Sen. Michael Noland

Filed: 4/15/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2169

2    AMENDMENT NO. ______. Amend Senate Bill 2169 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Lottery Law is amended by adding
5Section 21.9 as follows:
 
6    (20 ILCS 1605/21.9 new)
7    Sec. 21.9. Special drawings to benefit Illinois Lottery
8scratch-off game beneficiary funds.
9    (a) The Department may, from time to time, designate
10specific lottery game drawings to benefit the various
11scratch-off game funds identified in Sections 21.5 through 21.8
12of this Act. Each special drawing designation shall be publicly
13announced by the Department in advance of the drawing date,
14along with the name of the fund that will benefit from the
15drawing and any special criteria for the transfer of moneys to
16the beneficiary fund, such as minimum sales or a net proceeds

 

 

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1threshold.
2    (b) Proceeds from specially designated drawings shall be
3deposited into the designated beneficiary fund for
4appropriation by the General Assembly for the same purposes and
5in accordance with the same requirements as outlined in
6Sections 21.5 through 21.8 of this Act.
 
7    Section 10. The Department of Revenue Law of the Civil
8Administrative Code of Illinois is amended by changing Section
92505-380 as follows:
 
10    (20 ILCS 2505/2505-380)  (was 20 ILCS 2505/39b47)
11    Sec. 2505-380. Revocation of or refusal to issue a
12certificate of registration, permit, or license.
13    (a) The Department has the power to refuse to issue or,
14after notice and an opportunity for a hearing, to revoke a
15certificate of registration, permit, or license issued or
16authorized to be issued by the Department if the applicant for
17or holder of the certificate of registration, permit, or
18license fails to file a return, or to pay the tax, fee,
19penalty, or interest shown in a filed return, or to pay any
20final assessment of tax, fee, penalty, or interest, as required
21by the tax or fee Act under which the certificate of
22registration, permit, or license is required or any other tax
23or fee Act administered by the Department.
24    (b) The Department may refuse to issue a certificate of

 

 

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1registration, permit, or license authorized to be issued by the
2Department if a person who is named as the owner, a partner, a
3corporate officer, or, in the case of a limited liability
4company, a manager or member, of the applicant on the
5application for the certificate of registration, permit or
6license, is or has been named as the owner, a partner, a
7corporate officer, or in the case of a limited liability
8company, a manager or member, on the application for the
9certificate of registration, permit, or license of a person
10that is in default for moneys due under the tax or fee Act upon
11which the certificate of registration, permit, or license is
12required or any other tax or fee Act administered by the
13Department. For purposes of this Section only, in determining
14whether a person is in default for moneys due, the Department
15shall include only amounts established as a final liability
16within the 20 years prior to the date of the Department's
17notice of refusal to issue the certificate of registration,
18permit, or license. For purposes of this Section, "person"
19means any natural individual, firm, partnership, association,
20joint stock company, joint adventure, public or private
21corporation, limited liability company, or a receiver,
22executor, trustee, guardian or other representative appointed
23by order of any court.
24    (c) When revoking or refusing to issue a certificate of
25registration, permit, or license issued by the Department, the
26The procedure for notice and hearing used shall be the

 

 

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1procedure prior to revocation shall be as provided under the
2Act pursuant to which the certificate of registration, permit,
3or license was issued.
4(Source: P.A. 91-239, eff. 1-1-00.)
 
5    Section 15. The State Finance Act is amended by changing
6Section 13.3 as follows:
 
7    (30 ILCS 105/13.3)  (from Ch. 127, par. 149.3)
8    Sec. 13.3. Petty cash funds; purchasing cards.
9    (a) Any State agency may establish and maintain petty cash
10funds for the purpose of making change, purchasing items of
11small cost, payment of postage due, and for other nominal
12expenditures which cannot be administered economically and
13efficiently through customary procurement practices.
14    Petty cash funds may be established and maintained from
15moneys which are appropriated to the agency for Contractual
16Services. In the case of an agency which receives a single
17appropriation for its ordinary and contingent expenses, the
18agency may establish a petty cash fund from the appropriated
19funds.
20    Before the establishment of any petty cash fund, the agency
21shall submit to the State Comptroller a survey of the need for
22the fund. The survey shall also establish that sufficient
23internal accounting controls exist. The Comptroller shall
24investigate such need and if he determines that it exists and

 

 

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1that adequate accounting controls exist, shall approve the
2establishment of the fund. The Comptroller shall have the power
3to revoke any approval previously made under this Section.
4    Petty cash funds established under this Section shall be
5operated and maintained on the imprest system and no fund shall
6exceed $1,000, except that the Department of Revenue may
7maintain a fund not exceeding $2,000 for each Department of
8Revenue facility and the Secretary of State may maintain a fund
9of not exceeding $2,000 for each Chicago Motor Vehicle
10Facility, each Springfield Public Service Facility, and the
11Motor Vehicle Facilities in Champaign, Decatur, Marion,
12Naperville, Peoria, Rockford, Granite City, Quincy, and
13Carbondale, to be used solely for the purpose of making change.
14Except for purchases made by procurement card as provided in
15subsection (b) of this Section, single transactions shall be
16limited to amounts less than $50, and all transactions
17occurring in the fund shall be reported and accounted for as
18may be provided in the uniform accounting system developed by
19the State Comptroller and the rules and regulations
20implementing that accounting system. All amounts in any such
21fund of less than $1,000 but over $100 shall be kept in a
22checking account in a bank, or savings and loan association or
23trust company which is insured by the United States government
24or any agency of the United States government, except that in
25funds maintained in each Department of Revenue Facility,
26Chicago Motor Vehicle Facilities, each Springfield Public

 

 

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1Service Facility, and the Motor Vehicle Facilities in
2Champaign, Decatur, Marion, Naperville, Peoria, Rockford,
3Granite City, Quincy, and Carbondale, all amounts in the fund
4may be retained on the premises of such facilities.
5    No bank or savings and loan association shall receive
6public funds as permitted by this Section, unless it has
7complied with the requirements established pursuant to Section
86 of "An Act relating to certain investments of public funds by
9public agencies", approved July 23, 1943, as now or hereafter
10amended.
11    An internal audit shall be performed of any petty cash fund
12which receives reimbursements of more than $5,000 in a fiscal
13year.
14    Upon succession in the custodianship of any petty cash
15fund, both the former and successor custodians shall sign a
16statement, in triplicate, showing the exact status of the fund
17at the time of the transfer. The original copy shall be kept on
18file in the office wherein the fund exists, and each signer
19shall be entitled to retain one copy.
20    (b) The Comptroller may provide by rule for the use of
21purchasing cards by State agencies to pay for purchases that
22otherwise may be paid out of the agency's petty cash fund. Any
23rule adopted hereunder shall impose a single transaction limit,
24which shall not be greater than $500.
25    The rules of the Comptroller may include but shall not be
26limited to:

 

 

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1        (1) standards for the issuance of purchasing cards to
2    State agencies based upon the best interests of the State;
3        (2) procedures for recording purchasing card
4    transactions within the State accounting system, which may
5    provide for summary reporting;
6        (3) procedures for auditing purchasing card
7    transactions on a post-payment basis;
8        (4) standards for awarding contracts with a purchasing
9    card vendor to acquire purchasing cards for use by State
10    agencies; and
11        (5) procedures for the Comptroller to charge against
12    State agency appropriations for payment of purchasing card
13    expenditures without the use of the voucher and warrant
14    system.
15    (c) As used in this Section, "State agency" means any
16department, officer, authority, public corporation,
17quasi-public corporation, commission, board, institution,
18State college or university, or other public agency created by
19the State, other than units of local government and school
20districts.
21(Source: P.A. 90-33, eff. 6-27-97; 91-704, eff. 7-1-00.)
 
22    Section 20. The Illinois Income Tax Act is amended by
23changing Sections 303, 304, 701, 710, and 905 as follows:
 
24    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)

 

 

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1    Sec. 303. (a) In general. Any item of capital gain or loss,
2and any item of income from rents or royalties from real or
3tangible personal property, interest, dividends, and patent or
4copyright royalties, and prizes awarded under the Illinois
5Lottery Law, to the extent such item constitutes nonbusiness
6income, together with any item of deduction directly allocable
7thereto, shall be allocated by any person other than a resident
8as provided in this Section.
9    (b) Capital gains and losses.
10        (1) Real property. Capital gains and losses from sales
11    or exchanges of real property are allocable to this State
12    if the property is located in this State.
13        (2) Tangible personal property. Capital gains and
14    losses from sales or exchanges of tangible personal
15    property are allocable to this State if, at the time of
16    such sale or exchange:
17            (A) The property had its situs in this State; or
18            (B) The taxpayer had its commercial domicile in
19        this State and was not taxable in the state in which
20        the property had its situs.
21        (3) Intangibles. Capital gains and losses from sales or
22    exchanges of intangible personal property are allocable to
23    this State if the taxpayer had its commercial domicile in
24    this State at the time of such sale or exchange.
25    (c) Rents and royalties.
26        (1) Real property. Rents and royalties from real

 

 

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1    property are allocable to this State if the property is
2    located in this State.
3        (2) Tangible personal property. Rents and royalties
4    from tangible personal property are allocable to this
5    State:
6            (A) If and to the extent that the property is
7        utilized in this State; or
8            (B) In their entirety if, at the time such rents or
9        royalties were paid or accrued, the taxpayer had its
10        commercial domicile in this State and was not organized
11        under the laws of or taxable with respect to such rents
12        or royalties in the state in which the property was
13        utilized. The extent of utilization of tangible
14        personal property in a state is determined by
15        multiplying the rents or royalties derived from such
16        property by a fraction, the numerator of which is the
17        number of days of physical location of the property in
18        the state during the rental or royalty period in the
19        taxable year and the denominator of which is the number
20        of days of physical location of the property everywhere
21        during all rental or royalty periods in the taxable
22        year. If the physical location of the property during
23        the rental or royalty period is unknown or
24        unascertainable by the taxpayer, tangible personal
25        property is utilized in the state in which the property
26        was located at the time the rental or royalty payer

 

 

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1        obtained possession.
2    (d) Patent and copyright royalties.
3        (1) Allocation. Patent and copyright royalties are
4    allocable to this State:
5            (A) If and to the extent that the patent or
6        copyright is utilized by the payer in this State; or
7            (B) If and to the extent that the patent or
8        copyright is utilized by the payer in a state in which
9        the taxpayer is not taxable with respect to such
10        royalties and, at the time such royalties were paid or
11        accrued, the taxpayer had its commercial domicile in
12        this State.
13        (2) Utilization.
14            (A) A patent is utilized in a state to the extent
15        that it is employed in production, fabrication,
16        manufacturing or other processing in the state or to
17        the extent that a patented product is produced in the
18        state. If the basis of receipts from patent royalties
19        does not permit allocation to states or if the
20        accounting procedures do not reflect states of
21        utilization, the patent is utilized in this State if
22        the taxpayer has its commercial domicile in this State.
23            (B) A copyright is utilized in a state to the
24        extent that printing or other publication originates
25        in the state. If the basis of receipts from copyright
26        royalties does not permit allocation to states or if

 

 

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1        the accounting procedures do not reflect states of
2        utilization, the copyright is utilized in this State if
3        the taxpayer has its commercial domicile in this State.
4    (e) Illinois lottery prizes. Prizes awarded under the
5Illinois Lottery Law "Illinois Lottery Law", approved December
614, 1973, are allocable to this State. Payments received in
7taxable years ending on or after December 31, 2013, from the
8assignment of a prize under Section 13.1 of the Illinois
9Lottery Law are allocable to this State.
10    (e-5) Unemployment benefits. Unemployment benefits paid by
11the Illinois Department of Employment Security are allocable to
12this State.
13    (f) Taxability in other state. For purposes of allocation
14of income pursuant to this Section, a taxpayer is taxable in
15another state if:
16        (1) In that state he is subject to a net income tax, a
17    franchise tax measured by net income, a franchise tax for
18    the privilege of doing business, or a corporate stock tax;
19    or
20        (2) That state has jurisdiction to subject the taxpayer
21    to a net income tax regardless of whether, in fact, the
22    state does or does not.
23    (g) Cross references.
24        (1) For allocation of interest and dividends by persons
25    other than residents, see Section 301(c)(2).
26        (2) For allocation of nonbusiness income by residents,

 

 

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1    see Section 301(a).
2(Source: P.A. 97-709, eff. 7-1-12.)
 
3    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
4    Sec. 304. Business income of persons other than residents.
5    (a) In general. The business income of a person other than
6a resident shall be allocated to this State if such person's
7business income is derived solely from this State. If a person
8other than a resident derives business income from this State
9and one or more other states, then, for tax years ending on or
10before December 30, 1998, and except as otherwise provided by
11this Section, such person's business income shall be
12apportioned to this State by multiplying the income by a
13fraction, the numerator of which is the sum of the property
14factor (if any), the payroll factor (if any) and 200% of the
15sales factor (if any), and the denominator of which is 4
16reduced by the number of factors other than the sales factor
17which have a denominator of zero and by an additional 2 if the
18sales factor has a denominator of zero. For tax years ending on
19or after December 31, 1998, and except as otherwise provided by
20this Section, persons other than residents who derive business
21income from this State and one or more other states shall
22compute their apportionment factor by weighting their
23property, payroll, and sales factors as provided in subsection
24(h) of this Section.
25    (1) Property factor.

 

 

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1        (A) The property factor is a fraction, the numerator of
2    which is the average value of the person's real and
3    tangible personal property owned or rented and used in the
4    trade or business in this State during the taxable year and
5    the denominator of which is the average value of all the
6    person's real and tangible personal property owned or
7    rented and used in the trade or business during the taxable
8    year.
9        (B) Property owned by the person is valued at its
10    original cost. Property rented by the person is valued at 8
11    times the net annual rental rate. Net annual rental rate is
12    the annual rental rate paid by the person less any annual
13    rental rate received by the person from sub-rentals.
14        (C) The average value of property shall be determined
15    by averaging the values at the beginning and ending of the
16    taxable year but the Director may require the averaging of
17    monthly values during the taxable year if reasonably
18    required to reflect properly the average value of the
19    person's property.
20    (2) Payroll factor.
21        (A) The payroll factor is a fraction, the numerator of
22    which is the total amount paid in this State during the
23    taxable year by the person for compensation, and the
24    denominator of which is the total compensation paid
25    everywhere during the taxable year.
26        (B) Compensation is paid in this State if:

 

 

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1            (i) The individual's service is performed entirely
2        within this State;
3            (ii) The individual's service is performed both
4        within and without this State, but the service
5        performed without this State is incidental to the
6        individual's service performed within this State; or
7            (iii) Some of the service is performed within this
8        State and either the base of operations, or if there is
9        no base of operations, the place from which the service
10        is directed or controlled is within this State, or the
11        base of operations or the place from which the service
12        is directed or controlled is not in any state in which
13        some part of the service is performed, but the
14        individual's residence is in this State.
15            (iv) Compensation paid to nonresident professional
16        athletes.
17            (a) General. The Illinois source income of a
18        nonresident individual who is a member of a
19        professional athletic team includes the portion of the
20        individual's total compensation for services performed
21        as a member of a professional athletic team during the
22        taxable year which the number of duty days spent within
23        this State performing services for the team in any
24        manner during the taxable year bears to the total
25        number of duty days spent both within and without this
26        State during the taxable year.

 

 

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1            (b) Travel days. Travel days that do not involve
2        either a game, practice, team meeting, or other similar
3        team event are not considered duty days spent in this
4        State. However, such travel days are considered in the
5        total duty days spent both within and without this
6        State.
7            (c) Definitions. For purposes of this subpart
8        (iv):
9                (1) The term "professional athletic team"
10            includes, but is not limited to, any professional
11            baseball, basketball, football, soccer, or hockey
12            team.
13                (2) The term "member of a professional
14            athletic team" includes those employees who are
15            active players, players on the disabled list, and
16            any other persons required to travel and who travel
17            with and perform services on behalf of a
18            professional athletic team on a regular basis.
19            This includes, but is not limited to, coaches,
20            managers, and trainers.
21                (3) Except as provided in items (C) and (D) of
22            this subpart (3), the term "duty days" means all
23            days during the taxable year from the beginning of
24            the professional athletic team's official
25            pre-season training period through the last game
26            in which the team competes or is scheduled to

 

 

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1            compete. Duty days shall be counted for the year in
2            which they occur, including where a team's
3            official pre-season training period through the
4            last game in which the team competes or is
5            scheduled to compete, occurs during more than one
6            tax year.
7                    (A) Duty days shall also include days on
8                which a member of a professional athletic team
9                performs service for a team on a date that does
10                not fall within the foregoing period (e.g.,
11                participation in instructional leagues, the
12                "All Star Game", or promotional "caravans").
13                Performing a service for a professional
14                athletic team includes conducting training and
15                rehabilitation activities, when such
16                activities are conducted at team facilities.
17                    (B) Also included in duty days are game
18                days, practice days, days spent at team
19                meetings, promotional caravans, preseason
20                training camps, and days served with the team
21                through all post-season games in which the team
22                competes or is scheduled to compete.
23                    (C) Duty days for any person who joins a
24                team during the period from the beginning of
25                the professional athletic team's official
26                pre-season training period through the last

 

 

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1                game in which the team competes, or is
2                scheduled to compete, shall begin on the day
3                that person joins the team. Conversely, duty
4                days for any person who leaves a team during
5                this period shall end on the day that person
6                leaves the team. Where a person switches teams
7                during a taxable year, a separate duty-day
8                calculation shall be made for the period the
9                person was with each team.
10                    (D) Days for which a member of a
11                professional athletic team is not compensated
12                and is not performing services for the team in
13                any manner, including days when such member of
14                a professional athletic team has been
15                suspended without pay and prohibited from
16                performing any services for the team, shall not
17                be treated as duty days.
18                    (E) Days for which a member of a
19                professional athletic team is on the disabled
20                list and does not conduct rehabilitation
21                activities at facilities of the team, and is
22                not otherwise performing services for the team
23                in Illinois, shall not be considered duty days
24                spent in this State. All days on the disabled
25                list, however, are considered to be included in
26                total duty days spent both within and without

 

 

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1                this State.
2                (4) The term "total compensation for services
3            performed as a member of a professional athletic
4            team" means the total compensation received during
5            the taxable year for services performed:
6                    (A) from the beginning of the official
7                pre-season training period through the last
8                game in which the team competes or is scheduled
9                to compete during that taxable year; and
10                    (B) during the taxable year on a date which
11                does not fall within the foregoing period
12                (e.g., participation in instructional leagues,
13                the "All Star Game", or promotional caravans).
14                This compensation shall include, but is not
15            limited to, salaries, wages, bonuses as described
16            in this subpart, and any other type of compensation
17            paid during the taxable year to a member of a
18            professional athletic team for services performed
19            in that year. This compensation does not include
20            strike benefits, severance pay, termination pay,
21            contract or option year buy-out payments,
22            expansion or relocation payments, or any other
23            payments not related to services performed for the
24            team.
25                For purposes of this subparagraph, "bonuses"
26            included in "total compensation for services

 

 

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1            performed as a member of a professional athletic
2            team" subject to the allocation described in
3            Section 302(c)(1) are: bonuses earned as a result
4            of play (i.e., performance bonuses) during the
5            season, including bonuses paid for championship,
6            playoff or "bowl" games played by a team, or for
7            selection to all-star league or other honorary
8            positions; and bonuses paid for signing a
9            contract, unless the payment of the signing bonus
10            is not conditional upon the signee playing any
11            games for the team or performing any subsequent
12            services for the team or even making the team, the
13            signing bonus is payable separately from the
14            salary and any other compensation, and the signing
15            bonus is nonrefundable.
16    (3) Sales factor.
17        (A) The sales factor is a fraction, the numerator of
18    which is the total sales of the person in this State during
19    the taxable year, and the denominator of which is the total
20    sales of the person everywhere during the taxable year.
21        (B) Sales of tangible personal property are in this
22    State if:
23            (i) The property is delivered or shipped to a
24        purchaser, other than the United States government,
25        within this State regardless of the f. o. b. point or
26        other conditions of the sale; or

 

 

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1            (ii) The property is shipped from an office, store,
2        warehouse, factory or other place of storage in this
3        State and either the purchaser is the United States
4        government or the person is not taxable in the state of
5        the purchaser; provided, however, that premises owned
6        or leased by a person who has independently contracted
7        with the seller for the printing of newspapers,
8        periodicals or books shall not be deemed to be an
9        office, store, warehouse, factory or other place of
10        storage for purposes of this Section. Sales of tangible
11        personal property are not in this State if the seller
12        and purchaser would be members of the same unitary
13        business group but for the fact that either the seller
14        or purchaser is a person with 80% or more of total
15        business activity outside of the United States and the
16        property is purchased for resale.
17        (B-1) Patents, copyrights, trademarks, and similar
18    items of intangible personal property.
19            (i) Gross receipts from the licensing, sale, or
20        other disposition of a patent, copyright, trademark,
21        or similar item of intangible personal property, other
22        than gross receipts governed by paragraph (B-7) of this
23        item (3), are in this State to the extent the item is
24        utilized in this State during the year the gross
25        receipts are included in gross income.
26            (ii) Place of utilization.

