
13first. In the exercise of its discretion, the court may impose
14a lien regardless of the ratio of the taxpayer's assets to the
15final assessment or revised final assessment plus the amount of
16the interest and penalty. Nothing in this Section shall be
17construed to give the Department a preference over the rights
18of any bona fide purchaser, mortgagee, judgment creditor or
19other lien holder arising prior to the entry of the order
20creating such lien in favor of the Department: Provided,
21however, that the word "bona fide", as used in this Section,
22shall not include any mortgage of real or personal property or
23any other credit transaction that results in the mortgagee or
24the holder of the security acting as trustee for unsecured
25creditors of the taxpayer mentioned in the order for lien who
26executed such chattel or real property mortgage or the document

 

 

09700HB5192ham001- 95 -LRB097 18915 HLH 69637 a

1evidencing such credit transaction. Such lien shall be inferior
2to the lien of general taxes, special assessments and special
3taxes heretofore or hereafter levied by any political
4subdivision of this State. Such lien shall not be effective
5against any purchaser with respect to any item in a retailer's
6stock in trade purchased from the retailer in the usual course
7of such retailer's business, and such lien shall not be
8enforced against the household effects, wearing apparel, or the
9books, tools or implements of a trade or profession kept for
10use by any person. Such lien shall not be effective against
11real property whose title is registered under the provisions of
12"An Act concerning land titles", approved May 1, 1897, as
13amended, until the provisions of Section 85 of that Act are
14complied with.
15    Service upon the Director of Revenue or the Assistant
16Director of Revenue of the Department of Revenue of summons
17issued in an action to review a final administrative decision
18of the Department shall be service upon the Department. The
19Department shall certify the record of its proceedings if the
20taxpayer pays to it the sum of 75 per page of testimony taken
21before the Department and 25 per page of all other matters
22contained in such record, except that these charges may be
23waived where the Department is satisfied that the aggrieved
24party is a poor person who cannot afford to pay such charges.
25If payment for such record is not made by the taxpayer within
2630 days after notice from the Department or the Attorney

 

 

09700HB5192ham001- 96 -LRB097 18915 HLH 69637 a

1General of the cost thereof, the court in which the proceeding
2is pending, on motion of the Department, shall dismiss the
3complaint and (where the administrative decision as to which
4the action for judicial review was filed is a final assessment
5or revised final assessment) shall enter judgment against the
6taxpayer and in favor of the Department for the amount of tax
7and penalty shown by the Department's final assessment or
8revised final assessment to be due, plus interest as provided
9for in Section 5 of this Act from the date when the liability
10upon which such interest accrued became delinquent until the
11entry of the judgment in the action for judicial review under
12the Administrative Review Law, and also for costs.
13    Whenever any proceeding provided by this Act is begun
14before the Department, either by the Department or by a person
15subject to this Act, and such person thereafter dies or becomes
16a person under legal disability before such proceeding is
17concluded, the legal representative of the deceased or person
18under legal disability shall notify the Department of such
19death or legal disability. Such legal representative, as such,
20shall then be substituted by the Department for such person. If
21the legal representative fails to notify the Department of his
22or her appointment as such legal representative, the Department
23may, upon its own motion, substitute such legal representative
24in the proceeding pending before the Department for the person
25who died or became a person under legal disability.
26    The changes made by this amendatory Act of 1995 apply to

 

 

09700HB5192ham001- 97 -LRB097 18915 HLH 69637 a

1all actions pending on and after the effective date of this
2amendatory Act of 1995 to review a final assessment or revised
3final assessment issued by the Department.
4(Source: P.A. 89-60, eff. 6-30-95.)
 
5    Section 5-45. The Cigarette Tax Act is amended by changing
6Sections 3, 8, 8a, 9a, 9b, and 10 as follows:
 
7    (35 ILCS 130/3)  (from Ch. 120, par. 453.3)
8    Sec. 3. Affixing tax stamp; remitting tax to the
9Department. Payment of the taxes imposed by Section 2 of this
10Act shall (except as hereinafter provided) be evidenced by
11revenue tax stamps affixed to each original package of
12cigarettes. Each distributor of cigarettes, before delivering
13or causing to be delivered any original package of cigarettes
14in this State to a purchaser, shall firmly affix a proper stamp
15or stamps to each such package, or (in case of manufacturers of
16cigarettes in original packages which are contained inside a
17sealed transparent wrapper) shall imprint the required
18language on the original package of cigarettes beneath such
19outside wrapper, as hereinafter provided.
20    No stamp or imprint may be affixed to, or made upon, any
21package of cigarettes unless that package complies with all
22requirements of the federal Cigarette Labeling and Advertising
23Act, 15 U.S.C. 1331 and following, for the placement of labels,
24warnings, or any other information upon a package of cigarettes

 

 

09700HB5192ham001- 98 -LRB097 18915 HLH 69637 a

1that is sold within the United States. Under the authority of
2Section 6, the Department shall revoke the license of any
3distributor that is determined to have violated this paragraph.
4A person may not affix a stamp on a package of cigarettes,
5cigarette papers, wrappers, or tubes if that individual package
6has been marked for export outside the United States with a
7label or notice in compliance with Section 290.185 of Title 27
8of the Code of Federal Regulations. It is not a defense to a
9proceeding for violation of this paragraph that the label or
10notice has been removed, mutilated, obliterated, or altered in
11any manner.
12    Only distributors licensed under this Act and
13transporters, as defined in Section 9c of this Act, may possess
14unstamped original packages of cigarettes. Prior to shipment to
15a secondary distributor or an Illinois retailer, a stamp shall
16be applied to each original package of cigarettes sold to the
17secondary distributor or retailer. A distributor may apply tax
18stamps only to original packages of cigarettes purchased or
19obtained directly from an in-state maker, manufacturer, or
20fabricator licensed as a distributor under Section 4 of this
21Act or an out-of-state maker, manufacturer, or fabricator
22holding a permit under Section 4b of this Act. A licensed
23distributor may ship or otherwise cause to be delivered
24unstamped original packages of cigarettes in, into, or from
25this State. A licensed distributor may transport unstamped
26original packages of cigarettes to a facility, wherever

 

 

09700HB5192ham001- 99 -LRB097 18915 HLH 69637 a

1located, owned or controlled by such distributor; however, a
2distributor may not transport unstamped original packages of
3cigarettes to a facility where retail sales of cigarettes take
4place or to a facility where a secondary distributor makes
5sales for resale. Any licensed distributor that ships or
6otherwise causes to be delivered unstamped original packages of
7cigarettes into, within, or from this State shall ensure that
8the invoice or equivalent documentation and the bill of lading
9or freight bill for the shipment identifies the true name and
10address of the consignor or seller, the true name and address
11of the consignee or purchaser, and the quantity by brand style
12of the cigarettes so transported, provided that this Section
13shall not be construed as to impose any requirement or
14liability upon any common or contract carrier.
15    The Department, or any person authorized by the Department,
16shall sell such stamps only to persons holding valid licenses
17as distributors under this Act. On and after July 1, 2003,
18payment for such stamps must be made by means of electronic
19funds transfer. The Department may refuse to sell stamps to any
20person who does not comply with the provisions of this Act.
21Beginning on the effective date of this amendatory Act of the
2292nd General Assembly and through June 30, 2002, persons
23holding valid licenses as distributors may purchase cigarette
24tax stamps up to an amount equal to 115% of the distributor's
25average monthly cigarette tax stamp purchases over the 12
26calendar months prior to the effective date of this amendatory

 

 

09700HB5192ham001- 100 -LRB097 18915 HLH 69637 a

1Act of the 92nd General Assembly.
2    Prior to December 1, 1985, the Department shall allow a
3distributor 21 days in which to make final payment of the
4amount to be paid for such stamps, by allowing the distributor
5to make payment for the stamps at the time of purchasing them
6with a draft which shall be in such form as the Department
7prescribes, and which shall be payable within 21 days
8thereafter: Provided that such distributor has filed with the
9Department, and has received the Department's approval of, a
10bond, which is in addition to the bond required under Section 4
11of this Act, payable to the Department in an amount equal to
1280% of such distributor's average monthly tax liability to the
13Department under this Act during the preceding calendar year or
14$500,000, whichever is less. The Bond shall be joint and
15several and shall be in the form of a surety company bond in
16such form as the Department prescribes, or it may be in the
17form of a bank certificate of deposit or bank letter of credit.
18The bond shall be conditioned upon the distributor's payment of
19amount of any 21-day draft which the Department accepts from
20that distributor for the delivery of stamps to that distributor
21under this Act. The distributor's failure to pay any such
22draft, when due, shall also make such distributor automatically
23liable to the Department for a penalty equal to 25% of the
24amount of such draft.
25    On and after December 1, 1985 and until July 1, 2003, the
26Department shall allow a distributor 30 days in which to make

 

 

09700HB5192ham001- 101 -LRB097 18915 HLH 69637 a

1final payment of the amount to be paid for such stamps, by
2allowing the distributor to make payment for the stamps at the
3time of purchasing them with a draft which shall be in such
4form as the Department prescribes, and which shall be payable
5within 30 days thereafter, and beginning on January 1, 2003 and
6thereafter, the draft shall be payable by means of electronic
7funds transfer: Provided that such distributor has filed with
8the Department, and has received the Department's approval of,
9a bond, which is in addition to the bond required under Section
104 of this Act, payable to the Department in an amount equal to
11150% of such distributor's average monthly tax liability to the
12Department under this Act during the preceding calendar year or
13$750,000, whichever is less, except that as to bonds filed on
14or after January 1, 1987, such additional bond shall be in an
15amount equal to 100% of such distributor's average monthly tax
16liability under this Act during the preceding calendar year or
17$750,000, whichever is less. The bond shall be joint and
18several and shall be in the form of a surety company bond in
19such form as the Department prescribes, or it may be in the
20form of a bank certificate of deposit or bank letter of credit.
21The bond shall be conditioned upon the distributor's payment of
22the amount of any 30-day draft which the Department accepts
23from that distributor for the delivery of stamps to that
24distributor under this Act. The distributor's failure to pay
25any such draft, when due, shall also make such distributor
26automatically liable to the Department for a penalty equal to

 

 

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125% of the amount of such draft.
2    Every prior continuous compliance taxpayer shall be exempt
3from all requirements under this Section concerning the
4furnishing of such bond, as defined in this Section, as a
5condition precedent to his being authorized to engage in the
6business licensed under this Act. This exemption shall continue
7for each such taxpayer until such time as he may be determined
8by the Department to be delinquent in the filing of any
9returns, or is determined by the Department (either through the
10Department's issuance of a final assessment which has become
11final under the Act, or by the taxpayer's filing of a return
12which admits tax to be due that is not paid) to be delinquent
13or deficient in the paying of any tax under this Act, at which
14time that taxpayer shall become subject to the bond
15requirements of this Section and, as a condition of being
16allowed to continue to engage in the business licensed under
17this Act, shall be required to furnish bond to the Department
18in such form as provided in this Section. Such taxpayer shall
19furnish such bond for a period of 2 years, after which, if the
20taxpayer has not been delinquent in the filing of any returns,
21or delinquent or deficient in the paying of any tax under this
22Act, the Department may reinstate such person as a prior
23continuance compliance taxpayer. Any taxpayer who fails to pay
24an admitted or established liability under this Act may also be
25required to post bond or other acceptable security with the
26Department guaranteeing the payment of such admitted or

 

 

09700HB5192ham001- 103 -LRB097 18915 HLH 69637 a

1established liability.
2    Except as otherwise provided in this Section, any Any
3person aggrieved by any decision of the Department under this
4Section may, within the time allowed by law, protest and
5request a hearing, whereupon the Department shall give notice
6and shall hold a hearing in conformity with the provisions of
7this Act and then issue its final administrative decision in
8the matter to such person. On and after July 1, 2013, protests
9concerning matters that are subject to the jurisdiction of the
10Illinois Independent Tax Tribunal shall be filed with the
11Tribunal in accordance with the Illinois Independent Tax
12Tribunal Act of 2012, and hearings on those matters shall be
13held before the Tribunal in accordance with that Act. With
14respect to protests filed with the Department prior to July 1,
152013 that would otherwise be subject to the jurisdiction of the
16Illinois Independent Tax Tribunal, the taxpayer may elect to be
17subject to the provisions of the Illinois Independent Tax
18Tribunal Act at any time on or after July 1, 2013, but not
19later than 30 days after the date on which the protest was
20filed. If made, the election shall be irrevocable. In the
21absence of such a protest filed within the time allowed by law,
22the Department's decision shall become final without any
23further determination being made or notice given.
24    The Department shall discharge any surety and shall release
25and return any bond or security deposited, assigned, pledged,
26or otherwise provided to it by a taxpayer under this Section

 

 

09700HB5192ham001- 104 -LRB097 18915 HLH 69637 a

1within 30 days after:
2    (1) Such taxpayer becomes a prior continuous compliance
3taxpayer; or
4    (2) Such taxpayer has ceased to collect receipts on which
5he is required to remit tax to the Department, has filed a
6final tax return, and has paid to the Department an amount
7sufficient to discharge his remaining tax liability as
8determined by the Department under this Act. The Department
9shall make a final determination of the taxpayer's outstanding
10tax liability as expeditiously as possible after his final tax
11return has been filed. If the Department cannot make such final
12determination within 45 days after receiving the final tax
13return, within such period it shall so notify the taxpayer,
14stating its reasons therefor.
15    The Department may authorize distributors to affix revenue
16tax stamps by imprinting tax meter stamps upon original
17packages of cigarettes. The Department shall adopt rules and
18regulations relating to the imprinting of such tax meter stamps
19as will result in payment of the proper taxes as herein
20imposed. No distributor may affix revenue tax stamps to
21original packages of cigarettes by imprinting tax meter stamps
22thereon unless such distributor has first obtained permission
23from the Department to employ this method of affixation. The
24Department shall regulate the use of tax meters and may, to
25assure the proper collection of the taxes imposed by this Act,
26revoke or suspend the privilege, theretofore granted by the

 

 

09700HB5192ham001- 105 -LRB097 18915 HLH 69637 a

1Department to any distributor, to imprint tax meter stamps upon
2original packages of cigarettes.
3    Illinois cigarette manufacturers who place their
4cigarettes in original packages which are contained inside a
5sealed transparent wrapper, and similar out-of-State cigarette
6manufacturers who elect to qualify and are accepted by the
7Department as distributors under Section 4b(a) of this Act,
8shall pay the taxes imposed by this Act by remitting the amount
9thereof to the Department by the 5th day of each month covering
10cigarettes shipped or otherwise delivered in Illinois to
11purchasers during the preceding calendar month. Such
12manufacturers of cigarettes in original packages which are
13contained inside a sealed transparent wrapper, before
14delivering such cigarettes or causing such cigarettes to be
15delivered in this State to purchasers, shall evidence their
16obligation to remit the taxes due with respect to such
17cigarettes by imprinting language to be prescribed by the
18Department on each original package of such cigarettes
19underneath the sealed transparent outside wrapper of such
20original package, in such place thereon and in such manner as
21the Department may designate. Such imprinted language shall
22acknowledge the manufacturer's payment of or liability for the
23tax imposed by this Act with respect to the distribution of
24such cigarettes.
25    A distributor shall not affix, or cause to be affixed, any
26stamp or imprint to a package of cigarettes, as provided for in

 

 

09700HB5192ham001- 106 -LRB097 18915 HLH 69637 a

1this Section, if the tobacco product manufacturer, as defined
2in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
3that made or sold the cigarettes has failed to become a
4participating manufacturer, as defined in subdivision (a)(1)
5of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
6or has failed to create a qualified escrow fund for any
7cigarettes manufactured by the tobacco product manufacturer
8and sold in this State or otherwise failed to bring itself into
9compliance with subdivision (a)(2) of Section 15 of the Tobacco
10Product Manufacturers' Escrow Act.
11(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10;
1296-1027, eff. 7-12-10.)
 
13    (35 ILCS 130/8)  (from Ch. 120, par. 453.8)
14    Sec. 8. The Department may make, promulgate and enforce
15such reasonable rules and regulations relating to the
16administration and enforcement of this Act as may be deemed
17expedient.
18    Whenever notice is required by this Act, such notice may be
19given by United States certified or registered mail, addressed
20to the person concerned at his last known address, and proof of
21such mailing shall be sufficient for the purposes of this Act.
22Notice of any hearing provided for by this Act and held before
23the Department shall be so given not less than 7 days prior to
24the day fixed for the hearing.
25    Hearings provided for in this Act, other than hearings

 

 

09700HB5192ham001- 107 -LRB097 18915 HLH 69637 a

1before the Illinois Independent Tax Tribunal, shall be held:
2        (1) In Cook County, if the taxpayer's or licensee's
3    principal place of business is in that county;
4        (2) At the Department's office nearest the taxpayer's
5    or licensee's principal place of business, if the
6    taxpayer's or licensee's principal place of business is in
7    Illinois but outside Cook County;
8        (3) In Sangamon County, if the taxpayer's or licensee's
9    principal place of business is outside Illinois.
10    The Circuit Court of the County wherein the hearing is held
11has power to review all final administrative decisions of the
12Department in administering this Act. The provisions of the
13Administrative Review Law, and all amendments and
14modifications thereof, and the rules adopted pursuant thereto,
15shall apply to and govern all proceedings for the judicial
16review of final administrative decisions of the Department
17under this Act. The term "administrative decision" is defined
18as in Section 3-101 of the Code of Civil Procedure.
19    Service upon the Director of Revenue or Assistant Director
20of Revenue of summons issued in any action to review a final
21administrative decision shall be service upon the Department.
22The Department shall certify the record of its proceedings if
23the distributor, secondary distributor, or manufacturer with
24authority to maintain manufacturer representatives pays to it
25the sum of 75 per page of testimony taken before the
26Department and 25 per page of all other matters contained in

 

 

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1such record, except that these charges may be waived where the
2Department is satisfied that the aggrieved party is a poor
3person who cannot afford to pay such charges. Before the
4delivery of such record to the person applying for it, payment
5of these charges must be made, and if the record is not paid
6for within 30 days after notice that such record is available,
7the complaint may be dismissed by the court upon motion of the
8Department.
9    No stay order shall be entered by the Circuit Court unless
10the distributor, secondary distributor, or manufacturer with
11authority to maintain manufacturer representatives files with
12the court a bond in an amount fixed and approved by the court,
13to indemnify the State against all loss and injury which may be
14sustained by it on account of the review proceedings and to
15secure all costs which may be occasioned by such proceedings.
16    Whenever any proceeding provided by this Act is begun
17before the Department, either by the Department or by a person
18subject to this Act, and such person thereafter dies or becomes
19a person under legal disability before such proceeding is
20concluded, the legal representative of the deceased person or
21of the person under legal disability shall notify the
22Department of such death or legal disability. Such legal
23representative, as such, shall then be substituted by the
24Department for such person. If the legal representative fails
25to notify the Department of his or her appointment as such
26legal representative, the Department may, upon its own motion,

 

 

09700HB5192ham001- 109 -LRB097 18915 HLH 69637 a

1substitute such legal representative in the proceeding pending
2before the Department for the person who died or became a
3person under legal disability.
4    Hearings to contest an administrative decision under this
5Act conducted as a result of a protest filed with the Illinois
6Independent Tax Tribunal on or after July 1, 2013 shall be
7conducted pursuant to the provisions of the Illinois
8Independent Tax Tribunal Act of 2012.
9(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
10    (35 ILCS 130/8a)  (from Ch. 120, par. 453.8a)
11    Sec. 8a. 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.
25(Source: P.A. 88-45.)
 

 

 

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1    (35 ILCS 130/9a)  (from Ch. 120, par. 453.9a)
2    Sec. 9a. Examination and correction of returns.
3    (1) As soon as practicable after any return is filed, the
4Department shall examine such return and shall correct such
5return according to its best judgment and information, which
6return so corrected by the Department shall be prima facie
7correct and shall be prima facie evidence of the correctness of
8the amount of tax due, as shown therein. Instead of requiring
9the distributor to file an amended return, the Department may
10simply notify the distributor of the correction or corrections
11it has made. Proof of such correction by the Department may be
12made at any hearing before the Department or in any legal
13proceeding by a reproduced copy of the Department's record
14relating thereto in the name of the Department under the
15certificate of the Director of Revenue. Such reproduced copy
16shall, without further proof, be admitted into evidence before
17the Department or in any legal proceeding and shall be prima
18facie proof of the correctness of the amount of tax due, as
19shown therein. If the Department finds that any amount of tax
20is due from the distributor, the Department shall issue the
21distributor a notice of tax liability for the amount of tax
22claimed by the Department to be due, together with a penalty in
23an amount determined in accordance with Sections 3-3, 3-5 and
243-6 of the Uniform Penalty and Interest Act. If, in
25administering the provisions of this Act, comparison of a

 

 

09700HB5192ham001- 111 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 112 -LRB097 18915 HLH 69637 a

1representative of the time and place fixed for such hearing,
2and shall hold a hearing in conformity with the provisions of
3this Act, and pursuant thereto shall issue a final assessment
4to such distributor or legal representative for the amount
5found to be due as a result of such hearing. On or after July 1,
62013, protests concerning matters that are subject to the
7jurisdiction of the Illinois Independent Tax Tribunal shall be
8filed in accordance with the Illinois Independent Tax Tribunal
9Act of 2012, and hearings concerning those matters shall be
10held before the Tribunal in accordance with that Act. With
11respect to protests filed with the Department prior to July 1,
122013 that would otherwise be subject to the jurisdiction of the
13Illinois Independent Tax Tribunal, the taxpayer may elect to be
14subject to the provisions of the Illinois Independent Tax
15Tribunal Act at any time on or after July 1, 2013, but not
16later than 30 days after the date on which the protest was
17filed. If made, the election shall be irrevocable. If a protest
18to the notice of tax liability and a request for a hearing
19thereon is not filed within the time allowed by law 60 days
20after such notice of tax liability, such notice of tax
21liability shall become final without the necessity of a final
22assessment being issued and shall be deemed to be a final
23assessment.
24    (3) In case of failure to pay the tax, or any portion
25thereof, or any penalty provided for in this Act, when due, the
26Department may bring suit to recover the amount of such tax, or

 

 

09700HB5192ham001- 113 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 114 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 115 -LRB097 18915 HLH 69637 a

1not a resident of this State. The time within which a court
2action is to be commenced by the Department hereunder shall not
3run while the taxpayer is a debtor in any proceeding under the
4Federal Bankruptcy Act nor thereafter until 90 days after the
5Department is notified by such debtor of being discharged in
6bankruptcy.
7    No claim shall be filed against the estate of any deceased
8person or a person under legal disability for any tax or
9penalty or part of either except in the manner prescribed and
10within the time limited by the Probate Act of 1975, as amended.
11    The remedies provided for herein shall not be exclusive,
12but all remedies available to creditors for the collection of
13debts shall be available for the collection of any tax or
14penalty due hereunder.
15    The collection of tax or penalty by any means provided for
16herein shall not be a bar to any prosecution under this Act.
17    The certificate of the Director of the Department to the
18effect that a tax or amount required to be paid by this Act has
19not been paid, that a return has not been filed, or that
20information has not been supplied pursuant to the provisions of
21this Act, shall be prima facie evidence thereof.
22    All of the provisions of Sections 5a, 5b, 5c, 5d, 5e, 5f,
235g, 5i and 5j of the Retailers' Occupation Tax Act, which are
24not inconsistent with this Act, and Section 3-7 of the Uniform
25Penalty and Interest Act shall apply, as far as practicable, to
26the subject matter of this Act to the same extent as if such

 

 

09700HB5192ham001- 116 -LRB097 18915 HLH 69637 a

1provisions were included herein. References in such
2incorporated Sections of the "Retailers' Occupation Tax Act" to
3retailers, to sellers or to persons engaged in the business of
4selling tangible personal property shall mean distributors
5when used in this Act.
6(Source: P.A. 92-322, eff. 1-1-02.)
 