 

 

09800SB2169sam001- 21 -LRB098 03935 HLH 44697 a

1                (I) A patent is utilized in a state to the
2            extent that it is employed in production,
3            fabrication, manufacturing, or other processing in
4            the state or to the extent that a patented product
5            is produced in the state. If a patent is utilized
6            in more than one state, the extent to which it is
7            utilized in any one state shall be a fraction equal
8            to the gross receipts of the licensee or purchaser
9            from sales or leases of items produced,
10            fabricated, manufactured, or processed within that
11            state using the patent and of patented items
12            produced within that state, divided by the total of
13            such gross receipts for all states in which the
14            patent is utilized.
15                (II) A copyright is utilized in a state to the
16            extent that printing or other publication
17            originates in the state. If a copyright is utilized
18            in more than one state, the extent to which it is
19            utilized in any one state shall be a fraction equal
20            to the gross receipts from sales or licenses of
21            materials printed or published in that state
22            divided by the total of such gross receipts for all
23            states in which the copyright is utilized.
24                (III) Trademarks and other items of intangible
25            personal property governed by this paragraph (B-1)
26            are utilized in the state in which the commercial

 

 

09800SB2169sam001- 22 -LRB098 03935 HLH 44697 a

1            domicile of the licensee or purchaser is located.
2            (iii) If the state of utilization of an item of
3        property governed by this paragraph (B-1) cannot be
4        determined from the taxpayer's books and records or
5        from the books and records of any person related to the
6        taxpayer within the meaning of Section 267(b) of the
7        Internal Revenue Code, 26 U.S.C. 267, the gross
8        receipts attributable to that item shall be excluded
9        from both the numerator and the denominator of the
10        sales factor.
11        (B-2) Gross receipts from the license, sale, or other
12    disposition of patents, copyrights, trademarks, and
13    similar items of intangible personal property, other than
14    gross receipts governed by paragraph (B-7) of this item
15    (3), may be included in the numerator or denominator of the
16    sales factor only if gross receipts from licenses, sales,
17    or other disposition of such items comprise more than 50%
18    of the taxpayer's total gross receipts included in gross
19    income during the tax year and during each of the 2
20    immediately preceding tax years; provided that, when a
21    taxpayer is a member of a unitary business group, such
22    determination shall be made on the basis of the gross
23    receipts of the entire unitary business group.
24        (B-5) For taxable years ending on or after December 31,
25    2008, except as provided in subsections (ii) through (vii),
26    receipts from the sale of telecommunications service or

 

 

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1    mobile telecommunications service are in this State if the
2    customer's service address is in this State.
3            (i) For purposes of this subparagraph (B-5), the
4        following terms have the following meanings:
5            "Ancillary services" means services that are
6        associated with or incidental to the provision of
7        "telecommunications services", including but not
8        limited to "detailed telecommunications billing",
9        "directory assistance", "vertical service", and "voice
10        mail services".
11            "Air-to-Ground Radiotelephone service" means a
12        radio service, as that term is defined in 47 CFR 22.99,
13        in which common carriers are authorized to offer and
14        provide radio telecommunications service for hire to
15        subscribers in aircraft.
16            "Call-by-call Basis" means any method of charging
17        for telecommunications services where the price is
18        measured by individual calls.
19            "Communications Channel" means a physical or
20        virtual path of communications over which signals are
21        transmitted between or among customer channel
22        termination points.
23            "Conference bridging service" means an "ancillary
24        service" that links two or more participants of an
25        audio or video conference call and may include the
26        provision of a telephone number. "Conference bridging

 

 

09800SB2169sam001- 24 -LRB098 03935 HLH 44697 a

1        service" does not include the "telecommunications
2        services" used to reach the conference bridge.
3            "Customer Channel Termination Point" means the
4        location where the customer either inputs or receives
5        the communications.
6            "Detailed telecommunications billing service"
7        means an "ancillary service" of separately stating
8        information pertaining to individual calls on a
9        customer's billing statement.
10            "Directory assistance" means an "ancillary
11        service" of providing telephone number information,
12        and/or address information.
13            "Home service provider" means the facilities based
14        carrier or reseller with which the customer contracts
15        for the provision of mobile telecommunications
16        services.
17            "Mobile telecommunications service" means
18        commercial mobile radio service, as defined in Section
19        20.3 of Title 47 of the Code of Federal Regulations as
20        in effect on June 1, 1999.
21            "Place of primary use" means the street address
22        representative of where the customer's use of the
23        telecommunications service primarily occurs, which
24        must be the residential street address or the primary
25        business street address of the customer. In the case of
26        mobile telecommunications services, "place of primary

 

 

09800SB2169sam001- 25 -LRB098 03935 HLH 44697 a

1        use" must be within the licensed service area of the
2        home service provider.
3            "Post-paid telecommunication service" means the
4        telecommunications service obtained by making a
5        payment on a call-by-call basis either through the use
6        of a credit card or payment mechanism such as a bank
7        card, travel card, credit card, or debit card, or by
8        charge made to a telephone number which is not
9        associated with the origination or termination of the
10        telecommunications service. A post-paid calling
11        service includes telecommunications service, except a
12        prepaid wireless calling service, that would be a
13        prepaid calling service except it is not exclusively a
14        telecommunication service.
15            "Prepaid telecommunication service" means the
16        right to access exclusively telecommunications
17        services, which must be paid for in advance and which
18        enables the origination of calls using an access number
19        or authorization code, whether manually or
20        electronically dialed, and that is sold in
21        predetermined units or dollars of which the number
22        declines with use in a known amount.
23            "Prepaid Mobile telecommunication service" means a
24        telecommunications service that provides the right to
25        utilize mobile wireless service as well as other
26        non-telecommunication services, including but not

 

 

09800SB2169sam001- 26 -LRB098 03935 HLH 44697 a

1        limited to ancillary services, which must be paid for
2        in advance that is sold in predetermined units or
3        dollars of which the number declines with use in a
4        known amount.
5            "Private communication service" means a
6        telecommunication service that entitles the customer
7        to exclusive or priority use of a communications
8        channel or group of channels between or among
9        termination points, regardless of the manner in which
10        such channel or channels are connected, and includes
11        switching capacity, extension lines, stations, and any
12        other associated services that are provided in
13        connection with the use of such channel or channels.
14            "Service address" means:
15                (a) The location of the telecommunications
16            equipment to which a customer's call is charged and
17            from which the call originates or terminates,
18            regardless of where the call is billed or paid;
19                (b) If the location in line (a) is not known,
20            service address means the origination point of the
21            signal of the telecommunications services first
22            identified by either the seller's
23            telecommunications system or in information
24            received by the seller from its service provider
25            where the system used to transport such signals is
26            not that of the seller; and

 

 

09800SB2169sam001- 27 -LRB098 03935 HLH 44697 a

1                (c) If the locations in line (a) and line (b)
2            are not known, the service address means the
3            location of the customer's place of primary use.
4            "Telecommunications service" means the electronic
5        transmission, conveyance, or routing of voice, data,
6        audio, video, or any other information or signals to a
7        point, or between or among points. The term
8        "telecommunications service" includes such
9        transmission, conveyance, or routing in which computer
10        processing applications are used to act on the form,
11        code or protocol of the content for purposes of
12        transmission, conveyance or routing without regard to
13        whether such service is referred to as voice over
14        Internet protocol services or is classified by the
15        Federal Communications Commission as enhanced or value
16        added. "Telecommunications service" does not include:
17                (a) Data processing and information services
18            that allow data to be generated, acquired, stored,
19            processed, or retrieved and delivered by an
20            electronic transmission to a purchaser when such
21            purchaser's primary purpose for the underlying
22            transaction is the processed data or information;
23                (b) Installation or maintenance of wiring or
24            equipment on a customer's premises;
25                (c) Tangible personal property;
26                (d) Advertising, including but not limited to

 

 

09800SB2169sam001- 28 -LRB098 03935 HLH 44697 a

1            directory advertising.
2                (e) Billing and collection services provided
3            to third parties;
4                (f) Internet access service;
5                (g) Radio and television audio and video
6            programming services, regardless of the medium,
7            including the furnishing of transmission,
8            conveyance and routing of such services by the
9            programming service provider. Radio and television
10            audio and video programming services shall include
11            but not be limited to cable service as defined in
12            47 USC 522(6) and audio and video programming
13            services delivered by commercial mobile radio
14            service providers, as defined in 47 CFR 20.3;
15                (h) "Ancillary services"; or
16                (i) Digital products "delivered
17            electronically", including but not limited to
18            software, music, video, reading materials or ring
19            tones.
20            "Vertical service" means an "ancillary service"
21        that is offered in connection with one or more
22        "telecommunications services", which offers advanced
23        calling features that allow customers to identify
24        callers and to manage multiple calls and call
25        connections, including "conference bridging services".
26            "Voice mail service" means an "ancillary service"

 

 

09800SB2169sam001- 29 -LRB098 03935 HLH 44697 a

1        that enables the customer to store, send or receive
2        recorded messages. "Voice mail service" does not
3        include any "vertical services" that the customer may
4        be required to have in order to utilize the "voice mail
5        service".
6            (ii) Receipts from the sale of telecommunications
7        service sold on an individual call-by-call basis are in
8        this State if either of the following applies:
9                (a) The call both originates and terminates in
10            this State.
11                (b) The call either originates or terminates
12            in this State and the service address is located in
13            this State.
14            (iii) Receipts from the sale of postpaid
15        telecommunications service at retail are in this State
16        if the origination point of the telecommunication
17        signal, as first identified by the service provider's
18        telecommunication system or as identified by
19        information received by the seller from its service
20        provider if the system used to transport
21        telecommunication signals is not the seller's, is
22        located in this State.
23            (iv) Receipts from the sale of prepaid
24        telecommunications service or prepaid mobile
25        telecommunications service at retail are in this State
26        if the purchaser obtains the prepaid card or similar

 

 

09800SB2169sam001- 30 -LRB098 03935 HLH 44697 a

1        means of conveyance at a location in this State.
2        Receipts from recharging a prepaid telecommunications
3        service or mobile telecommunications service is in
4        this State if the purchaser's billing information
5        indicates a location in this State.
6            (v) Receipts from the sale of private
7        communication services are in this State as follows:
8                (a) 100% of receipts from charges imposed at
9            each channel termination point in this State.
10                (b) 100% of receipts from charges for the total
11            channel mileage between each channel termination
12            point in this State.
13                (c) 50% of the total receipts from charges for
14            service segments when those segments are between 2
15            customer channel termination points, 1 of which is
16            located in this State and the other is located
17            outside of this State, which segments are
18            separately charged.
19                (d) The receipts from charges for service
20            segments with a channel termination point located
21            in this State and in two or more other states, and
22            which segments are not separately billed, are in
23            this State based on a percentage determined by
24            dividing the number of customer channel
25            termination points in this State by the total
26            number of customer channel termination points.

 

 

09800SB2169sam001- 31 -LRB098 03935 HLH 44697 a

1            (vi) Receipts from charges for ancillary services
2        for telecommunications service sold to customers at
3        retail are in this State if the customer's primary
4        place of use of telecommunications services associated
5        with those ancillary services is in this State. If the
6        seller of those ancillary services cannot determine
7        where the associated telecommunications are located,
8        then the ancillary services shall be based on the
9        location of the purchaser.
10            (vii) Receipts to access a carrier's network or
11        from the sale of telecommunication services or
12        ancillary services for resale are in this State as
13        follows:
14                (a) 100% of the receipts from access fees
15            attributable to intrastate telecommunications
16            service that both originates and terminates in
17            this State.
18                (b) 50% of the receipts from access fees
19            attributable to interstate telecommunications
20            service if the interstate call either originates
21            or terminates in this State.
22                (c) 100% of the receipts from interstate end
23            user access line charges, if the customer's
24            service address is in this State. As used in this
25            subdivision, "interstate end user access line
26            charges" includes, but is not limited to, the

 

 

09800SB2169sam001- 32 -LRB098 03935 HLH 44697 a

1            surcharge approved by the federal communications
2            commission and levied pursuant to 47 CFR 69.
3                (d) Gross receipts from sales of
4            telecommunication services or from ancillary
5            services for telecommunications services sold to
6            other telecommunication service providers for
7            resale shall be sourced to this State using the
8            apportionment concepts used for non-resale
9            receipts of telecommunications services if the
10            information is readily available to make that
11            determination. If the information is not readily
12            available, then the taxpayer may use any other
13            reasonable and consistent method.
14        (B-7) For taxable years ending on or after December 31,
15    2008, receipts from the sale of broadcasting services are
16    in this State if the broadcasting services are received in
17    this State. For purposes of this paragraph (B-7), the
18    following terms have the following meanings:
19            "Advertising revenue" means consideration received
20        by the taxpayer in exchange for broadcasting services
21        or allowing the broadcasting of commercials or
22        announcements in connection with the broadcasting of
23        film or radio programming, from sponsorships of the
24        programming, or from product placements in the
25        programming.
26            "Audience factor" means the ratio that the

 

 

09800SB2169sam001- 33 -LRB098 03935 HLH 44697 a

1        audience or subscribers located in this State of a
2        station, a network, or a cable system bears to the
3        total audience or total subscribers for that station,
4        network, or cable system. The audience factor for film
5        or radio programming shall be determined by reference
6        to the books and records of the taxpayer or by
7        reference to published rating statistics provided the
8        method used by the taxpayer is consistently used from
9        year to year for this purpose and fairly represents the
10        taxpayer's activity in this State.
11            "Broadcast" or "broadcasting" or "broadcasting
12        services" means the transmission or provision of film
13        or radio programming, whether through the public
14        airwaves, by cable, by direct or indirect satellite
15        transmission, or by any other means of communication,
16        either through a station, a network, or a cable system.
17            "Film" or "film programming" means the broadcast
18        on television of any and all performances, events, or
19        productions, including but not limited to news,
20        sporting events, plays, stories, or other literary,
21        commercial, educational, or artistic works, either
22        live or through the use of video tape, disc, or any
23        other type of format or medium. Each episode of a
24        series of films produced for television shall
25        constitute separate "film" notwithstanding that the
26        series relates to the same principal subject and is

 

 

09800SB2169sam001- 34 -LRB098 03935 HLH 44697 a

1        produced during one or more tax periods.
2            "Radio" or "radio programming" means the broadcast
3        on radio of any and all performances, events, or
4        productions, including but not limited to news,
5        sporting events, plays, stories, or other literary,
6        commercial, educational, or artistic works, either
7        live or through the use of an audio tape, disc, or any
8        other format or medium. Each episode in a series of
9        radio programming produced for radio broadcast shall
10        constitute a separate "radio programming"
11        notwithstanding that the series relates to the same
12        principal subject and is produced during one or more
13        tax periods.
14                (i) In the case of advertising revenue from
15            broadcasting, the customer is the advertiser and
16            the service is received in this State if the
17            commercial domicile of the advertiser is in this
18            State.
19                (ii) In the case where film or radio
20            programming is broadcast by a station, a network,
21            or a cable system for a fee or other remuneration
22            received from the recipient of the broadcast, the
23            portion of the service that is received in this
24            State is measured by the portion of the recipients
25            of the broadcast located in this State.
26            Accordingly, the fee or other remuneration for

 

 

09800SB2169sam001- 35 -LRB098 03935 HLH 44697 a

1            such service that is included in the Illinois
2            numerator of the sales factor is the total of those
3            fees or other remuneration received from
4            recipients in Illinois. For purposes of this
5            paragraph, a taxpayer may determine the location
6            of the recipients of its broadcast using the
7            address of the recipient shown in its contracts
8            with the recipient or using the billing address of
9            the recipient in the taxpayer's records.
10                (iii) In the case where film or radio
11            programming is broadcast by a station, a network,
12            or a cable system for a fee or other remuneration
13            from the person providing the programming, the
14            portion of the broadcast service that is received
15            by such station, network, or cable system in this
16            State is measured by the portion of recipients of
17            the broadcast located in this State. Accordingly,
18            the amount of revenue related to such an
19            arrangement that is included in the Illinois
20            numerator of the sales factor is the total fee or
21            other total remuneration from the person providing
22            the programming related to that broadcast
23            multiplied by the Illinois audience factor for
24            that broadcast.
25                (iv) In the case where film or radio
26            programming is provided by a taxpayer that is a

 

 

09800SB2169sam001- 36 -LRB098 03935 HLH 44697 a

1            network or station to a customer for broadcast in
2            exchange for a fee or other remuneration from that
3            customer the broadcasting service is received at
4            the location of the office of the customer from
5            which the services were ordered in the regular
6            course of the customer's trade or business.
7            Accordingly, in such a case the revenue derived by
8            the taxpayer that is included in the taxpayer's
9            Illinois numerator of the sales factor is the
10            revenue from such customers who receive the
11            broadcasting service in Illinois.
12                (v) In the case where film or radio programming
13            is provided by a taxpayer that is not a network or
14            station to another person for broadcasting in
15            exchange for a fee or other remuneration from that
16            person, the broadcasting service is received at
17            the location of the office of the customer from
18            which the services were ordered in the regular
19            course of the customer's trade or business.
20            Accordingly, in such a case the revenue derived by
21            the taxpayer that is included in the taxpayer's
22            Illinois numerator of the sales factor is the
23            revenue from such customers who receive the
24            broadcasting service in Illinois.
25        (B-8) Gross receipts from winnings under the Illinois
26    Lottery Law from the assignment of a prize under Section

 

 

09800SB2169sam001- 37 -LRB098 03935 HLH 44697 a

1    13-1 of the Illinois Lottery Law are received in this
2    State. This paragraph (B-8) applies only to taxable years
3    ending on or after December 31, 2013.
4        (C) For taxable years ending before December 31, 2008,
5    sales, other than sales governed by paragraphs (B), (B-1),
6    and (B-2), and (B-8) are in this State if:
7            (i) The income-producing activity is performed in
8        this State; or
9            (ii) The income-producing activity is performed
10        both within and without this State and a greater
11        proportion of the income-producing activity is
12        performed within this State than without this State,
13        based on performance costs.
14        (C-5) For taxable years ending on or after December 31,
15    2008, sales, other than sales governed by paragraphs (B),
16    (B-1), (B-2), (B-5), and (B-7), are in this State if any of
17    the following criteria are met:
18            (i) Sales from the sale or lease of real property
19        are in this State if the property is located in this
20        State.
21            (ii) Sales from the lease or rental of tangible
22        personal property are in this State if the property is
23        located in this State during the rental period. Sales
24        from the lease or rental of tangible personal property
25        that is characteristically moving property, including,
26        but not limited to, motor vehicles, rolling stock,

 

 

09800SB2169sam001- 38 -LRB098 03935 HLH 44697 a

1        aircraft, vessels, or mobile equipment are in this
2        State to the extent that the property is used in this
3        State.
4            (iii) In the case of interest, net gains (but not
5        less than zero) and other items of income from
6        intangible personal property, the sale is in this State
7        if:
8                (a) in the case of a taxpayer who is a dealer
9            in the item of intangible personal property within
10            the meaning of Section 475 of the Internal Revenue
11            Code, the income or gain is received from a
12            customer in this State. For purposes of this
13            subparagraph, a customer is in this State if the
14            customer is an individual, trust or estate who is a
15            resident of this State and, for all other
16            customers, if the customer's commercial domicile
17            is in this State. Unless the dealer has actual
18            knowledge of the residence or commercial domicile
19            of a customer during a taxable year, the customer
20            shall be deemed to be a customer in this State if
21            the billing address of the customer, as shown in
22            the records of the dealer, is in this State; or
23                (b) in all other cases, if the
24            income-producing activity of the taxpayer is
25            performed in this State or, if the
26            income-producing activity of the taxpayer is