7    (35 ILCS 130/9b)  (from Ch. 120, par. 453.9b)
8    Sec. 9b. Failure to file return; penalty; protest. In case
9any person who is required to file a return under this Act
10fails to file such return, the Department shall determine the
11amount of tax due from him according to its best judgment and
12information, which amount so fixed by the Department shall be
13prima facie correct and shall be prima facie evidence of the
14correctness of the amount of tax due, as shown in such
15determination. Proof of such determination by the Department
16may be made at any hearing before the Department or in any
17legal proceeding by a reproduced copy of the Department's
18record relating thereto in the name of the Department under the
19certificate of the Director of Revenue. Such reproduced copy
20shall, without further proof, be admitted into evidence before
21the Department or in any legal proceeding and shall be prima
22facie proof of the correctness of the amount of tax due, as
23shown therein. The Department shall issue such person a notice
24of tax liability for the amount of tax claimed by the
25Department to be due, together with a penalty in an amount

 

 

09700HB5192ham001- 117 -LRB097 18915 HLH 69637 a

1determined in accordance with Sections 3-3, 3-5 and 3-6 of the
2Uniform Penalty and Interest Act. If such person or the legal
3representative of such person, within 60 days after such
4notice, files a protest to such notice of tax liability and
5requests a hearing thereon, the Department shall give notice to
6such person or the legal representative of such person of the
7time and place fixed for such hearing and shall hold a hearing
8in conformity with the provisions of this Act, and pursuant
9thereto shall issue a final assessment to such person or to the
10legal representative of such person for the amount found to be
11due as a result of such hearing. Hearings to protest a notice
12of tax liability issued pursuant to this Section that are
13conducted as a result of a protest filed with the Illinois
14Independent Tax Tribunal on or after July 1, 2013 shall be
15conducted pursuant to the Illinois Independent Tax Tribunal
16Act. If a protest to the notice of tax liability and a request
17for a hearing thereon is not filed within 60 days after such
18notice of tax liability, such notice of tax liability shall
19become final without the necessity of a final assessment being
20issued and shall be deemed to be a final assessment.
21(Source: P.A. 92-322, eff. 1-1-02.)
 
22    (35 ILCS 130/10)  (from Ch. 120, par. 453.10)
23    Sec. 10. The Department, or any officer or employee
24designated in writing by the Director thereof, for the purpose
25of administering and enforcing the provisions of this Act, may

 

 

09700HB5192ham001- 118 -LRB097 18915 HLH 69637 a

1hold investigations and, except as otherwise provided in the
2Illinois Independent Tax Tribunal Act of 2012, may hold
3hearings concerning any matters covered by this Act, and may
4examine books, papers, records or memoranda bearing upon the
5sale or other disposition of cigarettes by a distributor,
6secondary distributor, manufacturer with authority to maintain
7manufacturer representatives under Section 4f of this Act, or
8manufacturer representative, and may issue subpoenas requiring
9the attendance of a distributor, secondary distributor,
10manufacturer with authority to maintain manufacturer
11representatives under Section 4f of this Act, or manufacturer
12representative, or any officer or employee of a distributor,
13secondary distributor, manufacturer with authority to maintain
14manufacturer representatives under Section 4f of this Act, or
15any person having knowledge of the facts, and may take
16testimony and require proof, and may issue subpoenas duces
17tecum to compel the production of relevant books, papers,
18records and memoranda, for the information of the Department.
19    All hearings to contest administrative decisions of the
20Department conducted as a result of a protest filed with the
21Illinois Independent Tax Tribunal on or after July 1, 2013
22shall be subject to the provisions of the Illinois Independent
23Tax Tribunal Act of 2012.
24    In the conduct of any investigation or hearing provided for
25by this Act, neither the Department, nor any officer or
26employee thereof, shall be bound by the technical rules of

 

 

09700HB5192ham001- 119 -LRB097 18915 HLH 69637 a

1evidence, and no informality in the proceedings nor in the
2manner of taking testimony shall invalidate any rule, order,
3decision or regulation made, approved or confirmed by the
4Department.
5    The Director of Revenue, or any duly authorized officer or
6employee of the Department, shall have the power to administer
7oaths to such persons required by this Act to give testimony
8before the said Department.
9    The books, papers, records and memoranda of the Department,
10or parts thereof, may be proved in any hearing, investigation
11or legal proceeding by a reproduced copy thereof under the
12certificate of the Director of Revenue. Such reproduced copy
13shall, without further proof, be admitted into evidence before
14the Department or in any legal proceeding.
15(Source: P.A. 96-1027, eff. 7-12-10; 97-587, eff. 8-26-11.)
 
16    Section 5-50. The Cigarette Use Tax Act is amended by
17changing Sections 3, 13, 13a, 21, and 21a as follows:
 
18    (35 ILCS 135/3)  (from Ch. 120, par. 453.33)
19    Sec. 3. Stamp payment. The tax hereby imposed shall be
20collected by a distributor maintaining a place of business in
21this State or a distributor authorized by the Department
22pursuant to Section 7 hereof to collect the tax, and the amount
23of the tax shall be added to the price of the cigarettes sold
24by such distributor. Collection of the tax shall be evidenced

 

 

09700HB5192ham001- 120 -LRB097 18915 HLH 69637 a

1by a stamp or stamps affixed to each original package of
2cigarettes or by an authorized substitute for such stamp
3imprinted on each original package of such cigarettes
4underneath the sealed transparent outside wrapper of such
5original package, except as hereinafter provided. Each
6distributor who is required or authorized to collect the tax
7herein imposed, before delivering or causing to be delivered
8any original packages of cigarettes in this State to any
9purchaser, shall firmly affix a proper stamp or stamps to each
10such package, or (in the case of manufacturers of cigarettes in
11original packages which are contained inside a sealed
12transparent wrapper) shall imprint the required language on the
13original package of cigarettes beneath such outside wrapper as
14hereinafter provided. Such stamp or stamps need not be affixed
15to the original package of any cigarettes with respect to which
16the distributor is required to affix a like stamp or stamps by
17virtue of the Cigarette Tax Act, however, and no tax imprint
18need be placed underneath the sealed transparent wrapper of an
19original package of cigarettes with respect to which the
20distributor is required or authorized to employ a like tax
21imprint by virtue of the Cigarette Tax Act.
22    No stamp or imprint may be affixed to, or made upon, any
23package of cigarettes unless that package complies with all
24requirements of the federal Cigarette Labeling and Advertising
25Act, 15 U.S.C. 1331 and following, for the placement of labels,
26warnings, or any other information upon a package of cigarettes

 

 

09700HB5192ham001- 121 -LRB097 18915 HLH 69637 a

1that is sold within the United States. Under the authority of
2Section 6, the Department shall revoke the license of any
3distributor that is determined to have violated this paragraph.
4A person may not affix a stamp on a package of cigarettes,
5cigarette papers, wrappers, or tubes if that individual package
6has been marked for export outside the United States with a
7label or notice in compliance with Section 290.185 of Title 27
8of the Code of Federal Regulations. It is not a defense to a
9proceeding for violation of this paragraph that the label or
10notice has been removed, mutilated, obliterated, or altered in
11any manner.
12    Only distributors licensed under this Act and
13transporters, as defined in Section 9c of the Cigarette Tax
14Act, may possess unstamped original packages of cigarettes.
15Prior to shipment to an Illinois retailer or secondary
16distributor, a stamp shall be applied to each original package
17of cigarettes sold to the retailer or secondary distributor. A
18distributor may apply a tax stamp only to an original package
19of cigarettes purchased or obtained directly from an in-state
20maker, manufacturer, or fabricator licensed as a distributor
21under Section 4 of this Act or an out-of-state maker,
22manufacturer, or fabricator holding a permit under Section 7 of
23this Act. A licensed distributor may ship or otherwise cause to
24be delivered unstamped original packages of cigarettes in,
25into, or from this State. A licensed distributor may transport
26unstamped original packages of cigarettes to a facility,

 

 

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1wherever located, owned or controlled by such distributor;
2however, a distributor may not transport unstamped original
3packages of cigarettes to a facility where retail sales of
4cigarettes take place or to a facility where a secondary
5distributor makes sales for resale. Any licensed distributor
6that ships or otherwise causes to be delivered unstamped
7original packages of cigarettes into, within, or from this
8State shall ensure that the invoice or equivalent documentation
9and the bill of lading or freight bill for the shipment
10identifies the true name and address of the consignor or
11seller, the true name and address of the consignee or
12purchaser, and the quantity by brand style of the cigarettes so
13transported, provided that this Section shall not be construed
14as to impose any requirement or liability upon any common or
15contract carrier.
16    Distributors making sales of cigarettes to secondary
17distributors shall add the amount of the tax to the price of
18the cigarettes sold by the distributors. Secondary
19distributors making sales of cigarettes to retailers shall
20include the amount of the tax in the price of the cigarettes
21sold to retailers. The amount of tax shall not be less than the
22amount of taxes imposed by the State and all local
23jurisdictions. The amount of local taxes shall be calculated
24based on the location of the retailer's place of business shown
25on the retailer's certificate of registration or
26sub-registration issued to the retailer pursuant to Section 2a

 

 

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1of the Retailers' Occupation Tax Act. The original packages of
2cigarettes sold by the retailer shall bear all the required
3stamps, or other indicia, for the taxes included in the price
4of cigarettes.
5    Stamps, when required hereunder, shall be purchased from
6the Department, or any person authorized by the Department, by
7distributors. On and after July 1, 2003, payment for such
8stamps must be made by means of electronic funds transfer. The
9Department may refuse to sell stamps to any person who does not
10comply with the provisions of this Act. Beginning on June 6,
112002 and through June 30, 2002, persons holding valid licenses
12as distributors may purchase cigarette tax stamps up to an
13amount equal to 115% of the distributor's average monthly
14cigarette tax stamp purchases over the 12 calendar months prior
15to June 6, 2002.
16    Prior to December 1, 1985, the Department shall allow a
17distributor 21 days in which to make final payment of the
18amount to be paid for such stamps, by allowing the distributor
19to make payment for the stamps at the time of purchasing them
20with a draft which shall be in such form as the Department
21prescribes, and which shall be payable within 21 days
22thereafter: Provided that such distributor has filed with the
23Department, and has received the Department's approval of, a
24bond, which is in addition to the bond required under Section 4
25of this Act, payable to the Department in an amount equal to
2680% of such distributor's average monthly tax liability to the

 

 

09700HB5192ham001- 124 -LRB097 18915 HLH 69637 a

1Department under this Act during the preceding calendar year or
2$500,000, whichever is less. The bond shall be joint and
3several and shall be in the form of a surety company bond in
4such form as the Department prescribes, or it may be in the
5form of a bank certificate of deposit or bank letter of credit.
6The bond shall be conditioned upon the distributor's payment of
7the amount of any 21-day draft which the Department accepts
8from that distributor for the delivery of stamps to that
9distributor under this Act. The distributor's failure to pay
10any such draft, when due, shall also make such distributor
11automatically liable to the Department for a penalty equal to
1225% of the amount of such draft.
13    On and after December 1, 1985 and until July 1, 2003, the
14Department shall allow a distributor 30 days in which to make
15final payment of the amount to be paid for such stamps, by
16allowing the distributor to make payment for the stamps at the
17time of purchasing them with a draft which shall be in such
18form as the Department prescribes, and which shall be payable
19within 30 days thereafter, and beginning on January 1, 2003 and
20thereafter, the draft shall be payable by means of electronic
21funds transfer: Provided that such distributor has filed with
22the Department, and has received the Department's approval of,
23a bond, which is in addition to the bond required under Section
244 of this Act, payable to the Department in an amount equal to
25150% of such distributor's average monthly tax liability to the
26Department under this Act during the preceding calendar year or

 

 

09700HB5192ham001- 125 -LRB097 18915 HLH 69637 a

1$750,000, whichever is less, except that as to bonds filed on
2or after January 1, 1987, such additional bond shall be in an
3amount equal to 100% of such distributor's average monthly tax
4liability under this Act during the preceding calendar year or
5$750,000, 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
10the amount of any 30-day draft which the Department accepts
11from that distributor for the delivery of stamps to that
12distributor under this Act. The distributor's failure to pay
13any such draft, when due, shall also make such distributor
14automatically liable to the Department for a penalty equal to
1525% of the amount of such draft.
16    Every prior continuous compliance taxpayer shall be exempt
17from all requirements under this Section concerning the
18furnishing of such bond, as defined in this Section, as a
19condition precedent to his being authorized to engage in the
20business licensed under this Act. This exemption shall continue
21for each such taxpayer until such time as he may be determined
22by the Department to be delinquent in the filing of any
23returns, or is determined by the Department (either through the
24Department's issuance of a final assessment which has become
25final under the Act, or by the taxpayer's filing of a return
26which admits tax to be due that is not paid) to be delinquent