 

 

09800SB2169sam001- 39 -LRB098 03935 HLH 44697 a

1            performed both within and without this State, if a
2            greater proportion of the income-producing
3            activity of the taxpayer is performed within this
4            State than in any other state, based on performance
5            costs.
6            (iv) Sales of services are in this State if the
7        services are received in this State. For the purposes
8        of this section, gross receipts from the performance of
9        services provided to a corporation, partnership, or
10        trust may only be attributed to a state where that
11        corporation, partnership, or trust has a fixed place of
12        business. If the state where the services are received
13        is not readily determinable or is a state where the
14        corporation, partnership, or trust receiving the
15        service does not have a fixed place of business, the
16        services shall be deemed to be received at the location
17        of the office of the customer from which the services
18        were ordered in the regular course of the customer's
19        trade or business. If the ordering office cannot be
20        determined, the services shall be deemed to be received
21        at the office of the customer to which the services are
22        billed. If the taxpayer is not taxable in the state in
23        which the services are received, the sale must be
24        excluded from both the numerator and the denominator of
25        the sales factor. The Department shall adopt rules
26        prescribing where specific types of service are

 

 

09800SB2169sam001- 40 -LRB098 03935 HLH 44697 a

1        received, including, but not limited to, publishing,
2        and utility service.
3        (D) For taxable years ending on or after December 31,
4    1995, the following items of income shall not be included
5    in the numerator or denominator of the sales factor:
6    dividends; amounts included under Section 78 of the
7    Internal Revenue Code; and Subpart F income as defined in
8    Section 952 of the Internal Revenue Code. No inference
9    shall be drawn from the enactment of this paragraph (D) in
10    construing this Section for taxable years ending before
11    December 31, 1995.
12        (E) Paragraphs (B-1) and (B-2) shall apply to tax years
13    ending on or after December 31, 1999, provided that a
14    taxpayer may elect to apply the provisions of these
15    paragraphs to prior tax years. Such election shall be made
16    in the form and manner prescribed by the Department, shall
17    be irrevocable, and shall apply to all tax years; provided
18    that, if a taxpayer's Illinois income tax liability for any
19    tax year, as assessed under Section 903 prior to January 1,
20    1999, was computed in a manner contrary to the provisions
21    of paragraphs (B-1) or (B-2), no refund shall be payable to
22    the taxpayer for that tax year to the extent such refund is
23    the result of applying the provisions of paragraph (B-1) or
24    (B-2) retroactively. In the case of a unitary business
25    group, such election shall apply to all members of such
26    group for every tax year such group is in existence, but

 

 

09800SB2169sam001- 41 -LRB098 03935 HLH 44697 a

1    shall not apply to any taxpayer for any period during which
2    that taxpayer is not a member of such group.
3    (b) Insurance companies.
4        (1) In general. Except as otherwise provided by
5    paragraph (2), business income of an insurance company for
6    a taxable year shall be apportioned to this State by
7    multiplying such income by a fraction, the numerator of
8    which is the direct premiums written for insurance upon
9    property or risk in this State, and the denominator of
10    which is the direct premiums written for insurance upon
11    property or risk everywhere. For purposes of this
12    subsection, the term "direct premiums written" means the
13    total amount of direct premiums written, assessments and
14    annuity considerations as reported for the taxable year on
15    the annual statement filed by the company with the Illinois
16    Director of Insurance in the form approved by the National
17    Convention of Insurance Commissioners or such other form as
18    may be prescribed in lieu thereof.
19        (2) Reinsurance. If the principal source of premiums
20    written by an insurance company consists of premiums for
21    reinsurance accepted by it, the business income of such
22    company shall be apportioned to this State by multiplying
23    such income by a fraction, the numerator of which is the
24    sum of (i) direct premiums written for insurance upon
25    property or risk in this State, plus (ii) premiums written
26    for reinsurance accepted in respect of property or risk in

 

 

09800SB2169sam001- 42 -LRB098 03935 HLH 44697 a

1    this State, and the denominator of which is the sum of
2    (iii) direct premiums written for insurance upon property
3    or risk everywhere, plus (iv) premiums written for
4    reinsurance accepted in respect of property or risk
5    everywhere. For purposes of this paragraph, premiums
6    written for reinsurance accepted in respect of property or
7    risk in this State, whether or not otherwise determinable,
8    may, at the election of the company, be determined on the
9    basis of the proportion which premiums written for
10    reinsurance accepted from companies commercially domiciled
11    in Illinois bears to premiums written for reinsurance
12    accepted from all sources, or, alternatively, in the
13    proportion which the sum of the direct premiums written for
14    insurance upon property or risk in this State by each
15    ceding company from which reinsurance is accepted bears to
16    the sum of the total direct premiums written by each such
17    ceding company for the taxable year. The election made by a
18    company under this paragraph for its first taxable year
19    ending on or after December 31, 2011, shall be binding for
20    that company for that taxable year and for all subsequent
21    taxable years, and may be altered only with the written
22    permission of the Department, which shall not be
23    unreasonably withheld.
24    (c) Financial organizations.
25        (1) In general. For taxable years ending before
26    December 31, 2008, business income of a financial

 

 

09800SB2169sam001- 43 -LRB098 03935 HLH 44697 a

1    organization shall be apportioned to this State by
2    multiplying such income by a fraction, the numerator of
3    which is its business income from sources within this
4    State, and the denominator of which is its business income
5    from all sources. For the purposes of this subsection, the
6    business income of a financial organization from sources
7    within this State is the sum of the amounts referred to in
8    subparagraphs (A) through (E) following, but excluding the
9    adjusted income of an international banking facility as
10    determined in paragraph (2):
11            (A) Fees, commissions or other compensation for
12        financial services rendered within this State;
13            (B) Gross profits from trading in stocks, bonds or
14        other securities managed within this State;
15            (C) Dividends, and interest from Illinois
16        customers, which are received within this State;
17            (D) Interest charged to customers at places of
18        business maintained within this State for carrying
19        debit balances of margin accounts, without deduction
20        of any costs incurred in carrying such accounts; and
21            (E) Any other gross income resulting from the
22        operation as a financial organization within this
23        State. In computing the amounts referred to in
24        paragraphs (A) through (E) of this subsection, any
25        amount received by a member of an affiliated group
26        (determined under Section 1504(a) of the Internal

 

 

09800SB2169sam001- 44 -LRB098 03935 HLH 44697 a

1        Revenue Code but without reference to whether any such
2        corporation is an "includible corporation" under
3        Section 1504(b) of the Internal Revenue Code) from
4        another member of such group shall be included only to
5        the extent such amount exceeds expenses of the
6        recipient directly related thereto.
7        (2) International Banking Facility. For taxable years
8    ending before December 31, 2008:
9            (A) Adjusted Income. The adjusted income of an
10        international banking facility is its income reduced
11        by the amount of the floor amount.
12            (B) Floor Amount. The floor amount shall be the
13        amount, if any, determined by multiplying the income of
14        the international banking facility by a fraction, not
15        greater than one, which is determined as follows:
16                (i) The numerator shall be:
17                The average aggregate, determined on a
18            quarterly basis, of the financial organization's
19            loans to banks in foreign countries, to foreign
20            domiciled borrowers (except where secured
21            primarily by real estate) and to foreign
22            governments and other foreign official
23            institutions, as reported for its branches,
24            agencies and offices within the state on its
25            "Consolidated Report of Condition", Schedule A,
26            Lines 2.c., 5.b., and 7.a., which was filed with

 

 

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1            the Federal Deposit Insurance Corporation and
2            other regulatory authorities, for the year 1980,
3            minus
4                The average aggregate, determined on a
5            quarterly basis, of such loans (other than loans of
6            an international banking facility), as reported by
7            the financial institution for its branches,
8            agencies and offices within the state, on the
9            corresponding Schedule and lines of the
10            Consolidated Report of Condition for the current
11            taxable year, provided, however, that in no case
12            shall the amount determined in this clause (the
13            subtrahend) exceed the amount determined in the
14            preceding clause (the minuend); and
15                (ii) the denominator shall be the average
16            aggregate, determined on a quarterly basis, of the
17            international banking facility's loans to banks in
18            foreign countries, to foreign domiciled borrowers
19            (except where secured primarily by real estate)
20            and to foreign governments and other foreign
21            official institutions, which were recorded in its
22            financial accounts for the current taxable year.
23            (C) Change to Consolidated Report of Condition and
24        in Qualification. In the event the Consolidated Report
25        of Condition which is filed with the Federal Deposit
26        Insurance Corporation and other regulatory authorities

 

 

09800SB2169sam001- 46 -LRB098 03935 HLH 44697 a

1        is altered so that the information required for
2        determining the floor amount is not found on Schedule
3        A, lines 2.c., 5.b. and 7.a., the financial institution
4        shall notify the Department and the Department may, by
5        regulations or otherwise, prescribe or authorize the
6        use of an alternative source for such information. The
7        financial institution shall also notify the Department
8        should its international banking facility fail to
9        qualify as such, in whole or in part, or should there
10        be any amendment or change to the Consolidated Report
11        of Condition, as originally filed, to the extent such
12        amendment or change alters the information used in
13        determining the floor amount.
14        (3) For taxable years ending on or after December 31,
15    2008, the business income of a financial organization shall
16    be apportioned to this State by multiplying such income by
17    a fraction, the numerator of which is its gross receipts
18    from sources in this State or otherwise attributable to
19    this State's marketplace and the denominator of which is
20    its gross receipts everywhere during the taxable year.
21    "Gross receipts" for purposes of this subparagraph (3)
22    means gross income, including net taxable gain on
23    disposition of assets, including securities and money
24    market instruments, when derived from transactions and
25    activities in the regular course of the financial
26    organization's trade or business. The following examples

 

 

09800SB2169sam001- 47 -LRB098 03935 HLH 44697 a

1    are illustrative:
2            (i) Receipts from the lease or rental of real or
3        tangible personal property are in this State if the
4        property is located in this State during the rental
5        period. Receipts from the lease or rental of tangible
6        personal property that is characteristically moving
7        property, including, but not limited to, motor
8        vehicles, rolling stock, aircraft, vessels, or mobile
9        equipment are from sources in this State to the extent
10        that the property is used in this State.
11            (ii) Interest income, commissions, fees, gains on
12        disposition, and other receipts from assets in the
13        nature of loans that are secured primarily by real
14        estate or tangible personal property are from sources
15        in this State if the security is located in this State.
16            (iii) Interest income, commissions, fees, gains on
17        disposition, and other receipts from consumer loans
18        that are not secured by real or tangible personal
19        property are from sources in this State if the debtor
20        is a resident of this State.
21            (iv) Interest income, commissions, fees, gains on
22        disposition, and other receipts from commercial loans
23        and installment obligations that are not secured by
24        real or tangible personal property are from sources in
25        this State if the proceeds of the loan are to be
26        applied in this State. If it cannot be determined where

 

 

09800SB2169sam001- 48 -LRB098 03935 HLH 44697 a

1        the funds are to be applied, the income and receipts
2        are from sources in this State if the office of the
3        borrower from which the loan was negotiated in the
4        regular course of business is located in this State. If
5        the location of this office cannot be determined, the
6        income and receipts shall be excluded from the
7        numerator and denominator of the sales factor.
8            (v) Interest income, fees, gains on disposition,
9        service charges, merchant discount income, and other
10        receipts from credit card receivables are from sources
11        in this State if the card charges are regularly billed
12        to a customer in this State.
13            (vi) Receipts from the performance of services,
14        including, but not limited to, fiduciary, advisory,
15        and brokerage services, are in this State if the
16        services are received in this State within the meaning
17        of subparagraph (a)(3)(C-5)(iv) of this Section.
18            (vii) Receipts from the issuance of travelers
19        checks and money orders are from sources in this State
20        if the checks and money orders are issued from a
21        location within this State.
22            (viii) Receipts from investment assets and
23        activities and trading assets and activities are
24        included in the receipts factor as follows:
25                (1) Interest, dividends, net gains (but not
26            less than zero) and other income from investment

 

 

09800SB2169sam001- 49 -LRB098 03935 HLH 44697 a

1            assets and activities from trading assets and
2            activities shall be included in the receipts
3            factor. Investment assets and activities and
4            trading assets and activities include but are not
5            limited to: investment securities; trading account
6            assets; federal funds; securities purchased and
7            sold under agreements to resell or repurchase;
8            options; futures contracts; forward contracts;
9            notional principal contracts such as swaps;
10            equities; and foreign currency transactions. With
11            respect to the investment and trading assets and
12            activities described in subparagraphs (A) and (B)
13            of this paragraph, the receipts factor shall
14            include the amounts described in such
15            subparagraphs.
16                    (A) The receipts factor shall include the
17                amount by which interest from federal funds
18                sold and securities purchased under resale
19                agreements exceeds interest expense on federal
20                funds purchased and securities sold under
21                repurchase agreements.
22                    (B) The receipts factor shall include the
23                amount by which interest, dividends, gains and
24                other income from trading assets and
25                activities, including but not limited to
26                assets and activities in the matched book, in

 

 

09800SB2169sam001- 50 -LRB098 03935 HLH 44697 a

1                the arbitrage book, and foreign currency
2                transactions, exceed amounts paid in lieu of
3                interest, amounts paid in lieu of dividends,
4                and losses from such assets and activities.
5                (2) The numerator of the receipts factor
6            includes interest, dividends, net gains (but not
7            less than zero), and other income from investment
8            assets and activities and from trading assets and
9            activities described in paragraph (1) of this
10            subsection that are attributable to this State.
11                    (A) The amount of interest, dividends, net
12                gains (but not less than zero), and other
13                income from investment assets and activities
14                in the investment account to be attributed to
15                this State and included in the numerator is
16                determined by multiplying all such income from
17                such assets and activities by a fraction, the
18                numerator of which is the gross income from
19                such assets and activities which are properly
20                assigned to a fixed place of business of the
21                taxpayer within this State and the denominator
22                of which is the gross income from all such
23                assets and activities.
24                    (B) The amount of interest from federal
25                funds sold and purchased and from securities
26                purchased under resale agreements and

 

 

09800SB2169sam001- 51 -LRB098 03935 HLH 44697 a

1                securities sold under repurchase agreements
2                attributable to this State and included in the
3                numerator is determined by multiplying the
4                amount described in subparagraph (A) of
5                paragraph (1) of this subsection from such
6                funds and such securities by a fraction, the
7                numerator of which is the gross income from
8                such funds and such securities which are
9                properly assigned to a fixed place of business
10                of the taxpayer within this State and the
11                denominator of which is the gross income from
12                all such funds and such securities.
13                    (C) The amount of interest, dividends,
14                gains, and other income from trading assets and
15                activities, including but not limited to
16                assets and activities in the matched book, in
17                the arbitrage book and foreign currency
18                transactions (but excluding amounts described
19                in subparagraphs (A) or (B) of this paragraph),
20                attributable to this State and included in the
21                numerator is determined by multiplying the
22                amount described in subparagraph (B) of
23                paragraph (1) of this subsection by a fraction,
24                the numerator of which is the gross income from
25                such trading assets and activities which are
26                properly assigned to a fixed place of business

 

 

09800SB2169sam001- 52 -LRB098 03935 HLH 44697 a

1                of the taxpayer within this State and the
2                denominator of which is the gross income from
3                all such assets and activities.
4                    (D) Properly assigned, for purposes of
5                this paragraph (2) of this subsection, means
6                the investment or trading asset or activity is
7                assigned to the fixed place of business with
8                which it has a preponderance of substantive
9                contacts. An investment or trading asset or
10                activity assigned by the taxpayer to a fixed
11                place of business without the State shall be
12                presumed to have been properly assigned if:
13                        (i) the taxpayer has assigned, in the
14                    regular course of its business, such asset
15                    or activity on its records to a fixed place
16                    of business consistent with federal or
17                    state regulatory requirements;
18                        (ii) such assignment on its records is
19                    based upon substantive contacts of the
20                    asset or activity to such fixed place of
21                    business; and
22                        (iii) the taxpayer uses such records
23                    reflecting assignment of such assets or
24                    activities for the filing of all state and
25                    local tax returns for which an assignment
26                    of such assets or activities to a fixed

 

 

09800SB2169sam001- 53 -LRB098 03935 HLH 44697 a

1                    place of business is required.
2                    (E) The presumption of proper assignment
3                of an investment or trading asset or activity
4                provided in subparagraph (D) of paragraph (2)
5                of this subsection may be rebutted upon a
6                showing by the Department, supported by a
7                preponderance of the evidence, that the
8                preponderance of substantive contacts
9                regarding such asset or activity did not occur
10                at the fixed place of business to which it was
11                assigned on the taxpayer's records. If the
12                fixed place of business that has a
13                preponderance of substantive contacts cannot
14                be determined for an investment or trading
15                asset or activity to which the presumption in
16                subparagraph (D) of paragraph (2) of this
17                subsection does not apply or with respect to
18                which that presumption has been rebutted, that
19                asset or activity is properly assigned to the
20                state in which the taxpayer's commercial
21                domicile is located. For purposes of this
22                subparagraph (E), it shall be presumed,
23                subject to rebuttal, that taxpayer's
24                commercial domicile is in the state of the
25                United States or the District of Columbia to
26                which the greatest number of employees are

 

 

09800SB2169sam001- 54 -LRB098 03935 HLH 44697 a

1                regularly connected with the management of the
2                investment or trading income or out of which
3                they are working, irrespective of where the
4                services of such employees are performed, as of
5                the last day of the taxable year.
6        (4) (Blank).
7        (5) (Blank).
8    (c-1) Federally regulated exchanges. For taxable years
9ending on or after December 31, 2012, business income of a
10federally regulated exchange shall, at the option of the
11federally regulated exchange, be apportioned to this State by
12multiplying such income by a fraction, the numerator of which
13is its business income from sources within this State, and the
14denominator of which is its business income from all sources.
15For purposes of this subsection, the business income within
16this State of a federally regulated exchange is the sum of the
17following:
18        (1) Receipts attributable to transactions executed on
19    a physical trading floor if that physical trading floor is
20    located in this State.
21        (2) Receipts attributable to all other matching,
22    execution, or clearing transactions, including without
23    limitation receipts from the provision of matching,
24    execution, or clearing services to another entity,
25    multiplied by (i) for taxable years ending on or after
26    December 31, 2012 but before December 31, 2013, 63.77%; and

 

 

09800SB2169sam001- 55 -LRB098 03935 HLH 44697 a

1    (ii) for taxable years ending on or after December 31,
2    2013, 27.54%.
3        (3) All other receipts not governed by subparagraphs
4    (1) or (2) of this subsection (c-1), to the extent the
5    receipts would be characterized as "sales in this State"
6    under item (3) of subsection (a) of this Section.
7    "Federally regulated exchange" means (i) a "registered
8entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
9or (C), (ii) an "exchange" or "clearing agency" within the
10meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
11entities regulated under any successor regulatory structure to
12the foregoing, and (iv) all taxpayers who are members of the
13same unitary business group as a federally regulated exchange,
14determined without regard to the prohibition in Section
151501(a)(27) of this Act against including in a unitary business
16group taxpayers who are ordinarily required to apportion
17business income under different subsections of this Section;
18provided that this subparagraph (iv) shall apply only if 50% or
19more of the business receipts of the unitary business group
20determined by application of this subparagraph (iv) for the
21taxable year are attributable to the matching, execution, or
22clearing of transactions conducted by an entity described in
23subparagraph (i), (ii), or (iii) of this paragraph.
24    In no event shall the Illinois apportionment percentage
25computed in accordance with this subsection (c-1) for any
26taxpayer for any tax year be less than the Illinois

 

 

09800SB2169sam001- 56 -LRB098 03935 HLH 44697 a

1apportionment percentage computed under this subsection (c-1)
2for that taxpayer for the first full tax year ending on or
3after December 31, 2013 for which this subsection (c-1) applied
4to the taxpayer.
5    (d) Transportation services. For taxable years ending
6before December 31, 2008, business income derived from
7furnishing transportation services shall be apportioned to
8this State in accordance with paragraphs (1) and (2):
9        (1) Such business income (other than that derived from
10    transportation by pipeline) shall be apportioned to this
11    State by multiplying such income by a fraction, the
12    numerator of which is the revenue miles of the person in
13    this State, and the denominator of which is the revenue
14    miles of the person everywhere. For purposes of this
15    paragraph, a revenue mile is the transportation of 1
16    passenger or 1 net ton of freight the distance of 1 mile
17    for a consideration. Where a person is engaged in the
18    transportation of both passengers and freight, the
19    fraction above referred to shall be determined by means of
20    an average of the passenger revenue mile fraction and the
21    freight revenue mile fraction, weighted to reflect the
22    person's
23            (A) relative railway operating income from total
24        passenger and total freight service, as reported to the
25        Interstate Commerce Commission, in the case of
26        transportation by railroad, and

 

 

09800SB2169sam001- 57 -LRB098 03935 HLH 44697 a

1            (B) relative gross receipts from passenger and
2        freight transportation, in case of transportation
3        other than by railroad.
4        (2) Such business income derived from transportation
5    by pipeline shall be apportioned to this State by
6    multiplying such income by a fraction, the numerator of
7    which is the revenue miles of the person in this State, and
8    the denominator of which is the revenue miles of the person
9    everywhere. For the purposes of this paragraph, a revenue
10    mile is the transportation by pipeline of 1 barrel of oil,
11    1,000 cubic feet of gas, or of any specified quantity of
12    any other substance, the distance of 1 mile for a
13    consideration.
14        (3) For taxable years ending on or after December 31,
15    2008, business income derived from providing
16    transportation services other than airline services shall
17    be apportioned to this State by using a fraction, (a) the
18    numerator of which shall be (i) all receipts from any
19    movement or shipment of people, goods, mail, oil, gas, or
20    any other substance (other than by airline) that both
21    originates and terminates in this State, plus (ii) that
22    portion of the person's gross receipts from movements or
23    shipments of people, goods, mail, oil, gas, or any other
24    substance (other than by airline) that originates in one
25    state or jurisdiction and terminates in another state or
26    jurisdiction, that is determined by the ratio that the

 

 

09800SB2169sam001- 58 -LRB098 03935 HLH 44697 a

1    miles traveled in this State bears to total miles
2    everywhere and (b) the denominator of which shall be all
3    revenue derived from the movement or shipment of people,
4    goods, mail, oil, gas, or any other substance (other than
5    by airline). Where a taxpayer is engaged in the
6    transportation of both passengers and freight, the
7    fraction above referred to shall first be determined
8    separately for passenger miles and freight miles. Then an
9    average of the passenger miles fraction and the freight
10    miles fraction shall be weighted to reflect the taxpayer's:
11            (A) relative railway operating income from total
12        passenger and total freight service, as reported to the
13        Surface Transportation Board, in the case of
14        transportation by railroad; and
15            (B) relative gross receipts from passenger and
16        freight transportation, in case of transportation
17        other than by railroad.
18        (4) For taxable years ending on or after December 31,
19    2008, business income derived from furnishing airline
20    transportation services shall be apportioned to this State
21    by multiplying such income by a fraction, the numerator of
22    which is the revenue miles of the person in this State, and
23    the denominator of which is the revenue miles of the person
24    everywhere. For purposes of this paragraph, a revenue mile
25    is the transportation of one passenger or one net ton of
26    freight the distance of one mile for a consideration. If a

 

 

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1    person is engaged in the transportation of both passengers
2    and freight, the fraction above referred to shall be
3    determined by means of an average of the passenger revenue
4    mile fraction and the freight revenue mile fraction,
5    weighted to reflect the person's relative gross receipts
6    from passenger and freight airline transportation.
7    (e) Combined apportionment. Where 2 or more persons are
8engaged in a unitary business as described in subsection
9(a)(27) of Section 1501, a part of which is conducted in this
10State by one or more members of the group, the business income
11attributable to this State by any such member or members shall
12be apportioned by means of the combined apportionment method.
13    (f) Alternative allocation. If the allocation and
14apportionment provisions of subsections (a) through (e) and of
15subsection (h) do not fairly represent the extent of a person's
16business activity in this State, the person may petition for,
17or the Director may, without a petition, permit or require, in
18respect of all or any part of the person's business activity,
19if reasonable:
20        (1) Separate accounting;
21        (2) The exclusion of any one or more factors;
22        (3) The inclusion of one or more additional factors
23    which will fairly represent the person's business
24    activities in this State; or
25        (4) The employment of any other method to effectuate an
26    equitable allocation and apportionment of the person's

 

 

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1    business income.
2    (g) Cross reference. For allocation of business income by
3residents, see Section 301(a).
4    (h) For tax years ending on or after December 31, 1998, the
5apportionment factor of persons who apportion their business
6income to this State under subsection (a) shall be equal to:
7        (1) for tax years ending on or after December 31, 1998
8    and before December 31, 1999, 16 2/3% of the property
9    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
10    the sales factor;
11        (2) for tax years ending on or after December 31, 1999
12    and before December 31, 2000, 8 1/3% of the property factor
13    plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
14    factor;
15        (3) for tax years ending on or after December 31, 2000,
16    the sales factor.
17If, in any tax year ending on or after December 31, 1998 and
18before December 31, 2000, the denominator of the payroll,
19property, or sales factor is zero, the apportionment factor
20computed in paragraph (1) or (2) of this subsection for that
21year shall be divided by an amount equal to 100% minus the
22percentage weight given to each factor whose denominator is
23equal to zero.
24(Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11;
2597-636, eff. 6-1-12.)
 

 

 

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1    (35 ILCS 5/701)  (from Ch. 120, par. 7-701)
2    Sec. 701. Requirement and Amount of Withholding.
3    (a) In General. Every employer maintaining an office or
4transacting business within this State and required under the
5provisions of the Internal Revenue Code to withhold a tax on:
6        (1) compensation paid in this State (as determined
7    under Section 304(a)(2)(B) to an individual; or
8        (2) payments described in subsection (b) shall deduct
9    and withhold from such compensation for each payroll period
10    (as defined in Section 3401 of the Internal Revenue Code)
11    an amount equal to the amount by which such individual's
12    compensation exceeds the proportionate part of this
13    withholding exemption (computed as provided in Section
14    702) attributable to the payroll period for which such
15    compensation is payable multiplied by a percentage equal to
16    the percentage tax rate for individuals provided in
17    subsection (b) of Section 201.
18    (b) Payment to Residents. Any payment (including
19compensation, but not including a payment from which
20withholding is required under Section 710 of this Act) to a
21resident by a payor maintaining an office or transacting
22business within this State (including any agency, officer, or
23employee of this State or of any political subdivision of this
24State) and on which withholding of tax is required under the
25provisions of the Internal Revenue Code shall be deemed to be
26compensation paid in this State by an employer to an employee

 

 

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1for the purposes of Article 7 and Section 601(b)(1) to the
2extent such payment is included in the recipient's base income
3and not subjected to withholding by another state.
4Notwithstanding any other provision to the contrary, no amount
5shall be withheld from unemployment insurance benefit payments
6made to an individual pursuant to the Unemployment Insurance
7Act unless the individual has voluntarily elected the
8withholding pursuant to rules promulgated by the Director of
9Employment Security.
10    (c) Special Definitions. Withholding shall be considered
11required under the provisions of the Internal Revenue Code to
12the extent the Internal Revenue Code either requires
13withholding or allows for voluntary withholding the payor and
14recipient have entered into such a voluntary withholding
15agreement. For the purposes of Article 7 and Section 1002(c)
16the term "employer" includes any payor who is required to
17withhold tax pursuant to this Section.
18    (d) Reciprocal Exemption. The Director may enter into an
19agreement with the taxing authorities of any state which
20imposes a tax on or measured by income to provide that
21compensation paid in such state to residents of this State
22shall be exempt from withholding of such tax; in such case, any
23compensation paid in this State to residents of such state
24shall be exempt from withholding. All reciprocal agreements
25shall be subject to the requirements of Section 2505-575 of the
26Department of Revenue Law (20 ILCS 2505/2505-575).

 

 

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1    (e) Notwithstanding subsection (a)(2) of this Section, no
2withholding is required on payments for which withholding is
3required under Section 3405 or 3406 of the Internal Revenue
4Code.
5(Source: P.A. 97-507, eff. 8-23-11.)
 
6    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
7    Sec. 710. Withholding from lottery winnings. (a) In
8General.
9        (1) Any person making a payment to a resident or
10    nonresident of winnings under the Illinois Lottery Law and
11    not required to withhold Illinois income tax from such
12    payment under Subsection (b) of Section 701 of this Act
13    because those winnings are not subject to Federal income
14    tax withholding, must withhold Illinois income tax from
15    such payment at a rate equal to the percentage tax rate for
16    individuals provided in subsection (b) of Section 201,
17    provided that withholding is not required if such payment
18    of winnings is less than $1,000.
19        (2) In the case of an assignment of a lottery prize
20    under Section 13.1 of the Illinois Lottery Law, any person
21    making a payment of the purchase price after December 31,
22    2013, shall withhold from the amount of each payment at a
23    rate equal to the percentage tax rate for individuals
24    provided in subsection (b) of Section 201.
25    (b) Credit for taxes withheld. Any amount withheld under

 

 

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1Subsection (a) shall be a credit against the Illinois income
2tax liability of the person to whom the payment of winnings was
3made for the taxable year in which that person incurred an
4Illinois income tax liability with respect to those winnings.
5(Source: P.A. 85-731.)
 
6    (35 ILCS 5/905)  (from Ch. 120, par. 9-905)
7    Sec. 905. Limitations on Notices of Deficiency.
8    (a) In general. Except as otherwise provided in this Act:
9        (1) A notice of deficiency shall be issued not later
10    than 3 years after the date the return was filed, and
11        (2) No deficiency shall be assessed or collected with
12    respect to the year for which the return was filed unless
13    such notice is issued within such period.
14    (b) Substantial omission of items.
15        (1) Omission of more than 25% of income. If the
16    taxpayer omits from base income an amount properly
17    includible therein which is in excess of 25% of the amount
18    of base income stated in the return, a notice of deficiency
19    may be issued not later than 6 years after the return was
20    filed. For purposes of this paragraph, there shall not be
21    taken into account any amount which is omitted in the
22    return if such amount is disclosed in the return, or in a
23    statement attached to the return, in a manner adequate to
24    apprise the Department of the nature and the amount of such
25    item.

 

 

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1        (2) Reportable transactions. If a taxpayer fails to
2    include on any return or statement for any taxable year any
3    information with respect to a reportable transaction, as
4    required under Section 501(b) of this Act, a notice of
5    deficiency may be issued not later than 6 years after the
6    return is filed with respect to the taxable year in which
7    the taxpayer participated in the reportable transaction
8    and said deficiency is limited to the non-disclosed item.
9        (3) Withholding. If an employer omits from a return
10    required under Section 704A of this Act for any period
11    beginning on or after January 1, 2013, an amount required
12    to be withheld and to be reported on that return which is
13    in excess of 25% of the total amount of withholding
14    required to be reported on that return, a notice of
15    deficiency may be issued not later than 6 years after the
16    return was filed.
17    (c) No return or fraudulent return. If no return is filed
18or a false and fraudulent return is filed with intent to evade
19the tax imposed by this Act, a notice of deficiency may be
20issued at any time. For purposes of this subsection (c), any
21taxpayer who is required to join in the filing of a return
22filed under the provisions of subsection (e) of Section 502 of
23this Act for a taxable year ending on or after December 31,
242013 and who is not included on that return and does not file
25its own return for that taxable year shall be deemed to have
26failed to file a return; provided that the amount of any

 

 

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1proposed assessment set forth in a notice of deficiency issued
2under this subsection (c) shall be limited to the amount of any
3increase in liability under this Act that should have reported
4on the return required under the provisions of subsection (e)
5of Section 502 of this Act for that taxable year resulting from
6proper inclusion of that taxpayer on that return.
7    (d) Failure to report federal change. If a taxpayer fails
8to notify the Department in any case where notification is
9required by Section 304(c) or 506(b), or fails to report a
10change or correction which is treated in the same manner as if
11it were a deficiency for federal income tax purposes, a notice
12of deficiency may be issued (i) at any time or (ii) on or after
13August 13, 1999, at any time for the taxable year for which the
14notification is required or for any taxable year to which the
15taxpayer may carry an Article 2 credit, or a Section 207 loss,
16earned, incurred, or used in the year for which the
17notification is required; provided, however, that the amount of
18any proposed assessment set forth in the notice shall be
19limited to the amount of any deficiency resulting under this
20Act from the recomputation of the taxpayer's net income,
21Article 2 credits, or Section 207 loss earned, incurred, or
22used in the taxable year for which the notification is required
23after giving effect to the item or items required to be
24reported.
25    (e) Report of federal change.
26        (1) Before August 13, 1999, in any case where

 

 

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1    notification of an alteration is given as required by
2    Section 506(b), a notice of deficiency may be issued at any
3    time within 2 years after the date such notification is
4    given, provided, however, that the amount of any proposed
5    assessment set forth in such notice shall be limited to the
6    amount of any deficiency resulting under this Act from
7    recomputation of the taxpayer's net income, net loss, or
8    Article 2 credits for the taxable year after giving effect
9    to the item or items reflected in the reported alteration.
10        (2) On and after August 13, 1999, in any case where
11    notification of an alteration is given as required by
12    Section 506(b), a notice of deficiency may be issued at any
13    time within 2 years after the date such notification is
14    given for the taxable year for which the notification is
15    given or for any taxable year to which the taxpayer may
16    carry an Article 2 credit, or a Section 207 loss, earned,
17    incurred, or used in the year for which the notification is
18    given, provided, however, that the amount of any proposed
19    assessment set forth in such notice shall be limited to the
20    amount of any deficiency resulting under this Act from
21    recomputation of the taxpayer's net income, Article 2
22    credits, or Section 207 loss earned, incurred, or used in
23    the taxable year for which the notification is given after
24    giving effect to the item or items reflected in the
25    reported alteration.
26    (f) Extension by agreement. Where, before the expiration of

 

 

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1the time prescribed in this Section for the issuance of a
2notice of deficiency, both the Department and the taxpayer
3shall have consented in writing to its issuance after such
4time, such notice may be issued at any time prior to the
5expiration of the period agreed upon. In the case of a taxpayer
6who is a partnership, Subchapter S corporation, or trust and
7who enters into an agreement with the Department pursuant to
8this subsection on or after January 1, 2003, a notice of
9deficiency may be issued to the partners, shareholders, or
10beneficiaries of the taxpayer at any time prior to the
11expiration of the period agreed upon. Any proposed assessment
12set forth in the notice, however, shall be limited to the
13amount of any deficiency resulting under this Act from
14recomputation of items of income, deduction, credits, or other
15amounts of the taxpayer that are taken into account by the
16partner, shareholder, or beneficiary in computing its
17liability under this Act. The period so agreed upon may be
18extended by subsequent agreements in writing made before the
19expiration of the period previously agreed upon.
20    (g) Erroneous refunds. In any case in which there has been
21an erroneous refund of tax payable under this Act, a notice of
22deficiency may be issued at any time within 2 years from the
23making of such refund, or within 5 years from the making of
24such refund if it appears that any part of the refund was
25induced by fraud or the misrepresentation of a material fact,
26provided, however, that the amount of any proposed assessment

 

 

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1set forth in such notice shall be limited to the amount of such
2erroneous refund.
3    Beginning July 1, 1993, in any case in which there has been
4a refund of tax payable under this Act attributable to a net
5loss carryback as provided for in Section 207, and that refund
6is subsequently determined to be an erroneous refund due to a
7reduction in the amount of the net loss which was originally
8carried back, a notice of deficiency for the erroneous refund
9amount may be issued at any time during the same time period in
10which a notice of deficiency can be issued on the loss year
11creating the carryback amount and subsequent erroneous refund.
12The amount of any proposed assessment set forth in the notice
13shall be limited to the amount of such erroneous refund.
14    (h) Time return deemed filed. For purposes of this Section
15a tax return filed before the last day prescribed by law
16(including any extension thereof) shall be deemed to have been
17filed on such last day.
18    (i) Request for prompt determination of liability. For
19purposes of subsection (a)(1), in the case of a tax return
20required under this Act in respect of a decedent, or by his
21estate during the period of administration, or by a
22corporation, the period referred to in such Subsection shall be
2318 months after a written request for prompt determination of
24liability is filed with the Department (at such time and in
25such form and manner as the Department shall by regulations
26prescribe) by the executor, administrator, or other fiduciary

 

 

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1representing the estate of such decedent, or by such
2corporation, but not more than 3 years after the date the
3return was filed. This subsection shall not apply in the case
4of a corporation unless:
5        (1) (A) such written request notifies the Department
6    that the corporation contemplates dissolution at or before
7    the expiration of such 18-month period, (B) the dissolution
8    is begun in good faith before the expiration of such
9    18-month period, and (C) the dissolution is completed;
10        (2) (A) such written request notifies the Department
11    that a dissolution has in good faith been begun, and (B)
12    the dissolution is completed; or
13        (3) a dissolution has been completed at the time such
14    written request is made.
15    (j) Withholding tax. In the case of returns required under
16Article 7 of this Act (with respect to any amounts withheld as
17tax or any amounts required to have been withheld as tax) a
18notice of deficiency shall be issued not later than 3 years
19after the 15th day of the 4th month following the close of the
20calendar year in which such withholding was required.
21    (k) Penalties for failure to make information reports. A
22notice of deficiency for the penalties provided by Subsection
231405.1(c) of this Act may not be issued more than 3 years after
24the due date of the reports with respect to which the penalties
25are asserted.
26    (l) Penalty for failure to file withholding returns. A

 

 

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1notice of deficiency for penalties provided by Section 1004 of
2this Act for taxpayer's failure to file withholding returns may
3not be issued more than three years after the 15th day of the
44th month following the close of the calendar year in which the
5withholding giving rise to taxpayer's obligation to file those
6returns occurred.
7    (m) Transferee liability. A notice of deficiency may be
8issued to a transferee relative to a liability asserted under
9Section 1405 during time periods defined as follows:
10        1) Initial Transferee. In the case of the liability of
11    an initial transferee, up to 2 years after the expiration
12    of the period of limitation for assessment against the
13    transferor, except that if a court proceeding for review of
14    the assessment against the transferor has begun, then up to
15    2 years after the return of the certified copy of the
16    judgment in the court proceeding.
17        2) Transferee of Transferee. In the case of the
18    liability of a transferee, up to 2 years after the
19    expiration of the period of limitation for assessment
20    against the preceding transferee, but not more than 3 years
21    after the expiration of the period of limitation for
22    assessment against the initial transferor; except that if,
23    before the expiration of the period of limitation for the
24    assessment of the liability of the transferee, a court
25    proceeding for the collection of the tax or liability in
26    respect thereof has been begun against the initial

 

 

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1    transferor or the last preceding transferee, as the case
2    may be, then the period of limitation for assessment of the
3    liability of the transferee shall expire 2 years after the
4    return of the certified copy of the judgment in the court
5    proceeding.
6    (n) Notice of decrease in net loss. On and after August 23,
72002, no notice of deficiency shall be issued as the result of
8a decrease determined by the Department in the net loss
9incurred by a taxpayer in any taxable year ending prior to
10December 31, 2002 under Section 207 of this Act unless the
11Department has notified the taxpayer of the proposed decrease
12within 3 years after the return reporting the loss was filed or
13within one year after an amended return reporting an increase
14in the loss was filed, provided that in the case of an amended
15return, a decrease proposed by the Department more than 3 years
16after the original return was filed may not exceed the increase
17claimed by the taxpayer on the original return.
18(Source: P.A. 93-840, eff. 7-30-04; 94-836, eff. 6-6-06.)
 