 

 

09700HB5192ham001- 126 -LRB097 18915 HLH 69637 a

1or deficient in the paying of any tax under this Act, at which
2time that taxpayer shall become subject to the bond
3requirements of this Section and, as a condition of being
4allowed to continue to engage in the business licensed under
5this Act, shall be required to furnish bond to the Department
6in such form as provided in this Section. Such taxpayer shall
7furnish such bond for a period of 2 years, after which, if the
8taxpayer has not been delinquent in the filing of any returns,
9or delinquent or deficient in the paying of any tax under this
10Act, the Department may reinstate such person as a prior
11continuance compliance taxpayer. Any taxpayer who fails to pay
12an admitted or established liability under this Act may also be
13required to post bond or other acceptable security with the
14Department guaranteeing the payment of such admitted or
15established liability.
16    Except as otherwise provided in this Section, any Any
17person aggrieved by any decision of the Department under this
18Section may, within the time allowed by law, protest and
19request a hearing before the Department, whereupon the
20Department shall give notice and shall hold a hearing in
21conformity with the provisions of this Act and then issue its
22final administrative decision in the matter to such person.
23Effective July 1, 2013, protests concerning matters that are
24subject to the jurisdiction of the Illinois Independent Tax
25Tribunal shall be filed in accordance with the Illinois
26Independent Tax Tribunal Act of 2012, and hearings concerning

 

 

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1those matters shall be held before the Tribunal in accordance
2with that Act. With respect to protests filed with the
3Department prior to July 1, 2013 that would otherwise be
4subject to the jurisdiction of the Illinois Independent Tax
5Tribunal, the person filing the protest may elect to be subject
6to the provisions of the Illinois Independent Tax Tribunal Act
7of 2012 at any time on or after July 1, 2013, but not later than
830 days after the date on which the protest was filed. If made,
9the election shall be irrevocable. In the absence of such a
10protest filed within the time allowed by law, the Department's
11decision shall become final without any further determination
12being made or notice given.
13    The Department shall discharge any surety and shall release
14and return any bond or security deposited, assigned, pledged,
15or otherwise provided to it by a taxpayer under this Section
16within 30 days after:
17        (1) such Taxpayer becomes a prior continuous
18    compliance taxpayer; or
19        (2) such taxpayer has ceased to collect receipts on
20    which he is required to remit tax to the Department, has
21    filed a final tax return, and has paid to the Department an
22    amount sufficient to discharge his remaining tax liability
23    as determined by the Department under this Act. The
24    Department shall make a final determination of the
25    taxpayer's outstanding tax liability as expeditiously as
26    possible after his final tax return has been filed. If the

 

 

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1    Department cannot make such final determination within 45
2    days after receiving the final tax return, within such
3    period it shall so notify the taxpayer, stating its reasons
4    therefor.
5    At the time of purchasing such stamps from the Department
6when purchase is required by this Act, or at the time when the
7tax which he has collected is remitted by a distributor to the
8Department without the purchase of stamps from the Department
9when that method of remitting the tax that has been collected
10is required or authorized by this Act, the distributor shall be
11allowed a discount during any year commencing July 1 and ending
12the following June 30 in accordance with the schedule set out
13hereinbelow, from the amount to be paid by him to the
14Department for such stamps, or to be paid by him to the
15Department on the basis of monthly remittances (as the case may
16be), to cover the cost, to such distributor, of collecting the
17tax herein imposed by affixing such stamps to the original
18packages of cigarettes sold by such distributor or by placing
19tax imprints underneath the sealed transparent wrapper of
20original packages of cigarettes sold by such distributor (as
21the case may be): (1) Prior to December 1, 1985, a discount
22equal to 1-2/3% of the amount of the tax up to and including
23the first $700,000 paid hereunder by such distributor to the
24Department during any such year; 1-1/3% of the next $700,000 of
25tax or any part thereof, paid hereunder by such distributor to
26the Department during any such year; 1% of the next $700,000 of

 

 

09700HB5192ham001- 129 -LRB097 18915 HLH 69637 a

1tax, or any part thereof, paid hereunder by such distributor to
2the Department during any such year; and 2/3 of 1% of the
3amount of any additional tax paid hereunder by such distributor
4to the Department during any such year or (2) On and after
5December 1, 1985, a discount equal to 1.75% of the amount of
6the tax payable under this Act up to and including the first
7$3,000,000 paid hereunder by such distributor to the Department
8during any such year and 1.5% of the amount of any additional
9tax paid hereunder by such distributor to the Department during
10any such year.
11    Two or more distributors that use a common means of
12affixing revenue tax stamps or that are owned or controlled by
13the same interests shall be treated as a single distributor for
14the purpose of computing the discount.
15    Cigarette manufacturers who are distributors under Section
167(a) of this Act, and who place their cigarettes in original
17packages which are contained inside a sealed transparent
18wrapper, shall be required to remit the tax which they are
19required to collect under this Act to the Department by
20remitting the amount thereof to the Department by the 5th day
21of each month, covering cigarettes shipped or otherwise
22delivered to points in Illinois to purchasers during the
23preceding calendar month, but a distributor need not remit to
24the Department the tax so collected by him from purchasers
25under this Act to the extent to which such distributor is
26required to remit the tax imposed by the Cigarette Tax Act to

 

 

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1the Department with respect to the same cigarettes. All taxes
2upon cigarettes under this Act are a direct tax upon the retail
3consumer and shall conclusively be presumed to be precollected
4for the purpose of convenience and facility only. Cigarette
5manufacturers that are distributors licensed under Section
67(a) of this Act and who place their cigarettes in original
7packages which are contained inside a sealed transparent
8wrapper, before delivering such cigarettes or causing such
9cigarettes to be delivered in this State to purchasers, shall
10evidence their obligation to collect and remit the tax due with
11respect to such cigarettes by imprinting language to be
12prescribed by the Department on each original package of such
13cigarettes underneath the sealed transparent outside wrapper
14of such original package, in such place thereon and in such
15manner as the Department may prescribe; provided (as stated
16hereinbefore) that this requirement does not apply when such
17distributor is required or authorized by the Cigarette Tax Act
18to place the tax imprint provided for in the last paragraph of
19Section 3 of that Act underneath the sealed transparent wrapper
20of such original package of cigarettes. Such imprinted language
21shall acknowledge the manufacturer's collection and payment of
22or liability for the tax imposed by this Act with respect to
23such cigarettes.
24    The Department shall adopt the design or designs of the tax
25stamps and shall procure the printing of such stamps in such
26amounts and denominations as it deems necessary to provide for

 

 

09700HB5192ham001- 131 -LRB097 18915 HLH 69637 a

1the affixation of the proper amount of tax stamps to each
2original package of cigarettes.
3    Where tax stamps are required, the Department may authorize
4distributors to affix revenue tax stamps by imprinting tax
5meter stamps upon original packages of cigarettes. The
6Department shall adopt rules and regulations relating to the
7imprinting of such tax meter stamps as will result in payment
8of the proper taxes as herein imposed. No distributor may affix
9revenue tax stamps to original packages of cigarettes by
10imprinting meter stamps thereon unless such distributor has
11first obtained permission from the Department to employ this
12method of affixation. The Department shall regulate the use of
13tax meters and may, to assure the proper collection of the
14taxes imposed by this Act, revoke or suspend the privilege,
15theretofore granted by the Department to any distributor, to
16imprint tax meter stamps upon original packages of cigarettes.
17    The tax hereby imposed and not paid pursuant to this
18Section shall be paid to the Department directly by any person
19using such cigarettes within this State, pursuant to Section 12
20hereof.
21    A distributor shall not affix, or cause to be affixed, any
22stamp or imprint to a package of cigarettes, as provided for in
23this Section, if the tobacco product manufacturer, as defined
24in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
25that made or sold the cigarettes has failed to become a
26participating manufacturer, as defined in subdivision (a)(1)

 

 

09700HB5192ham001- 132 -LRB097 18915 HLH 69637 a

1of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
2or has failed to create a qualified escrow fund for any
3cigarettes manufactured by the tobacco product manufacturer
4and sold in this State or otherwise failed to bring itself into
5compliance with subdivision (a)(2) of Section 15 of the Tobacco
6Product Manufacturers' Escrow Act.
7(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10.)
 
8    (35 ILCS 135/13)  (from Ch. 120, par. 453.43)
9    Sec. 13. Examination and correction of return. As soon as
10practicable after any return is filed, the Department shall
11examine such return and shall correct such return according to
12its best judgment and information, which return so corrected by
13the Department shall be prima facie correct and shall be prima
14facie evidence of the correctness of the amount of tax due, as
15shown therein. Proof of such correction by the Department may
16be made at any hearing before the Department or in any legal
17proceeding by a reproduced copy of the Department's record
18relating thereto in the name of the Department under the
19certificate of the Director of Revenue. Such reproduced copy
20shall, without further proof, be admitted into evidence before
21the Department or in any legal proceeding and shall be prima
22facie proof of the correctness of the amount of tax due, as
23shown therein. If the tax as fixed by the Department is greater
24than the amount of the tax due under the return as filed, the
25Department shall issue the person filing such return a notice

 

 

09700HB5192ham001- 133 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 134 -LRB097 18915 HLH 69637 a

1    Except as otherwise provided in this Section, if If within
260 days after such notice of tax liability, the person to whom
3such notice is issued or his legal representative files a
4protest to such notice of tax liability and requests a hearing
5thereon, the Department shall give notice to such person or
6legal representative of the time and place fixed for such
7hearing, and shall hold a hearing in conformity with the
8provisions of this Act, and pursuant thereto shall issue a
9final assessment to such person or legal representative for the
10amount found to be due as a result of such hearing. Effective
11July 1, 2013, protests concerning matters that are subject to
12the jurisdiction of the Illinois Independent Tax Tribunal shall
13be filed with the Tribunal in accordance with the Illinois
14Independent Tax Tribunal Act of 2012, and hearings concerning
15those matters shall be held before the Tribunal in accordance
16with that Act. With respect to protests filed with the
17Department prior to July 1, 2013 that would otherwise be
18subject to the jurisdiction of the Illinois Independent Tax
19Tribunal, the person filing the protest may elect to be subject
20to the provisions of the Illinois Independent Tax Tribunal Act
21of 2012 at any time on or after July 1, 2013, but not later than
2230 days after the date on which the protest was filed. If made,
23the election shall be irrevocable. If a protest to the notice
24of tax liability and a request for a hearing thereon is not
25filed within the time allowed by law 60 days after such notice
26of tax liability, such notice of tax liability shall become

 

 

09700HB5192ham001- 135 -LRB097 18915 HLH 69637 a

1final without the necessity of a final assessment being issued
2and shall be deemed to be a final assessment.
3(Source: P.A. 92-322, eff. 1-1-02.)
 
4    (35 ILCS 135/13a)  (from Ch. 120, par. 453.43a)
5    Sec. 13a. Failure to file return. In case any person who is
6required to file a return under this Act fails to file such
7return, the Department shall determine the amount of tax due
8from him according to its best judgment and information, which
9amount so fixed by the Department shall be prima facie correct
10and shall be prima facie evidence of the correctness of the
11amount of tax due, as shown in such determination. Proof of
12such determination by the Department may be made at any hearing
13before the Department or in any legal proceeding by a
14reproduced copy of the Department's record relating thereto in
15the name of the Department under the certificate of the
16Director of Revenue. Such reproduced copy shall, without
17further proof, be admitted into evidence before the Department
18or in any legal proceeding and shall be prima facie proof of
19the correctness of the amount of tax due, as shown therein. The
20Department shall issue such person a notice of tax liability
21for the amount of tax claimed by the Department to be due,
22together with a penalty in an amount determined in accordance
23with Sections 3-3, 3-5 and 3-6 of the Uniform Penalty and
24Interest Act. Except as otherwise provided in this Section, if
25If such person or the legal representative of such person,

 

 

09700HB5192ham001- 136 -LRB097 18915 HLH 69637 a

1within 60 days after such notice, files a protest to such
2notice of tax liability and requests a hearing thereon, the
3Department shall give notice to such person or the legal
4representative of such person of the time and place fixed for
5such hearing, and shall hold a hearing in conformity with the
6provisions of this Act, and pursuant thereto shall issue a
7final assessment to such person or to the legal representative
8of such person for the amount found to be due as a result of
9such hearing. Effective July 1, 2013, protests concerning
10matters that are subject to the jurisdiction of the Illinois
11Independent Tax Tribunal shall be filed with the Tribunal in
12accordance with the Illinois Independent Tax Tribunal Act of
132012, and hearings concerning those matters shall be held
14before the Tribunal in accordance with that Act. With respect
15to protests filed with the Department prior to July 1, 2013
16that would otherwise be subject to the jurisdiction of the
17Illinois Independent Tax Tribunal, the person filing the
18protest may elect to be subject to the provisions of the
19Illinois Independent Tax Tribunal Act of 2012 at any time on or
20after July 1, 2013, but not later than 30 days after the date
21on which the protest was filed. If made, the election shall be
22irrevocable. If a protest to the notice of tax liability and a
23request for a hearing thereon is not filed within the time
24allowed by law 60 days after such notice of tax liability, such
25notice of tax liability shall become final without the
26necessity of a final assessment being issued and shall be

 

 

09700HB5192ham001- 137 -LRB097 18915 HLH 69637 a

1deemed to be a final assessment.
2(Source: P.A. 92-322, eff. 1-1-02.)
 
3    (35 ILCS 135/21)  (from Ch. 120, par. 453.51)
4    Sec. 21. The Department may make, promulgate and enforce
5such reasonable rules and regulations relating to the
6administration and enforcement of this Act as may be deemed
7expedient.
8    Whenever notice is required by this Act, such notice may be
9given by United States certified or registered mail, addressed
10to the person concerned at his or her last known address, and
11proof of such mailing shall be sufficient for the purposes of
12this Act. Notice of any hearing provided for by this Act and
13held before the Department shall be so given not less than 7
14days prior to the day fixed for the hearing.
15    Hearings provided for in this Act, other than hearings
16before the Illinois Independent Tax Tribunal, shall be held:
17        (1) In Cook County, if the taxpayer's or licensee's
18    principal place of business is in that county;
19        (2) At the Department's office nearest the taxpayer's
20    or licensee's principal place of business, if the
21    taxpayer's or licensee's principal place of business is in
22    Illinois but outside Cook County;
23        (3) In Sangamon County, if the taxpayer's or licensee's
24    principal place of business is outside Illinois.
25    The Circuit Court of the County wherein the hearing is held

 

 

09700HB5192ham001- 138 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 139 -LRB097 18915 HLH 69637 a

1indemnify the State against all loss and injury which may be
2sustained by it on account of the review proceedings and to
3secure all costs which may be occasioned by such proceedings.
4    Whenever any proceeding provided by this Act is commenced
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 a 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    Hearings to protest an administrative decision of the
18Department conducted as a result of a protest filed with the
19Illinois Independent Tax Tribunal on or after July 1, 2013
20shall be conducted pursuant to the provisions of the Illinois
21Independent Tax Tribunal Act of 2012.
22(Source: P.A. 96-1027, eff. 7-12-10.)
 
23    (35 ILCS 135/21a)  (from Ch. 120, par. 453.51a)
24    Sec. 21a. The Illinois Administrative Procedure Act is
25hereby expressly adopted and shall apply to all administrative

 

 

09700HB5192ham001- 140 -LRB097 18915 HLH 69637 a

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 5-55. The Tobacco Products Tax Act of 1995 is
15amended by changing Section 10-58 as follows:
 
16    (35 ILCS 143/10-58)
17    Sec. 10-58. Sale of forfeited tobacco products or vending
18devices.
19    (a) When any tobacco products or any vending devices are
20declared forfeited to the State by the Department, as provided
21in Section 10-55, and when all proceedings for the judicial
22review of the Department's decision have terminated, the
23Department shall, to the extent that its decision is sustained
24on review, sell the property for the best price obtainable and

 

 

09700HB5192ham001- 141 -LRB097 18915 HLH 69637 a

1shall forthwith pay over the proceeds of the sale to the State
2Treasurer. If the value of the property to be sold at any one
3time is $500 or more, however, the property shall be sold only
4to the highest and best bidder on terms and conditions, and on
5open competitive bidding after public advertisement, in a
6manner and for terms as the Department, by rule, may prescribe.
7    (b) If no complaint for review, as provided in Section 12
8of the Retailers' Occupation Tax Act, has been filed within the
9time required by the Administrative Review Law, and if no stay
10order has been entered under that Law, the Department shall
11proceed to destroy, maintain and use in an undercover capacity,
12or sell the property for the best price obtainable and shall
13forthwith pay over the proceeds of the sale to the State
14Treasurer. If the value of the property to be sold at any one
15time is $500 or more, however, the property shall be sold only
16to the highest and best bidder on terms and conditions, and on
17open competitive bidding after public advertisement, in a
18manner and for terms as the Department, by rule, may prescribe.
19    (c) Upon making a sale of tobacco products as provided in
20this Section, the Department shall affix a distinctive stamp to
21each of the tobacco products so sold indicating that they are
22sold under this Section.
23    (d) Notwithstanding the foregoing, any tobacco products
24seized under this Act may, at the discretion of the Director of
25Revenue, be distributed to any eleemosynary institution within
26the State of Illinois.

 

 

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1(Source: P.A. 94-776, eff. 5-19-06.)
 
2    Section 5-60. The Hotel Operators' Occupation Tax Act is
3amended by changing Section 10 as follows:
 
4    (35 ILCS 145/10)  (from Ch. 120, par. 481b.40)
5    Sec. 10. The Illinois Administrative Procedure Act is
6hereby expressly adopted and shall apply to all administrative
7rules and procedures of the Department of Revenue under this
8Act, except that (1) paragraph (b) of Section 5-10 of the
9Illinois Administrative Procedure Act does not apply to final
10orders, decisions and opinions of the Department, (2)
11subparagraph (a)2 of Section 5-10 of the Illinois
12Administrative Procedure Act does not apply to forms
13established by the Department for use under this Act, and (3)
14the provisions of Section 10-45 of the Illinois Administrative
15Procedure Act regarding proposals for decision are excluded and
16not applicable 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 5-65. The Motor Fuel Tax Law is amended by changing
21Section 18 as follows:
 
22    (35 ILCS 505/18)  (from Ch. 120, par. 433.1)

 

 

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1    Sec. 18. The Illinois Administrative Procedure Act is
2hereby expressly adopted and shall apply to all administrative
3rules and procedures of the Department of Revenue under this
4Act, except that (1) paragraph (b) of Section 5-10 of the
5Illinois Administrative Procedure Act does not apply to final
6orders, decisions and opinions of the Department, (2)
7subparagraph (a)2 of Section 5-10 of the Illinois
8Administrative Procedure Act does not apply to forms
9established by the Department for use under this Act, and (3)
10the provisions of Section 10-45 of the Illinois Administrative
11Procedure Act regarding proposals for decision are excluded and
12not applicable 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    Section 5-70. The Coin-Operated Amusement Device and
17Redemption Machine Tax Act is amended by changing Sections 4a,
1810, and 14 as follows:
 
19    (35 ILCS 510/4a)  (from Ch. 120, par. 481b.4a)
20    Sec. 4a. The Illinois Administrative Procedure Act is
21hereby expressly adopted and shall apply to all administrative
22rules and procedures of the Department of Revenue under this
23Act, except that (1) paragraph (b) of Section 5-10 of the
24Illinois Administrative Procedure Act does not apply to final

 

 

09700HB5192ham001- 144 -LRB097 18915 HLH 69637 a

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 Act, and (3)
5the provisions of Section 10-45 of the Illinois Administrative
6Procedure Act regarding proposals for decision are excluded and
7not applicable to the Department under this Act to the extent
8Section 10-45 applies to hearings not otherwise subject to the
9Illinois Independent Tax Tribunal Act of 2012.
10(Source: P.A. 88-45.)
 
11    (35 ILCS 510/10)  (from Ch. 120, par. 481b.10)
12    Sec. 10. All final administrative decisions of the
13Department of Revenue under any of the provisions of this Act
14shall be subject to judicial review pursuant to the provisions
15of the Administrative Review Law or the Illinois Independent
16Tax Tribunal Act of 2012, as applicable, and any amendment and
17modifications thereof, and the rules adopted relative thereto.
18(Source: P.A. 82-783.)
 
19    (35 ILCS 510/14)  (from Ch. 120, par. 481b.14)
20    Sec. 14. After seizing any coin-in-the-slot-operated
21amusement device, as provided in Section 13 of this Act, the
22Department shall hold a hearing in the county where such
23amusement device was seized and shall determine whether such
24amusement device was being displayed in a manner which violates

 

 

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1any provision of this Act.
2    The Department shall give not less than 7 days' notice of
3the time and place of such hearing to the owner of such
4amusement device if he is known, and also to the person in
5whose possession the amusement device so taken was found, if
6such person is known and if such person in possession is not
7the owner of said amusement device.
8    In case neither the owner nor the person in possession of
9such amusement device is known, the Department shall cause
10publication of the time and place of such hearing to be made at
11least once in each week for 3 weeks successively in a newspaper
12of general circulation in the county where such hearing is to
13be held.
14    If, as the result of such hearing, the Department shall
15determine that the amusement device seized was, at the time of
16seizure, being displayed in a manner which violates this Act,
17the Department shall enter an order declaring such amusement
18device confiscated and forfeited to the State, and to be sold
19by the Department in the manner provided for hereinafter in
20this Section. The Department shall give notice of such order to
21the owner of such amusement device if he is known, and also to
22the person in whose possession the amusement device so taken
23was found, if such person is known and if such person in
24possession is not the owner of such amusement device. In case
25neither the owner nor the person in possession of such
26amusement device is known, the Department shall cause

 

 

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1publication of such order to be made at least once in each week
2for 3 weeks successively in a newspaper of general circulation
3in the county where such hearing was held.
4    The person from whom such amusement device has been seized
5(or the owner of such device if that is a different person) may
6redeem and reclaim such device by paying, to the Department,
7within 30 days after the Department's order of confiscation and
8forfeiture becomes final, an amount equal to twice the annual
9tax applicable to such amusement device, plus a penalty of 10%.
10    When any amusement device shall have been declared
11forfeited to the State by the Department, as provided in this
12Section, and when all proceedings for the judicial review of
13the Department's decision have terminated, the Department
14shall (if such amusement device is not redeemed and reclaimed
15within the time and in the manner provided for in this
16Section), to the extent that its decision is sustained on
17review, sell such amusement device for the best price
18obtainable and shall forthwith pay over the proceeds of such
19sale to the State Treasurer; provided, however, that if the
20value of the property to be sold at any one time shall be
21$500.00 or more, such property shall be sold only to the
22highest and best bidder on such terms and conditions and on
23open competitive bidding after public advertisement, in such
24manner and for such terms as the Department, by rule, may
25prescribe.
26    If no complaint for review, as provided in Section 10 of

 

 

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1this Act, has been filed within the time required by law the
2Administrative Review Law, and if such amusement device is not
3redeemed and reclaimed within the time and in the manner
4provided for in this Section, the Department shall proceed to
5sell said property for the best price obtainable and shall
6forthwith pay over the proceeds of such sale to the State
7Treasurer; provided, however, that if the value of the property
8to be sold at any one time shall be $500.00 or more, such
9property shall be sold only to the highest and best bidder on
10such terms and conditions and on open competitive bidding after
11public advertisement, in such manner and for such terms as the
12Department, by rule, may prescribe.
13(Source: P.A. 82-783.)
 