19    Section 25. The Use Tax Act is amended by changing Section
209 as follows:
 
21    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
22    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
23and trailers that are required to be registered with an agency
24of this State, each retailer required or authorized to collect

 

 

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

 

 

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1vehicles, watercraft, aircraft, and trailers that are required
2to be registered with an agency of this State), may collect for
3each tax return period, only the tax applicable to that part of
4the selling price actually received during such tax return
5period.
6    Except as provided in this Section, on or before the
7twentieth day of each calendar month, such retailer shall file
8a return for the preceding calendar month. Such return shall be
9filed on forms prescribed by the Department and shall furnish
10such information as the Department may reasonably require.
11    The Department may require returns to be filed on a
12quarterly basis. If so required, a return for each calendar
13quarter shall be filed on or before the twentieth day of the
14calendar month following the end of such calendar quarter. The
15taxpayer shall also file a return with the Department for each
16of the first two months of each calendar quarter, on or before
17the twentieth day of the following calendar month, stating:
18        1. The name of the seller;
19        2. The address of the principal place of business from
20    which he engages in the business of selling tangible
21    personal property at retail in this State;
22        3. The total amount of taxable receipts received by him
23    during the preceding calendar month from sales of tangible
24    personal property by him during such preceding calendar
25    month, including receipts from charge and time sales, but
26    less all deductions allowed by law;

 

 

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1        4. The amount of credit provided in Section 2d of this
2    Act;
3        5. The amount of tax due;
4        5-5. The signature of the taxpayer; and
5        6. Such other reasonable information as the Department
6    may require.
7    If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

 

 

09800SB2169sam001- 76 -LRB098 03935 HLH 44697 a

1The term "average monthly tax liability" means the sum of the
2taxpayer's liabilities under this Act, and under all other
3State and local occupation and use tax laws administered by the
4Department, for the immediately preceding calendar year
5divided by 12. Beginning on October 1, 2002, a taxpayer who has
6a tax liability in the amount set forth in subsection (b) of
7Section 2505-210 of the Department of Revenue Law shall make
8all payments required by rules of the Department by electronic
9funds transfer.
10    Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make payments
12by electronic funds transfer. All taxpayers required to make
13payments by electronic funds transfer shall make those payments
14for a minimum of one year beginning on October 1.
15    Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18    All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those payments
21in the manner authorized by the Department.
22    The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Retailers'

 

 

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1Occupation Tax Act, the Service Occupation Tax Act, the Service
2Use Tax Act was $10,000 or more during the preceding 4 complete
3calendar quarters, he shall file a return with the Department
4each month by the 20th day of the month next following the
5month during which such tax liability is incurred and shall
6make payments to the Department on or before the 7th, 15th,
722nd and last day of the month during which such liability is
8incurred. On and after October 1, 2000, if the taxpayer's
9average monthly tax liability to the Department under this Act,
10the Retailers' Occupation Tax Act, the Service Occupation Tax
11Act, and the Service Use Tax Act was $20,000 or more during the
12preceding 4 complete calendar quarters, he shall file a return
13with the Department each month by the 20th day of the month
14next following the month during which such tax liability is
15incurred and shall make payment to the Department on or before
16the 7th, 15th, 22nd and last day of the month during which such
17liability is incurred. If the month during which such tax
18liability is incurred began prior to January 1, 1985, each
19payment shall be in an amount equal to 1/4 of the taxpayer's
20actual liability for the month or an amount set by the
21Department not to exceed 1/4 of the average monthly liability
22of the taxpayer to the Department for the preceding 4 complete
23calendar quarters (excluding the month of highest liability and
24the month of lowest liability in such 4 quarter period). If the
25month during which such tax liability is incurred begins on or
26after January 1, 1985, and prior to January 1, 1987, each

 

 

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1payment shall be in an amount equal to 22.5% of the taxpayer's
2actual liability for the month or 27.5% of the taxpayer's
3liability for the same calendar month of the preceding year. If
4the month during which such tax liability is incurred begins on
5or after January 1, 1987, and prior to January 1, 1988, each
6payment shall be in an amount equal to 22.5% of the taxpayer's
7actual liability for the month or 26.25% of the taxpayer's
8liability for the same calendar month of the preceding year. If
9the month during which such tax liability is incurred begins on
10or after January 1, 1988, and prior to January 1, 1989, or
11begins on or after January 1, 1996, each payment shall be in an
12amount equal to 22.5% of the taxpayer's actual liability for
13the month or 25% of the taxpayer's liability for the same
14calendar month of the preceding year. If the month during which
15such tax liability is incurred begins on or after January 1,
161989, and prior to January 1, 1996, each payment shall be in an
17amount equal to 22.5% of the taxpayer's actual liability for
18the month or 25% of the taxpayer's liability for the same
19calendar month of the preceding year or 100% of the taxpayer's
20actual liability for the quarter monthly reporting period. The
21amount of such quarter monthly payments shall be credited
22against the final tax liability of the taxpayer's return for
23that month. Before October 1, 2000, once applicable, the
24requirement of the making of quarter monthly payments to the
25Department shall continue until such taxpayer's average
26monthly liability to the Department during the preceding 4

 

 

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

 

 

09800SB2169sam001- 80 -LRB098 03935 HLH 44697 a

1taxpayer's reporting status. The Department shall change such
2taxpayer's reporting status unless it finds that such change is
3seasonal in nature and not likely to be long term. If any such
4quarter monthly payment is not paid at the time or in the
5amount required by this Section, then the taxpayer shall be
6liable for penalties and interest on the difference between the
7minimum amount due and the amount of such quarter monthly
8payment actually and timely paid, except insofar as the
9taxpayer has previously made payments for that month to the
10Department in excess of the minimum payments previously due as
11provided in this Section. The Department shall make reasonable
12rules and regulations to govern the quarter monthly payment
13amount and quarter monthly payment dates for taxpayers who file
14on other than a calendar monthly basis.
15    If any such payment provided for in this Section exceeds
16the taxpayer's liabilities under this Act, the Retailers'
17Occupation Tax Act, the Service Occupation Tax Act and the
18Service Use Tax Act, as shown by an original monthly return,
19the Department shall issue to the taxpayer a credit memorandum
20no later than 30 days after the date of payment, which
21memorandum may be submitted by the taxpayer to the Department
22in payment of tax liability subsequently to be remitted by the
23taxpayer to the Department or be assigned by the taxpayer to a
24similar taxpayer under this Act, the Retailers' Occupation Tax
25Act, the Service Occupation Tax Act or the Service Use Tax Act,
26in accordance with reasonable rules and regulations to be

 

 

09800SB2169sam001- 81 -LRB098 03935 HLH 44697 a

1prescribed by the Department, except that if such excess
2payment is shown on an original monthly return and is made
3after December 31, 1986, no credit memorandum shall be issued,
4unless requested by the taxpayer. If no such request is made,
5the taxpayer may credit such excess payment against tax
6liability subsequently to be remitted by the taxpayer to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act or the Service Use Tax Act, in
9accordance with reasonable rules and regulations prescribed by
10the Department. If the Department subsequently determines that
11all or any part of the credit taken was not actually due to the
12taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
13be reduced by 2.1% or 1.75% of the difference between the
14credit taken and that actually due, and the taxpayer shall be
15liable for penalties and interest on such difference.
16    If the retailer is otherwise required to file a monthly
17return and if the retailer's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February, and March of a given
21year being due by April 20 of such year; with the return for
22April, May and June of a given year being due by July 20 of such
23year; with the return for July, August and September of a given
24year being due by October 20 of such year, and with the return
25for October, November and December of a given year being due by
26January 20 of the following year.

 

 

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1    If the retailer is otherwise required to file a monthly or
2quarterly return and if the retailer's average monthly tax
3liability to the Department does not exceed $50, the Department
4may authorize his returns to be filed on an annual basis, with
5the return for a given year being due by January 20 of the
6following year.
7    Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10    Notwithstanding any other provision in this Act concerning
11the time within which a retailer may file his return, in the
12case of any retailer who ceases to engage in a kind of business
13which makes him responsible for filing returns under this Act,
14such retailer shall file a final return under this Act with the
15Department not more than one month after discontinuing such
16business.
17    In addition, with respect to motor vehicles, watercraft,
18aircraft, and trailers that are required to be registered with
19an agency of this State, every retailer selling this kind of
20tangible personal property shall file, with the Department,
21upon a form to be prescribed and supplied by the Department, a
22separate return for each such item of tangible personal
23property which the retailer sells, except that if, in the same
24transaction, (i) a retailer of aircraft, watercraft, motor
25vehicles or trailers transfers more than one aircraft,
26watercraft, motor vehicle or trailer to another aircraft,

 

 

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1watercraft, motor vehicle or trailer retailer for the purpose
2of resale or (ii) a retailer of aircraft, watercraft, motor
3vehicles, or trailers transfers more than one aircraft,
4watercraft, motor vehicle, or trailer to a purchaser for use as
5a qualifying rolling stock as provided in Section 3-55 of this
6Act, then that seller may report the transfer of all the
7aircraft, watercraft, motor vehicles or trailers involved in
8that transaction to the Department on the same uniform
9invoice-transaction reporting return form. For purposes of
10this Section, "watercraft" means a Class 2, Class 3, or Class 4
11watercraft as defined in Section 3-2 of the Boat Registration
12and Safety Act, a personal watercraft, or any boat equipped
13with an inboard motor.
14    The transaction reporting return in the case of motor
15vehicles or trailers that are required to be registered with an
16agency of this State, shall be the same document as the Uniform
17Invoice referred to in Section 5-402 of the Illinois Vehicle
18Code and must show the name and address of the seller; the name
19and address of the purchaser; the amount of the selling price
20including the amount allowed by the retailer for traded-in
21property, if any; the amount allowed by the retailer for the
22traded-in tangible personal property, if any, to the extent to
23which Section 2 of this Act allows an exemption for the value
24of traded-in property; the balance payable after deducting such
25trade-in allowance from the total selling price; the amount of
26tax due from the retailer with respect to such transaction; the

 

 

09800SB2169sam001- 84 -LRB098 03935 HLH 44697 a

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

 

 

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1being sold, but may be filed by the retailer at any time sooner
2than that if he chooses to do so. The transaction reporting
3return and tax remittance or proof of exemption from the tax
4that is imposed by this Act may be transmitted to the
5Department by way of the State agency with which, or State
6officer with whom, the tangible personal property must be
7titled or registered (if titling or registration is required)
8if the Department and such agency or State officer determine
9that this procedure will expedite the processing of
10applications for title or registration.
11    With each such transaction reporting return, the retailer
12shall remit the proper amount of tax due (or shall submit
13satisfactory evidence that the sale is not taxable if that is
14the case), to the Department or its agents, whereupon the
15Department shall issue, in the purchaser's name, a tax receipt
16(or a certificate of exemption if the Department is satisfied
17that the particular sale is tax exempt) which such purchaser
18may submit to the agency with which, or State officer with
19whom, he must title or register the tangible personal property
20that is involved (if titling or registration is required) in
21support of such purchaser's application for an Illinois
22certificate or other evidence of title or registration to such
23tangible personal property.
24    No retailer's failure or refusal to remit tax under this
25Act precludes a user, who has paid the proper tax to the
26retailer, from obtaining his certificate of title or other

 

 

09800SB2169sam001- 86 -LRB098 03935 HLH 44697 a

1evidence of title or registration (if titling or registration
2is required) upon satisfying the Department that such user has
3paid the proper tax (if tax is due) to the retailer. The
4Department shall adopt appropriate rules to carry out the
5mandate of this paragraph.
6    If the user who would otherwise pay tax to the retailer
7wants the transaction reporting return filed and the payment of
8tax or proof of exemption made to the Department before the
9retailer is willing to take these actions and such user has not
10paid the tax to the retailer, such user may certify to the fact
11of such delay by the retailer, and may (upon the Department
12being satisfied of the truth of such certification) transmit
13the information required by the transaction reporting return
14and the remittance for tax or proof of exemption directly to
15the Department and obtain his tax receipt or exemption
16determination, in which event the transaction reporting return
17and tax remittance (if a tax payment was required) shall be
18credited by the Department to the proper retailer's account
19with the Department, but without the 2.1% or 1.75% discount
20provided for in this Section being allowed. When the user pays
21the tax directly to the Department, he shall pay the tax in the
22same amount and in the same form in which it would be remitted
23if the tax had been remitted to the Department by the retailer.
24    Where a retailer collects the tax with respect to the
25selling price of tangible personal property which he sells and
26the purchaser thereafter returns such tangible personal

 

 

09800SB2169sam001- 87 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 88 -LRB098 03935 HLH 44697 a

1Acts on the one form.
2    Where the retailer has more than one business registered
3with the Department under separate registration under this Act,
4such retailer may not file each return that is due as a single
5return covering all such registered businesses, but shall file
6separate returns for each such registered business.
7    Beginning January 1, 1990, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund, a special
9fund in the State Treasury which is hereby created, the net
10revenue realized for the preceding month from the 1% tax on
11sales of food for human consumption which is to be consumed off
12the premises where it is sold (other than alcoholic beverages,
13soft drinks and food which has been prepared for immediate
14consumption) and prescription and nonprescription medicines,
15drugs, medical appliances and insulin, urine testing
16materials, syringes and needles used by diabetics.
17    Beginning January 1, 1990, each month the Department shall
18pay into the County and Mass Transit District Fund 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate on the selling price of tangible personal property
21which is purchased outside Illinois at retail from a retailer
22and which is titled or registered by an agency of this State's
23government.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund, a special
26fund in the State Treasury, 20% of the net revenue realized for

 

 

09800SB2169sam001- 89 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 90 -LRB098 03935 HLH 44697 a

1is now taxed at 6.25%.
2    Beginning July 1, 2011, each month the Department shall pay
3into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
4realized for the preceding month from the 6.25% general rate on
5the selling price of sorbents used in Illinois in the process
6of sorbent injection as used to comply with the Environmental
7Protection Act or the federal Clean Air Act, but the total
8payment into the Clean Air Act (CAA) Permit Fund under this Act
9and the Retailers' Occupation Tax Act shall not exceed
10$2,000,000 in any fiscal year.
11    Of the remainder of the moneys received by the Department
12pursuant to this Act, (a) 1.75% thereof shall be paid into the
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
14and after July 1, 1989, 3.8% thereof shall be paid into the
15Build Illinois Fund; provided, however, that if in any fiscal
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
17may be, of the moneys received by the Department and required
18to be paid into the Build Illinois Fund pursuant to Section 3
19of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
20Act, Section 9 of the Service Use Tax Act, and Section 9 of the
21Service Occupation Tax Act, such Acts being hereinafter called
22the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
23may be, of moneys being hereinafter called the "Tax Act
24Amount", and (2) the amount transferred to the Build Illinois
25Fund from the State and Local Sales Tax Reform Fund shall be
26less than the Annual Specified Amount (as defined in Section 3

 

 

09800SB2169sam001- 91 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 92 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 93 -LRB098 03935 HLH 44697 a

1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000
262008126,000,000

 

 

09800SB2169sam001- 94 -LRB098 03935 HLH 44697 a

12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021246,000,000
142022260,000,000
152023275,000,000
162024 275,000,000
172025 275,000,000
182026 279,000,000
192027 292,000,000
202028 307,000,000
212029 322,000,000
222030 338,000,000
232031 350,000,000
242032 350,000,000
25and
26each fiscal year

 

 

09800SB2169sam001- 95 -LRB098 03935 HLH 44697 a

1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7    Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total Deposit",
19has been deposited.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993, the Department shall each
24month pay into the Illinois Tax Increment Fund 0.27% of 80% of
25the net revenue realized for the preceding month from the 6.25%
26general rate on the selling price of tangible personal

 

 

09800SB2169sam001- 96 -LRB098 03935 HLH 44697 a

1property.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the State
17Treasury and 25% shall be reserved in a special account and
18used only for the transfer to the Common School Fund as part of
19the monthly transfer from the General Revenue Fund in
20accordance with Section 8a of the State Finance Act.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

09800SB2169sam001- 97 -LRB098 03935 HLH 44697 a

1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, manufacturers,
7importers and wholesalers whose products are sold at retail in
8Illinois by numerous retailers, and who wish to do so, may
9assume the responsibility for accounting and paying to the
10Department all tax accruing under this Act with respect to such
11sales, if the retailers who are affected do not make written
12objection to the Department to this arrangement.
13(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
14eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
1597-333, eff. 8-12-11.)
 
16    Section 26. The Service Use Tax Act is amended by changing
17Section 9 as follows:
 
18    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
19    Sec. 9. Each serviceman required or authorized to collect
20the tax herein imposed shall pay to the Department the amount
21of such tax (except as otherwise provided) at the time when he
22is required to file his return for the period during which such
23tax was collected, less a discount of 2.1% prior to January 1,
241990 and 1.75% on and after January 1, 1990, or $5 per calendar

 

 

09800SB2169sam001- 98 -LRB098 03935 HLH 44697 a

1year, whichever is greater, which is allowed to reimburse the
2serviceman for expenses incurred in collecting the tax, keeping
3records, preparing and filing returns, remitting the tax and
4supplying data to the Department on request. The Department may
5disallow the discount for servicemen whose certificate of
6registration is revoked at the time the return is filed, but
7only if the Department's decision to revoke the certificate of
8registration has become final. A serviceman need not remit that
9part of any tax collected by him to the extent that he is
10required to pay and does pay the tax imposed by the Service
11Occupation Tax Act with respect to his sale of service
12involving the incidental transfer by him of the same property.
13    Except as provided hereinafter in this Section, on or
14before the twentieth day of each calendar month, such
15serviceman shall file a return for the preceding calendar month
16in accordance with reasonable Rules and Regulations to be
17promulgated by the Department. Such return shall be filed on a
18form prescribed by the Department and shall contain such
19information as the Department may reasonably require.
20    The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

 

 

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1        1. The name of the seller;
2        2. The address of the principal place of business from
3    which he engages in business as a serviceman in this State;
4        3. The total amount of taxable receipts received by him
5    during the preceding calendar month, including receipts
6    from charge and time sales, but less all deductions allowed
7    by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due;
11        5-5. The signature of the taxpayer; and
12        6. Such other reasonable information as the Department
13    may require.
14    If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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

 

 

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

 

 

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

 

 

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1service, and such serviceman shall remit the amount of such tax
2to the Department when filing such return.
3    If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable servicemen, who are required to file
6returns hereunder and also under the Service Occupation Tax
7Act, to furnish all the return information required by both
8Acts on the one form.
9    Where the serviceman has more than one business registered
10with the Department under separate registration hereunder,
11such serviceman shall not file each return that is due as a
12single return covering all such registered businesses, but
13shall file separate returns for each such registered business.
14    Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Tax Reform Fund, a special fund in
16the State Treasury, the net revenue realized for the preceding
17month from the 1% tax on sales of food for human consumption
18which is to be consumed off the premises where it is sold
19(other than alcoholic beverages, soft drinks and food which has
20been prepared for immediate consumption) and prescription and
21nonprescription medicines, drugs, medical appliances and
22insulin, urine testing materials, syringes and needles used by
23diabetics.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 20% of the
26net revenue realized for the preceding month from the 6.25%

 

 

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1general rate on transfers of tangible personal property, other
2than tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by an agency of this State's government.
5    Beginning August 1, 2000, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund 100% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9    Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15is now taxed at 6.25%.
16    Of the remainder of the moneys received by the Department
17pursuant to this Act, (a) 1.75% thereof shall be paid into the
18Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
19and after July 1, 1989, 3.8% thereof shall be paid into the
20Build Illinois Fund; provided, however, that if in any fiscal
21year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
22may be, of the moneys received by the Department and required
23to be paid into the Build Illinois Fund pursuant to Section 3
24of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
25Act, Section 9 of the Service Use Tax Act, and Section 9 of the
26Service Occupation Tax Act, such Acts being hereinafter called

 

 

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1the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
2may be, of moneys being hereinafter called the "Tax Act
3Amount", and (2) the amount transferred to the Build Illinois
4Fund from the State and Local Sales Tax Reform Fund shall be
5less than the Annual Specified Amount (as defined in Section 3
6of the Retailers' Occupation Tax Act), an amount equal to the
7difference shall be immediately paid into the Build Illinois
8Fund from other moneys received by the Department pursuant to
9the Tax Acts; and further provided, that if on the last
10business day of any month the sum of (1) the Tax Act Amount
11required to be deposited into the Build Illinois Bond Account
12in the Build Illinois Fund during such month and (2) the amount
13transferred during such month to the Build Illinois Fund from
14the State and Local Sales Tax Reform Fund shall have been less
15than 1/12 of the Annual Specified Amount, an amount equal to
16the difference shall be immediately paid into the Build
17Illinois Fund from other moneys received by the Department
18pursuant to the Tax Acts; and, further provided, that in no
19event shall the payments required under the preceding proviso
20result in aggregate payments into the Build Illinois Fund
21pursuant to this clause (b) for any fiscal year in excess of
22the greater of (i) the Tax Act Amount or (ii) the Annual
23Specified Amount for such fiscal year; and, further provided,
24that the amounts payable into the Build Illinois Fund under
25this clause (b) shall be payable only until such time as the
26aggregate amount on deposit under each trust indenture securing