14    Section 5-75. The Cannabis and Controlled Substances Tax
15Act is amended by changing Sections 16, 25, and 26 as follows:
 
16    (35 ILCS 520/16)  (from Ch. 120, par. 2166)
17    Sec. 16. All assessments are Jeopardy Assessments - lien.
18    (a) Assessment. An assessment for a dealer not possessing
19valid stamps or other official indicia showing that the tax has
20been paid shall be considered a jeopardy assessment or
21collection, as provided by Section 1102 of the Illinois Income
22Tax Act. The Department shall determine and assess a tax and
23applicable penalties and interest according to the best
24judgment and information available to the Department, which

 

 

09700HB5192ham001- 148 -LRB097 18915 HLH 69637 a

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. When,
4according to the best judgment and information available to the
5Department with regard to all real and personal property and
6rights to property of the dealer, there is no reasonable
7expectation of collection of the amount of tax and penalty to
8be assessed, the Department may issue an assessment under this
9Section for the amount of tax without penalty.
10    (b) Filing of Lien. Upon issuance of a jeopardy assessment
11as provided by subsection (a) of this Section, the Department
12may file a notice of jeopardy assessment lien in the office of
13the recorder of the county in which any property of the
14taxpayer may be located and shall notify the taxpayer of such
15filing.
16    (c) Protest. If the taxpayer believes that he does not owe
17some or all of the amount for which the jeopardy assessment
18lien against him has been filed, he may protest within 20 days
19after being notified by the Department of the filing of such
20jeopardy assessment lien and request a hearing, whereupon the
21Department shall hold a hearing in conformity with the
22provisions of Section 908 of the Illinois Income Tax Act and,
23pursuant thereto, shall notify the taxpayer of its decision as
24to whether or not such jeopardy assessment lien will be
25released.
26    After the expiration of the period within which the person

 

 

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1assessed may file an action for judicial review under the
2Administrative Review Law without such action being filed, a
3certified copy of the final assessment or revised final
4assessment of the Department may be filed with the Circuit
5Court of the county in which the dealer resides, or of Cook
6County in the case of a dealer who does not reside in this
7State, or in the county where the violation of this Act took
8place. The certified copy of the final assessment or revised
9final assessment shall be accompanied by a certification which
10recites facts that are sufficient to show that the Department
11complied with the jurisdictional requirements of the Act in
12arriving at its final assessment or its revised final
13assessment and that the dealer had this opportunity for an
14administrative hearing and for judicial review, whether he
15availed himself or herself of either or both of these
16opportunities or not. If the court is satisfied that the
17Department complied with the jurisdictional requirements of
18the Act in arriving at its final assessment or its revised
19final assessment and that the taxpayer had his opportunity for
20an administrative hearing and for judicial review, whether he
21availed himself of either or both of these opportunities or
22not, the court shall render judgment in favor of the Department
23and against the taxpayer for the amount shown to be due by the
24final assessment or the revised final assessment, plus any
25interest which may be due, and such judgment shall be entered
26in the judgment docket of the court. Such judgment shall bear

 

 

09700HB5192ham001- 150 -LRB097 18915 HLH 69637 a

1the same rate of interest and shall have the same effect as
2other judgments. The judgment may be enforced, and all laws
3applicable to sales for the enforcement of a judgment shall be
4applicable to sales made under such judgments. The Department
5shall file the certified copy of its assessment, as herein
6provided, with the Circuit Court within 2 years after such
7assessment becomes final except when the taxpayer consents in
8writing to an extension of such filing period, and except that
9the time limitation period on the Department's right to file
10the certified copy of its assessment with the Circuit Court
11shall not run during any period of time in which the order of
12any court has the effect of enjoining or restraining the
13Department from filing such certified copy of its assessment
14with the Circuit Court.
15    If, when the cause of action for a proceeding in court
16accrues against a person, he or she is out of the State, the
17action may be commenced within the times herein limited, after
18his or her coming into or returning to the State; and if, after
19the cause of action accrues, he or she departs from and remains
20out of the State, the time of his or her absence from the
21State, the time of his or her absence is no part of the time
22limited for the commencement of the action; but the foregoing
23provisions concerning absence from the State shall not apply to
24any case in which, at the time the cause of action accrues, the
25party against whom the cause of action accrues is not a
26resident of this State. The time within which a court action is

 

 

09700HB5192ham001- 151 -LRB097 18915 HLH 69637 a

1to be commenced by the Department hereunder shall not run from
2the date the taxpayer files a petition in bankruptcy under the
3Federal Bankruptcy Act until 30 days after notice of
4termination or expiration of the automatic stay imposed by the
5Federal Bankruptcy Act.
6    No claim shall be filed against the estate of any deceased
7person or any person under legal disability for any tax or
8penalty or part of either, or interest, except in the manner
9prescribed and within the time limited by the Probate Act of
101975, as amended.
11    The collection of tax or penalty or interest by any means
12provided for herein shall not be a bar to any prosecution under
13this Act.
14    In addition to any penalty provided for in this Act, any
15amount of tax which is not paid when due shall bear interest at
16the rate determined in accordance with the Uniform Penalty and
17Interest Act, per month or fraction thereof from the date when
18such tax becomes past due until such tax is paid or a judgment
19therefor is obtained by the Department. If the time for making
20or completing an audit of a taxpayer's books and records is
21extended with the taxpayer's consent, at the request of and for
22the convenience of the Department, beyond the date on which the
23statute of limitations upon the issuance of a notice of tax
24liability by the Department otherwise run, no interest shall
25accrue during the period of such extension. Interest shall be
26collected in the same manner and as part of the tax.

 

 

09700HB5192ham001- 152 -LRB097 18915 HLH 69637 a

1    If the Department determines that an amount of tax or
2penalty or interest was incorrectly assessed, whether as the
3result of a mistake of fact or an error of law, the Department
4shall waive the amount of tax or penalty or interest that
5accrued due to the incorrect assessment.
6(Source: P.A. 90-655, eff. 7-30-98.)
 
7    (35 ILCS 520/25)  (from Ch. 120, par. 2175)
8    Sec. 25. Administrative Procedure Act - Application. The
9Illinois Administrative Procedure Act is hereby expressly
10adopted and shall apply to all administrative rules and
11procedures of the Department of Revenue under this Act, except
12that: (1) subsection (b) of Section 5-10 of the Illinois
13Administrative Procedure Act does not apply to final orders,
14decisions and opinions of the Department; (2) paragraph 2 of
15subsection (a) of Section 5-10 of the Illinois Administrative
16Procedure Act does not apply to forms established by the
17Department for use under this Act; and (3) the provisions of
18Section 10-45 of the Illinois Administrative Procedure Act
19regarding proposals for decision are excluded and not
20applicable to the Department under this Act to the extent
21Section 10-45 applies to hearings not otherwise subject to the
22Illinois Independent Tax Tribunal Act of 2012.
23(Source: P.A. 88-45.)
 
24    (35 ILCS 520/26)  (from Ch. 120, par. 2176)

 

 

09700HB5192ham001- 153 -LRB097 18915 HLH 69637 a

1    Sec. 26. Administrative Review. Except as otherwise
2provided in this Section, the The provisions of the
3Administrative Review Law, and the rules adopted pursuant
4thereto, shall apply to and govern all proceedings for the
5judicial review of final administrative decisions of the
6Department under this Act. The term "administrative decision"
7is defined as in Section 3-101 of the Code of Civil Procedure.
8The provisions of Section 12 of the Retailers' Occupation Tax
9Act shall apply to dealers subject to this Act to the same
10extent as if such provisions were included herein.
11    Notwithstanding any other provision of law, the provisions
12of the Illinois Independent Tax Tribunal Act of 2012, and the
13rules adopted pursuant thereto, shall apply to and govern
14judicial review of final administrative decisions that are
15subject to the Illinois Independent Tax Tribunal Act of 2012.
16(Source: P.A. 86-380.)
 
17    Section 5-80. The Gas Revenue Tax Act is amended by
18changing Sections 8, 10, 12, and 12c as follows:
 
19    (35 ILCS 615/8)  (from Ch. 120, par. 467.23)
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

 

 

09700HB5192ham001- 154 -LRB097 18915 HLH 69637 a

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. 198.)
 
22    (35 ILCS 615/10)  (from Ch. 120, par. 467.25)
23    Sec. 10. The Department or any officer or employee of the
24Department designated, in writing, by the Director thereof,
25shall at its or his or her own instance, or on the written

 

 

09700HB5192ham001- 155 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 156 -LRB097 18915 HLH 69637 a

1authorized by this Act, by an attachment for contempt, or
2otherwise, in the same manner as production of evidence may be
3compelled before the court.
4    The Department or any officer or employee thereof, or any
5party in an investigation or hearing before the Department, may
6cause the depositions of witnesses residing within or without
7the State to be taken in the manner prescribed by law for like
8depositions in civil actions in courts of this State, and, to
9that end, compel the attendance of witnesses and the production
10of books, papers, records or memoranda.
11    Notwithstanding any other provision of law, the provisions
12of the Illinois Independent Tax Tribunal Act of 2012, and the
13rules adopted pursuant thereto, shall apply to and govern
14judicial review of final administrative decisions that are
15subject to the Illinois Independent Tax Tribunal Act of 2012.
16(Source: P.A. 83-334.)
 
17    (35 ILCS 615/12)  (from Ch. 120, par. 467.27)
18    Sec. 12. The Circuit Court of the county wherein a hearing
19is held shall have power to review all final administrative
20decisions of the Department in administering the provisions of
21this Act: Provided that if the administrative proceeding which
22is to be reviewed judicially is a claim for refund proceeding
23commenced in accordance with Section 6 of this Act and Section
242a of "An Act in relation to the payment and disposition of
25moneys received by officers and employees of the State of

 

 

09700HB5192ham001- 157 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 158 -LRB097 18915 HLH 69637 a

1Department. The Department shall certify the record of its
2proceedings if the taxpayer shall pay to it the sum of 75 per
3page of testimony taken before the Department and 25 per page
4of all other matters contained in such record, except that
5these charges may be waived where the Department is satisfied
6that the aggrieved party is a poor person who cannot afford to
7pay such charges.
8    
9(Source: P.A. 83-342.)
 
10    (35 ILCS 615/12c)  (from Ch. 120, par. 467.27c)
11    Sec. 12c. 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.
25(Source: P.A. 88-45.)
 

 

 

09700HB5192ham001- 159 -LRB097 18915 HLH 69637 a

1    Section 5-85. The Public Utilities Revenue Act is amended
2by changing Sections 8, 12, and 12a as follows:
 
3    (35 ILCS 620/8)  (from Ch. 120, par. 475)
4    Sec. 8. For the purpose of administering and enforcing the
5provisions of this Act, the Department or any officer or
6employee of the Department designated, in writing, by the
7Director thereof, may hold investigations and, except for those
8matters reserved to the Illinois Independent Tax Tribunal, may
9hold hearings concerning any matters covered by this Act and
10may examine any books, papers, records or memoranda bearing
11upon the business transacted by any such taxpayer and may
12require the attendance of such taxpayer or any officer or
13employee of such taxpayer, or of any person having knowledge of
14such business, and may take testimony and require proof for its
15information. In the conduct of any investigation or hearing,
16neither the Department nor any officer or employee thereof
17shall be bound by the technical rules of evidence, and no
18informality in any proceeding, or in the manner of taking
19testimony, shall invalidate any order, decision, rule or
20regulation made or approved or confirmed by the Department. The
21Director or any officer or employee thereof shall have power to
22administer oaths to any such persons. The books, papers,
23records and memoranda of the Department, or parts thereof, may
24be proved in any hearing, investigation, or legal proceeding by

 

 

09700HB5192ham001- 160 -LRB097 18915 HLH 69637 a

1a reproduced copy thereof under the certificate of the
2Director. Such reproduced copy shall, without further proof, be
3admitted into evidence before the Department or in any legal
4proceeding.
5(Source: Laws 1965, p. 199.)
 
6    (35 ILCS 620/12)  (from Ch. 120, par. 479)
7    Sec. 12. The Department may make, promulgate and enforce
8such reasonable rules and regulations relating to the
9administration and enforcement of this Act as may be deemed
10expedient.
11    Whenever notice to a taxpayer is required by this Act, such
12notice may be given by United States certified or registered
13mail, addressed to the taxpayer concerned at his or her last
14known address, and proof of such mailing shall be sufficient
15for the purposes of this Act. In the case of a notice of
16hearing, such notice shall be mailed not less than 7 days prior
17to the day fixed for the hearing.
18    All hearings provided for in this Act with respect to a
19taxpayer having his or her principal place of business in any
20of the several counties of this State shall be held in the
21county wherein the taxpayer has his or her principal place of
22business. If the taxpayer does not have his or her principal
23place of business in this State, such hearings shall be held in
24Sangamon County.
25    Notwithstanding any other provision of law, all hearings

 

 

09700HB5192ham001- 161 -LRB097 18915 HLH 69637 a

1held before the Illinois Independent Tax Tribunal shall be held
2in accordance with the Illinois Independent Tax Tribunal Act of
32012.
4    Except with respect to matters under the jurisdiction of
5the Illinois Independent Tax Tribunal, the The Circuit Court of
6the county wherein a hearing is held shall have power to review
7all final administrative decisions of the Department in
8administering this Act. If, however, the administrative
9proceeding which is to be reviewed judicially is a claim for
10refund proceeding commenced in accordance with Section 6 of
11this Act and Section 2a of "An Act in relation to the payment
12and disposition of moneys received by officers and employees of
13the State of Illinois by virtue of their office or employment",
14approved June 9, 1911, as amended, the Circuit Court having
15jurisdiction of the action for judicial review under this
16Section and under the Administrative Review Law, as amended,
17shall be the same court that entered the temporary restraining
18order or preliminary injunction which is provided for in
19Section 2a of "An Act in relation to the payment and
20disposition of moneys received by officers and employees of the
21State of Illinois by virtue of their office or employment", and
22which enables such claim proceeding to be processed and
23disposed of as a claim for refund proceeding rather than as a
24claim for credit proceeding.
25    Except as otherwise provided in this Section, the The
26provisions of the Administrative Review Law, and the rules

 

 

09700HB5192ham001- 162 -LRB097 18915 HLH 69637 a

1adopted pursuant thereto, shall apply to and govern all
2proceedings for the judicial review of final administrative
3decisions of the Department under this Act. The term
4"administrative decision" is defined as in Section 3-101 of the
5Code of Civil Procedure.
6    Notwithstanding any other provision of law, the provisions
7of the Illinois Independent Tax Tribunal Act of 2012, and the
8rules adopted pursuant thereto, shall apply to and govern
9judicial review of final administrative decisions that are
10subject to the Illinois Independent Tax Tribunal Act of 2012.
11    Service upon the Director or Assistant Director of the
12Department of Revenue of summons issued in any action to review
13a final administrative decision is service upon the Department.
14The Department shall certify the record of its proceedings if
15the taxpayer pays to it the sum of 75 per page of testimony
16taken before the Department and 25 per page of all other
17matters contained in such record, except that these charges may
18be waived where the Department is satisfied that the aggrieved
19party is a poor person who cannot afford to pay such charges.
20    Whenever any proceeding provided by this Act is begun by
21the Department or by a person subject thereto and such person
22thereafter dies or becomes a person under legal disability
23before such proceeding is concluded, the legal representative
24of the deceased or the person under legal disability shall
25notify the Department of such death or legal disability. Such
26legal representative, as such, shall then be substituted by the

 

 

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1Department for such person. Within 20 days after notice to the
2legal representative of the time fixed for that purpose, the
3proceeding may go forward in all respects and with like effect
4as though the person had not died or become a person under
5legal disability.
6(Source: P.A. 83-342.)
 
7    (35 ILCS 620/12a)  (from Ch. 120, par. 479a)
8    Sec. 12a. 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 subject to the
21Illinois Independent Tax Tribunal Act of 2012.
22(Source: P.A. 88-45.)
 
23    Section 5-90. The Water Company Invested Capital Tax Act is
24amended by changing Sections 8, 10, 12, and 14 as follows:
 

 

 

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1    (35 ILCS 625/8)  (from Ch. 120, par. 1418)
2    Sec. 8. For the purpose of administering and enforcing the
3provisions of this Act, the Department or any officer or
4employee of the Department designated, in writing, by the
5Director thereof, may hold investigations and, except for those
6matters reserved to the Illinois Independent Tax Tribunal, may
7hold hearings concerning any matters covered by this Act and
8may examine any books, papers, records or memoranda bearing
9upon the business transacted by any such taxpayer and may
10require the attendance of such taxpayer or any officer or
11employee of such taxpayer, or of any person having knowledge of
12such business, and may take testimony and require proof for its
13information. In the conduct of any investigation or hearing,
14neither the Department nor any officer or employee thereof
15shall be bound by the technical rules of evidence, and no
16informality in any proceeding, or in the manner of taking
17testimony, shall invalidate any order, decision, rule or
18regulation made or approved or confirmed by the Department. The
19Director or any officer or employee thereof shall have power to
20administer oaths to any such persons. The books, papers,
21records and memoranda of the Department, or parts thereof, may
22be proved in any hearing, investigation, or legal proceeding by
23a reproduced copy thereof under the certificate of the
24Director. Such reproduced copy shall, without further proof, be
25admitted into evidence before the Department or in any legal

 

 

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1proceeding.
2(Source: P.A. 82-274.)
 
3    (35 ILCS 625/10)  (from Ch. 120, par. 1420)
4    Sec. 10. The Department or any officer or employee of the
5Department designated, in writing, by the Director thereof,
6shall at its or his own instance, or on the written request of
7any party to the proceeding, issue subpoenas requiring the
8attendance of and the giving of testimony by witnesses, and
9subpoenas duces tecum requiring the production of books,
10papers, records or memoranda. All subpoenas issued under this
11Act may be served by any person of full age. The fees of
12witnesses for attendance and travel shall be the same as the
13fees of witnesses before the Circuit Court of this State; such
14fees are to be paid when the witness is excused from further
15attendance. When the witness is subpoenaed at the instance of
16the Department or any officer or employee thereof, such fees
17shall be paid in the same manner as other expenses of the
18Department, and when the witness is subpoenaed at the instance
19of any taxpayer to any such proceeding the Department may
20require that the cost of service of the subpoena and the fee of
21the witness be borne by the taxpayer at whose instance the
22witness is summoned. In such case, the Department, in its
23discretion, may require a deposit to cover the cost of such
24service and witness fees. A subpoena issued as aforesaid shall
25be served in the same manner as a subpoena issued out of a

 

 

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1court.
2    Any Circuit Court of this State, or any judge thereof, upon
3the application of the Department or any officer or employee
4thereof may, in its or his discretion, compel the attendance of
5witnesses, the production of books, papers, records or
6memoranda and the giving of testimony before the Department or
7any officer or employee thereof conducting an investigation or
8holding a hearing authorized by this Act, by an attachment for
9contempt, or otherwise, in the same manner as production of
10evidence may be compelled before the court.
11    The Department or any officer or employee thereof, or any
12party in an investigation or hearing before the Department, may
13cause the depositions of witnesses residing within or without
14the State to be taken in the manner prescribed by law for like
15depositions in civil actions in courts of this State, and, to
16that end, compel the attendance of witnesses and the production
17of books, papers, records or memoranda.
18    Hearings before the Illinois Independent Tax Tribunal
19shall be conducted pursuant to the provisions of the Illinois
20Independent Tax Tribunal Act of 2012.
21(Source: P.A. 82-274.)
 
22    (35 ILCS 625/12)  (from Ch. 120, par. 1422)
23    Sec. 12. Except as otherwise provided in this Section with
24respect to the Illinois Independent Tax Tribunal, the The
25Circuit Court of the county wherein a hearing is held shall

 

 

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1have power to review all final administrative decisions of the
2Department in administering this Act. If, however, the
3administrative proceeding which is to be reviewed judicially is
4a claim for refund proceeding commenced in accordance with
5Section 6 of this Act and Section 2a of "An Act in relation to
6the payment and disposition of moneys received by officers and
7employees of the State of Illinois by virtue of their office or
8employment", approved June 9, 1911, as amended, the Circuit
9Court having jurisdiction of the action for judicial review
10under this Section and under the Administrative Review Law
11shall be the same court that entered the injunctive order which
12is provided for in Section 2a of "An Act in relation to the
13payment and disposition of moneys received by officers and
14employees of the State of Illinois by virtue of their office or
15employment", and which enables such claim proceeding to be
16processed and disposed of as a claim for refund proceeding
17rather than as a claim for credit proceeding.
18    Except as otherwise provided in this Section with respect
19to the Illinois Independent Tax Tribunal, the 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, approved August 19, 1981, as amended.
26    The provisions of the Illinois Independent Tax Tribunal Act

 

 

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1of 2012, and the rules adopted pursuant thereto, shall apply to
2and govern all proceedings for the judicial review of final
3administrative decisions of the Department that are subject to
4the jurisdiction of the Illinois Independent Tax Tribunal.
5    Service upon the Director or Assistant Director of the
6Department of Revenue of summons issued in any action to review
7a final administrative decision is service upon the Department.
8The Department shall certify the record of its proceedings if
9the taxpayer pays to it the sum of 75 per page of testimony
10taken before the Department and 25 per page of all other
11matters contained in such record, except that these charges may
12be waived where the Department is satisfied that the aggrieved
13party is a poor person who cannot afford to pay such charges.
14(Source: P.A. 84-548.)
 
15    (35 ILCS 625/14)  (from Ch. 120, par. 1424)
16    Sec. 14. The Illinois Administrative Procedure Act, as now
17or hereafter amended, is hereby expressly adopted and shall
18apply to all administrative rules and procedures of the
19Department of Revenue under this Act, except that (1) paragraph
20(b) of Section 5-10 of the that Act does not apply to final
21orders, decisions and opinions of the Department; (2)
22subparagraph 2 of paragraph (a) of Section 5-10 of that Act
23does not apply to forms established by the Department for use
24under this Act; and (3) the provisions of Section 10-45 of that
25Act regarding proposals for decision are excluded and not

 

 

09700HB5192ham001- 169 -LRB097 18915 HLH 69637 a

1applicable 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 5-100. The Telecommunications Excise Tax Act is
6amended by changing Sections 12, 16, and 18 as follows:
 
7    (35 ILCS 630/12)  (from Ch. 120, par. 2012)
8    Sec. 12. For the purpose of administering and enforcing the
9provisions of this Article, the Department or any officer or
10employee of the Department designated, in writing, by the
11Director thereof, may hold investigations and, except for
12matters otherwise reserved to the Illinois Independent Tax
13Tribunal, may hold hearings concerning any matters covered by
14this Article and may examine any books, papers, records or
15memoranda bearing upon the business transacted or purchased by
16any such retailer or taxpayer and may require the attendance of
17such retailer or taxpayer or any officer or employee of such,
18or of any person having knowledge of such business, and may
19take testimony and require proof of its information. In the
20conduct of any investigation or hearing, neither the Department
21nor any officer or employee thereof shall be bound by the
22technical rules of evidence, and no informality in any
23proceeding, or in the manner of taking testimony, shall
24invalidate any order, decision, rule or regulation made or

 

 

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1approved or confirmed by the Department. The Director or any
2officer or employee thereof shall have power to administer
3oaths to any such persons. The books, papers, records and
4memoranda of the Department, or parts thereof, may be provided
5in any hearing, investigation or legal proceeding by a
6reproduced copy thereof under the certificate of the Director.
7Such reproduced copy shall, without further proof, be admitted
8into evidence before the Department or in any legal proceeding.
9(Source: P.A. 84-126.)
 
10    (35 ILCS 630/16)  (from Ch. 120, par. 2016)
11    Sec. 16. Except as otherwise provided in this Section with
12respect to the Illinois Independent Tax Tribunal, the The
13circuit court of any county wherein a hearing is held shall
14have power to review all final administrative decisions of the
15Department in administering the provision of this Article:
16Provided that if the administrative proceeding which is to be
17reviewed judicially is a claim for refund proceeding commenced
18under this Article and Section 2a of "An Act in relation to the
19payment and disposition of moneys received by officers and
20employees of the State of Illinois by virtue of their office or
21employment", approved June 9, 1911, as amended, the circuit
22court having jurisdiction of the action for judicial review
23under this Section and under the Administrative Review Law
24shall be the same court that entered the temporary restraining
25order or preliminary injunction which is provided for in

 

 

09700HB5192ham001- 171 -LRB097 18915 HLH 69637 a

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

 

 

09700HB5192ham001- 172 -LRB097 18915 HLH 69637 a

1that the aggrieved party is a poor person who cannot afford to
2pay such charges.
3(Source: P.A. 84-126.)
 