 

 

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

 

 

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1Build Illinois Fund are subject to the pledge, claim and charge
2set forth in Section 12 of the Build Illinois Bond Act.
3    Subject to payment of amounts into the Build Illinois Fund
4as provided in the preceding paragraph or in any amendment
5thereto hereafter enacted, the following specified monthly
6installment of the amount requested in the certificate of the
7Chairman of the Metropolitan Pier and Exposition Authority
8provided under Section 8.25f of the State Finance Act, but not
9in excess of the sums designated as "Total Deposit", shall be
10deposited in the aggregate from collections under Section 9 of
11the Use Tax Act, Section 9 of the Service Use Tax Act, Section
129 of the Service Occupation Tax Act, and Section 3 of the
13Retailers' Occupation Tax Act into the McCormick Place
14Expansion Project Fund in the specified fiscal years.
15Fiscal YearTotal Deposit
161993         $0
171994 53,000,000
181995 58,000,000
191996 61,000,000
201997 64,000,000
211998 68,000,000
221999 71,000,000
232000 75,000,000
242001 80,000,000
252002 93,000,000

 

 

09800SB2169sam001- 108 -LRB098 03935 HLH 44697 a

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

09800SB2169sam001- 109 -LRB098 03935 HLH 44697 a

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

09800SB2169sam001- 110 -LRB098 03935 HLH 44697 a

1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, beginning July 1, 1993, the Department shall each
4month pay into the Illinois Tax Increment Fund 0.27% of 80% of
5the net revenue realized for the preceding month from the 6.25%
6general rate on the selling price of tangible personal
7property.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning with the receipt of the first report of
12taxes paid by an eligible business and continuing for a 25-year
13period, the Department shall each month pay into the Energy
14Infrastructure Fund 80% of the net revenue realized from the
156.25% general rate on the selling price of Illinois-mined coal
16that was sold to an eligible business. For purposes of this
17paragraph, the term "eligible business" means a new electric
18generating facility certified pursuant to Section 605-332 of
19the Department of Commerce and Economic Opportunity Law of the
20Civil Administrative Code of Illinois.
21    All remaining moneys received by the Department pursuant to
22this Act shall be paid into the General Revenue Fund of the
23State Treasury.
24    As soon as possible after the first day of each month, upon
25certification of the Department of Revenue, the Comptroller
26shall order transferred and the Treasurer shall transfer from

 

 

09800SB2169sam001- 111 -LRB098 03935 HLH 44697 a

1the General Revenue Fund to the Motor Fuel Tax Fund an amount
2equal to 1.7% of 80% of the net revenue realized under this Act
3for the second preceding month. Beginning April 1, 2000, this
4transfer is no longer required and shall not be made.
5    Net revenue realized for a month shall be the revenue
6collected by the State pursuant to this Act, less the amount
7paid out during that month as refunds to taxpayers for
8overpayment of liability.
9(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
10eff. 5-27-10.)
 
11    Section 27. The Service Occupation Tax Act is amended by
12changing Section 9 as follows:
 
13    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
14    Sec. 9. Each serviceman required or authorized to collect
15the tax herein imposed shall pay to the Department the amount
16of such tax at the time when he is required to file his return
17for the period during which such tax was collectible, less a
18discount of 2.1% prior to January 1, 1990, and 1.75% on and
19after January 1, 1990, or $5 per calendar year, whichever is
20greater, which is allowed to reimburse the serviceman for
21expenses incurred in collecting the tax, keeping records,
22preparing and filing returns, remitting the tax and supplying
23data to the Department on request. The Department may disallow
24the discount for servicemen whose certificate of registration

 

 

09800SB2169sam001- 112 -LRB098 03935 HLH 44697 a

1is revoked at the time the return is filed, but only if the
2Department's decision to revoke the certificate of
3registration has become final.
4    Where such tangible personal property is sold under a
5conditional sales contract, or under any other form of sale
6wherein the payment of the principal sum, or a part thereof, is
7extended beyond the close of the period for which the return is
8filed, the serviceman, in collecting the tax may collect, for
9each tax return period, only the tax applicable to the part of
10the selling price actually received during such tax return
11period.
12    Except as provided hereinafter in this Section, on or
13before the twentieth day of each calendar month, such
14serviceman shall file a return for the preceding calendar month
15in accordance with reasonable rules and regulations to be
16promulgated by the Department of Revenue. Such return shall be
17filed on a form prescribed by the Department and shall contain
18such information as the Department may reasonably require.
19    The Department may require returns to be filed on a
20quarterly basis. If so required, a return for each calendar
21quarter shall be filed on or before the twentieth day of the
22calendar month following the end of such calendar quarter. The
23taxpayer shall also file a return with the Department for each
24of the first two months of each calendar quarter, on or before
25the twentieth day of the following calendar month, stating:
26        1. The name of the seller;

 

 

09800SB2169sam001- 113 -LRB098 03935 HLH 44697 a

1        2. The address of the principal place of business from
2    which he engages in business as a serviceman in this State;
3        3. The total amount of taxable receipts received by him
4    during the preceding calendar month, including receipts
5    from charge and time sales, but less all deductions allowed
6    by law;
7        4. The amount of credit provided in Section 2d of this
8    Act;
9        5. The amount of tax due;
10        5-5. The signature of the taxpayer; and
11        6. Such other reasonable information as the Department
12    may require.
13    If a taxpayer fails to sign a return within 30 days after
14the proper notice and demand for signature by the Department,
15the return shall be considered valid and any amount shown to be
16due on the return shall be deemed assessed.
17    Prior to October 1, 2003, and on and after September 1,
182004 a serviceman may accept a Manufacturer's Purchase Credit
19certification from a purchaser in satisfaction of Service Use
20Tax as provided in Section 3-70 of the Service Use Tax Act if
21the purchaser provides the appropriate documentation as
22required by Section 3-70 of the Service Use Tax Act. A
23Manufacturer's Purchase Credit certification, accepted prior
24to October 1, 2003 or on or after September 1, 2004 by a
25serviceman as provided in Section 3-70 of the Service Use Tax
26Act, may be used by that serviceman to satisfy Service

 

 

09800SB2169sam001- 114 -LRB098 03935 HLH 44697 a

1Occupation Tax liability in the amount claimed in the
2certification, not to exceed 6.25% of the receipts subject to
3tax from a qualifying purchase. A Manufacturer's Purchase
4Credit reported on any original or amended return filed under
5this Act after October 20, 2003 for reporting periods prior to
6September 1, 2004 shall be disallowed. Manufacturer's Purchase
7Credit reported on annual returns due on or after January 1,
82005 will be disallowed for periods prior to September 1, 2004.
9No Manufacturer's Purchase Credit may be used after September
1030, 2003 through August 31, 2004 to satisfy any tax liability
11imposed under this Act, including any audit liability.
12    If the serviceman's average monthly tax liability to the
13Department does not exceed $200, the Department may authorize
14his returns to be filed on a quarter annual basis, with the
15return for January, February and March of a given year being
16due by April 20 of such year; with the return for April, May
17and June of a given year being due by July 20 of such year; with
18the return for July, August and September of a given year being
19due by October 20 of such year, and with the return for
20October, November and December of a given year being due by
21January 20 of the following year.
22    If the serviceman's average monthly tax liability to the
23Department does not exceed $50, the Department may authorize
24his returns to be filed on an annual basis, with the return for
25a given year being due by January 20 of the following year.
26    Such quarter annual and annual returns, as to form and

 

 

09800SB2169sam001- 115 -LRB098 03935 HLH 44697 a

1substance, shall be subject to the same requirements as monthly
2returns.
3    Notwithstanding any other provision in this Act concerning
4the time within which a serviceman may file his return, in the
5case of any serviceman who ceases to engage in a kind of
6business which makes him responsible for filing returns under
7this Act, such serviceman shall file a final return under this
8Act with the Department not more than 1 month after
9discontinuing such business.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1995, a taxpayer who has
17an average monthly tax liability of $50,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 2000, a taxpayer who has
20an annual tax liability of $200,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. The term "annual tax liability" shall be the
23sum of the taxpayer's liabilities under this Act, and under all
24other State and local occupation and use tax laws administered
25by the Department, for the immediately preceding calendar year.
26The term "average monthly tax liability" means the sum of the

 

 

09800SB2169sam001- 116 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 117 -LRB098 03935 HLH 44697 a

1property and the serviceman refunds the selling price thereof
2to the purchaser, such serviceman shall also refund, to the
3purchaser, the tax so collected from the purchaser. When filing
4his return for the period in which he refunds such tax to the
5purchaser, the serviceman may deduct the amount of the tax so
6refunded by him to the purchaser from any other Service
7Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
8Use Tax which such serviceman may be required to pay or remit
9to the Department, as shown by such return, provided that the
10amount of the tax to be deducted shall previously have been
11remitted to the Department by such serviceman. If the
12serviceman shall not previously have remitted the amount of
13such tax to the Department, he shall be entitled to no
14deduction hereunder upon refunding such tax to the purchaser.
15    If experience indicates such action to be practicable, the
16Department may prescribe and furnish a combination or joint
17return which will enable servicemen, who are required to file
18returns hereunder and also under the Retailers' Occupation Tax
19Act, the Use Tax Act or the Service Use Tax Act, to furnish all
20the return information required by all said Acts on the one
21form.
22    Where the serviceman has more than one business registered
23with the Department under separate registrations hereunder,
24such serviceman shall file separate returns for each registered
25business.
26    Beginning January 1, 1990, each month the Department shall

 

 

09800SB2169sam001- 118 -LRB098 03935 HLH 44697 a

1pay into the Local Government Tax Fund the revenue realized for
2the preceding month from the 1% tax on sales of food for human
3consumption which is to be consumed off the premises where it
4is sold (other than alcoholic beverages, soft drinks and food
5which has been prepared for immediate consumption) and
6prescription and nonprescription medicines, drugs, medical
7appliances and insulin, urine testing materials, syringes and
8needles used by diabetics.
9    Beginning January 1, 1990, each month the Department shall
10pay into the County and Mass Transit District Fund 4% of the
11revenue realized for the preceding month from the 6.25% general
12rate.
13    Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol.
17    Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the revenue
19realized for the preceding month from the 6.25% general rate on
20transfers of tangible personal property.
21    Beginning August 1, 2000, each month the Department shall
22pay into the Local Government Tax Fund 80% of the net revenue
23realized for the preceding month from the 1.25% rate on the
24selling price of motor fuel and gasohol.
25    Beginning October 1, 2009, each month the Department shall
26pay into the Capital Projects Fund an amount that is equal to

 

 

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1an amount estimated by the Department to represent 80% of the
2net revenue realized for the preceding month from the sale of
3candy, grooming and hygiene products, and soft drinks that had
4been taxed at a rate of 1% prior to September 1, 2009 but that
5is now taxed at 6.25%.
6    Of the remainder of the moneys received by the Department
7pursuant to this Act, (a) 1.75% thereof shall be paid into the
8Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
9and after July 1, 1989, 3.8% thereof shall be paid into the
10Build Illinois Fund; provided, however, that if in any fiscal
11year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
12may be, of the moneys received by the Department and required
13to be paid into the Build Illinois Fund pursuant to Section 3
14of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
15Act, Section 9 of the Service Use Tax Act, and Section 9 of the
16Service Occupation Tax Act, such Acts being hereinafter called
17the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
18may be, of moneys being hereinafter called the "Tax Act
19Amount", and (2) the amount transferred to the Build Illinois
20Fund from the State and Local Sales Tax Reform Fund shall be
21less than the Annual Specified Amount (as defined in Section 3
22of the Retailers' Occupation Tax Act), an amount equal to the
23difference shall be immediately paid into the Build Illinois
24Fund from other moneys received by the Department pursuant to
25the Tax Acts; and further provided, that if on the last
26business day of any month the sum of (1) the Tax Act Amount

 

 

09800SB2169sam001- 120 -LRB098 03935 HLH 44697 a

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

 

 

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

 

 

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1the Use Tax Act, Section 9 of the Service Use Tax Act, Section
29 of the Service Occupation Tax Act, and Section 3 of the
3Retailers' Occupation Tax Act into the McCormick Place
4Expansion Project Fund in the specified fiscal years.
5Fiscal YearTotal Deposit
61993         $0
71994 53,000,000
81995 58,000,000
91996 61,000,000
101997 64,000,000
111998 68,000,000
121999 71,000,000
132000 75,000,000
142001 80,000,000
152002 93,000,000
162003 99,000,000
172004103,000,000
182005108,000,000
192006113,000,000
202007119,000,000
212008126,000,000
222009132,000,000
232010139,000,000
242011146,000,000
252012153,000,000

 

 

09800SB2169sam001- 123 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 124 -LRB098 03935 HLH 44697 a

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993, the Department shall each
20month pay into the Illinois Tax Increment Fund 0.27% of 80% of
21the net revenue realized for the preceding month from the 6.25%
22general rate on the selling price of tangible personal
23property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

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1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Remaining moneys received by the Department pursuant to
12this Act shall be paid into the General Revenue Fund of the
13State Treasury.
14    The Department may, upon separate written notice to a
15taxpayer, require the taxpayer to prepare and file with the
16Department on a form prescribed by the Department within not
17less than 60 days after receipt of the notice an annual
18information return for the tax year specified in the notice.
19Such annual return to the Department shall include a statement
20of gross receipts as shown by the taxpayer's last Federal
21income tax return. If the total receipts of the business as
22reported in the Federal income tax return do not agree with the
23gross receipts reported to the Department of Revenue for the
24same period, the taxpayer shall attach to his annual return a
25schedule showing a reconciliation of the 2 amounts and the
26reasons for the difference. The taxpayer's annual return to the

 

 

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1Department shall also disclose the cost of goods sold by the
2taxpayer during the year covered by such return, opening and
3closing inventories of such goods for such year, cost of goods
4used from stock or taken from stock and given away by the
5taxpayer during such year, pay roll information of the
6taxpayer's business during such year and any additional
7reasonable information which the Department deems would be
8helpful in determining the accuracy of the monthly, quarterly
9or annual returns filed by such taxpayer as hereinbefore
10provided for in this Section.
11    If the annual information return required by this Section
12is not filed when and as required, the taxpayer shall be liable
13as follows:
14        (i) Until January 1, 1994, the taxpayer shall be liable
15    for a penalty equal to 1/6 of 1% of the tax due from such
16    taxpayer under this Act during the period to be covered by
17    the annual return for each month or fraction of a month
18    until such return is filed as required, the penalty to be
19    assessed and collected in the same manner as any other
20    penalty provided for in this Act.
21        (ii) On and after January 1, 1994, the taxpayer shall
22    be liable for a penalty as described in Section 3-4 of the
23    Uniform Penalty and Interest Act.
24    The chief executive officer, proprietor, owner or highest
25ranking manager shall sign the annual return to certify the
26accuracy of the information contained therein. Any person who

 

 

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1willfully signs the annual return containing false or
2inaccurate information shall be guilty of perjury and punished
3accordingly. The annual return form prescribed by the
4Department shall include a warning that the person signing the
5return may be liable for perjury.
6    The foregoing portion of this Section concerning the filing
7of an annual information return shall not apply to a serviceman
8who is not required to file an income tax return with the
9United States Government.
10    As soon as possible after the first day of each month, upon
11certification of the Department of Revenue, the Comptroller
12shall order transferred and the Treasurer shall transfer from
13the General Revenue Fund to the Motor Fuel Tax Fund an amount
14equal to 1.7% of 80% of the net revenue realized under this Act
15for the second preceding month. Beginning April 1, 2000, this
16transfer is no longer required and shall not be made.
17    Net revenue realized for a month shall be the revenue
18collected by the State pursuant to this Act, less the amount
19paid out during that month as refunds to taxpayers for
20overpayment of liability.
21    For greater simplicity of administration, it shall be
22permissible for manufacturers, importers and wholesalers whose
23products are sold by numerous servicemen in Illinois, and who
24wish to do so, to assume the responsibility for accounting and
25paying to the Department all tax accruing under this Act with
26respect to such sales, if the servicemen who are affected do

 

 

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1not make written objection to the Department to this
2arrangement.
3(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
4eff. 5-27-10.)
 
5    Section 30. The Retailers' Occupation Tax Act is amended by
6changing Sections 2a and 3 as follows:
 
7    (35 ILCS 120/2a)  (from Ch. 120, par. 441a)
8    Sec. 2a. It is unlawful for any person to engage in the
9business of selling tangible personal property at retail in
10this State without a certificate of registration from the
11Department. Application for a certificate of registration
12shall be made to the Department upon forms furnished by it.
13Each such application shall be signed and verified and shall
14state: (1) the name and social security number of the
15applicant; (2) the address of his principal place of business;
16(3) the address of the principal place of business from which
17he engages in the business of selling tangible personal
18property at retail in this State and the addresses of all other
19places of business, if any (enumerating such addresses, if any,
20in a separate list attached to and made a part of the
21application), from which he engages in the business of selling
22tangible personal property at retail in this State; (4) the
23name and address of the person or persons who will be
24responsible for filing returns and payment of taxes due under

 

 

09800SB2169sam001- 129 -LRB098 03935 HLH 44697 a

1this Act; (5) in the case of a corporation, the name, title,
2and social security number of each corporate officer; (6) in
3the case of a limited liability company, the name, social
4security number, and FEIN number of each manager and member;
5and (7) such other information as the Department may reasonably
6require. The application shall contain an acceptance of
7responsibility signed by the person or persons who will be
8responsible for filing returns and payment of the taxes due
9under this Act. If the applicant will sell tangible personal
10property at retail through vending machines, his application to
11register shall indicate the number of vending machines to be so
12operated. If requested by the Department at any time, that
13person shall verify the total number of vending machines he or
14she uses in his or her business of selling tangible personal
15property at retail.
16    The Department may deny a certificate of registration to
17any applicant if a person who is named as the owner, a any
18partner, a any manager or member of a limited liability
19company, or a corporate officer of the applicant on the
20application for the certificate of registration, is or has been
21named as the owner, a partner, a manager or member of a limited
22liability company, or a corporate officer, on the application
23for the certificate of registration of another retailer that is
24in default for moneys due under this Act or any other tax or
25fee Act administered by the Department.For purposes of this
26paragraph only, in determining whether a person is in default

 

 

09800SB2169sam001- 130 -LRB098 03935 HLH 44697 a

1for moneys due, the Department shall include only amounts
2established as a final liability within the 20 years prior to
3the date of the Department's notice of denial of a certificate
4of registration.
5    The Department may require an applicant for a certificate
6of registration hereunder to, at the time of filing such
7application, furnish a bond from a surety company authorized to
8do business in the State of Illinois, or an irrevocable bank
9letter of credit or a bond signed by 2 personal sureties who
10have filed, with the Department, sworn statements disclosing
11net assets equal to at least 3 times the amount of the bond to
12be required of such applicant, or a bond secured by an
13assignment of a bank account or certificate of deposit, stocks
14or bonds, conditioned upon the applicant paying to the State of
15Illinois all moneys becoming due under this Act and under any
16other State tax law or municipal or county tax ordinance or
17resolution under which the certificate of registration that is
18issued to the applicant under this Act will permit the
19applicant to engage in business without registering separately
20under such other law, ordinance or resolution. In making a
21determination as to whether to require a bond or other
22security, the Department shall take into consideration whether
23the owner, any partner, any manager or member of a limited
24liability company, or a corporate officer of the applicant is
25or has been the owner, a partner, a manager or member of a
26limited liability company, or a corporate officer of another

 

 

09800SB2169sam001- 131 -LRB098 03935 HLH 44697 a

1retailer that is in default for moneys due under this Act or
2any other tax or fee Act administered by the Department; and
3whether the owner, any partner, any manager or member of a
4limited liability company, or a corporate officer of the
5applicant is or has been the owner, a partner, a manager or
6member of a limited liability company, or a corporate officer
7of another retailer whose certificate of registration has been
8revoked within the previous 5 years under this Act or any other
9tax or fee Act administered by the Department. If a bond or
10other security is required, the Department shall fix the amount
11of the bond or other security, taking into consideration the
12amount of money expected to become due from the applicant under
13this Act and under any other State tax law or municipal or
14county tax ordinance or resolution under which the certificate
15of registration that is issued to the applicant under this Act
16will permit the applicant to engage in business without
17registering separately under such other law, ordinance, or
18resolution. The amount of security required by the Department
19shall be such as, in its opinion, will protect the State of
20Illinois against failure to pay the amount which may become due
21from the applicant under this Act and under any other State tax
22law or municipal or county tax ordinance or resolution under
23which the certificate of registration that is issued to the
24applicant under this Act will permit the applicant to engage in
25business without registering separately under such other law,
26ordinance or resolution, but the amount of the security

 

 

09800SB2169sam001- 132 -LRB098 03935 HLH 44697 a

1required by the Department shall not exceed three times the
2amount of the applicant's average monthly tax liability, or
3$50,000.00, whichever amount is lower.
4    No certificate of registration under this Act shall be
5issued by the Department until the applicant provides the
6Department with satisfactory security, if required, as herein
7provided for.
8    Upon receipt of the application for certificate of
9registration in proper form, and upon approval by the
10Department of the security furnished by the applicant, if
11required, the Department shall issue to such applicant a
12certificate of registration which shall permit the person to
13whom it is issued to engage in the business of selling tangible
14personal property at retail in this State. The certificate of
15registration shall be conspicuously displayed at the place of
16business which the person so registered states in his
17application to be the principal place of business from which he
18engages in the business of selling tangible personal property
19at retail in this State.
20    No certificate of registration issued to a taxpayer who
21files returns required by this Act on a monthly basis shall be
22valid after the expiration of 5 years from the date of its
23issuance or last renewal. The expiration date of a
24sub-certificate of registration shall be that of the
25certificate of registration to which the sub-certificate
26relates. A certificate of registration shall automatically be

 

 

09800SB2169sam001- 133 -LRB098 03935 HLH 44697 a

1renewed, subject to revocation as provided by this Act, for an
2additional 5 years from the date of its expiration unless
3otherwise notified by the Department as provided by this
4paragraph. Where a taxpayer to whom a certificate of
5registration is issued under this Act is in default to the
6State of Illinois for delinquent returns or for moneys due
7under this Act or any other State tax law or municipal or
8county ordinance administered or enforced by the Department,
9the Department shall, not less than 120 days before the
10expiration date of such certificate of registration, give
11notice to the taxpayer to whom the certificate was issued of
12the account period of the delinquent returns, the amount of
13tax, penalty and interest due and owing from the taxpayer, and
14that the certificate of registration shall not be automatically
15renewed upon its expiration date unless the taxpayer, on or
16before the date of expiration, has filed and paid the
17delinquent returns or paid the defaulted amount in full. A
18taxpayer to whom such a notice is issued shall be deemed an
19applicant for renewal. The Department shall promulgate
20regulations establishing procedures for taxpayers who file
21returns on a monthly basis but desire and qualify to change to
22a quarterly or yearly filing basis and will no longer be
23subject to renewal under this Section, and for taxpayers who
24file returns on a yearly or quarterly basis but who desire or
25are required to change to a monthly filing basis and will be
26subject to renewal under this Section.

 

 

09800SB2169sam001- 134 -LRB098 03935 HLH 44697 a

1    The Department may in its discretion approve renewal by an
2applicant who is in default if, at the time of application for
3renewal, the applicant files all of the delinquent returns or
4pays to the Department such percentage of the defaulted amount
5as may be determined by the Department and agrees in writing to
6waive all limitations upon the Department for collection of the
7remaining defaulted amount to the Department over a period not
8to exceed 5 years from the date of renewal of the certificate;
9however, no renewal application submitted by an applicant who
10is in default shall be approved if the immediately preceding
11renewal by the applicant was conditioned upon the installment
12payment agreement described in this Section. The payment
13agreement herein provided for shall be in addition to and not
14in lieu of the security that may be required by this Section of
15a taxpayer who is no longer considered a prior continuous
16compliance taxpayer. The execution of the payment agreement as
17provided in this Act shall not toll the accrual of interest at
18the statutory rate.
19    The Department may suspend a certificate of registration if
20the Department finds that the person to whom the certificate of
21registration has been issued knowingly sold contraband
22cigarettes.
23    A certificate of registration issued under this Act more
24than 5 years before the effective date of this amendatory Act
25of 1989 shall expire and be subject to the renewal provisions
26of this Section on the next anniversary of the date of issuance

 

 

09800SB2169sam001- 135 -LRB098 03935 HLH 44697 a

1of such certificate which occurs more than 6 months after the
2effective date of this amendatory Act of 1989. A certificate of
3registration issued less than 5 years before the effective date
4of this amendatory Act of 1989 shall expire and be subject to
5the renewal provisions of this Section on the 5th anniversary
6of the issuance of the certificate.
7    If the person so registered states that he operates other
8places of business from which he engages in the business of
9selling tangible personal property at retail in this State, the
10Department shall furnish him with a sub-certificate of
11registration for each such place of business, and the applicant
12shall display the appropriate sub-certificate of registration
13at each such place of business. All sub-certificates of
14registration shall bear the same registration number as that
15appearing upon the certificate of registration to which such
16sub-certificates relate.
17    If the applicant will sell tangible personal property at
18retail through vending machines, the Department shall furnish
19him with a sub-certificate of registration for each such
20vending machine, and the applicant shall display the
21appropriate sub-certificate of registration on each such
22vending machine by attaching the sub-certificate of
23registration to a conspicuous part of such vending machine. If
24a person who is registered to sell tangible personal property
25at retail through vending machines adds an additional vending
26machine or additional vending machines to the number of vending

 

 

09800SB2169sam001- 136 -LRB098 03935 HLH 44697 a

1machines he or she uses in his or her business of selling
2tangible personal property at retail, he or she shall notify
3the Department, on a form prescribed by the Department, to
4request an additional sub-certificate or additional
5sub-certificates of registration, as applicable. With each
6such request, the applicant shall report the number of
7sub-certificates of registration he or she is requesting as
8well as the total number of vending machines from which he or
9she makes retail sales.
10    Where the same person engages in 2 or more businesses of
11selling tangible personal property at retail in this State,
12which businesses are substantially different in character or
13engaged in under different trade names or engaged in under
14other substantially dissimilar circumstances (so that it is
15more practicable, from an accounting, auditing or bookkeeping
16standpoint, for such businesses to be separately registered),
17the Department may require or permit such person (subject to
18the same requirements concerning the furnishing of security as
19those that are provided for hereinbefore in this Section as to
20each application for a certificate of registration) to apply
21for and obtain a separate certificate of registration for each
22such business or for any of such businesses, under a single
23certificate of registration supplemented by related
24sub-certificates of registration.
25    Any person who is registered under the "Retailers'
26Occupation Tax Act" as of March 8, 1963, and who, during the

 

 

09800SB2169sam001- 137 -LRB098 03935 HLH 44697 a

13-year period immediately prior to March 8, 1963, or during a
2continuous 3-year period part of which passed immediately
3before and the remainder of which passes immediately after
4March 8, 1963, has been so registered continuously and who is
5determined by the Department not to have been either delinquent
6or deficient in the payment of tax liability during that period
7under this Act or under any other State tax law or municipal or
8county tax ordinance or resolution under which the certificate
9of registration that is issued to the registrant under this Act
10will permit the registrant to engage in business without
11registering separately under such other law, ordinance or
12resolution, shall be considered to be a Prior Continuous
13Compliance taxpayer. Also any taxpayer who has, as verified by
14the Department, faithfully and continuously complied with the
15condition of his bond or other security under the provisions of
16this Act for a period of 3 consecutive years shall be
17considered to be a Prior Continuous Compliance taxpayer.
18    Every Prior Continuous Compliance taxpayer shall be exempt
19from all requirements under this Act concerning the furnishing
20of a bond or other security as a condition precedent to his
21being authorized to engage in the business of selling tangible
22personal property at retail in this State. This exemption shall
23continue for each such taxpayer until such time as he may be
24determined by the Department to be delinquent in the filing of
25any returns, or is determined by the Department (either through
26the Department's issuance of a final assessment which has

 

 

09800SB2169sam001- 138 -LRB098 03935 HLH 44697 a

1become final under the Act, or by the taxpayer's filing of a
2return which admits tax that is not paid to be due) to be
3delinquent or deficient in the paying of any tax under this Act
4or under any other State tax law or municipal or county tax
5ordinance or resolution under which the certificate of
6registration that is issued to the registrant under this Act
7will permit the registrant to engage in business without
8registering separately under such other law, ordinance or
9resolution, at which time that taxpayer shall become subject to
10all the financial responsibility requirements of this Act and,
11as a condition of being allowed to continue to engage in the
12business of selling tangible personal property at retail, may
13be required to post bond or other acceptable security with the
14Department covering liability which such taxpayer may
15thereafter incur. Any taxpayer who fails to pay an admitted or
16established liability under this Act may also be required to
17post bond or other acceptable security with this Department
18guaranteeing the payment of such admitted or established
19liability.
20    No certificate of registration shall be issued to any
21person who is in default to the State of Illinois for moneys
22due under this Act or under any other State tax law or
23municipal or county tax ordinance or resolution under which the
24certificate of registration that is issued to the applicant
25under this Act will permit the applicant to engage in business
26without registering separately under such other law, ordinance

 

 

09800SB2169sam001- 139 -LRB098 03935 HLH 44697 a

1or resolution.
2    Any person aggrieved by any decision of the Department
3under this Section may, within 20 days after notice of such
4decision, protest and request a hearing, whereupon the
5Department shall give notice to such person of the time and
6place fixed for such hearing and shall hold a hearing in
7conformity with the provisions of this Act and then issue its
8final administrative decision in the matter to such person. In
9the absence of such a protest within 20 days, the Department's
10decision shall become final without any further determination
11being made or notice given.
12    With respect to security other than bonds (upon which the
13Department may sue in the event of a forfeiture), if the
14taxpayer fails to pay, when due, any amount whose payment such
15security guarantees, the Department shall, after such
16liability is admitted by the taxpayer or established by the
17Department through the issuance of a final assessment that has
18become final under the law, convert the security which that
19taxpayer has furnished into money for the State, after first
20giving the taxpayer at least 10 days' written notice, by
21registered or certified mail, to pay the liability or forfeit
22such security to the Department. If the security consists of
23stocks or bonds or other securities which are listed on a
24public exchange, the Department shall sell such securities
25through such public exchange. If the security consists of an
26irrevocable bank letter of credit, the Department shall convert

 

 

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1the security in the manner provided for in the Uniform
2Commercial Code. If the security consists of a bank certificate
3of deposit, the Department shall convert the security into
4money by demanding and collecting the amount of such bank
5certificate of deposit from the bank which issued such
6certificate. If the security consists of a type of stocks or
7other securities which are not listed on a public exchange, the
8Department shall sell such security to the highest and best
9bidder after giving at least 10 days' notice of the date, time
10and place of the intended sale by publication in the "State
11Official Newspaper". If the Department realizes more than the
12amount of such liability from the security, plus the expenses
13incurred by the Department in converting the security into
14money, the Department shall pay such excess to the taxpayer who
15furnished such security, and the balance shall be paid into the
16State Treasury.
17    The Department shall discharge any surety and shall release
18and return any security deposited, assigned, pledged or
19otherwise provided to it by a taxpayer under this Section
20within 30 days after:
21        (1) such taxpayer becomes a Prior Continuous
22    Compliance taxpayer; or
23        (2) such taxpayer has ceased to collect receipts on
24    which he is required to remit tax to the Department, has
25    filed a final tax return, and has paid to the Department an
26    amount sufficient to discharge his remaining tax

 

 

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1    liability, as determined by the Department, under this Act
2    and under every other State tax law or municipal or county
3    tax ordinance or resolution under which the certificate of
4    registration issued under this Act permits the registrant
5    to engage in business without registering separately under
6    such other law, ordinance or resolution. The Department
7    shall make a final determination of the taxpayer's
8    outstanding tax liability as expeditiously as possible
9    after his final tax return has been filed; if the
10    Department cannot make such final determination within 45
11    days after receiving the final tax return, within such
12    period it shall so notify the taxpayer, stating its reasons
13    therefor.
14(Source: P.A. 96-1355, eff. 7-28-10; 97-335, eff. 1-1-12.)
 
15    (35 ILCS 120/3)  (from Ch. 120, par. 442)
16    Sec. 3. Except as provided in this Section, on or before
17the twentieth day of each calendar month, every person engaged
18in the business of selling tangible personal property at retail
19in this State during the preceding calendar month shall file a
20return with the Department, stating:
21        1. The name of the seller;
22        2. His residence address and the address of his
23    principal place of business and the address of the
24    principal place of business (if that is a different
25    address) from which he engages in the business of selling

 

 

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1    tangible personal property at retail in this State;
2        3. Total amount of receipts received by him during the
3    preceding calendar month or quarter, as the case may be,
4    from sales of tangible personal property, and from services
5    furnished, by him during such preceding calendar month or
6    quarter;
7        4. Total amount received by him during the preceding
8    calendar month or quarter on charge and time sales of
9    tangible personal property, and from services furnished,
10    by him prior to the month or quarter for which the return
11    is filed;
12        5. Deductions allowed by law;
13        6. Gross receipts which were received by him during the
14    preceding calendar month or quarter and upon the basis of
15    which the tax is imposed;
16        7. The amount of credit provided in Section 2d of this
17    Act;
18        8. The amount of tax due;
19        9. The signature of the taxpayer; and
20        10. Such other reasonable information as the
21    Department may require.
22    If a taxpayer fails to sign a return within 30 days after
23the proper notice and demand for signature by the Department,
24the return shall be considered valid and any amount shown to be
25due on the return shall be deemed assessed.
26    Each return shall be accompanied by the statement of

 

 

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1prepaid tax issued pursuant to Section 2e for which credit is
2claimed.
3    Prior to October 1, 2003, and on and after September 1,
42004 a retailer may accept a Manufacturer's Purchase Credit
5certification from a purchaser in satisfaction of Use Tax as
6provided in Section 3-85 of the Use Tax Act if the purchaser
7provides the appropriate documentation as required by Section
83-85 of the Use Tax Act. A Manufacturer's Purchase Credit
9certification, accepted by a retailer prior to October 1, 2003
10and on and after September 1, 2004 as provided in Section 3-85
11of the Use Tax Act, may be used by that retailer to satisfy
12Retailers' Occupation Tax liability in the amount claimed in
13the certification, not to exceed 6.25% of the receipts subject
14to tax from a qualifying purchase. A Manufacturer's Purchase
15Credit reported on any original or amended return filed under
16this Act after October 20, 2003 for reporting periods prior to
17September 1, 2004 shall be disallowed. Manufacturer's
18Purchaser Credit reported on annual returns due on or after
19January 1, 2005 will be disallowed for periods prior to
20September 1, 2004. No Manufacturer's Purchase Credit may be
21used after September 30, 2003 through August 31, 2004 to
22satisfy any tax liability imposed under this Act, including any
23audit liability.
24    The Department may require returns to be filed on a
25quarterly basis. If so required, a return for each calendar
26quarter shall be filed on or before the twentieth day of the

 

 

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

 

 

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

 

 

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1importing distributor, or manufacturer will provide the sales
2information. If the retailer is unable to receive the sales
3information by electronic means, the distributor, importing
4distributor, or manufacturer shall furnish the sales
5information by personal delivery or by mail. For purposes of
6this paragraph, the term "electronic means" includes, but is
7not limited to, the use of a secure Internet website, e-mail,
8or facsimile.
9    If a total amount of less than $1 is payable, refundable or
10creditable, such amount shall be disregarded if it is less than
1150 cents and shall be increased to $1 if it is 50 cents or more.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1995, a taxpayer who has
19an average monthly tax liability of $50,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 2000, a taxpayer who has
22an annual tax liability of $200,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. The term "annual tax liability" shall be the
25sum of the taxpayer's liabilities under this Act, and under all
26other State and local occupation and use tax laws administered

 

 

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

 

 

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

 

 

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

 

 

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1a qualifying rolling stock as provided in Section 2-5 of this
2Act, then that seller may report the transfer of all aircraft,
3watercraft, motor vehicles or trailers involved in that
4transaction to the Department on the same uniform
5invoice-transaction reporting return form. For purposes of
6this Section, "watercraft" means a Class 2, Class 3, or Class 4
7watercraft as defined in Section 3-2 of the Boat Registration
8and Safety Act, a personal watercraft, or any boat equipped
9with an inboard motor.
10    Any retailer who sells only motor vehicles, watercraft,
11aircraft, or trailers that are required to be registered with
12an agency of this State, so that all retailers' occupation tax
13liability is required to be reported, and is reported, on such
14transaction reporting returns and who is not otherwise required
15to file monthly or quarterly returns, need not file monthly or
16quarterly returns. However, those retailers shall be required
17to file returns on an annual basis.
18    The transaction reporting return, in the case of motor
19vehicles or trailers that are required to be registered with an
20agency of this State, shall be the same document as the Uniform
21Invoice referred to in Section 5-402 of The Illinois Vehicle
22Code and must show the name and address of the seller; the name
23and address of the purchaser; the amount of the selling price
24including the amount allowed by the retailer for traded-in
25property, if any; the amount allowed by the retailer for the
26traded-in tangible personal property, if any, to the extent to

 

 

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

 

 

09800SB2169sam001- 152 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 153 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 154 -LRB098 03935 HLH 44697 a

1if the tax had been remitted to the Department by the retailer.
2    Refunds made by the seller during the preceding return
3period to purchasers, on account of tangible personal property
4returned to the seller, shall be allowed as a deduction under
5subdivision 5 of his monthly or quarterly return, as the case
6may be, in case the seller had theretofore included the
7receipts from the sale of such tangible personal property in a
8return filed by him and had paid the tax imposed by this Act
9with respect to such receipts.
10    Where the seller is a corporation, the return filed on
11behalf of such corporation shall be signed by the president,
12vice-president, secretary or treasurer or by the properly
13accredited agent of such corporation.
14    Where the seller is a limited liability company, the return
15filed on behalf of the limited liability company shall be
16signed by a manager, member, or properly accredited agent of
17the limited liability company.
18    Except as provided in this Section, the retailer filing the
19return under this Section shall, at the time of filing such
20return, pay to the Department the amount of tax imposed by this
21Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
22on and after January 1, 1990, or $5 per calendar year,
23whichever is greater, which is allowed to reimburse the
24retailer for the expenses incurred in keeping records,
25preparing and filing returns, remitting the tax and supplying
26data to the Department on request. Any prepayment made pursuant

 

 

09800SB2169sam001- 155 -LRB098 03935 HLH 44697 a

1to Section 2d of this Act shall be included in the amount on
2which such 2.1% or 1.75% discount is computed. In the case of
3retailers who report and pay the tax on a transaction by
4transaction basis, as provided in this Section, such discount
5shall be taken with each such tax remittance instead of when
6such retailer files his periodic return. The Department may
7disallow the discount for retailers whose certificate of
8registration is revoked at the time the return is filed, but
9only if the Department's decision to revoke the certificate of
10registration has become final.
11    Before October 1, 2000, if the taxpayer's average monthly
12tax liability to the Department under this Act, the Use Tax
13Act, the Service Occupation Tax Act, and the Service Use Tax
14Act, excluding any liability for prepaid sales tax to be
15remitted in accordance with Section 2d of this Act, was $10,000
16or more during the preceding 4 complete calendar quarters, he
17shall file a return with the Department each month by the 20th
18day of the month next following the month during which such tax
19liability is incurred and shall make payments to the Department
20on or before the 7th, 15th, 22nd and last day of the month
21during which such liability is incurred. On and after October
221, 2000, if the taxpayer's average monthly tax liability to the
23Department under this Act, the Use Tax Act, the Service
24Occupation Tax Act, and the Service Use Tax Act, excluding any
25liability for prepaid sales tax to be remitted in accordance
26with Section 2d of this Act, was $20,000 or more during the

 

 

09800SB2169sam001- 156 -LRB098 03935 HLH 44697 a

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

 

 