4    (35 ILCS 630/18)  (from Ch. 120, par. 2018)
5    Sec. 18. The Illinois Administrative Procedure Act is
6hereby expressly adopted and shall apply to all administrative
7rules and procedures of the Department of Revenue under this
8Article, except that: (1) paragraph (b) of Section 5-10 of the
9Illinois Administrative Procedure Act does not apply to final
10orders, decisions and opinions of the Department; (2)
11subparagraph (a)(2) of Section 5-10 of the Illinois
12Administrative Procedure Act does not apply to forms
13established by the Department for use under this Article; and
14(3) the provisions of Section 10-45 of the Illinois
15Administrative Procedure Act regarding proposals for decision
16are excluded and not applicable to the Department under this
17Article to the extent Section 10-45 applies to hearings not
18otherwise subject to the Illinois Independent Tax Tribunal Act
19of 2012.
20(Source: P.A. 88-45.)
 
21    Section 5-105. The Telecommunications Infrastructure
22Maintenance Fee Act is amended by changing Sections 27.10,
2327.30, and 27.40 as follows:
 

 

 

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1    (35 ILCS 635/27.10)
2    Sec. 27.10. Investigations and hearings. For the purpose of
3administering and enforcing the provisions of this Act, the
4Department or any officer or employee of the Department
5designated, in writing, by the Director thereof, may hold
6investigations and, except for matters otherwise reserved to
7the Illinois Independent Tax Tribunal, may hold hearings
8concerning any matters covered by this Act and may examine any
9books, papers, records, or memoranda bearing upon the business
10transacted by any such telecommunications retailer and may
11require the attendance of such telecommunications retailer or
12any officer or employee of such telecommunications retailer, or
13of any person having knowledge of such business, and may take
14testimony and require proof for its information. In the conduct
15of any investigation or hearing, neither the Department nor any
16officer or employee thereof shall be bound by the technical
17rules of evidence, and no informality in any proceeding, or in
18the manner of taking testimony, shall invalidate any order,
19decision, rule, or regulation made, approved, or confirmed by
20the Department. The Director or any officer or employee thereof
21shall have power to administer oaths to any such persons. The
22books, papers, records, and memoranda of the Department, or
23parts thereof, may be proved in any hearing, investigation, or
24legal proceeding by a reproduced copy thereof under the
25certificate of the Director. Such reproduced copy shall without
26further proof, be admitted into evidence before the Department

 

 

09700HB5192ham001- 174 -LRB097 18915 HLH 69637 a

1or in any legal proceeding.
2(Source: P.A. 90-562, eff. 12-16-97.)
 
3    (35 ILCS 635/27.30)
4    Sec. 27.30. Review under Administrative Review Law. The
5Circuit Court of the county wherein a hearing is held shall
6have power to review all final administrative decisions of the
7Department in administering the provisions of this Act:
8Provided that if the administrative proceeding that is to be
9reviewed judicially is a claim for refund proceeding commenced
10in accordance with this Act and Section 2a of the State
11Officers and Employees Money Disposition Act, the Circuit Court
12having jurisdiction of the action for judicial review under
13this Section and under the Administrative Review Law shall be
14the same court that entered the temporary restraining order or
15preliminary injunction that is provided for in Section 2a of
16the State Officers and Employees Money Disposition Act and that
17enables such claim proceeding to be processed and disposed of
18as a claim for refund proceeding rather than as a claim for
19credit proceeding.
20    Except as otherwise provided in this Section with respect
21to the Illinois Independent Tax Tribunal, the The provisions of
22the Administrative Review Law, and the rules adopted pursuant
23thereto, shall apply to and govern all proceedings for the
24judicial review of final administrative decisions of the
25Department hereunder. The term "administrative decision" is

 

 

09700HB5192ham001- 175 -LRB097 18915 HLH 69637 a

1defined as in Section 3-101 of the Code of Civil Procedure.
2    The provisions of the Illinois Independent Tax Tribunal
3Act, and the rules adopted pursuant thereto, shall apply to and
4govern all proceedings for the judicial review of final
5administrative decisions of the Department that are subject to
6the jurisdiction of the Illinois Independent Tax Tribunal.
7    Service upon the Director or Assistant Director of the
8Department of Revenue of summons issued in any action to review
9a final administrative decision shall be service upon the
10Department. The Department shall certify the record of its
11proceedings if the telecommunications retailer shall pay to it
12the sum of 75 per page of testimony taken before the
13Department and 25 per page of all other matters contained in
14such record, except that these charges may be waived where the
15Department is satisfied that the aggrieved party is a poor
16person who cannot afford to pay such charges.
17(Source: P.A. 90-562, eff. 12-16-97.)
 
18    (35 ILCS 635/27.40)
19    Sec. 27.40. Application of Illinois Administrative
20Procedure Act. The Illinois Administrative Procedure Act is
21hereby expressly adopted and shall apply to all administrative
22rules and procedures of the Department of Revenue under this
23Act, except that (i) paragraph (b) of Section 5-10 of the
24Administrative Procedure Act does not apply to final orders,
25decisions, and opinions of the Department, (ii) subparagraph

 

 

09700HB5192ham001- 176 -LRB097 18915 HLH 69637 a

1(a)(ii) of Section 5-10 of the Administrative Procedure Act
2does not apply to forms established by the Department for use
3under this Act, and (iii) the provisions of Section 10-45 of
4the Administrative Procedure Act regarding proposals for
5decision are excluded and not applicable to the Department
6under this Act to the extent Section 10-45 applies to hearings
7not otherwise subject to the Illinois Independent Tax Tribunal
8Act.
9(Source: P.A. 90-562, eff. 12-16-97.)
 
10    Section 5-110. The Electricity Excise Tax Law is amended by
11changing Sections 2-14 and 2-15 as follows:
 
12    (35 ILCS 640/2-14)
13    Sec. 2-14. Rules and regulations; hearing; review under
14Administrative Review Law; death or incompetency of party. The
15Department may make, promulgate and enforce such reasonable
16rules and regulations relating to the administration and
17enforcement of this Law as may be deemed expedient.
18    Whenever notice to a purchaser or to a delivering supplier
19is required by this Law, such notice may be personally served
20or given by United States certified or registered mail,
21addressed to the purchaser or delivering supplier concerned at
22his or her last known address, and proof of such mailing shall
23be sufficient for the purposes of this Law. In the case of a
24notice of hearing, the notice shall be mailed not less than 21

 

 

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1days prior to the date fixed for the hearing.
2    All hearings provided for in this Law with respect to a
3purchaser or to a delivering supplier having its principal
4address or principal place of business in any of the several
5counties of this State shall be held in the county wherein the
6purchaser or delivering supplier has its principal address or
7principal place of business. If the purchaser or delivering
8supplier does not have its principal address or principal place
9of business in this State, such hearings shall be held in
10Sangamon County. Except as otherwise provided in this Section
11with respect to the Illinois Independent Tax Tribunal, the The
12Circuit Court of any county wherein a hearing is held shall
13have power to review all final administrative decisions of the
14Department in administering the provisions of this Law. If,
15however, the administrative proceeding which is to be reviewed
16judicially is a claim for refund proceeding commenced in
17accordance with this Law and Section 2a of the State Officers
18and Employees Money Disposition Act, the Circuit Court having
19jurisdiction of the action for judicial review under this
20Section and under the Administrative Review Law shall be the
21same court that entered the temporary restraining order or
22preliminary injunction which is provided for in Section 2a of
23the State Officers and Employees Money Disposition Act and
24which enables such claim proceeding to be processed and
25disposed of as a claim for refund proceeding rather than as a
26claim for credit proceeding.

 

 

09700HB5192ham001- 178 -LRB097 18915 HLH 69637 a

1    Except as otherwise provided with respect to the Illinois
2Independent Tax Tribunal, the The provisions of the
3Administrative Review Law, and the rules adopted pursuant
4thereto, shall apply to and govern all proceedings for the
5judicial review of final administrative decisions of the
6Department hereunder. The term "administrative decision" is
7defined as in Section 3-101 of the Code of Civil Procedure.
8    The provisions of the Illinois Independent Tax Tribunal
9Act, and the rules adopted pursuant thereto, shall apply to and
10govern all proceedings for the judicial review of final
11administrative decisions of the Department that are subject to
12the jurisdiction of the Illinois Independent Tax Tribunal.
13    Service upon the Director or Assistant Director of the
14Department of Revenue of summons issued in any action to review
15a final administrative decision is service upon the Department.
16The Department shall certify the record of its proceedings if
17the person commencing such action shall pay to it the sum of 75
18cents per page of testimony taken before the Department and 25
19cents per page of all other matters contained in such record,
20except that these charges may be waived where the Department is
21satisfied that the aggrieved party is a poor person who cannot
22afford to pay such charges.
23    Whenever any proceeding provided by this Law has been begun
24by the Department or by a person subject thereto and such
25person thereafter dies or becomes a person under legal
26disability before the proceeding has been concluded, the legal

 

 

09700HB5192ham001- 179 -LRB097 18915 HLH 69637 a

1representative of the deceased person or a person under legal
2disability shall notify the Department of such death or legal
3disability. The legal representative, as such, shall then be
4substituted by the Department in place of and for the person.
5    Within 20 days after notice to the legal representative of
6the time fixed for that purpose, the proceeding may proceed in
7all respects and with like effect as though the person had not
8died or become a person under legal disability.
9(Source: P.A. 90-561, eff. 8-1-98.)
 
10    (35 ILCS 640/2-15)
11    Sec. 2-15. Illinois Administrative Procedure Act;
12application. The Illinois Administrative Procedure Act is
13hereby expressly adopted and shall apply to all administrative
14rules and procedures of the Department under this Law, except
15that: (1) paragraph (b) of Section 5-10 of the Illinois
16Administrative Procedure Act does not apply to final orders,
17decisions and opinions of the Department, (2) subparagraph
18(a)(ii) of Section 5-10 of the Illinois Administrative
19Procedure Act does not apply to forms established by the
20Department for use under this Law, and (3) the provisions of
21Section 10-45 of the Illinois Administrative Procedure Act
22regarding proposals for decision are excluded and not
23applicable to the Department under this Law to the extent
24Section 10-45 applies to hearings not otherwise subject to the
25Illinois Independent Tax Tribunal Act of 2012.

 

 

09700HB5192ham001- 180 -LRB097 18915 HLH 69637 a

1(Source: P.A. 90-561, eff. 8-1-98.)
 
2    Section 5-115. The Uniform Penalty and Interest Act is
3amended by changing Section 3-12 as follows:
 
4    (35 ILCS 735/3-12)
5    Sec. 3-12. Appeal options. The Department of Revenue shall
6include a statement of the appeal options available to the
7taxpayer, either by law or by departmental rule, for each
8penalty for late payment, penalty for failure to file a tax
9return on or before the due date for filing, and penalty for
10failure to file correct information returns. This Act is
11subject to the provisions of the Illinois Independent Tax
12Tribunal Act of 2012.
13(Source: P.A. 89-597, eff. 1-1-97.)
 
14    Section 5-120. The State Finance Act is amended by adding
15Section 5.811 as follows:
 
16    (30 ILCS 105/5.811 new)
17    Sec. 5.811. The Illinois Independent Tax Tribunal Fund.
 
18    (35 ILCS 1005/Act rep.)
19    Section 5-125. The Illinois Independent Tax Tribunal Act is
20repealed.
 

 

 

09700HB5192ham001- 181 -LRB097 18915 HLH 69637 a

1
Article 97. INSEVERABILITY

 
2    Section 97-997. Inseverability. The provisions of this Act
3are mutually dependent and inseverable. If any provision is
4held invalid, then the entire Act, including all new and
5amendatory provisions, is invalid.
 
6
Article 99. EFFECTIVE DATE

 
7    Section 99-999. Effective date. This Act takes effect upon
8becoming law.".