09800SB2169sam001- 157 -LRB098 03935 HLH 44697 a

1amount equal to 22.5% of the taxpayer's actual liability for
2the month or 25% of the taxpayer's liability for the same
3calendar month of the preceding year. If the month during which
4such tax liability is incurred begins on or after January 1,
51989, and prior to January 1, 1996, each payment shall be in an
6amount equal to 22.5% of the taxpayer's actual liability for
7the month or 25% of the taxpayer's liability for the same
8calendar month of the preceding year or 100% of the taxpayer's
9actual liability for the quarter monthly reporting period. The
10amount of such quarter monthly payments shall be credited
11against the final tax liability of the taxpayer's return for
12that month. Before October 1, 2000, once applicable, the
13requirement of the making of quarter monthly payments to the
14Department by taxpayers having an average monthly tax liability
15of $10,000 or more as determined in the manner provided above
16shall continue until such taxpayer's average monthly liability
17to the Department during the preceding 4 complete calendar
18quarters (excluding the month of highest liability and the
19month of lowest liability) is less than $9,000, or until such
20taxpayer's average monthly liability to the Department as
21computed for each calendar quarter of the 4 preceding complete
22calendar quarter period is less than $10,000. However, if a
23taxpayer can show the Department that a substantial change in
24the taxpayer's business has occurred which causes the taxpayer
25to anticipate that his average monthly tax liability for the
26reasonably foreseeable future will fall below the $10,000

 

 

09800SB2169sam001- 158 -LRB098 03935 HLH 44697 a

1threshold stated above, then such taxpayer may petition the
2Department for a change in such taxpayer's reporting status. On
3and after October 1, 2000, once applicable, the requirement of
4the making of quarter monthly payments to the Department by
5taxpayers having an average monthly tax liability of $20,000 or
6more as determined in the manner provided above shall continue
7until such taxpayer's average monthly liability to the
8Department during the preceding 4 complete calendar quarters
9(excluding the month of highest liability and the month of
10lowest liability) is less than $19,000 or until such taxpayer's
11average monthly liability to the Department as computed for
12each calendar quarter of the 4 preceding complete calendar
13quarter period is less than $20,000. However, if a taxpayer can
14show the Department that a substantial change in the taxpayer's
15business has occurred which causes the taxpayer to anticipate
16that his average monthly tax liability for the reasonably
17foreseeable future will fall below the $20,000 threshold stated
18above, then such taxpayer may petition the Department for a
19change in such taxpayer's reporting status. The Department
20shall change such taxpayer's reporting status unless it finds
21that such change is seasonal in nature and not likely to be
22long term. If any such quarter monthly payment is not paid at
23the time or in the amount required by this Section, then the
24taxpayer shall be liable for penalties and interest on the
25difference between the minimum amount due as a payment and the
26amount of such quarter monthly payment actually and timely

 

 

09800SB2169sam001- 159 -LRB098 03935 HLH 44697 a

1paid, except insofar as the taxpayer has previously made
2payments for that month to the Department in excess of the
3minimum payments previously due as provided in this Section.
4The Department shall make reasonable rules and regulations to
5govern the quarter monthly payment amount and quarter monthly
6payment dates for taxpayers who file on other than a calendar
7monthly basis.
8    The provisions of this paragraph apply before October 1,
92001. Without regard to whether a taxpayer is required to make
10quarter monthly payments as specified above, any taxpayer who
11is required by Section 2d of this Act to collect and remit
12prepaid taxes and has collected prepaid taxes which average in
13excess of $25,000 per month during the preceding 2 complete
14calendar quarters, shall file a return with the Department as
15required by Section 2f and shall make payments to the
16Department on or before the 7th, 15th, 22nd and last day of the
17month during which such liability is incurred. If the month
18during which such tax liability is incurred began prior to the
19effective date of this amendatory Act of 1985, each payment
20shall be in an amount not less than 22.5% of the taxpayer's
21actual liability under Section 2d. If the month during which
22such tax liability is incurred begins on or after January 1,
231986, each payment shall be in an amount equal to 22.5% of the
24taxpayer's actual liability for the month or 27.5% of the
25taxpayer's liability for the same calendar month of the
26preceding calendar year. If the month during which such tax

 

 

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1liability is incurred begins on or after January 1, 1987, each
2payment shall be in an amount equal to 22.5% of the taxpayer's
3actual liability for the month or 26.25% of the taxpayer's
4liability for the same calendar month of the preceding year.
5The amount of such quarter monthly payments shall be credited
6against the final tax liability of the taxpayer's return for
7that month filed under this Section or Section 2f, as the case
8may be. Once applicable, the requirement of the making of
9quarter monthly payments to the Department pursuant to this
10paragraph shall continue until such taxpayer's average monthly
11prepaid tax collections during the preceding 2 complete
12calendar quarters is $25,000 or less. If any such quarter
13monthly payment is not paid at the time or in the amount
14required, the taxpayer shall be liable for penalties and
15interest on such difference, except insofar as the taxpayer has
16previously made payments for that month in excess of the
17minimum payments previously due.
18    The provisions of this paragraph apply on and after October
191, 2001. Without regard to whether a taxpayer is required to
20make quarter monthly payments as specified above, any taxpayer
21who is required by Section 2d of this Act to collect and remit
22prepaid taxes and has collected prepaid taxes that average in
23excess of $20,000 per month during the preceding 4 complete
24calendar quarters shall file a return with the Department as
25required by Section 2f and shall make payments to the
26Department on or before the 7th, 15th, 22nd and last day of the

 

 

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1month during which the liability is incurred. Each payment
2shall be in an amount equal to 22.5% of the taxpayer's actual
3liability for the month or 25% of the taxpayer's liability for
4the same calendar month of the preceding year. The amount of
5the quarter monthly payments shall be credited against the
6final tax liability of the taxpayer's return for that month
7filed under this Section or Section 2f, as the case may be.
8Once applicable, the requirement of the making of quarter
9monthly payments to the Department pursuant to this paragraph
10shall continue until the taxpayer's average monthly prepaid tax
11collections during the preceding 4 complete calendar quarters
12(excluding the month of highest liability and the month of
13lowest liability) is less than $19,000 or until such taxpayer's
14average monthly liability to the Department as computed for
15each calendar quarter of the 4 preceding complete calendar
16quarters is less than $20,000. If any such quarter monthly
17payment is not paid at the time or in the amount required, the
18taxpayer shall be liable for penalties and interest on such
19difference, except insofar as the taxpayer has previously made
20payments for that month in excess of the minimum payments
21previously due.
22    If any payment provided for in this Section exceeds the
23taxpayer's liabilities under this Act, the Use Tax Act, the
24Service Occupation Tax Act and the Service Use Tax Act, as
25shown on an original monthly return, the Department shall, if
26requested by the taxpayer, issue to the taxpayer a credit

 

 

09800SB2169sam001- 162 -LRB098 03935 HLH 44697 a

1memorandum no later than 30 days after the date of payment. The
2credit evidenced by such credit memorandum may be assigned by
3the taxpayer to a similar taxpayer under this Act, the Use Tax
4Act, the Service Occupation Tax Act or the Service Use Tax Act,
5in accordance with reasonable rules and regulations to be
6prescribed by the Department. If no such request is made, the
7taxpayer may credit such excess payment against tax liability
8subsequently to be remitted to the Department under this Act,
9the Use Tax Act, the Service Occupation Tax Act or the Service
10Use Tax Act, in accordance with reasonable rules and
11regulations prescribed by the Department. If the Department
12subsequently determined that all or any part of the credit
13taken was not actually due to the taxpayer, the taxpayer's 2.1%
14and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
15of the difference between the credit taken and that actually
16due, and that taxpayer shall be liable for penalties and
17interest on such difference.
18    If a retailer of motor fuel is entitled to a credit under
19Section 2d of this Act which exceeds the taxpayer's liability
20to the Department under this Act for the month which the
21taxpayer is filing a return, the Department shall issue the
22taxpayer a credit memorandum for the excess.
23    Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund, a special fund in the
25State treasury which is hereby created, the net revenue
26realized for the preceding month from the 1% tax on sales of

 

 

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1food for human consumption which is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks and food which has been prepared for immediate
4consumption) and prescription and nonprescription medicines,
5drugs, medical appliances and insulin, urine testing
6materials, syringes and needles used by diabetics.
7    Beginning January 1, 1990, each month the Department shall
8pay into the County and Mass Transit District Fund, a special
9fund in the State treasury which is hereby created, 4% of the
10net revenue realized for the preceding month from the 6.25%
11general rate.
12    Beginning August 1, 2000, each month the Department shall
13pay into the County and Mass Transit District Fund 20% of the
14net revenue realized for the preceding month from the 1.25%
15rate on the selling price of motor fuel and gasohol. Beginning
16September 1, 2010, each month the Department shall pay into the
17County and Mass Transit District Fund 20% of the net revenue
18realized for the preceding month from the 1.25% rate on the
19selling price of sales tax holiday items.
20    Beginning January 1, 1990, each month the Department shall
21pay into the Local Government Tax Fund 16% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of tangible personal property.
24    Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

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1selling price of motor fuel and gasohol. Beginning September 1,
22010, each month the Department shall pay into the Local
3Government Tax Fund 80% of the net revenue realized for the
4preceding month from the 1.25% rate on the selling price of
5sales tax holiday items.
6    Beginning October 1, 2009, each month the Department shall
7pay into the Capital Projects Fund an amount that is equal to
8an amount estimated by the Department to represent 80% of the
9net revenue realized for the preceding month from the sale of
10candy, grooming and hygiene products, and soft drinks that had
11been taxed at a rate of 1% prior to September 1, 2009 but that
12is now taxed at 6.25%.
13    Beginning July 1, 2011, each month the Department shall pay
14into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
15realized for the preceding month from the 6.25% general rate on
16the selling price of sorbents used in Illinois in the process
17of sorbent injection as used to comply with the Environmental
18Protection Act or the federal Clean Air Act, but the total
19payment into the Clean Air Act (CAA) Permit Fund under this Act
20and the Use Tax Act shall not exceed $2,000,000 in any fiscal
21year.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

 

 

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1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to this Act,
4Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
5Act, and Section 9 of the Service Occupation Tax Act, such Acts
6being hereinafter called the "Tax Acts" and such aggregate of
72.2% or 3.8%, as the case may be, of moneys being hereinafter
8called the "Tax Act Amount", and (2) the amount transferred to
9the Build Illinois Fund from the State and Local Sales Tax
10Reform Fund shall be less than the Annual Specified Amount (as
11hereinafter defined), an amount equal to the difference shall
12be immediately paid into the Build Illinois Fund from other
13moneys received by the Department pursuant to the Tax Acts; the
14"Annual Specified Amount" means the amounts specified below for
15fiscal years 1986 through 1993:
16Fiscal YearAnnual Specified Amount
171986$54,800,000
181987$76,650,000
191988$80,480,000
201989$88,510,000
211990$115,330,000
221991$145,470,000
231992$182,730,000
241993$206,520,000;
25and means the Certified Annual Debt Service Requirement (as
26defined in Section 13 of the Build Illinois Bond Act) or the

 

 

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1Tax Act Amount, whichever is greater, for fiscal year 1994 and
2each fiscal year thereafter; and further provided, that if on
3the last business day of any month the sum of (1) the Tax Act
4Amount required to be deposited into the Build Illinois Bond
5Account in the Build Illinois Fund during such month and (2)
6the amount transferred to the Build Illinois Fund from the
7State and Local Sales Tax Reform Fund shall have been less than
81/12 of the Annual Specified Amount, an amount equal to the
9difference shall be immediately paid into the Build Illinois
10Fund from other moneys received by the Department pursuant to
11the Tax Acts; and, further provided, that in no event shall the
12payments required under the preceding proviso result in
13aggregate payments into the Build Illinois Fund pursuant to
14this clause (b) for any fiscal year in excess of the greater of
15(i) the Tax Act Amount or (ii) the Annual Specified Amount for
16such fiscal year. The amounts payable into the Build Illinois
17Fund under clause (b) of the first sentence in this paragraph
18shall be payable only until such time as the aggregate amount
19on deposit under each trust indenture securing Bonds issued and
20outstanding pursuant to the Build Illinois Bond Act is
21sufficient, taking into account any future investment income,
22to fully provide, in accordance with such indenture, for the
23defeasance of or the payment of the principal of, premium, if
24any, and interest on the Bonds secured by such indenture and on
25any Bonds expected to be issued thereafter and all fees and
26costs payable with respect thereto, all as certified by the

 

 

09800SB2169sam001- 167 -LRB098 03935 HLH 44697 a

1Director of the Bureau of the Budget (now Governor's Office of
2Management and Budget). If on the last business day of any
3month in which Bonds are outstanding pursuant to the Build
4Illinois Bond Act, the aggregate of moneys deposited in the
5Build Illinois Bond Account in the Build Illinois Fund in such
6month shall be less than the amount required to be transferred
7in such month from the Build Illinois Bond Account to the Build
8Illinois Bond Retirement and Interest Fund pursuant to Section
913 of the Build Illinois Bond Act, an amount equal to such
10deficiency shall be immediately paid from other moneys received
11by the Department pursuant to the Tax Acts to the Build
12Illinois Fund; provided, however, that any amounts paid to the
13Build Illinois Fund in any fiscal year pursuant to this
14sentence shall be deemed to constitute payments pursuant to
15clause (b) of the first sentence of this paragraph and shall
16reduce the amount otherwise payable for such fiscal year
17pursuant to that clause (b). The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

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1provided under Section 8.25f of the State Finance Act, but not
2in excess of sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

 

 

09800SB2169sam001- 169 -LRB098 03935 HLH 44697 a

12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021246,000,000
132022260,000,000
142023275,000,000
152024 275,000,000
162025 275,000,000
172026 279,000,000
182027 292,000,000
192028 307,000,000
202029 322,000,000
212030 338,000,000
222031 350,000,000
232032 350,000,000
24and
25each fiscal year
26thereafter that bonds

 

 

09800SB2169sam001- 170 -LRB098 03935 HLH 44697 a

1are outstanding under
2Section 13.2 of the
3Metropolitan Pier and
4Exposition Authority Act,
5but not after fiscal year 2060.
6    Beginning July 20, 1993 and in each month of each fiscal
7year thereafter, one-eighth of the amount requested in the
8certificate of the Chairman of the Metropolitan Pier and
9Exposition Authority for that fiscal year, less the amount
10deposited into the McCormick Place Expansion Project Fund by
11the State Treasurer in the respective month under subsection
12(g) of Section 13 of the Metropolitan Pier and Exposition
13Authority Act, plus cumulative deficiencies in the deposits
14required under this Section for previous months and years,
15shall be deposited into the McCormick Place Expansion Project
16Fund, until the full amount requested for the fiscal year, but
17not in excess of the amount specified above as "Total Deposit",
18has been deposited.
19    Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993, the Department shall each
23month pay into the Illinois Tax Increment Fund 0.27% of 80% of
24the net revenue realized for the preceding month from the 6.25%
25general rate on the selling price of tangible personal
26property.

 

 

09800SB2169sam001- 171 -LRB098 03935 HLH 44697 a

1    Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a 25-year
6period, the Department shall each month pay into the Energy
7Infrastructure Fund 80% of the net revenue realized from the
86.25% general rate on the selling price of Illinois-mined coal
9that was sold to an eligible business. For purposes of this
10paragraph, the term "eligible business" means a new electric
11generating facility certified pursuant to Section 605-332 of
12the Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14    Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the State
16Treasury and 25% shall be reserved in a special account and
17used only for the transfer to the Common School Fund as part of
18the monthly transfer from the General Revenue Fund in
19accordance with Section 8a of the State Finance Act.
20    The Department may, upon separate written notice to a
21taxpayer, require the taxpayer to prepare and file with the
22Department on a form prescribed by the Department within not
23less than 60 days after receipt of the notice an annual
24information return for the tax year specified in the notice.
25Such annual return to the Department shall include a statement
26of gross receipts as shown by the retailer's last Federal

 

 

09800SB2169sam001- 172 -LRB098 03935 HLH 44697 a

1income tax return. If the total receipts of the business as
2reported in the Federal income tax return do not agree with the
3gross receipts reported to the Department of Revenue for the
4same period, the retailer shall attach to his annual return a
5schedule showing a reconciliation of the 2 amounts and the
6reasons for the difference. The retailer's annual return to the
7Department shall also disclose the cost of goods sold by the
8retailer during the year covered by such return, opening and
9closing inventories of such goods for such year, costs of goods
10used from stock or taken from stock and given away by the
11retailer during such year, payroll information of the
12retailer's business during such year and any additional
13reasonable information which the Department deems would be
14helpful in determining the accuracy of the monthly, quarterly
15or annual returns filed by such retailer as provided for in
16this Section.
17    If the annual information return required by this Section
18is not filed when and as required, the taxpayer shall be liable
19as follows:
20        (i) Until January 1, 1994, the taxpayer shall be liable
21    for a penalty equal to 1/6 of 1% of the tax due from such
22    taxpayer under this Act during the period to be covered by
23    the annual return for each month or fraction of a month
24    until such return is filed as required, the penalty to be
25    assessed and collected in the same manner as any other
26    penalty provided for in this Act.

 

 

09800SB2169sam001- 173 -LRB098 03935 HLH 44697 a

1        (ii) On and after January 1, 1994, the taxpayer shall
2    be liable for a penalty as described in Section 3-4 of the
3    Uniform Penalty and Interest Act.
4    The chief executive officer, proprietor, owner or highest
5ranking manager shall sign the annual return to certify the
6accuracy of the information contained therein. Any person who
7willfully signs the annual return containing false or
8inaccurate information shall be guilty of perjury and punished
9accordingly. The annual return form prescribed by the
10Department shall include a warning that the person signing the
11return may be liable for perjury.
12    The provisions of this Section concerning the filing of an
13annual information return do not apply to a retailer who is not
14required to file an income tax return with the United States
15Government.
16    As soon as possible after the first day of each month, upon
17certification of the Department of Revenue, the Comptroller
18shall order transferred and the Treasurer shall transfer from
19the General Revenue Fund to the Motor Fuel Tax Fund an amount
20equal to 1.7% of 80% of the net revenue realized under this Act
21for the second preceding month. Beginning April 1, 2000, this
22transfer is no longer required and shall not be made.
23    Net revenue realized for a month shall be the revenue
24collected by the State pursuant to this Act, less the amount
25paid out during that month as refunds to taxpayers for
26overpayment of liability.

 

 

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1    For greater simplicity of administration, manufacturers,
2importers and wholesalers whose products are sold at retail in
3Illinois by numerous retailers, and who wish to do so, may
4assume the responsibility for accounting and paying to the
5Department all tax accruing under this Act with respect to such
6sales, if the retailers who are affected do not make written
7objection to the Department to this arrangement.
8    Any person who promotes, organizes, provides retail
9selling space for concessionaires or other types of sellers at
10the Illinois State Fair, DuQuoin State Fair, county fairs,
11local fairs, art shows, flea markets and similar exhibitions or
12events, including any transient merchant as defined by Section
132 of the Transient Merchant Act of 1987, is required to file a
14report with the Department providing the name of the merchant's
15business, the name of the person or persons engaged in
16merchant's business, the permanent address and Illinois
17Retailers Occupation Tax Registration Number of the merchant,
18the dates and location of the event and other reasonable
19information that the Department may require. The report must be
20filed not later than the 20th day of the month next following
21the month during which the event with retail sales was held.
22Any person who fails to file a report required by this Section
23commits a business offense and is subject to a fine not to
24exceed $250.
25    Any person engaged in the business of selling tangible
26personal property at retail as a concessionaire or other type

 

 

09800SB2169sam001- 175 -LRB098 03935 HLH 44697 a

1of seller at the Illinois State Fair, county fairs, art shows,
2flea markets and similar exhibitions or events, or any
3transient merchants, as defined by Section 2 of the Transient
4Merchant Act of 1987, may be required to make a daily report of
5the amount of such sales to the Department and to make a daily
6payment of the full amount of tax due. The Department shall
7impose this requirement when it finds that there is a
8significant risk of loss of revenue to the State at such an
9exhibition or event. Such a finding shall be based on evidence
10that a substantial number of concessionaires or other sellers
11who are not residents of Illinois will be engaging in the
12business of selling tangible personal property at retail at the
13exhibition or event, or other evidence of a significant risk of
14loss of revenue to the State. The Department shall notify
15concessionaires and other sellers affected by the imposition of
16this requirement. In the absence of notification by the
17Department, the concessionaires and other sellers shall file
18their returns as otherwise required in this Section.
19(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
20eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
2197-333, eff. 8-12-11.)".